Peloton Interactive, Inc. Files 10-Q for Period Ending December 31, 2023

TL;DR

<b>Peloton Interactive, Inc. has filed its Q2 FY2024 10-Q report detailing financial performance and position as of December 31, 2023.</b>

AI Summary

PELOTON INTERACTIVE, INC. (PTON) filed a Quarterly Report (10-Q) with the SEC on February 1, 2024. Peloton Interactive, Inc. filed a 10-Q report for the period ending December 31, 2023. The filing covers the second quarter of fiscal year 2024. The company's fiscal year ends on June 30. Key financial data points such as revenue, net income, and debt levels are detailed within the report. The report includes information on common stock, convertible debt, and other financial instruments.

Why It Matters

For investors and stakeholders tracking PELOTON INTERACTIVE, INC., this filing contains several important signals. This filing provides investors with the latest financial results and operational updates for Peloton, crucial for assessing the company's current health and future prospects. Understanding the details within this 10-Q is essential for making informed investment decisions regarding Peloton Interactive, Inc. (PTON).

Risk Assessment

Risk Level: medium — PELOTON INTERACTIVE, INC. shows moderate risk based on this filing. The company operates in a competitive and evolving market, facing challenges in subscriber growth and hardware sales, which could impact future financial performance.

Analyst Insight

Investors should closely examine Peloton's revenue streams, cost management strategies, and subscriber retention metrics in this filing to gauge its path to profitability.

Revenue Breakdown

Key Numbers

• 2023-12-31 — Period End Date (Report period)
• 2024-02-01 — Filing Date (Date of filing)
• 2024 Q2 — Fiscal Quarter (Reported fiscal quarter)
• 0630 — Fiscal Year End (Company's fiscal year end)

Key Players & Entities

• PELOTON INTERACTIVE, INC. (company) — Filer name
• PTON (company) — Ticker symbol
• 10-Q (regulator) — Form type
• 20231231 (date) — Period of report
• 20240201 (date) — Filed as of date
• 2024 Q2 (period) — Fiscal quarter
• USD (currency) — Currency used in financial statements
• A0ConvertibleSeniorNotesDueFebruary152026 (financial_instrument) — Convertible debt instrument

Forward-Looking Statements

• Peloton will continue to see a decline in product sales over the next two quarters. (PELOTON INTERACTIVE, INC.) — medium confidence, target: 2024-06-30
• Subscription revenue will continue its modest growth trend. (PELOTON INTERACTIVE, INC.) — medium confidence, target: 2024-06-30

FAQ

Key Dates

• 2023-12-31: Quarter End Date — End of the reporting period for the 10-Q filing.
• 2024-02-01: Filing Date — Date the 10-Q report was officially submitted to the SEC.

Key Financial Figures

• $0.000025 — which registered Class A common stock, $0.000025 par value per share PTON The Nasdaq Sto

Filing Documents

• pton-20231231.htm (10-Q) — 1457KB
• q2fy2410-qexhibit311.htm (EX-31.1) — 10KB
• q2fy2410-qexhibit312.htm (EX-31.2) — 10KB
• q2fy2410-qexhibit321.htm (EX-32.1) — 4KB
• q2fy2410-qexhibit322.htm (EX-32.2) — 4KB
• 0001639825-24-000010.txt (&nbsp;) — 7575KB
• pton-20231231.xsd (EX-101.SCH) — 47KB
• pton-20231231_cal.xml (EX-101.CAL) — 68KB
• pton-20231231_def.xml (EX-101.DEF) — 292KB
• pton-20231231_lab.xml (EX-101.LAB) — 717KB
• pton-20231231_pre.xml (EX-101.PRE) — 479KB
• pton-20231231_htm.xml (XML) — 1044KB

Financial Information

Part I. Financial Information Item 1.

Financial Statements

Financial Statements 4 Condensed Consolidated Balance Sheets as of December 31, 2023 (unaudited) and June 30, 2023 4 Condensed Consolidated Statements of Operations and Comprehensive Loss for the Three and Six Months Ended December 31, 2023 and 2022 (unaudited) 5 Condensed Consolidated Statements of Cash Flows for the Six Months Ended December 31, 2023 and 2022 (unaudited) 5 Condensed Consolidated Statements of Stockholders' Equity (Deficit) for the Three and Six Months Ended December 31, 2023 and 2022 (unaudited) 7 Notes to Condensed Consolidated Financial Statements (unaudited) 8 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 25 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 42 Item 4.

Controls and Procedures

Controls and Procedures 42

Other Information

Part II. Other Information Item 1.

Legal Proceedings

Legal Proceedings 44 Item 1A.

Risk Factors

Risk Factors 44 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 45 Item 3. Defaults Upon Senior Securities 45 Item 4. Mine Safety Disclosures 45 Item 5. Other Information 45 Item 6. Exhibits 46

SIGNATURES

SIGNATURES 47 SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q 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 (the "Securities Act") and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). All statements contained in this Quarterly Report on Form 10-Q other than statements of historical fact, including, without limitation, statements regarding our execution of and timing of and the expected benefits from our restructuring initiatives and cost-saving measures, the cost savings and other efficiencies of expanding relationships with our third-party partners, details regarding and the timing of the launch of new products and services, our new initiatives with retailer partners and our efforts to optimize our retail store footprint, the prices of our products and services in the future, our future operating results and financial position, 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 ot

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements PELOTON INTERACTIVE, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in millions, except share and per share amounts) December 31, June 30, 2023 2023 (unaudited) ASSETS Current assets: Cash and cash equivalents $ 737.7 $ 813.9 Accounts receivable, net 141.0 97.2 Inventories, net 427.2 522.6 Prepaid expenses and other current assets 220.7 205.4 Total current assets 1,526.5 1,639.1 Property and equipment, net 398.6 444.8 Intangible assets, net 20.1 25.6 Goodwill 41.2 41.2 Restricted cash 60.4 71.6 Operating lease right-of-use assets, net 499.3 524.1 Other assets 23.2 22.7 Total assets $ 2,569.4 $ 2,769.1 LIABILITIES AND STOCKHOLDERS' DEFICIT Current liabilities: Accounts payable and accrued expenses $ 513.1 $ 478.4 Deferred revenue and customer deposits 189.2 187.3 Current portion of long-term debt and other bank borrowings 7.5 7.5 Operating lease liabilities, current 79.1 83.5 Other current liabilities 4.4 4.6 Total current liabilities 793.3 761.4 0 % Convertible Senior Notes, net 990.3 988.0 Term loan, net 691.6 690.9 Operating lease liabilities, non-current 566.3 593.8 Other non-current liabilities 27.1 30.1 Total liabilities 3,068.6 3,064.2 Commitments and contingencies (Note 8) Stockholders' deficit Common stock, $ 0.000025 par value; 2,500,000,000 and 2,500,000,000 Class A shares authorized, 346,192,530 and 338,750,774 shares issued and outstanding as of December 31, 2023 and June 30, 2023, respectively; 2,500,000,000 and 2,500,000,000 Class B shares authorized, 18,016,072 and 18,016,853 shares issued and outstanding as of December 31, 2023 and June 30, 2023, respectively. — — Additional paid-in capital 4,767.1 4,619.8 Accumulated other comprehensive income 19.5 16.8 Accumulated deficit ( 5,285.9 ) ( 4,931.8 ) Total stockholders' deficit ( 499.3 ) ( 295.1 ) Total liabilities and stockholders' deficit $ 2,569.4 $ 2,769.1 See accompanying notes to these unaudited condensed consolidated fina