New Products On The Anvil, Indicators Of Strong Black Friday Sales
Peloton, a company that sells fitness equipment and related subscription services, has seen its stock rally by close to 50% over the last month, despite posting declines post its late-September IPO debut.The company currently offers fitness bikes attached with a connected iPad like device start at about $2,000 and treadmills that start at about $4,000, along with paid subscription service that offer a variety of classes.The recent rally is driven partly by the company’s plan to introduce new products that could include a cheaper treadmill and rowing machine from 2020, while exploring bringing apps to the Amazon Fire TV and Apple WatchMoreover, there have been indicators that the company was seeing strong traffic over black Friday. Below, we take a look at how the company has fared over the last 2 years and what lies ahead.
How does Peloton's Revenue Growth in 2019 compare with that in prior periods and what's the forecast?
Total Revenues for Peloton increased from $0.4 Bil in 2018 to $0.9 Bil in 2019, marking an increase of 110%,driven by soaring sales of Connected Fitness Products as well as subscriptions.
This compares with Total Revenues growth of:
99% in 2018
We expect Total Revenues growth to be 58.5% in 2020, driven by new product launches and higher subscription revenues.
How does Peloton's Total Expense in 2019 compare with that in prior periods and what's the forecast?
Total Expense for Peloton increased from $0.5 Bil in 2018 to about $1.1 Bil in 2019, an increase of 130%.
This compares with Total Expense growth of:
67% in 2018
We expect Total Expense growth to be 35% in 2020.
How does Peloton's EBT in 2019 compare with that in prior periods and what's the forecast?
EBT for Peloton decreased from -$48 million in 2018 to -$196 million in 2019, as Operating Expenses grew faster than Revenues.
We expect EBT to increase to -$49 million in 2020.
EBT = Total Revenues - Total Expense
HOW TO MODIFY
Modify the forecasts for Total Revenues and Total Expenses to see impact on EBT.
How does Peloton's Net Income in 2019 compare with that in prior periods and what's the forecast?
Net Income for Peloton from -$48 million in 2018 to -$246 million on 2019.
We expect Net Income to increase to -$50 Mil in 2020.
Net Income = Income from Continuing Operations + Adjustments to Net Income [if any]
Change In Net Income
Income (loss) from Other
Effective Tax Rate