Peloton sprints towards one million connected fitness subscribers

John Foley – CEO Peloton riding one of their bikes

John Foley – CEO Peloton

Here are some of the most recent Peloton numbers (period ending March 2020 as) the business sprints towards one million paid subscribers. Peloton defines a connected subscriber as someone paying the £39/$39 to access live and on-demand classes. It defines a subscriber as currently paying and/or temporarily paused. You can see that average monthly workouts is increasing and stands at 12 classes per month. However, they now offer shorter classes which may explain some of this rise. Regardless, it is an impressive engagement measure which drives a 94% 12-month retention rate. Of course, the bike’s utility is tethered to the membership – cancel the membership and you are left with an expensive £2,000 ‘dumb’ bike. The business was forecasting nearly one million connected subscribers by the end of 2020, but that was before the COVID-19 epidemic (although equipment delivery is presently taking up to seven weeks in the US). Total revenue would then be in the region of $1.5 billion.

All quite remarkable for a business that did a Kickstarter in 2013 which raised a modest $307,000.

Source: Peloton filings.

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