Peloton CEO and president Barry McCarthy began his shareholder letter by noting “significant progress” in the company’s comeback despite its losses.
The connected fitness company reported a 28% year-over-year decline in Q4 revenue to $678.7 million, falling short of estimates of $718.2 million.
- Revenue from the company’s connected fitness products fell 55% year-over-year to $295.6 million. The segment includes contributions from Precor, which Peloton acquired for $420 million last year.
- Subscription revenue increased 36% to $383.1 million. Peloton ended the quarter with 2.97 million connected fitness subscriptions.
Peloton’s net loss reached $1.24 billion, more than three times the $313.2 million net loss posted during the same period last year.
Peloton posted an operating loss of $1.2 billion, with $415 million related to restructuring charges. The company announced 2,800 job cuts and an $800 million restructuring plan in February. Earlier this month, it revealed another 784 jobs would be eliminated, as well as a reduction in the number of store locations.
Peloton’s Comeback
In Q4, Peloton released its first connected strength offering, the Peloton Guide, and expects to launch a connected rowing machine by the “holiday season.”
On Wednesday, it announced Amazon would begin selling select products, marking Peloton’s first time teaming up with another retailer.
Earlier this month, Peloton increased prices for its Bike+ and Tread.
Peloton expects first-quarter revenue between $625 million and $650 million, with subscribers staying flat. The company did not provide a financial outlook for FY2023.
