Peloton Interactive, Inc. (NASDAQ:PTON) Q1 2023 Earnings Conference Call November 3, 2022 8:30 AM ET

Company Participants

Peter Stabler – Head-Investor Relations

Barry McCarthy – Chief Executive Officer

Liz Coddington – Chief Financial Officer

Conference Call Participants

Doug Anmuth – JPMorgan

Edward Yruma – Piper Sandler

Justin Post – Bank of America

Eric Sheridan – Goldman Sachs

Lauren Schenk – Morgan Stanley

Shweta Khajuria – Evercore ISI

Deepak Mathivanan – Wolfe Research

Ron Josey – Citi

Aneesha Sherman – Bernstein

Mario Lu – Barclays

Andrew Boone – JMP Securities

Operator

Good day, and thank you for standing by. Welcome to the Peloton Interactive First Quarter 2023 Earnings Call. At this time all participants are in a listen-only mode. [Operator Instructions] Please be advised that today’s conference is being recorded.

I would now like to hand the conference over to your speaker today, Peter Stabler, Head of Investor Relations. Please go ahead.

Peter Stabler

Good morning, and welcome to Peloton’s fiscal first quarter conference call. Joining today’s call are CEO, Barry McCarthy; and CFO, Liz Coddington.

Our comments and responses to your questions reflect management’s views as of today only and will include statements related to our business that are forward-looking statements under federal securities laws. Actual results may differ materially from those contained in or implied by these forward-looking statements due to risks and uncertainties associated with our business. For a discussion of the material risks and other important factors that could impact our results, please refer to our SEC filings and today’s shareholder letter, both of which can be found on our Investor Relations website.

During this call, we will discuss both GAAP and non-GAAP financial measures. A reconciliation of GAAP to non-GAAP financial measures is provided in today’s shareholder letter.

I’ll now turn the call over to the operator for the first question.

Question-and-Answer Session

Operator

[Operator Instructions] Our first question will come from the line of Doug Anmuth from JPMorgan. Your line is open.

Doug Anmuth

Thanks for taking the questions. Barry, it’s clear you’ve made progress on the cost structure and free cash flow loss. But how should we think about your plan to drive growth and in particular, can you give us an update on the FaaS rental model and how that’s progressing so far? Thanks.

Barry McCarthy

Hey Doug, good morning. Thanks for the question. Well, look our focus – our job one is to ensure the viability of the business, which a year ago was in doubt. And I believe that is no longer the case. Because of our focus on driving – rightsizing the cost structure, variable life in costs and driving the business towards our goal of breakeven free cash flow. Clearly, that has come at the expense of growth, and there will come a time when we begin to focus again on growth.