Financial Data and Key Metrics Changes - The company reported Q1 results with total revenue of $586 million, exceeding guidance, driven by $426 million in subscription revenue, which was up 3% year-over-year, and $160 million in Connected Fitness products revenue, down 12% year-over-year [43][44] - GAAP operating income was $13 million, with adjusted EBITDA at $116 million, significantly above guidance [11][52] - Free cash flow for the quarter was $11 million, marking the third consecutive quarter of positive free cash flow [52][62] Business Line Data and Key Metrics Changes - The Connected Fitness subscription business had over 6 million members, with 2.9 million paid connected fitness subscribers, reflecting a net decrease of 81,000 in the quarter [12][39] - Paid app subscriptions decreased by 33,000 to 582,000, but exceeded guidance due to better-than-expected churn [41] - Connected Fitness product gross margin improved to 9.2%, up 600 basis points year-over-year, driven by a favorable product mix [46] Market Data and Key Metrics Changes - International paid connected fitness subscribers grew by 8% in Q1, with Germany outperforming internal expectations after transitioning to a third-party retail model [17][39] - The company raised prices for bike products in international markets to enhance gross margins [16] - The North American business is optimizing sales channels, including closing underperforming retail stores and testing a smaller store concept [18] Company Strategy and Development Direction - The company aims to deliver over $200 million in run rate cost savings by the end of fiscal 2025 through a cost restructuring plan [9] - Strategic investments in innovation are planned to return to top-line growth, focusing on product development, marketing strategy, and content offerings [10] - The company is prioritizing sustainable, profitable growth and improving unit economics across all products and sales channels [20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the health and wellness market, emphasizing a balanced approach to growth and profitability under the new CEO [72][74] - The company is focused on managing costs and optimizing unit economics while preparing for the holiday season with increased marketing spend [22][56] - Future growth is expected to be driven by improved engagement through software innovations and a focus on member retention [59] Other Important Information - Peter Stern will assume the role of CEO on January 1, 2025, bringing extensive experience in hardware, software, and services [7][8] - The company is exploring additional international markets for growth, with a focus on optimizing pricing and distribution strategies [100] Q&A Session Summary Question: How will the new CEO approach the balance of growth and profitability? - Management indicated that the new CEO will focus on balancing profitability and growth, with a disciplined approach to spending and a strong emphasis on innovation [71][72] Question: What is the composition of the sequential inventory growth? - The inventory growth is modest and related to seasonal buildup ahead of the holiday season, with expectations for inventory balances to decrease over the year [76][77] Question: What are the expectations for churn for the rest of the year? - Churn is expected to remain below 2% for fiscal 2025, with slight improvements anticipated in Q2 [83] Question: What steps are being taken to address the balance sheet and debt? - The company is focused on generating positive free cash flow to deleverage over time, with a disciplined investment approach [88][90] Question: How is the company targeting new customer demand? - The company is focusing on attracting more male customers and expanding its reach through targeted marketing campaigns [92][93] Question: How does physical retail fit into the go-to-market strategy? - The company is optimizing its retail presence by closing underperforming stores while exploring partnerships with third-party retailers like Costco [97][98] Question: What are the plans for further international expansion? - International expansion remains a priority, with a focus on testing different market models and ensuring localized content [99][100]

For the quarter ended September 2024, Peloton (PTON) reported revenue of $586 million, down 1.6% over the same period last year. EPS came in at $0.00, compared to -$0.44 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $574.58 million, representing a surprise of +1.99%. The company delivered an EPS surprise of +100.00%, with the consensus EPS estimate being -$0.15.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and h ...

TakeawaysShares of fitness company Peloton Interactive soared 22% in premarket trading Thursday after its first-quarter results topped analysts' estimates and it appointed Ford executive Peter Stern as its new chief executive.Peloton reported a net loss of just $1 million, an improvement of $158 million year-over-year and much narrower than expected.Stern, who currently serves as president of Ford Integrated Services and previously was an executive at Apple, will begin his new roles as CEO and president on ...

Peloton (PTON) reported break-even quarterly earnings per share versus the Zacks Consensus Estimate of a loss of $0.15. This compares to loss of $0.44 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 100%. A quarter ago, it was expected that this exercise bike and treadmill company would post a loss of $0.18 per share when it actually produced a loss of $0.08, delivering a surprise of 55.56%.Over the last four quarters, the com ...

A Peloton bike is displayed at a Dick's Sporting Goods store on May 08, 2024 in Daly City, California.Peloton is back to generating free cash flow and is edging within reach of profitability as the connected fitness company reigns in costs and looks to improve the unit economics behind its hardware, it said Thursday.  Despite the progress, Peloton is expecting to lose more members and sell less bikes and treadmills than Wall Street analysts had expected during its all-important holiday quarter. Here's how P ...

PELOTON Q1 FY2025 Shareholder Letter October 31, 2024 Dear Shareholders, Our Q1 FY25 results reflect continued progress toward Peloton's overarching financial goal of making our business sustainable and profitable for the long term. We had a strong Q1 FY25 and performed above our guidance on all of our key metrics. We're especially pleased with our bottom line results and Free Cash Flow – we're achieving our cost savings targets faster than we expected as a result of strong execution by our talented Peloton ...

NEW YORK, Oct. 31, 2024 (GLOBE NEWSWIRE) -- Peloton Interactive, Inc. (Nasdaq: PTON) has announced its financial results for first quarter fiscal 2025. Please visit the Peloton investor relations website to view the shareholder letter. Today the company will host a conference call and live audio webcast to discuss the results at 8:30 a.m. ET. Call Details:Event: Peloton First Quarter Fiscal 2025 Earnings Conference CallDate: Thursday, October 31, 2024Time: 8:30 a.m. ET Live Call Registration (link) Live Aud ...

NEW YORK, Oct. 31, 2024 (GLOBE NEWSWIRE) -- Peloton Interactive, Inc. (NASDAQ: PTON) today announced that Peter Stern, who currently serves as President of Ford Integrated Services and before that held leadership roles at Apple and Time Warner Cable, has been appointed to serve as Peloton’s CEO and President effective January 1, 2025. The Company expects to appoint Mr. Stern to the Peloton Board. Jay Hoag, Chairperson of the Peloton Board, made the following statement on behalf of his fellow directors: Pete ...

Einhorn structured the presentation as if he was an instructor giving a workout class, occasionally shouting out investors in the room. The first page of the deck was titled "15 minute 'Stock Pitch Ride'" and shows an image of Einhorn on a Peloton bike. "Facing bankruptcy can force change," he said during the pitch. "Peloton has started to right-size and cash burn has stopped. It refinanced its debt to push out maturities. And with a loyal customer base that pays $44 per month, it's a valuable subscription ...

Shares of Peloton Interactive (NASDAQ: PTON) have surged by 16% after David Einhorn, billionaire, and hedge fund manager, called the stock undervalued at Robinhood’s (NASDAQ: HOOD) investor conference on October 23.The announcement was made as the Greenlight Capital founder was riding a Peloton bike — previously, in June, the fund had disclosed a $6.8 million stake in the business.The home fitness giant’s fall from an all-time high (ATH) of $162 during the pandemic was swift and unrelenting — following mism ...