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Peloton (PTON) share price is up massive this week on an earnings beat. The company has shifted their strategy to being more aware of expenditures they are making. Here’s the breakdown of which segments revenue comes from and
52% of revenues come from subscriptions (recurring) versus the sale of fitness products.
Subscription revenue continue to have excellent churn at only 1%.
Subscription revenue also comes at a way higher gross margin and will need to be the focus of the company moving forward. They’ve historically been known to spend huge amounts on their marketing budget.
Sales & Marketing is roughly 39% of operating expenses.
General & Admin is roughly 35% of operating expenses.
R&D is 14% of operating expenses.
The company also noted they would be FCF positive if they didn’t have to pay supplies (hmmm). Indeud, those pesky suppliers are up to no good.
Here’s a link to the CEO’s short chat with Jim Cramer where he sheds light on some of the details from the quarter.
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