Peloton's Q4 Highlights: 28% Decline In Revenue, Focus On Restructuring, Inventory Reduction & More

Peloton Interactive, Inc. PTON reported a fourth-quarter FY22 sales decline of 28% year-on-year to $678.70 million, missing the consensus of $722.19 million.
The total number of members in the quarter grew 15% Y/Y to 6.9 million.
Ending connected fitness subscription additions rose 27% Y/Y to 2.96 million, and Ending App subscriptions climbed 12% to 0.98 million.
Average net monthly connected fitness churn was 1.41% versus 0.73% a year ago.
Gross loss for the quarter was $(29.8) million. The operating expenses jumped 111% to $1.2 billion.
Adjusted EBITDA loss for the quarter was $(288.7) million.
The company held $1.3 billion in cash and equivalents as of June 30, 2022.
EPS loss was $(3.68) versus a $(1.05) loss a year ago.
PTON said it had achieved its goals of reducing inventory commitments and outsourcing all manufacturing for connected fitness hardware. The company has shut down its owned manufacturing activities in Taiwan.
Subsequently, in early August, PTON simplified its Supply Chain and Member Support organizations, resulting in a downsizing of its employee base by roughly 760 team members.
Yesterday, PTON announced first generation Bikes, Guide, select apparel, and accessories are for sale on Amazon.Com, Inc. AMZN amazon.com in the U.S.
Related: Peloton Stock Pops On Amazon Deal: What's Going On?
The company expects the market for connected fitness to remain challenging for the foreseeable future in FY23.
Outlook: Peloton sees Q1 FY23 revenue of $625 million - $650 million, widely missing the consensus of $783.28 million.
The company expects Q1 adjusted EBITDA loss of $(115) million - $(90) million.
The company's Q1 outlook reflects near-term demand weakness associated with recent hardware price increases and typical seasonal demand softness.
Price Action: PTON shares are trading lower by 20.56% at $10.71 on the last check Thursday.

Market News and Data brought to you by Benzinga APIs

Comments

Earnings Calendar

Never Miss Important Catalysts

Popular Channels

Tools & Features

Partners & Contributors

About Benzinga