Peloton misses expectations in latest financial report, accuses Apple

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In a word: Peloton has blamed Apple for the disappointing results of the fitness company in the first quarter of 2022, in which it fell short of expectations and reported a net loss of $ 376 million.

For the first quarter of fiscal 2022, Peloton reported revenue of $ 805.2 million, falling short of expectations of $ 810.7 million, although it hit its own forecast of $ 800 million. dollars. The reported loss per share of $ 1.25 is also greater than the expected loss of $ 1.07 per share, representing total net losses of $ 376 million. Sales of its fitness products were also down 17%.

For comparison, Peloton reported net income of $ 69.3 million a year earlier, a figure that was boosted by the pandemic and stay-at-home orders.

The good news is that Peloton’s connected fitness subscribers grew 87% year-over-year to 2.49 million, and paid digital subscriptions grew 74% to 887,000. members, meanwhile, rose to over 6.2 million.

In a conference call with investors (via Bloomberg), Peloton said some of the blame for missed financial targets could lie at the feet of Apple and its new Ad Tracking Transparency (ATT) policy. arrived in iOS 14.5. The change gives users control over how their data is collected by allowing them to grant or deny apps permission to track their activity for targeted advertising purposes.

Facebook has long been an adversary of ATT, having warned advertisers last year of an advertising disaster. The social network estimated that this would result in a 50% drop in revenue for its Audience Network platform.

ATT has reportedly pushed advertisers to Android, and we recently heard that it cost social media platforms, including Snap, YouTube, and Twitter, nearly $ 10 billion.

“We expected fiscal 2022 to be a very difficult year to predict, given unusual comparisons to the previous year, uncertainty in demand amid reopening economies and chain constraints. widely reported supply and commodity cost pressures, ”Peloton wrote. “As we lower our short-term forecast, our confidence and commitment to our strategy remains unchanged. “

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