Company Overview - Peloton

Goals

To provide details on the history, business model, sales, operating profit, segment sales, segment operating profit, competitors, competitive advantage, and reasons for the growth of Peloton for a potential investment.

Early Findings

OVERVIEW

  • Peloton was founded in 2012 in Silicon Alley with an aim to develop a new concept in fitness that fits everyone's schedule and makes at-home workouts an effective and engaging experience.
  • The company was incorporated in Wilmington, Delaware in 2015 and is headquartered in New York.
  • An historical price lookup of the company's stock can be found here.
  • An overview of the investors section on the company website shows no annual or quarterly filings. However, we were able to provide the latest financials of the company from an official investors' report.

REVENUE 2017-2019 (TOTAL & BY SEGMENTS)

FY 2017
FY 2018
FY 2019
  • These revenue figures represent a 99% and a 110.3% year-over-year growth.

NET LOSSES & EBITDA (2017-2019)

SALES

SUBSCRIBERS & CHURN

  • The company has observed a fast growth in its subscriber base. The subscriber base of Peloton's Connected Fitness Products increased by 108% in FY 2019.
  • According to the official website of Peloton, the company has a 12-month retention rate of 95% as of June 30, 2019.
  • Peloton had 107,708 Connected Fitness subscribers in FY 2017, 245,667 Connected Fitness subscribers in FY 2018, and 511,202 Connected Fitness subscribers in FY 2019.
  • The company's average net monthly Connected Fitness churn was 0.70% in FY2017, 0.64% in FY2018, and 0.65% in FY2019.

TAM

COMPETITORS

Proposed next steps:

You need to be the project owner to select a next step.
Since our initial research covered a basic overview of the company, details of its total revenue and revenue by segments from 2017 to 2019, number of devices sold, subscribers and churn from 2017-19, net losses and EBITDA from 2017-19 and the TAM, we'd recommend additional research to triangulate the operating profit (or EBIT) and operating profit by segment (Connected Fitness Products, subscriptions, and others), if available using this information. We'll provide this information for 2017, 2018, and 2019 to provide a wider outlook. However, if you want us to provide the information for 2019 only, please mention that in the comments.
We will also provide any additional details about the company's history, an overview of the company's business model, its competitive advantage, and reasons for its growth.
Additionally, we'd recommend providing a competitive analysis of 2-3 major competitors of Peloton. We'll identify major competitors based on revenue, market share, customer base or any other suitable but consistent metrics. For each competitor, we'll provide it brief overview, target market, revenue/sales/market share, competitive advantage, and user base (number of users). We'll provide this information in a spreadsheet.