Peloton has a few problems. After Covid drove a bumper year of indoor training Peloton is hit hard by the impact of costly recalls. Of course, the effects of Covid are hopefully diminishing as our lives head toward normal.
As Garmin’s fitness-related products head toward becoming an annual 1 billion dollar outfit, Peloton posted a net loss of $313.2 million in Q4.
Big Price Cuts
The Peloton Bikes and related services seemed eye-wateringly expensive to me. It seems that Peloton agree and the price of the Peloton Bike has been lowered to $1,495 from $1,895. And that price slash follows a previous cut from the launch price of $2,245 (September 2020).
The original treadmill was $4300 and that is now $2495
Despite being ahead of 2020 performances, the latest quarterly results show a 25% drop on a quarter-on-quarter basis. That said the company still expects $5.4bn revenue for the full 2022 financial year.
Peloton’s $12.99 digital membership for live classes grew annually by over 170%, now boasting 874,000 subscribers with 114% growth (2.3million service subscribers) for users of Peloton equipment.