has posted a heavy quarterly loss for the first quarter, indicating that it has a lot of work to do in order to correct course. The company made a net loss of $ 757.1 million in the first three months of the year (Q3 of Peloton's 2022 fiscal year). Not only was that a worse result than expected, it's a massive decrease from the $ 8.6 million loss it posted for the same period in 2021.
Revenue dropped from $ 1.262 billion a year ago to $ 964 million. Operating expenses, meanwhile, grew by 101 percent year-over year to $ 920 million. Peloton says those represented 95.4 percent of total revenue for the quarter, compared with 36.3 percent a year earlier.
One of the company's biggest challenges has been handling its in the wake of a sales decline as more people return to office life. "We have too much [inventory] for the current run rate of the business, and that inventory has consumed an enormous amount of cash, more than we expected, which has caused us to rethink our capital structure," CEO Barry McCarthy, who , wrote in a letter to shareholders. "We believe the inventory will sell eventually, so this is primarily a cash flow timing issue, not a structural issue."
Around the time McCarthy was appointed, Peloton announced it would cut 2,800 jobs, or around 20 percent of the corporate workforce. in February that the company was an acquisition target for several suitors, with the likes of Amazon and Nike said to be interested.
Although it won't be easy for the company to get back on track, Peloton at least has a plan to turn things around. It aims to return to positive free cash flow in its 2023 fiscal year.
Last month, it to subscriptions along with price cuts for many of its connected fitness machines. There are several reasons why Peloton is banking more heavily on subscriptions. For one, subscription revenues rose by 55 percent year-over-year to $ 369.9 million. The company now has 7 million members, and McCarthy has a long-term goal of reaching 100 million. "Our users are highly engaged, and our subscriber churn rate is less than 1 percent, which is the best I’ve seen," McCarthy, a former Netflix and Spotify executive, said.
McCarthy said the pricing changes could help the company deliver "roughly $ 40 million of incremental revenue monthly." The increased cost of the All-Access plan doesn't kick in until June 1st, but McCarthy says there's only been a small increase in user attrition and the move will generate an extra $ 14 million in revenue each month if that level of churn holds.
Cutting prices on some hardware models has led to a 69 percent increase in daily unit sales too. So far, that move has increased revenue by $ 25 million per month. The company also plans to keep testing a program that will combine an All-Access subscription plan with rentals of its equipment.
McCarthy noted that Peloton is revamping its workforce as it shifts from a hardware- to a software-focused company. The recent job cuts factor into the company's plan to increase annual run-rate savings to at least $ 800 million by its 2024 fiscal year. It also signed a binding commitment letter to borrow $ 750 million in five-year term debt from JP Morgan and Goldman Sachs.
Meanwhile, Peloton says more than half a million users have tried Lanebreak, its first , on Bike and Bike+. The company expects to lean "more into gaming content in response to the success of Lanebreak."
I spent 24 hours with the iPhone 13, Pro, Max, and Mini. Here are my first impressions and key takeaways.
Mobile | Digital Trends
Google has introduced Meet for Chromecast, and it’s already started being rolled out to Chromecast devices. The new feature should be deployed to all Chromecast devices around the world by the end of the week. The Google Chromecast team announced the introduction of the new feature via Google’s support pages, explaining the news follows the […]
Come comment on this article: Google has introduced Meet for Chromecast, which is already being deployed to devices around the world
The front-facing camera has been an issue for phone manufacturers for several years now. Everyone wants a full display that goes edge-to-edge, but you have to figure out where to put camera hardware. With bigger bezels, this is no problem, but when bezels starting shrinking manufacturers tried different things. We’ve had display notches, which are […]
Come comment on this article: This insane Xiaomi patent shows a phone twisting to move cameras around
For the first time, scientists have observed signs of plasma "flowing, splashing and sloshing" in a galaxy cluster. This kind of motion has been predicted, but it was only theoretical. Now, with data on how the plasma moves, researchers hope to disco…
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Wifi cameras are one of the easiest upgrades you can make to your smart home, and they go a long way to securing your house. It’ll give you quick access to surveillance in your house, plus some intelligent motion detection and alerts if something out of the ordinary is happening. There are tons of options, […]
Come comment on this article: [Review] Anker’s EufyCam WiFi cameras are great, but rough around the edges
Very little sums up Devindra Hardawar's feelings about the Dell XPS 13 better than the first sentence of his review: It's "pretty much the best Windows ultraportable around, and you should buy it." That's a bold statement. However, the combination of…
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YouTube will exclusively bring the biggest performances from Grant Park, Chicago to millions of music fans all over the world with the official live stream of Lollapalooza 2019, August 1 to 4. Iconic music moments from artists including twenty one pilots, The Revivalists, Janelle Monae, Rüfüs Du Sol and more will also be available via the live stream within the YouTube Music app.
In addition to curated performances throughout the four-day festival, YouTube Originals is partnering with Lollapalooza to produce original creative content, including backstage moments and exclusive artist moments just before they take the stage to be featured in and around the live stream. YouTube Music will amplify the Lollapalooza experience by presenting Lollapalooza themed playlists, The Lineup and Emerging Artists, to give fans another way to find all the music they love in one place.
YouTube’s live streams bring the festival experience into the hands and homes of millions of fans around the world. There is no other platform of its kind that allows artists to connect with a global audience and share their creativity in both visual and audio formats with billions of viewers around the globe, making the world smaller and music more expansive. The 2019 Lollapalooza live stream is presented by COVERGIRL, Warner Bros. Pictures (for the film “Blinded by the Light”), and T-Mobile.
Subscribe to Lollapalooza’s YouTube Channel for up-to-date information on when your favorite artists are streaming live, and follow @youtubemusic on Instagram and Twitter for behind-the-scenes moments all weekend long. There, you can watch the latest videos and relive past moments.
The notch is easily one of the hottest topics of 2018, with tons of people on both sides of the argument. Samsung is pretty much the only manufacturer that hasn’t tried their hand at it, with almost everyone else offering some kind of phone with a notch somewhere in their lineups. Huawei is guilty of […]
Come comment on this article: Huawei might have found a way around the display notch
In the months ahead, Google Maps will be more than just turn-by-turn directions. It’ll be your one-stop virtual guide to the best places to eat and explore, anywhere in the world. Whether you’re meeting up with friends, hosting out-of-towners in your city or simply exploring someplace new, Google Maps will help you make quick decisions […]
Come comment on this article: Google Maps will soon be your guide to food and entertainment around town
Google brought 4K movie rentals and purchases to Google Play Movies late last year, but like most of Google’s brand new features, it was limited in rollout to just a few countries. In this case, only the US and Canada had access to Google’s full selection of digital 4K content. That’s apparently changing as of […]
Come comment on this article: Google Play expands 4K and HDR movies to more countries around the world
A big goal for us in 2018 is to provide greater transparency across the board to our community of creators, advertisers, and viewers. In one small step towards that commitment, today we will start rolling out notices below videos uploaded by news broadcasters that receive some level of government or public funding. Our goal is to equip users with additional information to help them better understand the sources of news content that they choose to watch on YouTube.
We’re rolling out this feature to viewers in the U.S. for now, and we don’t expect it to be perfect. Users and publishers can give us feedback through the “send feedback” form. We plan to improve and expand the feature over time.
The notice will appear below the video, but above the video’s title, and include a link to Wikipedia so viewers can learn more about the news broadcaster.
News is an important and growing vertical for us and we want to be sure to get it right, helping to grow news and support news publishers on YouTube in a responsible way. This work follows a series of changes we made throughout 2017 to better surface authoritative news content. In 2017, we launched a “Breaking News” shelf on the home page to prominently surface news after a major event and a “Top News” shelf in YouTube search results to highlight news from authoritative sources for news-related queries.
This notice on publishers receiving public or government funding, though still in its early stages, not only carries forward our work in this area through 2017, but represents one of many more steps we will take throughout 2018 to improve how we deliver news content on YouTube.
Geoff Samek, Senior Product Manager YouTube News, recently watched “The Oxford comma’s unlikely origin.”
Elton John has entertained us, moved us, and had an unparalleled career that has redefined the cultural landscape. His unforgettable hits — “Rocket Man,” “Bennie and the Jets,” “Tiny Dancer” — changed what it meant to be a singer-songwriter, catapulted him to global mega stardom, soundtracked our childhoods, and changed lives along the way. Now after more than half a century on the road, Elton announced details of his final tour, “Farewell Yellow Brick Road” via an exclusive VR180 livestream on YouTube.
Kicking off in the U.S. on September 8, 2018, the tour will consist of more than 300 shows across five continents before reaching its conclusion in 2021. Elton’s new stage production will take his fans on a musical and highly visual journey spanning a 50-year career of hits like no one has ever seen before.
The tour announcement was made at a marquee event at Gotham Hall in New York City, simultaneously transmitted to Troubadour in L.A. and YouTube Space London. And thanks to YouTube’s exclusive VR180 livestream, fans all around the world were part of the action and revisited some of the defining moments that set Elton on his unstoppable path to global superstardom.
Elton John is always up for doing things differently, using the latest technology to help him defy space and time, connecting his past and future. Last year, Elton’s YouTube-supported “The Cut” gave undiscovered talent the chance to create the first-ever official music videos for three of his iconic hits, and now his final farewell tour announcement takes experimentation to the next level – livestreaming in VR.
Check out VR360 video from the event at youtube.com/eltonjohn and additional event footage including two live performances, a Q&A with Anderson Cooper, and “Behind The Scenes” videos in VR180 tracking Elton’s journey, supported by YouTube, will be available in the coming days.
For more info on the tour, go to EltonJohn.com.
Vivien Lewit, Global Head of Artist Services at YouTube
Snapchat has (finally!) completely killed off the white frame around snaps not captured with its own camera. The app's latest version drops the border when you add Snaps from the Camera Roll to your Story — an extension of its update last year, whic…
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Piranha Games is starting to open up on what MechWarrior 5: Mercernaries will entail after a year of teasing, and it's good news if you don't always want to play alone. The robot battler should launch in December 2018 with co-op play as a central fe…
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Android O was originally announced at Google I/O this year, and it was immediately followed by several developer previews so Google could speed things up for developers and hammer out last minute issues. It’s been a few months, and now it’s time for the latest Android OS to release to the general public. According to […]
Come comment on this article: Android O set for release around August 21st
Kevin Hart. Rhett and Link. Ellen DeGeneres. Katy Perry. The Slow Mo Guys. Demi Lovato. Ludacris.
These amazing stars all have something in common: They’re starring in new shows premiering exclusively on YouTube. And since these shows are ad-supported, you—and every single one of our billion-plus viewers—can watch for free.
Bringing even more can’t-miss content to audiences globally
For years, we’ve been proud to work with creators like Casey Neistat, Jackie Aina and countless others who have turned their channels into daily destinations. And with these channels packaged within Google Preferred—our offering that allows brands to advertise on some of the most-loved and most-watched content on YouTube—brands have been able to support the videos you love, so you can enjoy for free.
These channels continue to be hugely successful. That’s why, starting in 2016, we made the decision to take YouTube to the next level. We began making premium original content for our subscription service, YouTube Red, releasing 30 series and movies in just over a year. And we kept hearing from brands they wanted to be more involved in these premium series.
Launching new ad-supported shows, exclusively on YouTube
When excited fans, brands, and creators tell us something, we listen. We’re thrilled to announce that beginning later this year, some of the biggest YouTube creators and Hollywood names will be featured in seven new series on YouTube—bringing more can’t-get-enough-of and can’t-find-anywhere-else shows to everyone, everywhere. With these new shows, brands can be a part of content that’s generating buzz around the world.
Check out the must-see lineup:
We’re excited to partner with top creators and world-class production companies to offer these new shows to audiences globally—on the platform where the world chooses to watch over a billion hours of video every day.1 People turn to YouTube to express themselves, engage with creators, and connect with the thriving communities they’re proud to be a part of.
This vibrant fan and creator community is also why brands turn to YouTube. And we’re excited that Johnson & Johnson Consumer Brands will be our first advertising partner of this new content. In addition to a major investment in our creators through Google Preferred, they’ve signed on as the exclusive sponsor of Best.Cover.Ever., helping to make the talent competition accessible to YouTube viewers.
Robert Kyncl, Chief Business Officer, YouTube, recently watched “Justin Bieber – Despacito Ft. Luis Fonsi & Daddy Yankee.”
1Source: YouTube Internal Data, Global, 2016
When spending a day golfing, the enjoyment comes from each and every swing, not from the traveling between strokes. The GolfBoard makes traveling around the green much more entertaining.
The post Ditch the cart and surf your way around the green with the GolfBoard appeared first on Digital Trends.
In a blog post published last week, Google announced that it has begun employing artificial intelligence to put Android apps into categories that, hopefully, make intuitive sense.
The post Google is using artificial intelligence to guide you around the Play Store appeared first on Digital Trends.
If you asked five people how they like to move around in virtual reality, you’ll probably receive five different answers, so we set out to see if there was a definitive future of VR locomotion we could paint: it turns out that it’s harder than it looks.
The post How should we move around in VR? Nobody has figured it out yet appeared first on Digital Trends.
Mobile World Congress is the biggest mobile tech show of the year, and it kicks off on February 21. Here’s everything you can expect to see at the show from Samsung, LG, HTC, Huawei, and other big industry players.
The post Samsung’s Galaxy S7, LG’s G5, and more are all around the corner at MWC 2016 appeared first on Digital Trends.
If parts of your home are dark even during the brightest part of the day, Lucy, a smart mirror, will redirect the light. It tilts its mirror to follow the sun and shuts itself off at night.
The post Turn off the dark with this mirror that scatters sunlight around the room appeared first on Digital Trends.