Photo Credit: Peloton
Is Peloton quietly crawling back from its post-pandemic woes? The company has revealed a year-over-year revenue bump for calendar Q2 2024 and is eyeing the release of new digital features.
New York City-headquartered Peloton (NASDAQ: PTON) just recently unveiled its financials for April, May, and June of 2024 (the fiscal fourth quarter), when revenue grew slightly from the same period last year to hit $643.6 million.
That marks the first time since the middle of the 2022 fiscal year that revenue improved YoY, per Peloton execs, whose business has long leaned into artist partnerships and music generally. Furthermore, with its publishers licensing dust-up now a distant memory, Peloton has even ranked as one of the better-paying platforms on a per-stream basis.
Needless to say, continued licensing payments and artist tie-ups are, however, dependent on the ongoing operation of the exercise equipment manufacturer, which is in the process of selecting a new CEO. (During the calendar Q2 earnings call, Peloton higher-ups didn’t provide any concrete updates on the timing of that selection.)
Returning to the performance details associated with April through June, Peloton identified 6.4 million members at the period’s end, down just 2% or so quarterly and YoY. And modest YoY subscription-revenue growth ($431.4 million in total for the category) elevated the segment’s gross profit to $294.4 million, which in turn fueled a dramatically reduced net loss of $30.5 million.
Moreover, Peloton’s total calendar Q2 2024 subscription revenue came in at $431.4 million; costs including but not limited to music royalties finished at $137 million, according to the report.
Taken as a whole, the relatively encouraging numbers naturally raise questions about whether a material comeback is in the cards for Peloton.
Looking ahead to the new fiscal year – the calendar year ending in June of 2025, that is – the company has forecasted comparatively mild subscription and revenue decreases. Meanwhile, Peloton is teeing up a variety of fresh features, execs drove home during the earnings call.
This includes “game-inspired workouts,” which could well involve music given the 2022 partnership with Warner Music on Lanebreak. Also worth highlighting is the apparent embrace of third-party apps; saving exercisers the trouble of flipping on their televisions, Peloton earlier in August announced the integration of AMC+, Kindle e-books, and DirecTV.
When trading wrapped today, Peloton, which in late May announced a “$1.35 billion holistic refinancing,” was worth $4.90 per share. The figure represents a 1.2% boost from the prior close but is still down about 15.8% on the year.
