Peloton drops Bike price by $400 following Q4 earnings miss

Peloton today reported its earnings for the fiscal fourth quarter of 2021, showing slowing growth and a wider-than-expected loss. In conjunction with the earnings announcement, however, Peloton also revealed that it will cut the price of the original Peloton Bike by $400.

As CNBC reports, Peloton’s earnings for Q4 included $936.9 million, up from $607.1 million in the same quarter one year ago. The pace of growth, on the other hand, is showing signs of slowing — Peloton last quarter reported revenue that had nearly doubled year-over-year to over $1 billion.

The company also reported a higher loss than anticipated, something attributable to the recall of the Tread and Tread+. Peloton revealed a loss-per-share of $1.05, versus analyst expectations of a loss-per-share of 45 cents.

“The past year represented an inflection point for the connected fitness industry, with significant increases in awareness and demand following the onset of the Covid-19 pandemic,” Chief Executive John Foley wrote in a letter to shareholders.

Other notable data points:

  • Peloton ended the quarter 2.33 million subscribers
  • Digital subscriptions were at 874,000 at the end of quarter
  • Net monthly churn hit 0.73% during the quarter, up from 0.52%
  • Average monthly workouts per subscriber fell from 24.7 to 19.9
  • For fiscal Q1 2022, Peloton is forecasting $800 million in revenue
  • PTON stock is down ~8% after hours

Bike price drop

In addition to its earnings report, Peloton today also announced a price cut for the original Bike. The Bike, which dropped from $2,245 to $1,895 last year alongside the introduction of the Bike+, will drop another $400.

Starting today, the original Peloton Bike will be available in the US, UK, Canada, Germany, and Australia for $1,495 USD /£1350 GBP/$1895 CAD / €1495 EUR, and $2,295 AUD, respectively.

Peloton also announced new financing options help lower the monthly payments for qualified customers, plus the cost of an All-Access Membership:

  • Peloton Bike: $39 USD /month for 39 months with 0% APR
    • $64 CAD/month, £45 GBP/month, €55 EUR/month, $59 AUD
  • Peloton Bike+ : $59 USD / month for 43 months with 0% APR
    • $77 CAD/month, £54 GBP/month, €59 EUR/month, $86 AUD/month
  • Peloton Tread [available August 30 in the U.S., Canada, U.K., and fall 2021 in Germany]: $59 USD / month for 43 months with 0% APR
    • $77 CAD/month, £54 GBP/month, €59 EUR/month, $86 AUD/month

Peloton says these changes are part of its efforts to “make it easier to access its content”:

Peloton’s mission is to help people be the best version of themselves by making it easier to access world-class fitness and wellness content. Now, we’re taking another step in our commitment to making Peloton more accessible and attainable by lowering the price of the award-winning Peloton Bike.

Read the full announcement on the Peloton website here.

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