Chris. Thank you,
we tracking First, I'd provide are restructuring how May. in plan the cost we like to update against announced for an
of savings. assumed rate of annualized As will deliver actioned of end over that restructuring the changes QX, $XXX all plan, payroll-related in the have million we which were run
savings end rate track continue make with savings other million we from progress the nonpayroll-related anticipated. XXXX. than and savings. deliver faster of to we all the are are fiscal of realizing by these benefit cost still of we payroll run savings, Together some And to We on $XXX over
spend included not our were Also, reductions we're million $XXX efficiency delivering to cost that media additional through restructuring in goals.
paid end subscription pauses. spend Now subscriber subscribers, results. quarter. our our range favorable in versus This XX,XXX few minutes as result net a exceeded the was we by a the I'll our million We on QX churn softer partly gross fitness high X.X our the decrease with of outperformance driver XX,XXX of a was guidance expected. additions The fewer favorability than subscribers. slightly ended reflecting by expectations connected quarter slightly of main This offset of
X.X%, roughly was favorable prior basis Average quarter points subscription fitness of line with versus slightly monthly XX paid expectations connected churn net year-over-year. an in the and and increase
onetime year elevated on XXXX period our reminder, original quarter fiscal XXXX, bike a first of in included performance benefit in post the response a pauses net in seat As of fiscal quarter from fourth subscription a our as ago the result churn positive elevated of the following year recall. to
XXX,XXX We range paid subscription with the higher quarter, media in to In was maximize net the the to churn, back from amount ended paid monthly we've the a quarter. paid guidance app by which quarter scale decrease XX,XXX result of of in subscriptions app exceeded reflecting of both spend better-than-expected our first This end continued in media the to support X.X% dedicated the efficiency. quarter. app first subscriptions, XX,XXX additions average and high growth
and software app invest more may if subscribers that and we we app our As in Media can signals app see Strength+ private plans app like accelerate we to continue offerings teams, beta. our personalized enhancements, We such efficiently. new as of developing growth elect evolving suggest with
was first to revenue $XXX and due products down Total due demand million revenue year-over-year Lululemon subscription of hardware million year-over-year up Connected licensing lower $XXX products million as revenue Connected Fitbit. $XXX revenue. revenue was was and in subscription revenue Fitness quarter, of comprising Google Fitness XX% from content to X% the
and the slightly due end higher our to well Fitness connected subscribers as range, expected to products a higher of as revenue high $XXX as result Connected app subscription primarily than revenue was million paid above $XXX higher we Total revenue. million of guidance paid fitness
QX profit guidance quarter, and million margin shift $XX XX% points Fitness in margin an a or lower gross XXX mix is increase Connected favorable Product year-over-year. subscription sales, reflected of seasonally first in a gross due XX% was hardware Total revenue XX.X% the was above and to which the of As million reminder, for and towards subscription for gross our is segment basis Fitness revenue quarter. period Connected segment. $XXX Total mix X% the
associated up personnel-related Connected gross impairment ahead year-over-year, the partly operating offset in million precore first Subscription and XXX standard product basis progress gross were thus lower X.X%, and with quarter, products $XXX margin expenses, reduction points bike was costs, expectations higher Fitness up margin rental expenses year-over-year. Product expectations million Total internal warranty warehousing shifts was XX% rightsizing internal our and including towards points restructuring driven by higher-margin and and we've of reserves. mix by expenses with primarily the $XXX XX.X%, or line XX reflecting far made expenses basis our in year-over-year, a towards cost structure. reduced
tracking ahead fees. primarily year-over-year, General million expense $XXX and expenses compensation buckets. all service were decrease driven $XX professional our are of cost targets payroll, a million, administrative of stock-based across savings by XX% We or lower and
do We primarily $XX payroll marketing thus expenses of opportunities XX% were reduce are a million to need we spending pleased on expense $XX see revenue Sales progress so. we've over with to on stock-based time million, or reducing recognize lower the decrease the made G&A year-over-year, from a G&A media, and percentage of compensation. far, as and but and
QX As XX% Chris spend media reduced mentioned, we intentionally year-over-year.
million begun already year-over-year $XX driven quarter compensation ramping have were decrease less to the we stock-based QX. to development And we we compared reduction our a product still in preparation and expenses in spending of expect payroll, season. or in million, a media However, $XX for reductions expect by down while media holiday primarily year-over-year, costs. be Research spend development of XX% and QX, this
The of charges and in to primarily retail million of benefit The disposal impairment a in write-downs asset million we severance costs noncash. professional of relation net and and recognized offset related $X restructuring exit to cash costs. quarter, million charges consisted fees, $X showroom million expense, noncash from which personnel and other This exit. were was $X.X $X by lower
supplier. with We quarter, Adjusted settlements a the accruals guidance million also million improvement dispute above the and to recognized range year-over-year. $XX a was third-party of $XXX $XXX to in first of related due which a supplier million settlement of end was our the $XX million EBITDA high quarter in first
in EBITDA outperforming ended within cash We cash free category Fitness the with free first our $XXX strength the third subscription quarter outperformance progress million quarter first leadership of business. roughly savings $XX our cash equivalents. consecutive million unrestricted and position generated Overall, gross the cash our in and Our adjusted margin the structure internal we've quarter rearchitecting quarter the made maintaining reflects and expectations in of performance of $XX of the within retentive, year. high cost quarter, highly Connected while our our flow. delivering fiscal million timing flow included positive We
Next, on second XXXX. the for outlook financial year and I'd fiscal our like quarter to provide context
paid Our of XX,XXX of subscribers QX guidance for Connected million sequential $X.XX Fitness FY at a billion 'XX the to midpoint. subscriptions reflects decrease ending $X.XX
expect connected in to average QX. rate paid slightly monthly our We net fitness churn improve sequentially
$XXX,XXX FY the 'XX outlook a at result increase a million of spend. paid QX $XXX $XXX to sequential of Our the decision guidance midpoint, subscription a ending media to app to app as reflects decrease million subscribers a $XX XX,XXX midpoint. reflects of of sequential $XXX,XXX of at million limit Revenue
of during of As gross sales points an in these XXX increase in with sequential seasonal trends, shift decline Product Total subscription basis toward segment our margin XX.X% an Fitness holiday guidance gross of hardware margin period. a reflects sales. expected Connected a the seasonal as combined expected a of mix result result
the as to decline $XX and spend million media of million sequential for holiday to expenses quarter million sales second reflects $XX $XX the marketing Our season. at increased due midpoint, guidance we higher adjusted EBITDA a of mainly
decline expectation churn will will increase historical as follow sales Our monthly full paid as pattern. seasonal to expectation an year reflects and year-over-year continue average net our the guidance fitness modestly that year-over-year FY that connected hardware 'XX well
for guidance $X.XX million remains range $X.XX Connected year broad and reflects of unchanged subscriptions Fitness full range Our million of outcomes. a paid to
will economics 'XX, course may improve in levers pricing, of achieve which targets. FY continue our We the may connected over affect Any our fiscal financial to areas fitness promotional to across additions strategy year. refine additional available the strategy these or changes paid subscription our in to unit changes include growth for other
improve app range development in experience. $XXX,XXX, versus to subscriptions Our app to limit reduction guidance paid media we guidance full $XXX,XXX for prior a to invest as member spend our year of reflects our decision the $XX,XXX product
engagement, we could as opportunities churn see favorability both improve app. Additionally, to improve clear in Fitness to result for experience, continue which member we to our Connected and
engagement we improve we and to While strategy, from the and timing innovation see meaningful will guidance. these we are in can our and, therefore, optimistic through impact evolving efforts is uncertain product start our reflected content not of marketing when
Our delivering and gross is adjusted include total FY financial total revenue, which EBITDA. results, primary 'XX focus for margin key our
We delivering are these free prioritizing metrics, along flow. cash with
to Our our billion total FY for at $X.X outlook remains at billion well outlook 'XX gross for $X.X margin, which remains as unchanged total revenue unchanged as XX.X%.
$XXX FY improvement We the to year-over-year. operating guidance adjusted previously expect restructuring which gross cost million, due reduced million $XXX are expansion our raising our related continued and cost announced to by margin to achieve million our profitability, spend media largely in plan to 'XX reflects EBITDA $XX to savings we
$XXX cash at as from $XX a as million continued flow also are we our working target to expect our greater expense increase capital inventory create raising efficiencies. guidance, tailwind that from production least an lower of operating well million primarily We previous free to
we of $XX achieve result of flow our to year. quarters do free all positive X QX fiscal in expect cash Following flow the free million, cash
and throughout deleveraging make balance progress We meaningful 'XX in expect sheet beyond. to FY our
back for now closing turn Chris like it And remarks. to some I'd to
