Financial Data and Key Metrics Changes - In Q2 2025, total revenues reached $104 million, reflecting a year-over-year increase of 30.6 [12][18] - Net income surged to $727.4 million compared to $2.5 million in Q2 2024, primarily due to increased other income [18] - Non-GAAP net income was $8.3 million, up from $3.2 million in the same period last year [19] Business Line Data and Key Metrics Changes - Subscription business revenue was $36.4 million, a 10.5% increase year-over-year, with subscribers reaching 6.4 million [7][13] - Live streaming and other services generated $37.6 million, marking an 85.5% year-over-year growth, driven by overseas expansion and advertising revenue from the acquisition of Hupu [8][14] - Cloud computing revenue increased to $30 million, a 13.6% rise year-over-year, attributed to recovering demand from major clients [9][14] Market Data and Key Metrics Changes - The acquisition of Hupu contributed approximately $3.2 million to total revenues in June 2025, with expectations for further contributions in upcoming quarters [24] - The overseas live streaming business alone experienced a growth rate of about 80.3% when excluding Hupu's contribution [24] Company Strategy and Development Direction - The successful acquisition of Hupu is expected to enhance community-driven content and advertising strategies, creating new growth opportunities [6][9] - The company aims to deepen its presence in international markets and improve user engagement through continuous feature enhancements [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the financial flexibility gained from the IPO of Arashi Vision Inc, which will support core business strengthening and investments in high-growth markets [10][11] - The company anticipates total revenues for 2025 to be between $116 million and $124 million, indicating a quarter-over-quarter increase of approximately 15.4% [21] Other Important Information - Research and development expenses were $18.4 million, representing 17.7% of total revenues, while sales and marketing expenses increased significantly to $21.6 million [15][16] - The company has authorized a stock repurchase plan of up to $20 million, with $6.5 million spent on buybacks as of June 2025 [20] Q&A Session Summary Question: Breakdown of live streaming and other services - The live streaming and other services revenue was $37.6 million, with Hupu contributing about $3.2 million in June, leading to an 80.3% growth rate for overseas live streaming when excluding Hupu [24] Question: Performance of main business segments - The subscription business is profitable, while live streaming and cloud computing are still in the growth stage and currently losing money [28][29]

Core Viewpoint - Peloton Interactive has experienced a significant decline in sales and stock price since the pandemic-related surge in demand, leading to ongoing challenges in its business model and financial performance [2][11]. Revenue Performance - Peloton's annual revenue peaked at $4 billion in fiscal 2021, with 78% from equipment sales and 22% from subscriptions [5]. - Revenue decreased to $3.5 billion in fiscal 2022, $2.8 billion in fiscal 2023, and further to $2.7 billion in fiscal 2024, with forecasts suggesting it will fall below $2.5 billion for fiscal 2025 [6]. - Equipment sales have dramatically declined, contributing only 33% to total revenue in fiscal 2025, while subscriptions accounted for 67% [8]. Subscriber Trends - The number of connected fitness subscribers fell to 2.88 million by the end of fiscal 2025 Q3, a 6% decline year-over-year [9]. - A new subscription service for non-equipment owners saw a decline in members to 573,000, down 15% from the previous year [10]. Cost Management and Profitability - Peloton's net loss soared by 1,390% in fiscal 2022, reaching $2.8 billion, prompting management to cut costs significantly [12][13]. - By fiscal 2024, operating expenses were halved compared to fiscal 2022, resulting in a GAAP loss of $552 million but a positive adjusted EBITDA of $3.5 million [14]. - In the first three quarters of fiscal 2025, Peloton reported a GAAP loss of $140.5 million but an adjusted EBITDA of $263 million, indicating improved financial health [15]. Market Position and Valuation - Peloton's current price-to-sales (P/S) ratio is 1, significantly lower than its peak of around 20, reflecting investor skepticism about recovery prospects [17]. - The recent increase in adjusted EBITDA is primarily due to cost-cutting measures rather than revenue growth, raising concerns about sustainability [19]. Future Outlook - For Peloton to recover, it must find ways to increase sales and drive revenue growth without incurring further losses [20].

Financial Data and Key Metrics Changes - The company reported Q1 2025 total revenues of $88.8 million, reflecting a year-over-year growth of 10.5% [7][13] - Subscription revenue increased by 7.7% year-over-year to $35.7 million, with the total number of subscribers growing by 5% to 6.04 million [7][14] - Cloud computing revenue declined by 18% year-over-year to $24.7 million due to heightened competition and pricing pressures [10][15] - Gross profit for Q1 2025 was $44.1 million, a 2.9% increase year-over-year, but the gross profit margin decreased to 49.7% from 53.3% [16] - The company reported a net loss of $0.9 million compared to a net income of $3.6 million in the same period of 2024 [19] Business Line Data and Key Metrics Changes - Subscription business revenue increased, driven by a higher number of subscribers and a greater proportion of premium subscribers [7][14] - Live streaming and other services revenue surged by 66% year-over-year to $28.4 million, primarily due to overseas audio live streaming growth [8][15] - The cloud computing segment faced challenges, leading to a significant revenue decline [10][15] Market Data and Key Metrics Changes - Overseas audio live streaming revenue increased by 79.2% year-over-year, indicating successful adaptation to international markets [9] - The company is focusing on expanding its presence in overseas regions through targeted marketing strategies [10] Company Strategy and Development Direction - The company aims to foster growth through innovation and is exploring business restructuring opportunities [11] - An acquisition of Hupu was announced to expand market presence and diversify service offerings [11] - Development of AI-driven applications is underway, leveraging large language models to broaden the product portfolio [11] Management Comments on Operating Environment and Future Outlook - Management acknowledged significant challenges in the cloud computing business due to competition and pricing pressures [10] - The company is committed to addressing these challenges and minimizing their impact on overall performance [10] - Revenue guidance for Q2 2025 is estimated to be between $91 million and $96 million, representing a quarter-over-quarter increase of approximately 5.3% [21] Other Important Information - The company had cash, cash equivalents, and short-term investments of $274.6 million as of March 31, 2025, down from $287.5 million a year earlier [20] - A new share repurchase program was authorized, with $6.5 million spent on buybacks as of March 31, 2025 [20] Q&A Session Summary Question: What AI products is the company developing? - The company is developing several AI-driven applications, including an AI-powered photo editing tool and an AI integrated toolbar solution, currently in testing [23][24]

Financial Data and Key Metrics Changes - The company reported Q1 2025 total revenues of $88.8 million, reflecting a year-over-year growth of 10.5% [6][12] - Subscription revenue increased by 7.7% year-over-year to $35.7 million, with the total number of subscribers growing by 5% to 6.04 million [6][13] - Revenue from cloud computing declined by 18% year-over-year to $24.7 million due to heightened competition and pricing pressures [9][14] - Gross profit for Q1 2025 was $44.1 million, representing a 2.9% increase year-over-year, while gross profit margin decreased to 49.7% from 53.3% [15] - The company reported a net loss of $0.9 million compared to a net income of $3.6 million in the same period of 2024 [17] Business Line Data and Key Metrics Changes - Subscription business revenue increased to $35.7 million, driven by a rise in the number of subscribers [12][13] - Live streaming and other services revenue surged by 66% year-over-year to $28.4 million, primarily due to overseas audio live streaming growth [7][14] - Cloud computing revenue faced a significant decline, attributed to reduced sales and increased competition [9][14] Market Data and Key Metrics Changes - The overseas audio live streaming revenue increased by 79.2% year-over-year, indicating successful adaptation to international markets [7][8] - The company has intensified its focus on overseas markets, customizing services to align with regional preferences [8] Company Strategy and Development Direction - The company aims to foster growth through innovation and is exploring business restructuring opportunities [10] - An acquisition of Hupu was announced to expand market presence and diversify service offerings [10] - Development of AI-driven applications is underway, leveraging large language models to broaden the product portfolio [10][21] Management Comments on Operating Environment and Future Outlook - Management acknowledged challenges in the cloud computing sector due to competition and pricing pressures [9] - The company anticipates a pivotal year in 2025, focusing on enhancing user value and generating sustainable long-term value for shareholders [11] Other Important Information - As of March 31, 2025, the company had cash and short-term investments of $274.6 million, a decrease from $287.5 million a year earlier [18] - The company has authorized a share repurchase plan of up to $20 million, with $6.5 million spent on buybacks as of March 31, 2025 [18] Q&A Session Summary Question: What AI products is the company developing? - The company is developing several AI-driven applications, including an AI-powered photo editing tool and an AI-integrated toolbar solution, currently in testing [21][22]

Financial Data and Key Metrics Changes - In Q4 2024, total revenues were $84.3 million, representing a 9.3% year-over-year increase [22] - Subscription revenues were $34.4 million, a 9% year-over-year increase, with total subscribers reaching 6.38 million [23] - Cloud computing revenues fell 25.6% year-over-year to $22.7 million due to increased competition and pricing pressure [24] - Live-streaming and IVAS revenues increased by 80.7% year-over-year to $27.2 million, driven by overseas audio live-streaming growth [24] - Operating loss was $20.5 million compared to a loss of $0.7 million in Q4 2023, primarily due to a goodwill impairment of $20.7 million [31][27] - Net loss was $9.9 million compared to net income of $3.7 million in the same period of 2023 [31] Business Line Data and Key Metrics Changes - Subscription business remains a core growth driver, with a 9% increase in revenue and a significant rise in premium subscribers [12][23] - Cloud computing revenue decline of 25.6% year-over-year reflects challenges in the sector [14][24] - Live-streaming and IVAS business saw an 80.7% revenue increase, attributed to strategic shifts towards emerging markets [16][24] Market Data and Key Metrics Changes - The cloud computing sector is facing heightened competition and pricing pressures, impacting revenue growth [15] - The company is pivoting towards emerging regions such as Southeast Asia and EMEA for its live-streaming business [16] Company Strategy and Development Direction - The company plans to continue implementing growth initiatives and explore corporate restructuring to enhance focus and dynamism [18] - The acquisition of Hupu is expected to unlock significant cross-platform synergies and enhance user engagement [19] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in the cloud computing business due to external pressures and is exploring options to mitigate impacts [15] - The company is optimistic about future growth, particularly in the subscription and live-streaming segments [13][19] Other Important Information - The company recorded a goodwill impairment of $20.7 million due to a significant decline in cloud computing revenue [27][40] - Cash, cash equivalents, and short-term investments increased to $287.5 million as of December 31, 2024 [33][42] Q&A Session Summary Question: What is the company's plan following the IPO? - Management stated it is too early to address the question as the IPO has not been completed yet, but expressed confidence in future success [46][47] Question: What is the business model of Hupu and its financial conditions? - Hupu is a sports blog providing comprehensive sports coverage, primarily generating revenue from advertising. The deal is expected to be earnings accretive after closing [48][50]