==Peloton Interactive (PTON) reported earnings on Tue 10 May 22 (b/o)

 

Peloton misses by $1.33, reports revs in-line; guides Q4 revs below consensus 

• Reports Q3 (Mar) loss of $2.27 per share, $1.33 worse than the S&P Capital IQ Consensus of ($0.94); revenues fell 23.6% year/year to $964.3 mln vs the $969.81 mln S&P Capital IQ Consensus.
  • 7.0 mln members in Q3, up 29% yr/yr; Ending Connected Fitness Subscriptions 2.962 mln, up 42% yr/yr; Net Connected Fitness Subscription Additions 0.195 mln, down 53% yr/yr.
•  Co issues downside guidance for Q4, sees Q4 revs of $675-700 mln vs. $823.74 mln S&P Capital IQ Consensus. Sees Q4 total gross margin ~31% and Adj. EBITDA margin (18)-(16)%.
  • Our Q4 outlook reflects softer demand vs. our February forecast, partially offset by accelerated sales we've seen as a result of our recent hardware price reductions. Our Q4 ending CF subscriber forecast of approximately 2.98 million incorporates a modest negative impact from our Subscription pricing increase starting June 1. As anticipated, we have seen a small increase to cancellations due to the Connected Fitness subscription price increase announcement, but we expect the impact to moderate as we progress through FY23.