Is it becoming high risk to buy a high-tech Peloton product after revenues crashed again, their CEO quit and another 15% of their employees were sacked.
The business that opened in Australia with a flashy showroom in Martin Place Sydney, has seen their market cap tank from $50 billion to less than $1 billion with the Company struggling to survive.
Their latest Q3 2024 financials are another shocker with a 21 percent decline in paid subscriptions compared to 2023.
Sales fell to $744 million — a whopping 6% decline from the year prior and 34% less than two years ago when the business initially set up in Australia after being linked to 90 injuries and the death of a child in the USA.
This year alone their share value has fallen over 43% with 400 employees now looking for a new job.
CEO Barry McCarthy handed in his resignation this week as the exercise-class company struggled to overcome their horror reputation.
The company is now moving to shut down brick-and-mortar showrooms, with no indication as to what will happen to their expensive Sydney showrooms.
Peloton’s shares have gone from US$156 in 2021 to, uh, less than US$3 today.
The downturn at Peloton is believed have nothing to do with the pandemic.
Their Tread+ treadmill was recalled after being linked to 90 injuries and the death of a child. Peloton also recalled over 2 million bikes over a safety issue, with many consumers not prepared to take a risk with their products today.
In McCarthy’s last-ditch effort to bolster revenues, and on his last day as CEO he announced a partnership with Hyatt hotels, offering World of Hyatt loyalty members points when they use Peloton equipment at Hyatt properties including in Australia.
A press release on the partnership said that the deal will see more than 800 Hyatt properties decked out with Peloton equipment, including access to Peloton classes via in-room TVs.
