Peloton Files 2024 10-K: Financials and Operations Detailed

Ticker: PTON · Form: 10-K · Filed: 2024-08-22T00:00:00.000Z

Sentiment: neutral

Topics: 10-K, annual-report, financials

TL;DR

Peloton's 2024 10-K is out, showing their latest financials and business moves. Big year ahead.

AI Summary

Peloton Interactive, Inc. filed its 10-K for the fiscal year ending June 30, 2024, detailing its financial performance and business operations. The company's fiscal year 2024 saw significant financial activities and strategic adjustments. Specific revenue figures and operational details for the period are outlined within the comprehensive filing.

Why It Matters

This filing provides investors and the public with a detailed look at Peloton's financial health and strategic direction for the fiscal year 2024, impacting its stock performance and future business decisions.

Risk Assessment

Risk Level: medium — Peloton operates in a competitive market with evolving consumer preferences and faces ongoing challenges related to profitability and subscriber growth.

Key Numbers

Key Players & Entities

FAQ

What was Peloton's total revenue for the fiscal year ending June 30, 2024?

The filing does not explicitly state the total revenue figure in the provided snippet, but it indicates revenue segments for Product and Subscription & Circulation for fiscal years 2021-2024.

What are the main business segments of Peloton Interactive, Inc. as detailed in this filing?

The filing mentions 'Product' and 'SubscriptionAndCirculation' as key business segments for which financial data is reported across multiple fiscal years.

When did Peloton Interactive, Inc. change its name?

The company's name was last changed on April 16, 2015.

What is the SEC file number for Peloton Interactive, Inc.'s 10-K filing?

The SEC file number for this 10-K filing is 001-39058.

What is the primary SIC code associated with Peloton Interactive, Inc.?

The Standard Industrial Classification (SIC) code listed for Peloton Interactive, Inc. is 3949, which pertains to 'Sporting and Athletic Goods'.

Filing Stats: 4,441 words · 18 min read · ~15 pages · Grade level 15.7 · Accepted 2024-08-22 17:08:15

Key Financial Figures

Filing Documents

Business

Item 1. Business 5

Risk Factors

Item 1A. Risk Factors 11

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 38 Item 1C. Cybersecurity 38

Properties

Item 2. Properties 39

Legal Proceedings

Item 3. Legal Proceedings 40

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 40 Part II

Market for Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities 41

[Reserved]

Item 6. [Reserved] 42

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

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 43

Quantitative and Qualitative Disclosures About Market Risk

Item 7A. Quantitative and Qualitative Disclosures About Market Risk 65

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 66

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 107

Controls and Procedures

Item 9A. Controls and Procedures 108

Other Information

Item 9B. Other Information 111

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 112 Part III

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 112

Executive Compensation

Item 11. Executive Compensation 112

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 112

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 112

Principal Accountant Fees and Services

Item 14. Principal Accountant Fees and Services 112 Part IV

Exhibit and Financial Statement Schedules

Item 15. Exhibit and Financial Statement Schedules 113

Form 10-K Summary

Item 16. Form 10-K Summary 116

SIGNATURES

SIGNATURES 117 11 SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS This Annual Report on Form 10-K 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 Annual Report on Form 10-K other than statements of historical fact, including, without limitation, statements regarding our execution of and timing of and the expected benefits from our restructuring initiative 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 showroom 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

Business

Item 1. Business Overview Peloton is a leading global fitness company with a highly engaged community of over 6.4 million Members as of June 30, 2024 across the United States, United Kingdom, Canada, Germany, Australia, and Austria. A category innovator at the nexus of fitness, technology, and media, Peloton's first-of-its-kind subscription platform seamlessly combines innovative hardware, distinctive software, and exclusive content. Its world-renowned Instructors coach and motivate Members to be the best version of themselves anytime, anywhere. Founded in 2012 and headquartered in New York City, Peloton continues to scale across the markets in which it operates. We define a "Member" as any individual who has a Peloton account through a paid Connected Fitness Subscription or a paid Peloton App Subscription, and completes 1 or more workouts in the trailing 12 month period. We define a completed workout as either completing at least 50% of an Instructor-led class, Scenic ride, run, or row, or ten or more minutes of "Just Ride", "Just Run", or "Just Row" mode. We define a "Paid Connected Fitness Subscription" as a person, household, or commercial property, such as a hotel or residential building, who has paid for a subscription to a Connected Fitness Product (a Connected Fitness Subscription with a successful credit card billing or with prepaid subscription credits or waivers). "Paid App Subscriptions" include all App One and App+ subscriptions for which we are currently receiving payment. Our Products We provide 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, we offer an immersive and personalized experience. With tens-of-thousands of classes available across many fitness modalities, Members can access Peloton content via our hardware or via the Peloton App, on their phone, tablet, or TV

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