Microsoft Earnings, Peloton Earnings
In today’s update, we will wrap up our Big Tech earnings reviews with Microsoft. We will then conclude the discussion with a look at Peloton earnings.
To set the scene, Microsoft and Peloton are in some ways complete opposites. Microsoft has been reporting some of the cleanest, all-around solid earnings releases in Big Tech. Peloton is in the most precarious of positions in terms of companies that we check in on from time to time. It’s been six months since we looked at Peloton’s earnings.
An Above Avalon membership is required to read this update. Members can read the full update here. (Members: Daily Updates are accessible via the archive. If you haven’t logged into the archive before, fill out this form to receive an invite.)
Payment is hosted by MoonClerk and secured by Stripe. Apple Pay and other mobile payment options are accepted. After signup, use this link to update your payment information and membership status at any time.
An audio version of this update is available to members who have the podcast add-on attached to their membership. More information about the podcast add-on is found here. Special Inside Orchard bundle pricing is available for Above Avalon members. Additional membership customization is available via the Financial Models add-on.
Peloton’s Ongoing Death Spiral, Sizing up the Digital Fitness Opportunity
Hello everyone. We are getting to the last few CY2Q23 earnings reports. Today’s focus: Peloton. After going over the key numbers from the quarter, we look at the broader market opportunity found with digital fitness. Let’s jump right in.
Peloton’s Ongoing Death Spiral
For the past two years, we have been closely following Peloton’s implosion. Early red flags appeared in the company’s Form S-1 filing (IPO). Jump ahead two years and growth metrics began to deteriorate when the company should have been seeing explosive growth figures.
The Peloton story eventually shifted from being a possible Apple Fitness+ competitor to offering another look into the still young digital fitness space.
Back in May, Peloton unveiled a branding pivot to focus on accessibility (to appeal to more users). New membership tiers for digital fitness classes were also announced. Both came across as not fully thought out. Peloton moved away from its premium workout branding while not moving away from premium product pricing. The result is cognitive dissonance. As for the membership tiers, they are too confusing, limiting, and expensive.
Accordingly, it doesn’t come as a surprise that Peloton’s FY4Q23 earnings had every membership-related line item show continued deterioration.
An Above Avalon membership is required to continue reading this update. Members can read the full update here. An audio version of this update is available to members who have the podcast add-on attached to their membership. More information about the podcast add-on is found here.
(Members: Daily Updates are always accessible by logging into Slack. If you haven’t logged into Slack before, fill out this form to receive an invite.)
Above Avalon Membership
Payment is processed and secured by Stripe. Apple Pay and other mobile payment options are accepted. Special Inside Orchard bundle pricing is available for Above Avalon members.
More information about Above Avalon membership, including the full list of benefits and privileges, is available here.
Roku 3Q22 Earnings, Peloton 1Q23 Earnings (Daily Update)
Hello everyone. In today's update, we will focus on earnings from two of the smaller companies playing in the tech arena (Roku and Peloton). While Roku is an Apple competitor, Peloton remains a good source for assessing how consumers are thinking about different forms of connected fitness.
Let's jump right in.
Roku 3Q22 Earnings
Roku reported earnings back on November 2nd.
With macro issues taking a big toll on Roku's advertising business, the company's user growth and engagement appear to be rare bright spots. We say “appear” as it’s difficult to get comfortable regarding how streaming companies define and measure engagement. According to Roku, an active account is anyone who has streamed something in the past 30 days. It's easy to see how that definition offers quite a bit of wiggle room for volatility.
As shown below, Roku has seen a small rebound in new user growth (on a TTM basis).
An Above Avalon membership is required to continue reading this update. Members can read the full update here. An audio version of this update is available to members who have the podcast add-on attached to their membership. More information about the podcast add-on is found here.
(Members: Daily Updates are always accessible by logging into Slack. If you haven’t logged into Slack before, fill out this form to receive an invite.)
Above Avalon Membership
Payment is processed and secured by Stripe. Apple Pay and other mobile payment options are accepted. Special Inside Orchard bundle pricing is available for Above Avalon members.
The daily updates have become widely read and influential in the world of Apple and technology. They are unmatched in the marketplace in terms of comprehensive analysis and research on all things Apple. Members reside in 60 countries and hold a diverse range of backgrounds and occupations. They include Silicon Valley executives and investors, the largest Apple shareholders, and the leading Apple journalists in the business.
More information about Above Avalon membership, including the full list of benefits and privileges, is available here.