During its virtual 2022 Homecoming event, which will be ongoing from Friday, May 13 to Saturday, May 14, Peloton showed off a new inclusion to its slate of fitness machines: a sleek rower that had long been teased since as early as 2018. The tease was swift, lasting barely over a minute long but to the point, highlighting that Peloton's rowing machine is "coming soon."
It's a much-needed bright spot for a company facing some serious woes following its most recent earnings report, which proved a loss of $757.1 million in just the first quarter. The company also noted a $6 million revenue miss and a year-over-year $1.26 billion dip that has investors scrambling as similarly situated tech stocks nosedive throughout the week starting May 9.
Today, Peloton stock seems to be taking a nice rebound, up 12.19% as of writing. It's unclear if the Homecoming event and its various releases are aiding in the company's leap back into the green, but clearly, fitness heads have highly anticipated the debut of the Peloton rower. Despite revealing little information, the hype seems to be bubbling below the surface, wrought most prominently by the consistent rumors of its supposed debut back in 2020.
Speaking to the Verge, Peloton's Chief Product Officer and co-founder, Tom Cortese, divulge upon all the ins and outs of the forthcoming product without being too forthright, admitting in a bit of tongue in cheek way that the rower is "the worst-kept secret on Earth, so might as well just talk about it." He explained:
"In a relatively short period on the rower, like a 10 or 15-minute class, you can actually engage 86 percent of the muscles in your body. The problem with rowing has been it's kind of inaccessible because the average person like me looks at a rower, and I don't know what to do."
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Setting itself apart from the rest is the rower's coalescence of Peleton's varied instructors, hardware know-how, and fitness tech history. Peloton's rower, unlike rivals like the Hydro or the OrangeTheory studio, will feature a ton of specified strength training content that will work in tandem with the user to ensure they get the best out of their workout without too many complicated steps and confusion.
Yet, even beyond its earnings woes, Peloton likewise has been hit with myriad parts deficits that have wracked the entire world, most notably EV and smartphone production. Faced with logistic concerns and inventory mishaps, newly appointed Peloton CEO Barry McCarthy tells investors amid the most recent earnings report:
"The balance sheet has been managing inventory. We have too much for the current run rate of the business, and that inventory has consumed an enormous amount of cash, more than we expected, which has caused us to rethink our capital structure (more on this in a moment). Fortunately, the obsolescence risk is negligible, so this is primarily a cash flow timing issue, not a structural issue."
Tech certainly seems to be the face of the brand, but like Netflix and Disney Plus, Peloton thrives more on the subscription concept. Thus, the content will remain its core driver and at the forefront of the company moving forward, bolstered by consistent tech and add-on features like the bike-focused Power Zone Training Program.
With no word just yet of an official release window for its rower, Peloton seeks to hype the masses in a rather gloomy time for tech stocks. The company also noted several additional tidbits, like the opening of its physical Peloton Studios in both New York and London, as well as new in-app features, like Just Workout, fitness tracking for everyday excursions, and a full Invite Friends function to bring a guest along to you favorite routines.
