Chris. you, Thank
nonpayroll million of the our of First, touch made savings at million fiscal in we we toward how $XXX I'd savings. end against and in deliver plan We Roughly like remaining of cost substantial are the $XX achieving approximately million the to plan million came in 'XX, cost the our back quarter. $X to announced the delivering savings payroll rate progress May. from by cost on other run $XX over savings last from restructuring reductions, came tracking call cost earnings
run We remain in by on year. million end rate $XXX fiscal full to the the savings cost track of the achieve
reductions opportunities efficiency. to working restructuring are We also expect improve capital to plan, the through deliver efficiency we our that additional not of our expenses to to reduce operating and continue look media further and costs part for
results. of QX as This ended Fitness of our in third-party first-party, Now subscribers, higher-than-expected the on minutes channel. end decrease exceeded a the million guidance paid market the secondary We retail spend XX,XXX a quarter in few our of let's high quarter. a X.XX gross Connected reflecting with result additions net range and
a subscription monthly basis XX was up net the Connected in reflecting churn app points XXX,XXX internal We with paid line Average ended roughly fourth quarter was Fitness with which and expectations result paid from range paid of app primarily X.X%, year-over-year. exceeded subscriptions, quarter. which net This average decrease our XX,XXX the high guidance monthly of in the subscription was X.X% in quarter. end favorable churn, the
their to down a was QX, quarter the elevated in corporate in churn client our we renew subscribers roughly agreement. XX with specific roll-off to While did associated quarter-over-quarter remain points basis churn due wellness anticipated not somewhat that the of
new features offering, and app, invest earlier, social As Chris our to on in focused continuing strength enhancing and content content the features. we discussed for are personalization
these in we enhancements, believe reducing amount to result will improvement experience for app app efficiency. media subscriptions our in maximize our which significant develop of supporting the in now we growth paid are media over overall we a While time, spend
slightly the $XXX guidance million million year-over-year was to revenue $XXX Fitness was quarter, and of subscription segment of million above end our million in Total Total of $XXX $XXX Connected revenue range modestly revenue. high million $XXX and the up by X.X%. comprising segment revenue
$XXX end yielding margin million XX.X%, guidance fourth was gross a which profit our the gross Total in above quarter, the range. was high of of
expectations. was This segment returned million $XX.X Connected internal Our margin ahead X.X%, inventory excess our and of included gross for write-offs inventory. Fitness
write-offs ago. period Fitness gross over same and expanding the COGS inventory was of margin a points percentage onetime adjusted Excluding to impact items, Connected XX.X%, XX the year compared
a including Total versus period, million the showrooms marketing million to were expenses, spend. retail period expenses, Sales and compared and expense year and spending brand $XX for fourth restructuring the the quarter ago. operating and $XXX media, $XXX reflecting impairment lower decreased million creative on year-ago in
Research expense product and $X.X and by operations primarily versus development research reductions and million decreased driven business development year-ago the in costs. period
administrative period recognized offset expense to primarily year-ago compensation partially with in million $XX by amortization driven CEO and connection an and General increase lower related by expense. the in stock-based increased expense by the versus depreciation transition,
related offset and charges million charges This quarter, noncash. were million $X.X The driven impairment we benefit and of was to by of and $X.X which to severance to severance million personnel costs assets. fees. million impairment accruals, costs The cash exit due driven other $X.X were recognized primarily and $X.X to a and restructuring by reversals expense, noncash which by disposal losses primarily Connected professional were relating partially Fitness
year in in of of period fourth we the the $XX flow since $XXX something EBITDA flow, a generated the quarter, quarter was cash the free a million XXXX. improvement ago. year haven't free second Adjusted in cash from $XX million million quarter fiscal consecutive accomplished the We second quarter, positive
the and equivalents. with cash $XXX ended quarter cash unrestricted We million in
remains We credit to to million which access a date. facility, undrawn also have revolving $XXX
QX Connected the rearchitecting performance reflects progress our in Fitness our our and Overall, the well of subscription leadership business structure. strength have the we our category as tremendous in made as cost continued
I'd and to fiscal provide like financial the year on Next, for XXXX. context quarter first outlook our
spending hardware XXXX the reflects first discretionary as sales multiple the for like subscription goods quarter sales ending in summer consumers Our sporting expected decline low an travel market seasonally their and categories first perspective, for factors. year-over-year of typically guidance a paid toward a From during is hardware Connected shift fiscal Fitness months. quarter on quarter based
as continued of a uncertain expect result an environment. sales macroeconomic headwinds also We
reflects our our made have sales impact we've expect outlook we to our in the some decisions focus sales with on on that hardware profitability, Additionally, an improving quarter.
We year-over-year sales we are focus reducing as on to and spend. marketing continue spend media optimizing
a no run refurbished August to compared quarter And Karen decided decision mentioned, same also our last the we within longer have promotions period starting available. to year. X to inventory to made offer the for bike original We due as bike fewer option previously limited rental the
Connected we specific not our to net churn, While be average XXXX. to are churn QX paid expect we similar on relatively monthly fiscal Fitness guidance providing rate
quarter paid seasonality average subscription to app subscription reflects additions first expected an gross guidance coupled monthly paid sequential due app with in sequential Our in improvement decline churn.
corporate rate stabilization quarter-over-quarter our to paid our app We expect churn in improve wellness to subscription due base.
first Our sales reflects revenue business combined hardware and to with guidance quarter the profitability. of impact subscription these improve trends our decision
of first a increase our mix in We as expect toward result gross seasonal margin subscription sequential a total segment. a quarter
progress to continued $XXX reduction We EBITDA plan. improvement in our adjusted million achieving sales and first also expense lower expect quarter due towards significant marketing and mainly cost year-over-year
Our full increase year-over-year hardware guidance average our sales as modestly well XXXX the continue expectation and historical year-over-year to will paid that monthly net seasonal Connected will that reflects churn as expectation fiscal Fitness follow year decline an patterns.
range Our full outcomes. a reflects subscription broad guidance for year range paid Fitness of Connected
to We to the and pricing, refine include over pull our we year, across other subscriptions the and areas changes fiscal our changes of growth achieve for potential the will these strategies paid paid subscription Fitness may fiscal Any in Connected affect targets. may levers app continue which promotional in year. financial course strategy our additions may
rates continue we to could for which we opportunities result improve Fitness net in improve both Connected member clear to our as app. improvement to monthly engagement, experience, see average and our paid Additionally, churn
can While from start engagement we is impact innovation we are see marketing improve content evolving and meaningful when through the of strategy, will product efforts our optimistic these and we timing to uncertain.
decline a midpoint. the app Our subscriptions year-over-year paid at guidance for reflects
member the churn. the made while and experience supporting in our invest we the improve app to We the to media have product decision spending innovating reduce lower
focus include revenue, margin gross is for key adjusted which delivering XXXX results, Most our on EBITDA. and importantly, fiscal our financial
with flow. delivering these cash We metrics along free are prioritizing
to any surrounding within ability grow and that subscriber as year in by outlook growth paid fiscal uncertain investments Fitness to our is outlook. new app an the including subscribers, revenue an assumption will deliver macroeconomic tempered Our initiatives Connected efficiently upside our not well as uncertainty
margin mix improve of Gross gross segment. is well shift a result as as Connected revenue as our expected Fitness margin to year-over-year expansion subscription toward
million Our achieve our reflects largely adjusted we operating margin plan to restructuring cost year-over-year to EBITDA guidance gross announced profitability $XXX to spend. due savings expect expansion, in to previously of the related continued media improvements cost million lower and $XXX
flow that on meaningful negative free It of up QX. worth also to inventory to cash QX to support $XX do expect we We as inventory expect noting cash basis year flow build deliver to a we full at is million. of free timing season due least in holiday be the payments
of outlook prioritization fiscal year profitability Our for cash and our free reflects delivering flow. meaningful improving XXXX
We Our improved quarters. making more and fitness features focus financials our line We remain about and on software strategic look forward in bottom to hardware we enable evolving to content also product in optimistic in experiences offering. a new about more the investments our are innovation sharing way. us and innovation upcoming
we our product-market strong iterate needs, offerings fitness test have members' our meet As learn before of time allowing to and scale we're fit and signals ensure that to them. offerings to new wellness we
does As new from in initiatives a our result, outlook XXXX. assume these subscriber growth not fiscal
to and and size to our build upon long-term sustainable shareholder And value. drive profitable foundation the growth cost flow, path we a can structure have to we of free a solid now in our better positive with cash planned place that business aligned current
remarks. I'd it Chris like some for back And to now closing turn to
