Specialist
Former VP at Peloton Interactive Inc
Agenda
- Key trends and developments in the connected fitness industry
- Peloton's (NASDAQ: PTON) positioning and impact of supply chain constraints on near-term sales, focusing on holiday-driven orders
- Implications of recently announced celebrity collaborations as part of content strategy
- Near-term impact of gym reopenings and closings and future coronavirus vaccine
Questions
1.
Could you highlight the key trends or developments you’ve been following in the at-home fitness industry?
2.
How would you break down the global TAM for at-home fitness in this environment?
3.
How do you assess the rise of digital offerings, and how has the uncertainty due to coronavirus affected consumers’ fitness regimens and purchases? Could you highlight any key platforms as clear standouts, besides Peloton?
4.
Could you outline some of the newer at-home fitness players, including the pros and cons of each platform?
5.
You said Lululemon’s acquisition of Mirror is a big part of its strategy as an apparel brand. How might you anticipate Mirror’s growth trajectory under Lululemon, considering the industry’s previous M&A in the space?
6.
To what extent do you think the imminent coronavirus vaccine could impact Peloton’s potential penetration and its current base of connected and digital subscribers? You mentioned trials and consumers being more willing to explore new fitness formats as a current trend.
7.
Peloton’s delivery delays for its Bikes and Treads have been widely publicised, which could hurt its NPS [net promoter score]. What is the magnitude of potential cancellations from those delays? Could that provide a window of opportunity for players such as Nautilus and NordicTrack to take share?
8.
Do you think it’s reasonable to expect market share to fragment and Peloton’s competitors to benefit, considering Peloton’s supply chain issues?
9.
Coronavirus pulled demand forward in the US market – consumers that wanted to work out at home bought Peloton’s Bike. To what extent is the US market still being penetrated, particularly the coasts? How would you characterise Peloton’s traction in middle America?
10.
Would it be possible to use gym churn as a way to estimate the number of consumers switching to Peloton?
11.
How much of an opportunity is Peloton’s apparel business? Do you notice the Peloton brand appealing beyond subscribers?
12.
What apparel or items would you estimate the average Peloton Bike owner purchases, beyond the workout?
13.
Could you share your assessment and outlook for the lifetime value for the average Peloton subscriber?
14.
How significant do you think Peloton’s Tread opportunity is for growth and lifetime value vs the Bike?
15.
How might customer acquisition cost differ across the target demographic for Tread vs the Bike and Bike+?
16.
What are your expectations for Peloton’s performance in Q4 2020? We’ve discussed some of the supply chain issues Peloton faced and the potential impact on its NPS. What impact might the holidays have on Peloton sales?
17.
Would you say consumers that are getting frustrated with long delivery times are immaterial to Peloton’s holiday-driven sales?
18.
What do you think is distinctive about Peloton’s strategic music partnerships that were announced as a part of its content strategy, such as its recent collaboration with Beyoncé?
19.
How do you anticipate Peloton’s long-term product evolution? Could it release a gamified offering or is an expansion of its product line or hardware more likely?
