Peloton Plummets 20% To New Record Low As Capital Dwindles, Guidance Disappoints
Just days after word broke that Peloton was shopping around to find a new minority investor (maybe a PE or pension fund, perhaps?) to help recapitalize the company as it scrambles to pivot and revive its business, the company reported an earnings report that was any but encouraging.
First of all, the company’s Q3 results were disappointing: its revenue of $964.3 million marked a -24% y/y drop, and also missed estimates of $971.6 million (although there was one important bright spot – connected fitness subscribers climbed to 2.96 million, a +42% y/y jump that beat estimates for just 2.9 million).
PTON reported another larger-than-expected loss, posting a $194 million adjusted Ebitda loss vs. a slight adjusted quarterly profit of $63.2 million y/y. Analysts had estimated a loss $132.1 million.
But it was the guidance that really made investors nervous, particularly the projected numbers for next quarter (numbers courtesy of BBG):
- Sees revenue $675 million to $700 million, estimate $820.9 million (Bloomberg Consensus)
- Sees adjusted Ebitda loss $115 million to $120 million, estimate loss $19.9 million
- Sees connected fitness subscribers 2.98 million, estimate 3 million
- 4Q outlook reflects softer demand vs. February forecast, partially offset by accelerated sales seen as a result of recent hardware price reductions
- CF subscriber forecast of about 2.98m incorporates a modest negative impact from subscription pricing increase starting June 1
- Seen small increase to cancellations due to the Connected Fitness subscription price increase announcement; expect impact to moderate through FY23
- Expects overall gross margin of about 31%; CF margin will be significantly impacted by recent pricing changes and continued headwinds in freight, storage, and logistics due to the reduction in our demand outlook
- Co. expect headwinds in freight to largely abate in FY23 and storage costs to come down as we move through FY23, resulting in positive CF margin profile next year
- Expects FCF to be meaningfully better in 4Q vs. 3Q
The company’s stock tumbled 20% in premarket trade as its Q4 revenue guidance disappointed, while the company also signed a binding commitment letter with JP Morgan and Goldman to borrow $750 million in 5-year term debt.
Also one twitter user pointed out the following detail from the company’s filing, and joked that that management sounded more than a little out-of-touch.
Peloton is beginning to sound like a Herbalife distributor pic.twitter.com/y3V1uK3Rqa
— Newsquawk (@Newsquawk) May 10, 2022
- UK Summons Chinese Ambassador Over Beating Of BBC Journalist December 2, 2022
- November Payrolls Preview: A Miss Will Be Good For Stocks But A Huge Miss Means Recession December 2, 2022
- America To Unveil World’s First Sixth-Generation Bomber Friday December 1, 2022
- Why Is Booz Allen Renting Us Back Our Own National Parks? December 1, 2022
- Congress Adds $45 Billion To 2023 Military Budget December 1, 2022
- San Francisco Approves Lethal Police Robots After ‘Unhinged’ Board Of Supervisors Hearing December 1, 2022
- White House “Isn’t Taking A Side” On Cause Of Anti-Lockdown Protests In China December 1, 2022
- Lava Flows From Mauna Loa Volcano Could Reach Major Hawaii Highway “In Days” December 1, 2022
- This Is Of Course Insane December 1, 2022
- Here Are The Best And Worst Performing Assets In November And YTD December 1, 2022
- Railroaders Say Morale, Quality-Of-Life At All-Time Low December 1, 2022
- GOP Senators Say They Will Block Military Funding Unless Vaccine Mandate Scrapped December 1, 2022
- Court Rejects Joe Biden Push to Remove Block on Student Debt Transfer Program December 1, 2022
- Continuing Jobless Claims Hit 10-Month Highs As Layoffs Exploded In November December 1, 2022
- Schiff: Fed Soft Pivot In Play; Markets Ignore Powell’s Hawkish Talk December 1, 2022
- Fed’s Favorite Inflation Signal Dips (Holds Near 40 Year Highs) As Savings Rate Crashed December 1, 2022
- EU Threatens to Ban Twitter Over Elon Musk’s Free Speech Plans December 1, 2022
- Biden Admin Pledges $53 Million To Help Restore Ukraine’s Damaged Power Grid December 1, 2022
- EU Threatens Musk With Twitter Ban Over Content Moderation December 1, 2022
- ‘Operation Pelican’: Details Of UK’s Secret Op To Seize Assange Revealed December 1, 2022
- Not Acxiom (unverified) - 51,730,831 breached accounts November 22, 2022In 2020, a corpus of data containing almost a quarter of a billion records spanning over 400 different fields was misattributed to database marketing company Acxiom and subsequently circulated within the hacking community. On review, Acxiom concluded that "the claims are indeed false and that the data, which has been readily available across multiple environments, […]
- GGCorp - 2,376,330 breached accounts November 8, 2022In August 2022, the MMORPG website GGCorp suffered a data breach that exposed almost 2.4M unique email addresses. The data also included IP addresses, usernames and MD5 password hashes.
- Lolzteam - 398,011 breached accounts November 6, 2022In May 2018, the Russian hacking forum Lolzteam suffered a data breach that exposed 400k members. The impacted data included usernames and email addresses which were later redistributed via another hacking forum. The data was provided to HIBP by a source who requested it be attributed to "ZAN @ BF".
- Doomworld - 34,478 breached accounts October 24, 2022In October 2022, the Doomworld fourm suffered a data breach that exposed 34k member records. The data included email and IP addresses, usernames and bcrypt password hashes.
- E-Pal - 108,887 breached accounts October 24, 2022In October 2022, the service dedicated to finding friends on Discord known as E-Pal disclosed a data breach. The compromised data included over 100k unique email addresses and usernames spanning approximately 1M orders. The data was subsequently distributed via a popular hacking forum.
- Wakanim - 6,706,951 breached accounts October 6, 2022In August 2022, the European streaming service Wakanim suffered a data breach which was subsequently advertised and sold on a popular hacking forum. The breach exposed 6.7M customer records including email, IP and physical addresses, names and usernames.
- Bhinneka - 1,274,340 breached accounts October 6, 2022In early 2020, the Indonesian consumer electronics website Bhinneka suffered a data breach that exposed almost 1.3M customer records. The data included email and physical addresses, names, genders, dates of birth, phone numbers and salted password hashes.
- TAP Air Portugal - 5,067,990 breached accounts September 23, 2022In August 2022, the Portuguese airline TAP Air Portugal was the target of a ransomware attack perpetrated by the Ragnar Locker gang who later leaked the compromised data via a public dark web site. Over 5M unique email addresses were exposed alongside other personal data including names, genders, DoBs, phone numbers and physical addresses.
- Brand New Tube - 349,627 breached accounts September 8, 2022In August 2022, the streaming website Brand New Tube suffered a data breach that exposed the personal information of almost 350k subscribers. The impacted data included email and IP addresses, usernames, genders, passwords stored as unsalted SHA-1 hashes and private messages.
- START - 7,455,386 breached accounts August 30, 2022In August 2022, news broke of an attack against the Russian streaming service "START". The incident led to the exposure of 44M records containing 7.4M unique email addresses. The impacted data also included the subscriber's country and password hash. START subsequently acknowledged the incident in a Telegram post and stated that the data dated back […]