PTON Earnings Prediction
The chart below shows how PTON performed 10 days before and after its earnings report, based on data from the past quarters. Typically, PTON sees a -3.21% change in stock price 10 days leading up to the earnings, and a +3.60% change 10 days following the report. On the earnings day itself, the stock moves by +5.97%. This data can give you a slight idea of what to expect for the next quarter's release.
PTON Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
743.60M
-6.19%
24.87%
Gross Margin
40.26%
35.74%
-16.00%
Operating Margin
-22.24%
-30.35%
52.22%
Net Margin
-26.21%
-38.05%
-2.02%
EPS
-0.54
-44.90%
22.73%
No Data Available
PTON Earnings Analysis
Peloton Interactive Inc Corporation (PTON.O) Earnings Conference Call
Positive
Workout Participation Metrics: Over 2,000,000 unique members completed strength training, boot camp, Pilates, or yoga workouts in Q2, driving 735 million minutes of workout time, which equaled 75% of total cycling workouts.
Connected Fitness Margin Improvement: Connected Fitness products gross margin reached 12.9%, marking the first time in over three years that it achieved double digits, driven by a favorable mix of premium-priced products and disciplined discounting.
EBITDA Growth Exceeds Expectations: Adjusted EBITDA increased by $140 million year over year, reaching $58 million in Q2, significantly exceeding the high end of guidance by $28 million.
Free Cash Flow Improvement: Free cash flow improved to $106 million in Q2, representing a $143 million increase year over year and marking the fourth consecutive quarter of positive free cash flow.
Debt Reduction Progress: Net debt decreased by over $280 million or 30% year over year, reflecting progress in deleveraging the balance sheet and improving financial stability.
Negative
Decline in Fitness Subscriptions: Paid Connected Fitness subscriptions decreased by 21,000 in Q2, reflecting a concerning trend in customer retention despite favorable net churn.
Connected Fitness Revenue Decline: Total revenue was $674 million, which included a $66 million or 21% year-over-year decline in Connected Fitness products revenue, indicating a significant drop in hardware sales.
Subscription Revenue Decline: Subscription revenue decreased by $4 million or 1% year-over-year, suggesting stagnation in recurring revenue growth despite an increase in paid subscriptions.
Retail Sales Performance Issues: Third-party retail sales were lower than expected, attributed to reduced promotional discounts on the original bike, which may hinder customer acquisition efforts.
Subscription Churn Rate Increase: The average net monthly paid Connected Fitness subscription churn rate increased by 20 basis points year-over-year, indicating potential challenges in maintaining customer loyalty.
PTON FAQs
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PTON Earning Call Sentiment
Earnings call transcript: Peloton Q2 2024 sees 28% stock surge despite EPS miss
PTON.O
-4.26%Positive
The earnings call reflects strong financial performance with improved gross margins, reduced expenses, and increased free cash flow. The company raised its adjusted EBITDA and free cash flow guidance, indicating optimism about profitability. Despite some unclear responses in the Q&A, management's focus on cost savings and profitability is reassuring. The market cap suggests a moderate reaction, leading to a positive prediction for stock price movement.
