Peloton (PTON) has emerged during the pandemic as one the gems of the stay-at-home dynamic, as its connected fitness systems provide the in-home convenience of a workout without needing a gym (and when gyms had been closed). Peloton witnessed strong growth during the pandemic, and while shares may be a little pricey after following the tech rally step by step, the long-term growth potential remains visible, but not free from risks.
Source: Investor Presentation
For the third quarter Peloton recorded over 2.6 million total members logging over 44 million workouts, with 886,000 connected fitness subscribers, which corresponds to the Bike and Tread, as the digital subscription can act as a stand-alone service. On top of that, the 12-month connected fitness subscription had a 93% retention rate and only 0.46% monthly churn.
Connected fitness subscriber growth has been outstanding, up 94% YoY; digital subscription subscribers grew less – up 64%. As