• Peloton reported a USD 1.39 loss per share for Q2 FY2022, missing the consensus estimated loss per share of USD 1.10 and below the USD 0.18 positive EPS reported in Q2 FY2021. Q2 FY2022 revenue grew 6.5% YoY to USD 1.13 billion, narrowly missing the consensus revenue estimate of USD 1.15 billion. This marks a significant slowdown from the 128% YoY revenue growth recorded in Q2 FY2022, amid the strong demand owing to the Covid-19 pandemic.

• Connected fitness product revenue (70% of total revenue) declined 8.5% YoY for the quarter, due to slashed prices coupled with a decrease in connected fitness unit sales owing to the reopening of gyms amid the easing up of Covid-19 restrictions. This was despite a 66% YoY  growth in its connected fitness subscriber base to 2.7 million in Q2 FY2022. The average monthly churn rate for the quarter stood at 0.79% (up from 0.76% a year ago).

• Peloton reported an adjusted EBITDA loss of USD 266.5 million in Q2 FY2022 (vs a profit of USD 116.9 million a year ago) owing to an increase in research and development expenditure (110.5% YoY), a rise in sales and marketing expenses (97.1% YoY ), and the decline in connected fitness unit sales.  

• Revenue guidance for FY2022 was revised downward to range USD 3.7–3.8 billion (an implied decline of 6.8% YoY on average) from the previous USD 4.4–4.8 billion range, and stands below consensus of USD 4.1 billion. This can be attributed to declining demand for connected fitness equipment due to Covid-19 recovery measures and people going back to gyms.

<ul><li>Today, Peloton also revealed that it has scrapped plans to open the first Peloton manufacturing facility in Ohio. The company first announced plans to open the facility in May 2021, intending to be operational by 2023, employing 2,000+ workers. The news comes just a day after the company announced a major restructuring, laying off roughly 2,800 employees (20% of corporate jobs) and a CEO change .</ul>