Peloton Projects Loss in Subscriber Base, Looks to Partnerships To Create Consumer Relevance — Retail Bum

Peloton announced on Wednesday, August 23, 2023, that it experienced losses surpassing predictions and a decline in new quarterly subscribers.

The company attributed these outcomes to the recall of its bike seat post and the influence of seasonal trends, which includes members pausing their subscription to travel and partake in summer activities.

In the quarter, the company recorded a net loss of $241.8 million and revenue of $642.1 million, down from $678.7 million the year before.

While the outcomes did not come as a surprise, as CEO Barry McCarthy had warned in May about significant growth challenges in the fourth quarter, the company projected a decline in subscribers for the first time.

“Peloton’s FYQ4 performance is a reminder we operate a seasonal business,” said McCarthy in a statement.

With that in mind, the company concluded the quarter with a subscriber base of 3.08 million, reflecting a 4% increase compared to the previous year. However, there was a decrease of 29,000 subscribers in comparison to the last quarter. Peloton attributed this decline to a seasonal reduction in hardware sales and a churn rate that surpassed expectations.