Peloton Interactive, Inc. (NASDAQ:PTON) Q2 2023 Earnings Call Transcript

Liz Coddington: So I’ll take the question about POP. So we had expected to sell or to sell the Peloton Output Park facility in Ohio by the end of calendar year ’22. Unfortunately, that process got delayed, but we are hopeful that we will be able to sell it by the end of the fiscal year. And we are confident that we will be able to sell it. It’s just — it’s literally just taking us longer. Now end of the fiscal year is not guaranteed, but that is our goal.

Operator: Our last question comes from the line of Lauren Schenk with Morgan Stanley. Your line is now open.

Unidentified Analyst : This is Nathan Federer . I am filling on for Lauren Shank. Can you just talk through how the initial demand for the rower spend and where you and think that production and distribution? And then what portion of demand is coming from new versus existing subscribers? And then just a follow-up last question, what exactly is causing the delay in selling POP? And how are you getting that fixed? Thank you.

Liz Coddington: Okay. So as far as the demand for the rower, just like our other products over the holiday season, the rower outperformed our expectations. It is a newer product for us and awareness outside our Peloton member base. We’re still building that quite a bit. So to your point, a larger share of the rower sales did go to existing numbers. It was roughly as high as 65% over the holiday period. Now since the holidays, it has moved to be more in line with the percent of existing numbers that are purchasing our tread product, and that’s in Q3, the trend is more in the 40-ish percent range in terms of overlap with existing subs. So that’s a little bit about the rower and new versus existing. On POP, the POP facility is a large facility. It’s in Ohio. It’s a great facility for the right use case for it, but we just have to find the right buyer for that facility. And so we’re taking the time to be able to do that.

Operator: Thank you. And I’m currently showing no further questions at this time. I would like to turn the call back over to Peter Stabler for closing remarks.

Peter Stabler: Thank you, everyone, for joining us today. We’ll talk to you next quarter. Have a good day.

Operator: This concludes today’s conference call. Thank you for your participation. You may now disconnect.