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and year-over-year our As you growth $X.XX revenue total we XXth. representing January X% quarter, pre-released know billion, on the two-year In XX% summary an of results CAGR. generated we underlying
XX% Peloton was and Engagement Excluding offset by Precor, Connected XXXX. revenue Relative on engagement acquired of totaled rate. to approximately demand the over reflected was workouts per revenue Fitness Bike+ last quarter towards subscription flat a financing mix penetration lower-than-expected year-over-year. core we basis, two-year lower XX.X On per which a second April month. expectations, year, favorable of our Xst largely up
expected, are we previous we've against and seen remain norms January month-over-month comparable when exceeding witnessed years. As our than to growth non-COVID particularly pre-COVID Overall, healthy levels in industry are to believe fitness December periods. improvement engagement with in engagement likely from we've during significant viewed levels seen very higher sequential
Connected Fitness average churn low remained quarter. X.XX% the monthly in Our net at
overall we basis XX, XX-month the ahead year-over-year. rates be retention and of of retention expectations. continue improve a our pleased offered to our to internal free had At XXX,XXX XX, sequential in growth, platform the declined QX, subscribers slightly subscribers, XX% app on continue We as end November. our to year-over-year App XX-day trials primarily with representing modestly due
of quarter was the for slightly our ahead expectations, to margin XX.X%, Gross subscription primarily margin. segment. due our gross to Moving
pressure benefit a segment lower-than-planned receipts, favorable Fitness X.X% Product margin guidance. shift our mix increase subscription holiday timing benefits Connected Bike+. ahead logistics was gross were and our These contribution to modest of expectations, inventory Our by below Relative and XX.X%, was gross slightly modestly a modest XX.X% Subscription of in return impact, Fitness significant promotion Tread+ margin expectations. reserve. and reflects a a margin our margin of offset Connected to was cost from
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bit flexible Before profitable cost on reviewing capital help efficient decision-making, structure. ensure The the chain, growth. address accelerate restructuring supply by accountability, are support our and create to our spend intensity we reduce we're providing outlook, today, actions our start I'd will like a we detail to and optimizing taking a announced to more more increase
have to the a developing margin we implement, EBITDA fully improve drive to plan sight of spent time our that take we past gross will line cost detailed reductions months several that expansion to economics. and it provides margin, unit Although expect,
from program We The savings to by will majority procurement, the $XXX run-rate end of this logistics. of in expect generate COGS come savings Fitness the million within manufacturing Connected least efficiencies fiscal at XXXX. and
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to our Now on outlook.
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critical better in We we late year XXXX. are half QX efficiencies COVID expense marketing reducing baseline we slower so the in and learning in QX sales to our fiscal demand. understand These drive improved intend provide seasonally of the will can that and months back post cuts to as meaningfully the use
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in revenue guidance XXXX Our guide Peloton fiscal sales for incorporates starting April.
small contribution to expect QX. We in represent to a guide revenue Peloton
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For $XXX of QX, $X billion. we million expect revenue to
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demand of we of and XX%, now reduction plan, X% XXXX expect full Connected QX margin and respectively. the our Fitness fiscal approximately With year
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to on capital expenditures. Moving
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moving we work this profile towards Beyond you can year expect a CapEx-light CapEx model a modest as forward.
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days balance of our efficiency. are and model a a achieve in of better to a point of These significant are growth our operating early the at critical business. We inflection transformation
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remain expect leader. Peloton we dominant to the category Importantly,
effectiveness share of NPS of performance convenience nonetheless Our the fallen and past engagement Connected Fitness and we has although continued our scores grew value within our platform. over the retention recent short demonstrate expectations, months. And the our category XX
Moving margins. hardware on to
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and several will trend XXXX. margin gross Connected closer but positive be Our In CAC over procurement impact next the actions should to quarters. primarily a net neutrality fiscal will to manufacturing savings Fitness enable and our also total, considerable benefit and XXXX on material have us these
Going on to our to capital forward, we support growth. the markets intend not rely do
free in improvement few fiscal confidence. Our are we in high, the There a near XXXX see XXXX we and and been cash in flow fiscal abnormally has use underpinning positive factors consistent meaningful cash future. will of confident our are
opportunity. improvement EBITDA our First,
generate but savings Supply million rate restructuring to of at run fiscal benefit fully fiscal XXXX. least our in expect realized, by will savings OpEx to take expect efforts we the more time majority to chain savings $XXX We be XXXX.
pricing to recent material EBITDA. Our be actions a tailwind should also
Second, the improvement operating going in cash forward. flows
inventory significant are in cash Our this creating much obviously higher-than-normal headwinds year XXXX. fiscal balances
and inventory non-seasonal nonperishable at is our we Given sell current to expect it price. full
down flow balance, XXXX. considerable fiscal As we should cash we see in a our tailwind work inventory
going greater the implementing on stronger with time our inventory our a processes and are to forward. annual cash and neutral management days bring We in hand over down impact more of intend goal discipline
capital to million outlook Third, we as product and on as lower systems fiscal have opportunities investments. to implementations, $XX spend spending development POP, in Within well XXXX million $XXX our includes expenditures. project-based CapEx, other material non-recurring on
with the our cash revolver some $XXX with a closing turn XXXX. P&L million to to XXXX with billion back Finally, sight in we and cash cash restructuring-related million heavily fiscal end balance of line questions. before to get and $X.X I will we Ultimately, and we costs concentrated capacity sheet position be approximately year. to additional comfortable expect will in thoughts $XXX John have are flows fiscal improve now of next it in
