Peloton has gone from a spunky success story during the pandemic to a cautionary tale. As a public company, they are required to report their earnings to Wall Street and it’s become increasingly an epic financial disaster with every passing quarter.
Here’s the latest; In their Q4 earnings release, they reported a $1.2 billion loss, a 28% drop in revenue, and a decline in membership.
And CEO Barry McCarthy could not be more excited about this “substantial progress.” No seriously, this is good for Peloton, which gives you a glimpse of how they were performing under the reign of the former CEO John Foley.
“The naysayers will look at our Q4 financial performance and see a melting pot of declining revenue, negative gross margin, and deeper operating losses. They will say these threaten the viability of the business.”
Uh, yeah, Barry. Wall Street analysts, aka “naysayers” probably think you have a screw loose, and he probably wants nothing to do with the average shareholder that has seen their investment go in the toilet.
Unlike his predecessor, McCarthy does have a plan, and once the company bottoms out, he thinks he can get it back on track in 2023.
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