Company to Continue Investment in Hardware,
Software and Content Innovation, Improvements to Member Support
Experience, and Marketing Optimization to Scale the
Business
Expects to Reduce Annual Run-Rate Expenses by
More than $200 Million by End of
Fiscal 2025
Q3 Fiscal Year 2024 Earnings Call Today at
8:30 am ET
NEW
YORK, May 2, 2024 /PRNewswire/ -- Peloton
Interactive, Inc. (NASDAQ: PTON) today announced comprehensive
restructuring efforts to align the company's cost structure with
the current size of its business. This restructuring will position
Peloton for sustained, positive free cash flow, while enabling the
company to continue to invest in software, hardware and content
innovation, improvements to its member support experience, and
optimizations to marketing efforts to scale the business. Upon full
implementation, the company expects the plan to result in reduced
annual run-rate expenses by more than $200
million by the end of its 2025 fiscal year.
Specifically, Peloton expects to:
- Reduce global headcount by approximately 15%, which impacts
roughly 400 Peloton team members.
- Continue reducing its retail showroom footprint.
- Reimagine the company's international go-to-market approach to
be more targeted and efficient, leveraging global strategies and
capabilities – with localized execution – to allow the business to
optimize and consolidate resources.
Third Quarter Fiscal 2024 Conference Call and
Webcast
Peloton's financial results for third quarter
2024 will take place today, May 2,
2024 at 8:30 am (Eastern Time)
before the US stock market opens. The company will host a
conference call and live audio webcast. In advance of the earnings
call, please visit the Peloton investor relations website –
https://investor.onepeloton.com/financial-information/quarterly-results
– to view the third quarter shareholder letter.
To access the call by phone, participants can
visit this phone link for registration, to be provided with
dial in details. To avoid delays, participants are encouraged to
register a minimum of 15 minutes before the start of the call.
A live webcast of the conference call will also
be available on the company's investor relations website at
https://investor.onepeloton.com/news-and-events/events. For those
unable to participate in the conference call, a replay will be
available on the investor relations page of the company's website
for 30 days.
Forward-Looking Statements
This press release contains forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. We intend such forward-looking statements to be
covered by the safe harbor provisions for forward-looking
statements contained in Section 27A of the Securities Act of 1933,
as amended and Section 21E of the Securities Exchange Act of 1934,
as amended. All statements contained in this press release other
than statements of historical fact, including, without limitation,
statements regarding our expectations regarding our ability to
implement, execute, complete, or realize the benefits of our
restructuring initiatives on the timeline we expect; our
expectations with respect to our expected cash and non-cash
charges, annual run-rate cost savings and the reduction of our
planned capital expenditures; our plans with respect to our real
estate footprint; our plans for and impact of the workforce
reduction; our international operations; our ability to and the
impact of reorganizing Peloton's international, research and
development, and marketing teams; our future operating results and
financial position; our profitability; our business strategy and
plans; market growth; and our objectives for future operations, are
forward-looking statements. The words "believe," "may," "will,"
"estimate," "potential," "continue," "anticipate," "intend,"
"expect," "could," "would," "project," "plan," "target," and
similar expressions are intended to identify forward-looking
statements, though not all forward-looking statements use these
words or expressions.
We have based these forward-looking statements on
our current expectations and projections about future events and
trends that we believe may affect our financial condition, results
of operations, business strategy, short-term and long-term business
operations and objectives, and financial needs. These
forward-looking statements are subject to a number of risks,
uncertainties, and assumptions and other important factors that
could cause actual results to differ materially from those stated,
including, without limitation: our ability to achieve and maintain
future profitability; our ability to attract and maintain
Subscribers; our ability to accurately forecast consumer demand for
our products and services and adequately maintain our inventory;
our ability to execute and achieve the expected benefits of our
restructuring initiatives and other cost-saving measures and
whether our efforts will result in further actions or additional
asset impairment charges that adversely affect our business; our
ability to effectively manage our growth and costs; our ability to
anticipate consumer preferences and successfully develop and offer
new products and services in a timely manner, or effectively manage
the introduction of new or enhanced products and services; demand
for our products and services and growth of the Connected Fitness
Products market; our ability to maintain the value and reputation
of the Peloton brand; our reliance on a limited number of
suppliers, contract manufacturers, and logistics partners for our
Connected Fitness Products; our lack of control over suppliers,
contract manufacturers and logistics partners for our Connected
Fitness Products; our ability to predict our long-term performance
and declines in our revenue growth as our business matures; the
effects of increased competition in our markets and our ability to
compete effectively; any declines in sales of our Bike and Bike+;
our dependence on third-party licenses for use of music in our
content; actual or perceived defects in, or safety of, our
products, including any impact of product recalls or legal or
regulatory claims, proceedings or investigations involving our
products; increases in component costs, long lead times, supply
shortages or other supply chain disruptions; accidents, safety
incidents or workforce disruptions; seasonality or other
fluctuations in our quarterly results; our ability to generate
class content; risks related to acquisitions or dispositions,
including the acquisition of Precor; risks related to expansion
into international markets; disruptions or failures of information
technology systems, or websites; risks related to payment
processing, cybersecurity, or data privacy; risks related to the
Peloton App and its ability to work with a range of mobile and
streaming technologies, systems, networks, and standards; our
ability to effectively price and market our Connected Fitness
Products and subscriptions and our limited operating history with
which to predict the profitability of our subscription model; any
inaccuracies in, or failure to achieve, operational and business
metrics or forecasts of market growth; our ability to maintain
effective internal control over financial and management systems
and remediate material weaknesses; impacts from warranty claims or
product returns; our ability to maintain, protect, and enhance our
intellectual property; our ability to stay in compliance with laws
and regulations that currently apply or become applicable to our
business both in the United States
and internationally; our reliance on third parties for computing,
storage, processing and similar services and delivery and
installation of our products; our ability to attract and retain
highly skilled personnel and maintain our culture; risks related to
our common stock and indebtedness; and those risks and
uncertainties described in the sections titled "Management's
Discussion and Analysis of Financial Condition and Results of
Operations" in Part I, Item 2 of our Quarterly Report on Form
10-Q for the quarterly period ended December
31, 2023 and the sections titled "Risk Factors" in Part I,
Item 1A and "Management's Discussion and Analysis of Financial
Condition and Results of Operations" in Part II, Item 7 in our
Annual Report on Form 10-K for the fiscal year ended June 30, 2023, as such factors may be updated in
our filings with the Securities and Exchange Commission (the
"SEC"), which are available on the Investor Relations page of our
website at https://investor.onepeloton.com/investor-relations and
on the SEC website at www.sec.gov.
You should not rely upon forward-looking statements as
predictions of future events. The events and circumstances
reflected in the forward-looking statements may not be achieved or
occur. Although we believe that the expectations reflected in the
forward-looking statements are reasonable, we cannot guarantee
future results, performance, or achievements. Our forward-looking
statements speak only as of the date of this shareholder letter,
and we undertake no obligation to update any of these
forward-looking statements for any reason after the date of this
shareholder letter or to conform these statements to actual results
or revised expectations, except as required by law.
About Peloton
Peloton (NASDAQ: PTON), provides Members with
expert instruction, and world class content to create impactful and
entertaining workout experiences for anyone, anywhere and at any
stage in their fitness journey. At home, outdoors, traveling, or at
the gym, Peloton brings together immersive classes, cutting-edge
technology and hardware, and the Peloton App with multiple tiers to
personalize the Peloton experience [with or without equipment].
Founded in 2012 and headquartered in New
York City, Peloton has millions of Members across the US,
UK, Canada, Germany, Australia, and Austria. For more information, visit
www.onepeloton.com.
Investor Relations Contact:
James Marsh
investor@onepeloton.com
Press Contact:
Letena Lindsay
press@onepeloton.com
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SOURCE Peloton