total results. with Thanks, we XX% of John. year-over-year revenue our QX, CAGR. quarter X% an first representing I of growth will million, and review start In two-year $XXX generated a
In X.XXX Fitness net X.XX%. We offset the adjustment subscriptions reserve was our drivers, the Fitness better-than-expected Connected penetration, quarter had our bringing churn of $XX year-on-year. Average recalls. to million, in up membership terms by our financing to quarter, of tread Fitness base monthly million added revenue XXX,XXX XX% partially for we return Connected net Connected churn Fitness Connected end lower-than-expected
we will but be to longer no forward continue churn As offering last a will guidance, we disclosed quarter that report reminder, this metric.
especially XXX,XXX We engagement, continue expect high the expectations. as into to year-over-year of head internal colder subscribers, ahead slightly app end churn over weather. At we XX% had growth, and industry-leading low QX, our we representing of
also retention than better modestly we're acquisition but to some expected, saw efficiencies. challenges we related seeing quarter, the For
data landscape. headwinds. impact we're teams been there some made As have seeing our significant many to are some you disruptive that the Like by leading adjust to new Apple likely as targeting direct-to-consumer marketers, other changes some know,
lead Looking on Connected app role an ahead, as generation we for remain and Fitness. bullish business tool our its important
corporate Our begin adjust teams our the new to the more to wellness expect business will continue initiatives our year we reality, app to to to meaningfully progresses. marketplace contribute and
for Fitness Tread gross which products of margin out margin of segment, in came primary our logistics. Moving margin our Fitness had margin. shortfall, There of to reserve the freight Connected guidance and recalled our increase seen Connected slightly was This gross quarter to entirely due which expectations. in was Gross below XX% products XX.X%, our a below an and inefficiencies XX%. our drivers gross were return our two for in some
has returns be very last mentioned quarter, we proven As challenging. Tread to forecasting
for return activity of late Consequently, we our our expiration to subscription through Tread+ a returns. we quarter, initiate believe we of to owners increased account higher-than-anticipated an summer, While easing the of waivers number saw the motivated reserve activity. this in
now But be entirety to that line. the returns our lasts reflected window, are future of is adjustments As we is is this until expected revenue recall-related reserve, added in needed. XX increase for from on there the of the our will of but end profit return gross back capture another which and months. to a reminder, adjusted recall-related the the returns the impact attempting EBITDA With possibility fully
to have overall the our been XX.X%. in Excluding increase QX unexpected Fitness gross and would return XX% margin been of margin have impact reserve, our would the Connected
associated delivery continue negative and costs contribution Precor was associated subscription lower-than-anticipated and content margin XX.X%, fixed ahead were impacts logistics financing with saw and partially we Bike expenses. On and the last we of margin front, leverage offset rates Subscription costs XX.X%, was freight-in additional as related These production. reserve with gross some to expectations, by adjustments. inefficiencies middle Bike-related mile
we now XX% target As continue by quarter-to-quarter, this we subscription contribution a of expect year. see some QX variability, our to to reach reminder, margin of but
was operating to expense marketing of period of XX.X%. Sales expenses. the total Turning revenue versus and XX.X% year prior
planned As we we quarter, marketing. this deleverage ramped explained as was last
including the G&A in XX.X% significant versus investments the expense the substantial Looking ahead, operations, last as member we over support. sequential months year expect systems and prior. total team, to year was sales leverage invested revenue and in marketing of against to realize progresses. expense XX XX.X% scale We
While completed. G&A a step-up of series the nearly all sequential this to last investment led of significant year, in spending is this over
increase our was XX.X% total ahead, X.X% we quarterly expect G&A to in quarterly the deleverage Looking QX, in in the expense of versus spend team The level year. spending sequential remainder year. fiscal half of the QX and to onboarding as the hires R&D reasonable reflects roughly spend year-over-year but second a R&D period. flat approximation ago anticipate for represent year G&A we from Aqua spend the Precor, a of the the several of for of revenue expect with
per We better basic million $XXX QX share. million, million. additional untapped $XXX.X for credit Our of and loss and $XXX an adjusted QX expected or $XXX $X.XX was was have in quarter the securities Net at with million facility. of cash loss marketable the loss a liquidity and ended diluted than of form EBITDA
onto outlook. Now our
We are reintroducing for guidance. ranges our
environment providing of of overall logistics to and sales alluded coming we season. predict busiest out guidance, the just few earlier, challenging our and weeks As has are John a consumer to been COVID ahead
of Fitness now subs subscriptions equates million X% Connected This are year roughly of CAGR million, subscriptions at in million X.XX forecasted XX% we our Fitness XXXX, a for midpoint. a and year-over-year growth X.XX midpoint. X.X to fiscal Connected implying For the ending and forecasting reduction the end approximately at representing net ads to two-year ending XX%
is year to representing range. revenue at a billion forecast growth year-over-year the CAGR $X.X billion, revised the XX% midpoint and XX% full two-year Our $X.X of
Fitness XXX% CAGR midpoint. and year-over-year Connected million ending expect the million, X.XX at XXX,XXX nearly XX% ending we QX, net ads representing X.X to of implying and two-year growth subscriptions for For
CAGR revenue at expect $X.X billion, and to we $X.X two-year a growth QX, billion year-over-year X% midpoint. For XX% representing of the
price Bikes+ greater-than-expected since guidance expected reduction mix revised given original original versus of portfolio reflects Bike a drop. our Our traffic the over And several too traffic e-commerce in weeks. forecast. It the Bike Tread in Many or key predict and modeling assumptions sales the and we a versus that lastly, in forecast, made contemplates the conversion trends sales past our also headwinds our demand in Precore business. that of Traffic commercial were inputs our optimistic. August are
view Our awareness Connected our and reflected forecast the in interest share word-of-mouth. in our of baseline traffic the consumer market category, unchanged Fitness, leading increased growing expected growing brand our
overall However, it impact is reopening the underestimated company and industry. that we clear on the our
Importantly, and traffic conversion. to uplift drive we further a also expected the drop price increased
led While the to our not overall our initial expectations. price drop rates traffic exceeded conversion that has forecast, met
further We mix gross impacting richer-than-anticipated have Bike+ seen both our revenue Bike margin also and expectations. of versus
subscriptions that highly members previously, remains entry attractive. said which are we've Connected As Fitness LTV choose given point we our agnostic to the of
We XX and that members the And ability reposition a media our XX. noted to receiving remain in our Moving rollout the progressive the in ensure on started our from Tread selling Since bullish positive to earnings call would and currently support low We grow product delivery be seen experience. have start to September own of for slow increase order our our we our awareness. to demand on to August to by inventory on sales a on launching and last that on began we match media Tread time Tread. are take Tread category Tread, new region.
today new the the how Tread about differs on Our is treadmills test primary our other from educating it and market. own consumer
will the our Tread for revised However estimates also year. like forecast of our much Bike balance our the impact portfolio, traffic
dynamics. reduced for have expectations given channel our and commercial Precor or demand business both legacy supply we Lastly,
segments While as leading new investments a reopen, delay levels, country significant the to gym in industry commercial has made commercial capital below equipment. remained across visits gains pre-COVID overall some operators
This However, us challenging fulfill more in concerns leaving certain parts our sourcing supply to some become our products, has since materially unable we August. led importantly, component gave demand. some more of Precor guidance commercial to is
costs demand to margin within mile challenging. segment, COVID outlook from and Fitness reduction The fixed our a as during our with supply amount compression our our associated to margin. significant quarterly back pre-COVID middle proven particularly on Migrating Connected sequential Moving logistics. growth is we seasonality chain, to have in last of creating has
However, we drive to the quarters. and help our optimize in plan of third-party own coming networks delivery savings mix to the
half that in than year, until materialize side, long-dated cost QX we efficiencies expected demand in cost for start of ocean we won't hardware Tread the On lower QX. given profile better and the expected savings to variable the specifically the second On locking are right.
in-source evaluate we evaluating unit a half of business, variable in intend Also, the balance, our abate quarters. of in some more fixed the benefit member also will experience. sourcing towards and our that to the we to of addition ways the structure and increases product and are additional gross for to back Fitness cost the and year, improve margins in better XXXX. efficiency X% pressure move fiscal XX% for remainder to and of future structure and current strategies cost QX to this that other pressure In cost we now We and All-in constraints on seeing and within growth, shift we incremental cost production at expect the strategies year in profitability weigh Connected other are margin light to will Tonic of commercial year. our units, our freight while delivery, expect
our margin will we to marketing Fitness expense. goal sales As focused This with dollars are material But help committed on said neutral towards is cash more goal gross dollars making an our to Connected net profit using profit this of those to get structure difficult us XXXX. being and gross to where back cost are in before, we percentage the year improvements achieve. we than is fiscal offset that extraordinary
some cost of fiscal XXXX. a cost For XX% we our in our leverage now to margin identified Rolling QX company benefit fixed for up contribution Subscription for and continued gross expect QX and expect we the year in the full segments, of last from margin reflecting total XX% and XX% year with business, savings. improvement XX%
In sales across margin our identified OpEx. to fiscal operating our expenses. savings have to response outlook material XXXX, we for revised Turning and
or improvement. these show of may actions to quarter some two So, take a
Some efficiency of across limiting company, focus savings the areas headwinds and initiatives, cost adjustments $XXX while on QX maintaining development, a making these Inclusive identifying and areas COGS to loss current between features. of our hiring spend expanding optimizing estimate of identified of showroom in million streamlining adjusted planned our and for is products significant plans include development EBITDA marketing efficiency, million. software improvement $XXX and and and new the support of our product member teams,
for $XXX EBITDA back reduced adjusted million on to fiscal the 'XX revenue Our million the year and we headwinds expect half fiscal outlook, year profitable be our basis. an to fiscal EBITDA to Despite of outlook full XXXX. near-term for XXXX loss and is revised continue full a adjusted these in of $XXX
necessary profitability is on While long-term to and opportunity to adjustments path making of us our keep our our the view unchanged.
have price We're corporate commercial the our behind growth. portfolio. opportunities Tread we and all-new in and regarding in Bike We seeing wellness confidence momentum continued growing pipeline, international are new and products lower our optimistic our
to Turning CapEx.
light manufacturing. and the are facing today is to benefits continue of and long-term supply and come believe stateside chain costs, in expertise this optimize challenges manufacturing supply the will from evaluating but that the costs, needed U.S. to chain that with move, We we our expansion delivery right especially ways freight in are flexibility
spend expect $XXX million fiscal we of we XXXX. the of As costs, look to CapEx balance our manage approximately through now
implement to growth levers in control base support to we next hand the appropriate I our a will now member present costs. forecasting many it path John. months and our our back profitability. several While continued to to revenue we'll And strategies in the challenge business, our have
