Peloton is a company that produces a range of connected fitness equipment, including stationary bikes, treadmills, and associated fitness subscriptions. Peloton was founded in 2012 and is headquartered in New York City, USA.
Peloton’s primary product is its connected exercise bike, which allows users to participate in live and on-demand cycling classes from the comfort of their own homes.
The bike is equipped with a large touchscreen display that shows the class instructor and provides real-time metrics, such as cadence, resistance, and output. The bike is also equipped with a camera and microphone that allow users to participate in virtual rides and interact with other riders.
In addition to its cycling products, Peloton also offers a range of other connected fitness equipment, including treadmills and a smart home gym system called Peloton Tread+. In September 2022, the company released the Peloton Row rowing machine.
Peloton’s fitness subscriptions provide access to its extensive library of live and on-demand classes, which include not only cycling classes, but also yoga, strength training, and other forms of exercise. Subscribers can participate in classes live or on-demand and track their progress over time.
Breakdown of Peloton information you can find on this page:
Company Background
Peloton was founded in 2012 by John Foley, Graham Stanton, Hisao Kushi, Yony Feng, and Tom Cortese, with the aim of bringing a more convenient and engaging workout experience to people’s homes. The company is headquartered in New York City and has operations in the United States, Canada, the United Kingdom, and Germany.
The company first introduced its connected exercise bike in 2014, which allows users to participate in live and on-demand cycling classes from the comfort of their own homes. The bike is equipped with a large touchscreen display that shows the class instructor and provides real-time metrics, such as cadence, resistance, and output.
Funding
Peloton was initially funded through a combination of seed funding from individual investors and venture capital investments. Here is an overview of the funding sources that helped Peloton get started:
- Seed Funding: Peloton was initially funded through a round of seed funding in 2012, which raised $400,000 from individual investors. The seed funding helped Peloton develop its initial prototype for a connected exercise bike and begin building out its team of engineers, designers, and other staff.
- Series A Funding: In 2013, Peloton raised $10.5 million in a Series A funding round, led by Tiger Global Management. The funding helped Peloton begin manufacturing and selling its connected exercise bike, as well as building out its team of coaches and instructors.
- Series B Funding: In 2014, Peloton raised $30 million in a Series B funding round, led by True Ventures. The funding helped Peloton expand its marketing efforts and launch new products and services, including the Peloton Tread and Peloton Digital, which provides access to Peloton’s workout classes without the need for hardware.
- Series C Funding: In 2015, Peloton raised $75 million in a Series C funding round, led by L Catterton. The funding helped Peloton expand its product offerings and scale up its operations, as well as expand its international presence.
- Initial Public Offering: In 2019, Peloton went public and raised $1.16 billion in its initial public offering (IPO). The IPO valued the company at $8.1 billion and helped Peloton raise additional capital to fund its growth and expansion.
Peloton’s funding has come from a combination of individual investors, venture capital firms, and public investors. The company’s success in raising capital has helped it develop innovative products and services, as well as build a loyal and engaged customer base.
Sources: Investor, Statista, FutureFit
Peloton Key Stats & Figures
Here are some key stats and figures related to Peloton:
- Revenue: In its fiscal year ending June 30, 2021, Peloton generated $4.08 billion in revenue, an increase of 141% compared to the previous year.
- Average Monthly Workouts: Peloton users completed an average of 26.0 workouts per month as of June 30, 2021.
- Total Workouts: Peloton users completed over 434 million workouts as of June 30, 2021.
- Employees: As of June 30, 2021, Peloton had over 7,800 employees worldwide.
- Market Capitalization: Peloton’s market capitalization as of February 14, 2023, is approximately $34 billion.
- Locations: Peloton has operations in the United States, Canada, the United Kingdom, and Germany.
- Growth: Peloton’s user base and revenue have seen significant growth in recent years, particularly as a result of the COVID-19 pandemic, which has increased demand for at-home fitness solutions.
Peloton Subscriber Statistics
Peloton has reported strong subscriber and member growth in recent years, particularly as a result of increased demand for at-home fitness solutions during the COVID-19 pandemic. Here are some key statistics on Peloton’s subscribers and members:
- Connected Fitness Subscribers: Peloton’s Connected Fitness Subscribers are customers who have purchased Peloton hardware, such as the Peloton Bike or Peloton Tread, and have an active subscription to Peloton’s workout classes. As of the end of Q1 2022 (September 30, 2021), Peloton had 5.33 million Connected Fitness Subscribers, up from 1.09 million subscribers at the end of Q1 2020.
- Peloton Digital Subscribers: Peloton’s Digital Subscribers are customers who subscribe to Peloton’s workout classes without owning Peloton hardware. As of the end of Q1 2022, Peloton had 2.53 million Digital Subscribers, up from 316,800 subscribers at the end of Q1 2020.
- Total Memberships: Peloton’s Total Memberships include both Connected Fitness Subscribers and Digital Subscribers. As of the end of Q1 2022, Peloton had 7.86 million Total Memberships, up from 1.41 million at the end of Q1 2020.
- Average Monthly Workouts per Connected Fitness Subscriber: Peloton’s Connected Fitness Subscribers are highly engaged with the company’s products and services. In Q1 2022, Peloton’s Connected Fitness Subscribers completed an average of 25.7 workouts per month, up from 17.7 workouts per month in Q1 2020.
Peloton User Demographics
Peloton’s user demographics have shifted and broadened over the years, as the company has expanded its product offerings and marketing efforts. Here are some key user demographic statistics for Peloton:
- Age: Peloton’s user base includes a wide range of age groups, but the company’s core demographic is typically middle-aged or older. According to a survey by Statista, as of May 2021, around 55% of Peloton users in the US were aged 35-54, while around 22% were aged 55 and older.
- Gender: Peloton’s user base is evenly split between men and women. According to the same Statista survey, as of May 2021, around 48% of Peloton users in the US were male, while around 52% were female.
- Household Income: Peloton’s products and services are generally considered to be on the more expensive end of the market, and the company’s user base tends to have higher-than-average household incomes. According to the same Statista survey, as of May 2021, around 28% of Peloton users in the US had a household income of $150,000 or more, while around 19% had a household income of $100,000-$149,999.
- Geographic Location: Peloton has a broad and growing user base across the United States and around the world. According to a survey by eMarketer, as of September 2020, the majority of Peloton’s US users were located in urban areas (51%), followed by suburban areas (32%) and rural areas (17%).
- Fitness Level and Experience: Peloton’s products and services are designed to cater to a wide range of fitness levels and experience levels, from beginners to experienced athletes. Peloton’s workout classes can be customized to suit different fitness levels, and the company offers a range of modifications and variations for its workouts to make them accessible to users with different abilities.
Peloton Instructor & Employee Stats
- Instructors: Peloton has a large and diverse team of instructors across all workout categories, including cycling, running, strength training, yoga, and more. As of September 2021, Peloton had more than 90 instructors, many of whom have large and dedicated followings among Peloton’s user base.
- Employee Count: Peloton has a growing and diverse team of employees who work in a range of functions, including engineering, design, marketing, sales, and more. As of June 2021, Peloton had approximately 6,200 employees, up from around 4,000 employees in the prior year.
- Employee Diversity: Peloton is committed to promoting diversity and inclusion in its workforce. According to the company’s 2020 diversity report, Peloton’s US workforce is 44% non-white and 54% female. The company has also implemented a range of initiatives to promote diversity and inclusion, including employee resource groups and diversity training programs.
- Instructor Diversity: Peloton has made a concerted effort to diversify its team of instructors in recent years, with a particular focus on increasing the representation of Black, Indigenous, and People of Color (BIPOC) instructors. As of September 2021, around 30% of Peloton’s instructors were BIPOC, up from around 10% in 2018.
- Instructor Compensation: Peloton’s instructors are highly regarded and well-compensated for their work. According to reports, Peloton instructors can earn up to $500 per class, and many have multi-year contracts with the company. In addition to their class fees, Peloton instructors also receive benefits and other compensation, including stock options.
Sources: Pitchbook, FutureFit, Statista, Insider Intelligence
Peloton Revenue
Peloton’s revenue has seen significant growth since the company was founded in 2012. Here are some key facts about Peloton’s revenue:
- Peloton’s revenue has grown rapidly in recent years. In its fiscal year ending June 30, 2021, Peloton generated $4.08 billion in revenue, an increase of 141% compared to the previous year.
- The vast majority of Peloton’s revenue comes from its Connected Fitness product segment, which includes sales of Peloton bikes, Peloton Treads, and associated subscriptions. In its fiscal year ending June 30, 2021, Connected Fitness revenue accounted for $3.98 billion, or 97% of Peloton’s total revenue.
- Peloton’s Digital Subscriptions product segment, which includes access to Peloton’s workout classes without the need for hardware, accounted for $97.2 million in revenue in its fiscal year ending June 30, 2021. This segment has seen significant growth in recent years, with revenue increasing by 125% compared to the previous year.
- Peloton’s revenue growth has been driven by several factors, including the popularity of its products, the convenience of at-home workouts, and the COVID-19 pandemic, which has increased demand for at-home fitness solutions.
- Despite its rapid revenue growth, Peloton has yet to achieve profitability. The company has experienced significant expenses related to product development, marketing, and logistics, among other factors. However, the company has shown progress in reducing its losses in recent quarters, and has stated its intention to achieve profitability in the future.
- Looking forward, Peloton expects its revenue growth to continue, although at a somewhat slower pace than in previous years.
Sources: FutureFit, Statista, Insider Intelligence, Investor
Peloton Products
Peloton offers a range of connected fitness equipment, as well as associated subscriptions that provide access to its extensive library of live and on-demand workout classes. Here is an overview of Peloton’s product offerings:
Peloton Bike
The Peloton Bike is the company’s flagship product, a connected exercise bike that allows users to participate in live and on-demand cycling classes from the comfort of their own homes. The bike is equipped with a large touchscreen display that shows the class instructor and provides real-time metrics, such as cadence, resistance, and output. Users can choose from a variety of class types, including endurance, power, and interval training.
Peloton Tread
The Peloton Tread is a connected treadmill that offers a range of running and walking workouts, as well as boot camp-style classes that incorporate strength training exercises. The Tread features a large touchscreen display and can be controlled using voice commands or hand gestures.
Peloton Tread+
The Peloton Tread+ is a high-end version of the Peloton Tread that features a larger touchscreen display, a more powerful motor, and a slat belt instead of a traditional running belt. The Tread+ has faced safety concerns and recall issues, but Peloton has continued to sell the product with enhanced safety features.
Peloton Bike+
The Peloton Bike+ is an upgraded version of the original Peloton Bike. The Bike+ has a larger touchscreen display, a rotating screen, an improved sound system, and an automatic resistance system. The Bike+ also has an integrated camera that allows users to participate in virtual rides and interact with other riders.
Peloton Row
The Peloton Row is a luxe rowing machine with sleek lines and futuristic curves. It features form-assist technology to help you perfect your rowing form and an electronically controlled magnetic resistance for a quiet, smooth rowing experience. There’s also a huge 24-inch HD swivel screen to access the live and on-demand workouts
Peloton App
The Peloton App is a subscription service that provides access to Peloton’s extensive library of live and on-demand classes, without the need for Peloton hardware. The app offers a range of workout types, including cycling, running, yoga, strength training, and more. The Peloton App can be accessed on a variety of devices, including smartphones, tablets, and smart TVs.
Sources: Peloton
Peloton Coaches / Instructors
Peloton has a large team of coaches and instructors who lead the company’s live and on-demand workout classes. Here is some information about Peloton’s coaches and instructors:
- Cycling Instructors: Peloton’s cycling instructors lead classes on the Peloton Bike and Peloton Bike+. The company has a large team of cycling instructors, including popular instructors such as Alex Toussaint, Ally Love, and Cody Rigsby. Each instructor has their own style and personality, and classes can be customized to suit different music preferences and workout styles.
- Running Instructors: Peloton’s running instructors lead classes on the Peloton Tread and Peloton Tread+. Running classes can be customized to suit different workout types, including interval training, endurance running, and hill training. Popular running instructors include Becs Gentry, Robin Arzon, and Matt Wilpers.
- Yoga Instructors: Peloton’s yoga instructors lead a variety of yoga classes, including flow, power, and restorative yoga. Peloton’s yoga instructors include Aditi Shah, Denis Morton, and Anna Greenberg.
- Strength Training Instructors: Peloton’s strength training instructors lead a range of workouts that incorporate weights, bodyweight exercises, and other forms of strength training. Peloton’s strength training instructors include Chase Tucker, Jess Sims, and Oliver Lee.
- Other Instructors: In addition to cycling, running, yoga, and strength training, Peloton also offers classes in other workout types, such as bootcamp, meditation, and stretching. Peloton’s instructors in these areas include Robin Arzon, Jess Sims, and Aditi Shah.
Peloton’s instructors are highly trained and experienced, and many have backgrounds in professional sports, fitness training, and other related fields. They are also skilled at creating a supportive and engaging environment, and many users develop a strong sense of community and camaraderie through Peloton’s classes.
Sources: Peloton, Womens Health Mag
Peloton Workouts
The Peloton App provides access to an extensive library of live and on-demand workouts across a wide range of workout types. Here is an overview of some of the workouts available on the Peloton App:
Cycling
Peloton offers a variety of indoor cycling workouts that range in length from 5 to 90 minutes. These workouts can be customized to suit different fitness levels and preferences and can incorporate different music genres and training styles.
Running
The app features a range of indoor and outdoor running workouts, including interval training, endurance runs, and guided outdoor runs. Peloton’s running workouts can be customized to suit different fitness levels and preferences and can incorporate different music genres and coaching styles.
Strength Training
The Peloton app includes strength training workouts that incorporate weights, bodyweight exercises, and other forms of strength training. These workouts can be customized to suit different fitness levels and preferences and can target different muscle groups.
Yoga
Peloton offers a variety of yoga classes, including flow, power, and restorative yoga. These classes can be customized to suit different fitness levels and preferences and can incorporate different music genres and yoga styles.
Bootcamp
Bootcamp-style workouts combine cardio and strength training exercises in a single workout. These workouts can be customized to suit different fitness levels and preferences and can target different muscle groups.
Rowing
Peloton has added a library of rowing content with the release of the Peloton Row in late 2022. Options include scenic row, boot camp, high-intensity interval rows, and short sharp 10-minute rows for beginners. The longest workouts are 60 minutes. The library can not yet be considered extensive, but new workouts are being added on a monthly basis.
Meditation
Peloton has a variety of meditation classes, including guided meditations, sound baths, and breathwork exercises. These classes can be customized to suit different preferences and can be tailored to different goals, such as stress reduction or relaxation.
Stretching
Peloton offers a range of stretching classes that can help improve flexibility and reduce muscle tension. These classes can be customized to target specific muscle groups and can be incorporated into a broader workout routine.
Sources: Peloton
Controversies
Peloton has faced a number of controversies over the years. Here are some of the main controversies associated with the company:
Safety Concerns with the Tread+
In April 2021, Peloton announced a recall of its Tread+ treadmills after the Consumer Product Safety Commission (CPSC) issued a warning about the product’s safety. The CPSC cited dozens of incidents in which children and pets had been injured or killed by the treadmill. Peloton initially resisted the CPSC’s call for a recall, which led to criticism of the company’s response to the issue.
Misleading Advertising
In 2019, Peloton faced criticism for an ad campaign that some viewers felt was elitist and exclusionary. The ad featured a woman receiving a Peloton bike as a gift from her husband and documenting her year-long fitness journey. The ad drew backlash on social media for its tone-deaf portrayal of luxury fitness and was widely parodied online.
Music Licensing Lawsuits
In 2019, Peloton was sued by several music publishers for copyright infringement, alleging that Peloton had used their songs in its workout classes without proper licensing. The lawsuits sought millions of dollars in damages, and Peloton ultimately settled with the music publishers for an undisclosed amount.
Supply Chain Issues
During the COVID-19 pandemic, Peloton faced significant supply chain issues due to increased demand for its products. Customers faced long wait times for delivery, and Peloton struggled to keep up with demand for its hardware and subscription services.
Stock Price Fluctuations
Peloton’s stock price has been volatile since the company went public in 2019. The stock has faced significant price swings in response to company news, including the recall of the Tread+ and shifts in demand for at-home fitness products due to the COVID-19 pandemic.
Peloton has responded to these challenges with a range of initiatives, including enhanced safety features for its Tread+ product, improved supply chain management, and expanded marketing efforts to reach a broader customer base.
Sources: NY Times [1] [2], Business Insider
Future Prospects
Peloton’s outlook going forward is positive, with the company poised for continued growth and expansion. Here are some key factors that are likely to shape Peloton’s future:
Strong Market Demand
Peloton has seen significant growth in recent years, particularly as a result of increased demand for at-home fitness solutions during the COVID-19 pandemic. As more consumers adopt at-home fitness as a preferred workout method, Peloton is likely to continue to benefit from this trend.
Expanding Product Offerings
Peloton is continuing to expand its product offerings. This expansion will help Peloton reach a broader customer base and increase its revenue streams.
International Expansion
Peloton is continuing to expand its international presence, with plans to launch in new markets, including Australia and New Zealand. This expansion will help Peloton reach a larger global customer base and increase its revenue streams.
Increasing Digital Subscriptions
Peloton is seeing strong growth in its Digital Subscriptions product segment, which provides access to Peloton’s workout classes without the need for hardware. As more consumers seek out digital fitness solutions, Peloton is likely to benefit from increased demand for its digital products.
Challenges
2022 was a challenging year for Peloton. It slashed 5,000 jobs and lost four top executives. From a high of $171 during the height of the pandemic, its share price reached a low of $6.66.Peloton’s popularity declined as the pandemic receded and people returned to the gym.
Peloton faces increasing competition from both traditional fitness brands and newer, upstart competitors. As the at-home fitness market becomes more crowded, Peloton will need to continue to innovate and differentiate itself to maintain its market position.
Sources: Business Insider [1] [2]
Before You Go…
That’s as much information as I’ve been able to gather together about Peloton. This company saw amazing growth during the pandemic but things took a turn in 2022. However, its most recent offering, the Peloton Row has been very well received. It’s had its share of controversies but has shown itself able to take stock and make the necessary changes.
While the company may face challenges, such as increased competition and shifting market demand, Peloton’s strong market position and ongoing innovation efforts should help it to continue to thrive.
Here are some other articles that may interest you…
