Q4 2024 Peloton Interactive Inc Earnings Call Transcript
Key Points
- Successful refinancing of the balance sheet, reducing debt by $200 million and extending maturities to 2029.
- Second consecutive quarter with positive free cash flow and adjusted EBITDA.
- Introduction of new content licensing arrangements with Google Fitbit and lululemon, expanding reach and delivering incremental subscription revenue.
- Continued progress in the turnaround of Precor, showing strong year-over-year revenue growth and improved gross margins.
- Launch of innovative software features like Pace Target, Half Marathon Training Program, and new social features aimed at enhancing member experience and retention.
- Net decrease of 75,000 paid Connected Fitness subscribers in Q4.
- Average net monthly paid Connected Fitness subscription churn increased to 1.9%, up 10 basis points year over year.
- Decision to cease the original bike rental program due to insufficient refurbished inventory, potentially impacting subscriber growth.
- Reduction in sales and marketing spend, which may affect subscriber acquisition and growth.
- Expectation of continued sales headwinds due to an uncertain macroeconomic environment and seasonal low hardware sales in Q1 fiscal 2025.
Good day, and welcome to Peloton's fourth-quarter fiscal year 2024 conference call. (Operator Instructions) Please be advised that today's conference is being recorded.
I would now like to hand the conference over to your speaker, Mr. James Marsh, Senior Vice President, Head of Investor Relations. Please go ahead, sir.
Thank you, operator. Good morning, and welcome to Peloton's fourth-quarter fiscal 2024 conference call. Joining today's call are Peloton Board members and Interim Co-CEOs, Karen Boone and Chris Bruzzo; as well as Chief Financial Officer, Liz Coddington.
Our comments and responses to your questions reflect management's views as of today only and will include statements related to our business that are forward-looking statements under federal securities law. Actual results may differ materially from those contained in or implied by these forward-looking statements due to risks and uncertainties associated with our business. For a discussion of the material risks and other important
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