Peloton's numbers show that rising prices and cutting staff can help slow their losses, but the business is still shrinking.
Peloton made slightly more money from both business segments—subscribers and hardware sales—than in the same quarter last year, but the revenue growth masks their shrinking market. Subscriptions are down. Churn in their app space is easy, as the users aren't invested and are likely their most profitable segment of subscribers. Aftermarket bikes abound for 75% less than buying from Peloton, and after digging into their business enough, the company has announced a fee for the activation of used hardware.
"We achieved modest Y/Y revenue growth in Q4 for the first time since Q2 FY22", the company said.
The subscription segment delivered $431 million of revenue, up 2.3%, while the connected fitness segment revenue fell 4% to $212.1 million.
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The company ended the quarter with 6.4 million members, down 2% year over year. Paid connected fitness subscriptions also fell 1% to 2.981 million.
The maker of exercise bicycles and treadmills reported an adjusted EBITDA of $70.3 million, a turnaround from a loss of $(34.7) million a year ago.
"We delivered positive Adjusted EBITDA and Free Cash Flow for the second consecutive quarter, something we haven't accomplished since Q2 FY21," the company added. Paid App Subscriptions reached 615,000, down 26% year-over-year.
The average net monthly paid connected fitness subscription churn stood at 1.9%, and the average monthly paid app subscription churn was 8.4%.
Yahoo
Previously:
• As the company founders, used Pelotons flood the LA market
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