Want more from Front Office Sports
in your search results?
New Peloton CEO Barry McCarthy said the company has big plans, but they don’t involve a sale.
The connected fitness giant had reportedly drawn interest from Amazon and Nike, who saw opportunity in Peloton’s depressed stock price. The company has lost around 77% of its value over the last 12 months.
Activist investor Blackwells Capital had pushed Peloton to oust CEO John Foley — who resigned and became executive chairman last week — and to sell the company.
- McCarthy said that Peloton could swap its $39-per-month app subscription with “an entirely different pricing structure.”
- The company ended its second fiscal quarter of 2022 with 2.8 million subscribers. Subscription revenue reached $337.5 million — 30% of the company’s revenue.
- While subscriptions have risen steadily from 886,000 over the past eight quarters, monthly workouts per subscriber plummeted from 26 in fiscal Q3 2021 to 15.5 in the most recent quarter.
Next Cycle
McCarthy said that his near-term focus will be on digital content. Peloton retained its top instructors despite eliminating 2,800 jobs, which was announced the same day Foley resigned as CEO.
The company is widely reported to be preparing for the launch of a connected rowing machine with instructor-led classes.
In December, Peloton added shadowboxing classes to its suite of offerings.
Download the FOS App
The business of sports, in your pocket.
Scan the QR code to get the app now.
