“For the last nine months my goal has been to turn around Peloton and position it for sustained growth and scale. I thought it would take a year. We are beating that timeline.”
That’s the fitness-tech firm’s CEO Barry McCarthy talking in his introduction to Peloton’s financial results for the third quarter of 2022 (its fiscal Q1). There is some optimism here though, for the results showed some concerning signs for Peloton’s business.
It ended September with 6.7 million members, down from 6.9 million the quarter before. Meanwhile, Peloton’s quarterly revenues were down by 23% year-on-year to $616.5m, while its net losses increased by 9% to $408.5m.
Members is one metric that Peloton publishes, but another is ‘connected fitness subscriptions’ – people paying a subscription for its classes. Those were up 19% year-on-year to just under 3m, although the growth was flat quarter-on-quarter.
Investors remain to be convinced about the turnaround: Peloton’s shares fell by as much as 16% after the results were announced.
At its peak in January 2021, Peloton was valued at $49.27bn. It’s now worth $3.16bn.