Peloton Releases Q1 23' Earnings
To quote Uncle Barry in this morning's Shareholder letter:
"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."
But then he says:
"Our results show we’re making significant progress, [improving FCF] again to negative $246 million in 1Q23, and is forecast to reach near breakeven for the second half of FY23."
Near breakeven??? And that is only for the 2nd half of 23'??? I thought the outlook was breakeven for full year 23'!!! Then he says:
"Breakeven FCF is an objective but it is not a guaranteed outcome. There are risks we will underachieve our forecast, particularly in this economic climate and given the outsized importance and uncertainty of the holiday selling season."
WHAT???
BTW...They gained 7,000 Connected Fitness subs, although, they lost 105,000 app subs.
Relative to their guidance:
Connected Fitness Subs: 2.973 (guidance: 2.966M)
Revenue: $616 ($625M)
Gross Margin: 35% (guidance: 35%)
Adjusted EBITDA: -115M (guidance: -33.4)
I got questions:
Outside of moving the goalpost on the FCF guidance, the numbers are pretty much on point to me. I'd say even better than expected. Right???
Peloton is dropping pre-market, down 16%. Is this because of the holiday outlook, because they missed revenue or because they changed their full year FCF guidance?
See the Shareholder letter at: https://investor.onepeloton.com/.../312163dd-2550-4f36...