From CNBC: 2024-05-02 10:49:43

Peloton announced CEO Barry McCarthy stepping down, layoffs for 15% of staff, seeking permanent CEO. Company plans to restructure to align costs with revenue, cut global headcount by 15%. Shares initially surged but then dropped after the news. Move aims to reduce expenses by $200 million by 2025. Ex-CEO worked on restructuring and growth initiatives.

Peloton reported disappointing Q3 results, missing Wall Street’s expectations. Loss per share was 45 cents vs. 37 cents expected. Revenue was $718 million vs. $723 million expected. Net loss was $167.3 million. Company continued to struggle with revenue growth, facing a decline for 9 quarters in a row. Reduced outlook for connected fitness subscriptions, app subscriptions, and revenue for the current fiscal year. Adjusted EBITDA and gross margin outlook improved due to restructuring plan, aiming to reach positive free cash flow by June.



Read more at CNBC: Peloton CEO Barry McCarthy steps down, 15% of staff laid off