Peloton reported $559.2 million in revenue for the quarter ended 30 September, up 2% from a year earlier. Subscription revenue grew 3% and connected fitness product revenue fell 3%. Yet at the end of the quarter Peloton had 2.475 million paid connected fitness subscriptions, down 9% year on year. Its 5 November release also showed that paid app subscriptions ended the quarter 10% lower. Peloton quarterly results
Revenue records what the business earned throughout a period. The ending subscription count is a snapshot. Peloton excludes paused subscriptions from that snapshot, and its churn measure counts pauses as losses when billing stops while crediting resumptions and reactivations. Average monthly connected fitness churn improved from 2.2% in the June quarter to 1.7% in the September quarter, but it was 1.6% in the comparable quarter a year earlier. The choice of comparison changes what the trend looks like. Peloton results and user metric definitions
For WCRC’s Powerful Brands analysis, the useful question is whether the offer keeps people paying after the initial purchase. A stronger test would follow hardware buyers through the first year, record how many pause, and see how many return to paid membership. That would help distinguish the economics of serving existing subscribers from the task of replacing members who leave. WCRC Powerful Brands methodology · WCRC on T-Mobile retention
Holiday sales will give Peloton another chance to bring people in. The more revealing evidence will come after those buyers have had several months to decide whether to keep paying.