Peloton Interactive Inc at Goldman Sachs Communacopia & Technology Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Eric Sheridan - Goldman Sachs Research - Analyst : Okay. So I want to start with what I thought was one of the key messages coming out of the last set of results. You've had a pretty big pivot towards profitability that started last quarter, positive free cash flow. You've obviously given fiscal '25 guidance that highlighted continued improvement in those metrics. Can you just discuss your change in philosophy as it relates to EBITDA, margin and free cash flow guidance?

Question: Eric Sheridan - Goldman Sachs Research - Analyst : Okay. I want to build on that point with the shift to profitability. You talked about cost reduction in May. One of the other things that took place in May was when you went through a refinancing of your balance sheet. Can you review the elements of that refinancing and why you think they're important to the Peloton long-term equity story?

Question: Eric Sheridan - Goldman Sachs Research - Analyst : Okay. Understood. So you've got positive free cash flow. That's a pivot You're moving from raising capital to allocating capital. How should we think about capital allocation going forward? and what the potential road map might be?

Question: Eric Sheridan - Goldman Sachs Research - Analyst : Okay. So moving on from improving profitability. We still yet haven't seen a return to growth on the top line. How are you thinking about the potential for a return to growth from here? And then maybe I'll try to ask a couple of follow-ups depending on how broad the answer is.

Question: Eric Sheridan - Goldman Sachs Research - Analyst : Okay. So a lot there on growth levers and newer use cases. Maybe turning to the subscription business and subscriber growth. As the company focuses on profitability and generating free cash flow, what needs to happen to reignite growth in the subscriber base?

Question: Eric Sheridan - Goldman Sachs Research - Analyst : Okay. You also recently announced an activation fee for the secondary market. Maybe share your thinking there about the pricing strategy and the implementation of such a fee and how that might factor into driving growth as well.

Question: Eric Sheridan - Goldman Sachs Research - Analyst : Okay. One last one on growth, just distribution channels. Can you talk a little bit about the new distribution channels like FaaS in the secondary market and the pros and cons of how you approach channels like that as additional distribution that can drive growth?

Question: Eric Sheridan - Goldman Sachs Research - Analyst : Okay. We've got a few minutes left. So I'll try to get through maybe one or two more topics. Just turning to current trends in churn. How should we think about the key underlying factors driving an increase in churn that you're seeing now? And how do you think about churn leveling off at a certain point?

Question: Eric Sheridan - Goldman Sachs Research - Analyst : Okay. In the last few minutes we have left, maybe we'll try to end on this. You're obviously in the midst of a CEO search still. You've had a lot of initiatives we talked about today. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 11, 2024 / 5:10PM, PTON.OQ - Peloton Interactive Inc at Goldman Sachs Communacopia & Technology Conference Can you explain to investors how confident they can be that the new CEO won't change tack to reverse some of the progress? And what might some of the timing be of a CEO announcement?