派樂騰 (PTON) 2024 Q3 法說會逐字稿

Good day, and welcome to Peloton's Third Quarter Fiscal Year 2024 Conference Call. (Operator Instructions) Please be advised that today's conference is being recorded.

大家好，歡迎參加 Peloton 2024 財年第三季電話會議。 （操作員指示）請注意，今天的會議正在錄音。

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

現在，我想將會議交給發言人、投資者關係主管詹姆斯·馬什 (James Marsh)。請繼續。

Thank you, operator. Good morning, and welcome to Peloton's Third Quarter Fiscal Year 2024 Conference Call. Joining today's call are Peloton Board Members, Karen Boone and Chris Bruzzo, who will be stepping in as interim co-CEOs; as well as Chief Financial Officer, Liz Coddington.

謝謝您，接線生。早安，歡迎參加 Peloton 2024 財年第三季電話會議。參加今天電話會議的還有 Peloton 董事會成員 Karen Boone 和 Chris Bruzzo，他們將擔任臨時聯合執行長；以及財務長 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 and implied by these forward-looking statements due to risks and uncertainties associated with our business.

我們對您的問題的評論和回應僅反映管理層截至今天的觀點，並將包括與我們的業務相關的聲明，這些聲明根據聯邦證券法屬於前瞻性聲明。由於與我們的業務相關的風險和不確定性，實際結果可能與這些前瞻性陳述中包含和暗示的結果有重大差異。

For a discussion of the material risks and other important factors that could impact our actual results, please refer to our SEC filings and today's shareholder letter, both of which can be found on our Investor Relations website.

有關可能影響我們實際結果的重大風險和其他重要因素的討論，請參閱我們的美國證券交易委員會文件和今天的股東信，這兩份文件都可以在我們的投資者關係網站上找到。

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.

在本次電話會議中，我們將討論 GAAP 和非 GAAP 財務指標。今天的股東信中提供了 GAAP 與非 GAAP 財務指標的對帳表。

I'll now turn the call over to Karen.

我現在將電話轉給凱倫。

Thank you all for joining today. For those who don't know me, I've been a member of Peloton's Board since early 2019 and have served as Chairperson since September of 2022. We have a lot to cover this morning, so let's begin with the leadership update.

感謝大家今天的參與。對於那些不認識我的人，我自 2019 年初以來一直是 Peloton 董事會成員，並自 2022 年 9 月起擔任董事長。今天早上我們有很多內容要講，所以讓我們從領導層的更新開始。

As you may have seen in our release this morning, Barry McCarthy is stepping down as President and CEO and has also resigned as a member of the Peloton Board. Barry will continue to serve as a strategic adviser to Peloton. I know I'm speaking for the entire Board when I say that we are very grateful for his contributions to Peloton.

正如您可能在我們今天早上發布的新聞稿中看到的那樣，巴里·麥卡錫 (Barry McCarthy) 將辭去總裁兼首席執行官一職，並辭去 Peloton 董事會成員一職。巴里將繼續擔任 Peloton 的策略顧問。我知道，當我說我們非常感謝他對 Peloton 的貢獻時，我代表的是整個董事會。

Barry joined Peloton during an incredibly challenging time for the business. During his tenure, he laid the foundation for scalable growth by steadily re-architecting the cost structure of the business to create stability and to reach the important milestone of achieving positive free cash flow.

當巴里加入 Peloton 時，公司正處於一個極具挑戰性的時期。在任職期間，他透過穩步重塑業務成本結構來創造穩定性並達到實現正自由現金流的重要里程碑，為可擴展成長奠定了基礎。

With a strong leadership team in place and the company now on solid financial footing, the Board has decided that now is the appropriate time to search for the next CEO of Peloton. While our search for a successor is underway, Chris and I will be stepping in as interim co-CEOs. And Jay Hoag, who has served on the Board since 2018, will step into the role of Chairperson of the Board.

由於擁有強大的領導團隊並且公司財務基礎穩固，董事會決定現在是尋找下一任 Peloton 執行長的適當時機。在我們尋找繼任者的同時，克里斯和我將擔任臨時聯合執行長。自 2018 年起擔任董事會成員的傑伊·霍格 (Jay Hoag) 將擔任董事會主席。

Peloton is at a critical inflection point. And as the Board works to identify a permanent CEO, Chris and I will partner with our remarkable leadership team to ensure Peloton continues to deliver a best-in-class experience to our members and continue our work to achieve profitable growth.

Peloton 正處於一個關鍵的轉折點。在董事會努力尋找永久執行長的同時，克里斯和我將與我們出色的領導團隊合作，確保 Peloton 繼續為我們的會員提供一流的體驗，並繼續努力實現盈利增長。

To give some background on Chris and my areas of expertise, I have significant experience with consumer brands, both at the executive and Board level. Most recently, I was President, Chief Financial Officer and Chief Administrative Officer of Restoration Hardware. Similarly, Chris brings more than 2 decades of experience working for global consumer brands, most recently as Executive Vice President and Chief Experience Officer of Electronic Arts.

為了介紹克里斯和我的專業​​領域，我在執行和董事會層面都擁有豐富的消費品牌經驗。最近，我擔任 Restoration Hardware 的總裁、財務長和首席行政官。同樣，克里斯擁有 20 多年為全球消費品牌工作的經驗，最近擔任美國藝電公司執行副總裁兼首席體驗長。

As interim co-CEOs, Chris and I will work in lockstep with and do everything we can to support Peloton's executive team. I'm excited about the progress that the product and content teams are driving as well as the level of focus and efficiency that's being brought to marketing spend. Chris will expand on this in his remarks.

作為臨時聯合首席執行官，克里斯和我將與 Peloton 的執行團隊緊密合作，竭盡所能支持他們。我對產品和內容團隊所取得的進展以及行銷支出的重點和效率水平感到興奮。克里斯將在他的演講中詳細闡述這一點。

The team has made significant progress in achieving positive free cash flow, which is important as we focus on strengthening our balance sheet and refinancing our debt. We look forward to bringing you updates on our progress in the coming quarters. Let me say that I'm honored to step into this role alongside Chris, whose skill set and background complement my own.

該團隊在實現正自由現金流方面取得了重大進展，這對於我們專注於加強資產負債表和再融資債務至關重要。我們期待在未來幾季向您帶來我們進展的最新情況。我要說的是，我很榮幸能與克里斯一起擔任這個職位，他的技能和背景與我相輔相成。

I'll now hand it over to him.

我現在就把它交給他。

Thanks, Karen. The Board has entrusted us to serve an important role. And I couldn't have asked for a better partner than Karen to serve as interim co-CEO. Let me also reiterate our appreciation for Barry. It has been an immense and challenging effort to create this turnaround at Peloton. And we're grateful to him for his contributions over the last 2 years.

謝謝，凱倫。董事會委託我們擔任重要角色。我找不到比凱倫更好的合作夥伴來擔任臨時聯席執行長了。我還要重申我們對巴里的感謝。為了實現 Peloton 的這種轉變，我們付出了巨大且富有挑戰性的努力。我們感謝他過去兩年來的貢獻。

We have already begun a search for Peloton's next CEO and are working with a leading executive search firm on this important effort. Our focus is on identifying a leader who brings the right combination of skills, experience and vision to execute Peloton's exciting next chapter and drive shareholder value.

我們已經開始尋找 Peloton 的下一任首席執行官，並正在與一家領先的高管搜尋公司合作開展這項重要工作。我們的重點是尋找一位能夠將技能、經驗和願景完美結合的領導者，以執行 Peloton 激動人心的下一篇章並推動股東價值。

While there's a lot of important work to do, there's also a lot to be excited about at Peloton, particularly when you look at the depth and strength of our team. While I would love to talk about each member of the team, I will just highlight a few examples for you today.

雖然有很多重要的工作要做，但 Peloton 也有很多值得興奮的事情，特別是當你看到我們團隊的深度和實力時。雖然我很想談論團隊中的每個成員，但今天我只會為大家重點介紹幾個例子。

Lauren Weinberg, our newly appointed Chief Marketing Officer, is driving transformation in the marketing organization. Since joining in January, she has identified meaningful opportunities for cost optimization in brand and creative spending and has brought a fresh perspective to how we will deploy media. She has a critical eye for marketing efficiency that we're already starting to see materialize in our P&L.

我們新任命的首席行銷長勞倫溫伯格 (Lauren Weinberg) 正在推動行銷組織的轉型。自從一月加入以來，她已經發現了品牌和創意支出成本優化的重要機會，並為我們如何部署媒體帶來了新的視角。她對行銷效率有著敏銳的洞察力，這一點我們已經開始在損益表中看到體現。

And Nick Caldwell, our Chief Product Officer, who joined us in November of 2023, has introduced a faster pace of innovation in our R&D organization. And we are excited about the impact that our product initiatives will have to improve the fitness experiences for our current and new members.

我們的首席產品長尼克·考德威爾 (Nick Caldwell) 於 2023 年 11 月加入我們，為我們的研發組織帶來了更快的創新步伐。我們對我們的產品計劃將對改善現有和新會員的健身體驗產生的影響感到非常興奮。

And Jen Cotter, our Chief Content Officer, who over the course of her 5 years at Peloton has assembled a team of world-class instructors, who keep millions of members motivated and engaged on our platform. Not only has her team built a library of over 40,000 classes. It's presented in a way that is curated, data-driven, programmatic and purposeful. Jen's team continues to expand our content offering, which now includes 16 modalities, 4 content formats and 3 languages.

我們的首席內容長 Jen Cotter 在 Peloton 任職 5 年間組建了一支世界一流的教練團隊，讓數百萬會員積極參與我們的平台。她的團隊不僅建立了一個包含 40,000 多個類別的庫。它以精心策劃、數據驅動、程序化和有目的的方式呈現。 Jen 的團隊繼續擴展我們的內容產品，現在包括 16 種模式、4 種內容格式和 3 種語言。

All of us share the conviction that Peloton is an amazing company with tremendous growth potential. And we look forward to finding the next great leader to drive this company forward.

我們所有人都堅信 Peloton 是一家擁有巨大成長潛力的優秀公司。我們期待找到下一位偉大的領導者來推動公司前進。

While our growth trends are challenged in the near term as the connected fitness market continues to normalize post COVID, I'm incredibly excited about the trajectory of the connected fitness space, which appears to be nearing an inflection point of returning to growth.

儘管隨著互聯健身市場在新冠疫情後繼續正常化，我們的成長趨勢在短期內面臨挑戰，但我對互聯健身領域的發展軌跡感到非常興奮，該領域似乎正接近恢復成長的轉折點。

We're deliberately investing in key areas of the business like software, hardware and content innovation to drive growth and engage more people who want to improve their fitness and wellness. We offer an incredible experience that makes a huge impact on people's lives. So we're confident in our ability to capitalize on the opportunities ahead.

我們有意投資軟體、硬體和內容創新等業務關鍵領域，以推動成長並吸引更多想要改善健康和健康的人。我們提供令人難以置信的體驗，對人們的生活產生巨大的影響。因此，我們對自己抓住未來機會的能力充滿信心。

The steps we're taking today will make Peloton stronger. Ultimately, this is about propelling us into our next phase of growth and innovation. I have the utmost confidence in the team here to deliver.

我們今天採取的措施將使 Peloton 變得更加強大。最終，這將推動我們進入下一階段的成長和創新。我對這裡的團隊充滿信心。

And with that, I'll hand the call over to Liz.

說完這些，我就把電話交給 Liz。

Thank you, Karen and Chris. I'd like to take a few minutes to discuss our newly announced restructuring plan and then spend some time talking through our Q3 results and, finally, discuss our current outlook for the remainder of fiscal year 2024.

謝謝你，凱倫和克里斯。我想花幾分鐘時間討論我們新宣布的重組計劃，然後花一些時間討論一下我們的第三季度業績，最後討論一下我們對 2024 財年剩餘時間的當前展望。

Today, we are announcing a new restructuring program to reduce annual expenses by more than $200 million. The objective of the cost reductions is to reshape Peloton to align our cost structure with the current size of our business and position Peloton to generate sustained and meaningful positive free cash flow, which is a top priority for us.

今天，我們宣布了一項新的重組計劃，旨在減少每年超過 2 億美元的開支。削減成本的目標是重塑 Peloton，使我們的成本結構與當前業務規模保持一致，並使 Peloton 能夠產生持續且有意義的正自由現金流，這是我們的首要任務。

We expect to achieve the $200 million run rate savings by the end of fiscal 2025 with a significant share of the cost reductions taking place immediately. When fully implemented, we expect to reduce our team size by approximately 15% or roughly 400 global team members.

我們預計到 2025 財年末將實現 2 億美元的運行成本節省，其中很大一部分成本削減將立即生效。全面實施後，我們預期團隊規模將減少約 15%，即全球團隊成員減少約 400 人。

Operationally, we will continue to reduce our retail showroom footprint. We are also reimagining our go-to-market approach for our international markets to be more targeted and efficient. While we have no plans to exit any of our existing international markets, we will leverage global strategies and capabilities where we can, allowing us to optimize and consolidate resources with localized execution.

在營運方面，我們將繼續減少零售展廳的佔地面積。我們也正在重新構想我們的國際行銷方法，使其更具針對性和效率。雖然我們沒有退出任何現有國際市場的計劃，但我們將盡可能利用全球策略和能力，透過在地化執行來優化和整合資源。

We made some very tough decisions. And while we firmly believe these actions are the right thing to do for the business, cuts like this are painful both because we're disrupting people's lives and because we're saying goodbye to genuinely good and talented people. We wish our outgoing colleagues the best.

我們做了一些非常艱難的決定。雖然我們堅信這些舉措對企業來說是正確的，但這樣的裁員是痛苦的，因為我們擾亂了人們的生活，也因為我們在與真正優秀和有才華的人告別。我們祝福即將離任的同事一切順利。

And while these decisions are always difficult, they have been made carefully to ensure we can continue to provide the best fitness experience for our members, maintain positive free cash flow over the long term and continue to invest in core areas of our business that will drive subscriber growth.

雖然做出這些決定總是很困難，但我們經過深思熟慮，以確保我們能夠繼續為會員提供最佳的健身體驗，長期保持正的自由現金流，並繼續投資於推動用戶成長的核心業務領域。

We will continue to invest in innovation across our software, hardware and content portfolio and in improvements to our member support experience to meet the needs of current and future members. We'll also transform our marketing efforts to increase engagement with new targeted audiences and drive more efficient growth at scale.

我們將繼續投資於軟體、硬體和內容組合的創新，並改善我們的會員支援體驗，以滿足現有和未來會員的需求。我們也將轉變行銷方式，以增加與新目標受眾的互動，並推動更有效率的規模成長。

Now let me touch briefly on our balance sheet. We are mindful of the timing of our debt maturities, which consists of convertible notes and a term loan. And we know this is also on the minds of our shareholders. We believe that achieving positive free cash flow makes Peloton a more attractive investment for debt holders. Overall, our refinancing goals are to deleverage and extend maturities at a reasonable blended cost of capital.

現在讓我簡單談談我們的資產負債表。我們注意債務到期的時間，其中包括可轉換票據和定期貸款。我們知道這也是我們股東關心的問題。我們相信，實現正的自由現金流將使 Peloton 對債權人而言成為更具吸引力的投資。整體而言，我們的再融資目標是以合理的混合資本成本去槓桿並延長期限。

We want you to know that we've been working closely with our lead banks, JPMorgan and Goldman Sachs, and our financial adviser, BDT & MSD Partners, on our refinancing strategy. We are encouraged by the support and inbound interest from our existing lenders and investors. And we look forward to sharing more about this topic.

我們想讓您知道，我們一直在與我們的牽頭銀行摩根大通和高盛以及我們的財務顧問 BDT & MSD Partners 就我們的再融資策略進行密切合作。現有貸款人和投資者的支持和關注令我們感到鼓舞。我們期待分享更多關於該主題的內容。

Now let's spend a few minutes on our Q3 results. We ended Q3 with 3.06 million paid connected fitness subscriptions, reflecting a net increase of 52,000 in the quarter. Average net monthly paid connected fitness subscription churn was 1.2%, which outperformed internal expectations.

現在讓我們花幾分鐘來回顧一下第三季的業績。截至第三季度，我們的付費連網健身訂閱用戶數為 306 萬，本季淨增加 52,000 個。平均每月淨付費健身訂閱流失率為 1.2%，超出內部預期。

Bike rentals continued to outperform our internal expectations in Q3 with new rentals up 10% year-over-year. Our rental buyouts also exceeded expectations. While the churn rate for rental remains higher than that of outright purchase, churn from rental subscribers improved 60 basis points quarter-over-quarter.

第三季度，自行車租賃表現持續超出我們的內部預期，新租賃量年增 10%。我們的租賃收購也超出了預期。儘管租賃的流失率仍然高於直接購買的流失率，但租賃用戶的流失率比上一季改善了 60 個基點。

Peloton Certified Refurbished and third-party retail sales had strong growth year-over-year and outperformed our expectations. We also continue to see strong growth in subscriber additions who purchased their Peloton equipment in the secondary market.

Peloton 認證翻新產品和第三方零售額較去年同期強勁成長，超出了我們的預期。我們也看到在二級市場購買 Peloton 設備的訂閱用戶數量持續強勁成長。

We ended the quarter with 674,000 paid app subscriptions, reflecting a net reduction of 44,000 in the quarter. Paid app subscriptions were lower than our forecast due to a couple of factors. First, additions were lower than expected. We saw underperformance in the Peloton for Business channel and softer trial demand. Second, we saw higher-than-expected average monthly paid app subscription churn of 9.2%, primarily driven by subscription cohorts, whose legacy pricing for App Plus expired.

截至本季末，我們的付費應用程式訂閱用戶數為 674,000，淨減少 44,000。由於多種因素，付費應用程式訂閱量低於我們的預測。首先，新增數量低於預期。我們發現 Peloton for Business 通路表現不佳，試用需求也較弱。其次，我們發現付費應用程式的平均每月訂閱流失率高於預期，為 9.2%，這主要是由於 App Plus 的舊定價已到期的訂閱群組所致。

Given the current growth headwinds we're seeing for app, we decided to hold back media investment as we evaluate the tiered pricing strategy and subscriber acquisition funnel. We are continuing to invest in the product experience and in improving product market fit. It's worth noting that while paid app subscription declined quarter-over-quarter, app subscription revenue increased 2.4%, driven by continued growth in our premium App Plus subscription.

鑑於目前應用程式面臨的成長阻力，我們決定在評估分級定價策略和用戶獲取管道時暫停媒體投資。我們將繼續投資於產品體驗並改善產品市場契合度。值得注意的是，雖然付費應用程式訂閱量較上季下降，但應用程式訂閱收入成長了 2.4%，這得益於我們高級 App Plus 訂閱量的持續成長。

Q3 total revenue was $718 million, which was within our guidance range of $700 million to $725 million. Our revenue consisted of $438 million of subscription Segment revenue, which represents 61% of total revenue, and $280 million of Connected Fitness segment revenue.

第三季總營收為 7.18 億美元，符合我們 7 億至 7.25 億美元的預期範圍。我們的收入包括 4.38 億美元的訂閱部門收入（佔總收入的 61%）和 2.8 億美元的 Connected Fitness 部門收入。

Total Q3 gross profit was $310 million, resulting in a gross margin of 43.1%, roughly 60 basis points ahead of our 42.5% guidance. Our Connected Fitness segment gross margin was 4.2%, in line with internal expectations. Excluding the impact of a one-time write-down of $9 million for Guide product inventory, our adjusted Connected Fitness segment gross margin was 7.4% in Q3. Subscription segment gross margin of 68.1% was in line with our expectations and up 80 basis points quarter-over-quarter.

第三季總毛利為 3.1 億美元，毛利率為 43.1%，比我們的 42.5% 預期高出約 60 個基點。我們的 Connected Fitness 部門毛利率為 4.2%，符合內部預期。不包括一次性減記 900 萬美元的 Guide 產品庫存的影響，我們第三季調整後的 Connected Fitness 部門毛利率為 7.4%。訂閱業務毛利率為 68.1%，符合我們的預期，較上季成長 80 個基點。

Adjusted EBITDA was $6 million in Q3, exceeding the high end of our Q3 guidance range by roughly $26 million due to lower operating expenses across multiple areas. Within sales and marketing, we scaled back media spend that we determined to be less efficient than our investment threshold. We also benefited from cost reductions Lauren made during the quarter to improve the efficiency of our brand and creative investments, including reductions to spend with outside agencies.

第三季調整後的 EBITDA 為 600 萬美元，由於多個領域的營運費用降低，超出我們第三季指導範圍的高端約 2,600 萬美元。在銷售和行銷領域，我們縮減了那些我們認為效率低於投資門檻的媒體支出。我們也受惠於勞倫在本季削減的成本，以提高我們品牌和創意投資的效率，包括減少與外部機構的支出。

G&A expense was lower than expected due to lower legal, IT and software expenses. R&D expense also came in favorable due to efficiencies in software development and contractor spend.

由於法律、IT 和軟體費用較低，G&A 費用低於預期。由於軟體開發和承包商支出的效率提高，研發費用也有所增加。

We generated $9 million in free cash flow in Q3, the first quarter of positive free cash flow in 13 quarters. Free cash flow exceeded our expectations. While the majority of our outperformance is permanent savings, we did incur an amount of timing savings that we expect to shift into Q4. We ended the quarter with $795 million in unrestricted cash and cash equivalents. And we also have access to a $400 million revolving credit facility, which remains undrawn to date.

我們在第三季產生了 900 萬美元的自由現金流，這是自 13 個季度以來第一個自由現金流為正的季度。自由現金流超出了我們的預期。雖然我們的優異表現大部分是永久性的節省，但我們確實產生了一定數量的時間節省，預計這些節省將轉移到第四季度。本季末，我們擁有 7.95 億美元的非限制現金和現金等價物。我們還擁有 4 億美元的循環信貸額度，目前尚未動用。

Overall, our Q3 performance reflects our continued leadership in the Connected Fitness category and the strength of our Subscription business as well as the tremendous progress we have made in re-architecting our cost structure as evidenced by our achievement of positive free cash flow for the first time in over 3 years.

總體而言，我們第三季度的業績反映了我們在互聯健身領域的持續領導地位和訂閱業務的實力，以及我們在重新構建成本結構方面取得的巨大進展，這體現在我們三年多來首次實現了正自由現金流。

I'd also like to highlight a few key areas of progress across the business in Q3. After a successful relaunch of Tread+ preorders in Q2, we started delivering Tread+ in Q3. Our logistics and delivery teams exceeded internal expectations for delivery times, delivering 67% of preorders in the quarter. We have also made substantial progress in the delivery and installation of rear guards requested by members who purchased the Tread+ before the product recall.

我還想強調一下第三季業務取得進展的幾個關鍵領域。在第二季成功重新推出 Tread+ 預訂後，我們於第三季開始交付 Tread+。我們的物流和交付團隊的交付時間超出了內部預期，本季交付了 67% 的預訂單。我們在產品召回前購買 Tread+ 的會員所要求的後護板的交付和安裝方面也取得了實質進展。

We're continuing to see growth within the secondary market and are leaning into the opportunity. We recently launched the Peloton History Summary that provides greater visibility to our bikes' age, usage and service history to enhance the secondary market buying experience. Anyone can access a Peloton History Summary for a Bike or Bike+ by searching the serial number on our website.

我們繼續看到二級市場的成長，並正在抓住機會。我們最近推出了 Peloton 歷史記錄摘要，可以更清楚地了解我們的自行車的年齡、使用情況和服務歷史，從而增強二級市場購買體驗。任何人都可以透過在我們的網站上搜尋序號來存取 Bike 或 Bike+ 的 Peloton 歷史記錄摘要。

Tread remains a key growth opportunity. And we were thrilled to recently launch the New York Road Runners Collection on Tread and Tread+. This is a series of scenic classes filmed on the TCS New York City Marathon course. In a first of its kind experience, these classes provide members with the ability to train the marathon course with auto-incline functionality that matches the course's gradient fluctuations.

胎面仍然是重要的成長機會。我們非常高興最近在 Tread 和 Tread+ 上推出了紐約路跑者係列。這是一系列在 TCS 紐約市馬拉松賽道上拍攝的風景課程。作為首創的體驗，這些課程為會員提供了利用與賽道坡度波動相匹配的自動傾斜功能來訓練馬拉松賽道的能力。

We are also seeing positive results in service levels and member satisfaction in response to recent initiatives focused on turning around our member experience. These initiatives include investments in our global member support team, improvements to systems and tools and onboarding new onshore outsourcing partners. We also observed improvements in Net Promoter Scores across multiple Connected Fitness products.

我們最近採取了一系列旨在改善會員體驗的舉措，在服務水準和會員滿意度方面也取得了積極成果。這些舉措包括對我們的全球會員支援團隊的投資、系統和工具的改進以及新的國內外包合作夥伴的加入。我們也觀察到多款 Connected Fitness 產品的淨推薦值有所提升。

Next, I'd like to provide context on our financial outlook for the remainder of the fiscal year. We are lowering our outlook for ending paid connected fitness subscription by 30,000 or 1% at the guidance midpoint to 2.97 million. Our full year ending paid connected fitness subscription guidance reflects an updated outlook for hardware sales based on current demand trends and expectations for seasonally lower demand.

接下來，我想介紹一下本財年剩餘時間的財務前景。我們將付費連網健身訂閱終止數量的預期下調 3 萬（即 1%）至 297 萬。我們全年的付費連網健身訂閱指南反映了基於​​當前需求趨勢和季節性需求較低預期的硬體銷售最新前景。

Q4 is typically our most challenging quarter to grow due to lower seasonal growth additions as we enter the warmer months of spring and summer. We also anticipate a seasonal increase in paid connected fitness subscription churn in Q4, in part due to seasonally higher subscription pause rates that we expect to come down in early fiscal year 2025.

由於進入春季和夏季較溫暖的月份，季節性增長幅度較低，第四季度通常是我們成長最具挑戰性的季度。我們也預期第四季付費健身訂閱流失率將出現季節性成長，部分原因是季節性訂閱暫停率較高，我們預計這一數字將在 2025 財年初下降。

We're also lowering our outlook for ending paid app subscriptions by 150,000 or 19% at the guidance midpoint to 605,000. Our full year ending app paid subscription guidance reflects lower gross additions due to expectations that Q3 trends continue through Q4. We are maintaining our disciplined approach to app media spend as we evaluate our app tiers and pricing and refine the paid app subscription acquisition funnel.

我們也將付費應用程式訂閱數量的預期下調了 150,000（即 19%），至 605,000。由於預計第三季度的趨勢將持續到第四季度，因此我們全年應用付費訂閱指引反映了較低的總增量。在評估應用程式層級和定價並完善付費應用程式訂閱獲取管道時，我們始終堅持對應用程式媒體支出採取嚴謹的態度。

As a result of trends driving our outlook for ending paid connected fitness subscriptions and ending paid app subscriptions, we're lowering our full year revenue guidance by $25 million or 1% at the guidance midpoint to $2.687 billion. We are raising our full year outlook for total gross margin by 50 basis points to 44.5%, primarily due to a revenue mix shift towards our Subscription segment.

由於趨勢推動我們終止付費連網健身訂閱和終止付費應用程式訂閱的前景，我們將全年營收預期下調 2,500 萬美元或 1%（預期中位數為 26.87 億美元）。我們將全年總毛利率預期上調 50 個基點至 44.5%，這主要是由於收入結構轉移到訂閱部門。

We're also raising our outlook for full year adjusted EBITDA by $37 million at the guidance midpoint to negative $13 million. This increase is largely driven by outperformance from Q3, combined with lower media spend and cost reductions from today's announced restructuring plan.

我們也將全年調整後 EBITDA 預期調高 3,700 萬美元，至負 1,300 萬美元。這一成長主要得益於第三季的優異表現，以及今天宣布的重組計畫帶來的媒體支出降低和成本削減。

While we are not providing any specific guidance on free cash flow, we do expect to deliver modest positive free cash flow in Q4 despite the timing shift from Q3 and cash outlays related to today's restructuring announcement. We also expect that the cost optimization measures announced today will enable us to drive meaningful free cash flow for the 2025 fiscal year. However, we do expect to have both positive and negative quarters within the year due to working capital impacts from timing of inventory purchases and seasonality of marketing spend.

雖然我們沒有提供任何有關自由現金流的具體指導，但我們確實預計第四季度將實現適度的正自由現金流，儘管時間與第三季度有所不同，並且與今天的重組公告相關的現金支出也有所不同。我們也預計，今天宣布的成本優化措施將使我們能夠在 2025 財年實現有意義的自由現金流。然而，由於庫存採購時間和行銷支出的季節性對營運資本的影響，我們預計今年的季度業績將同時出現正成長和負成長。

Before we open the line for questions, I want to reflect on the comment at the end of the shareholder letter about being optimistic about our path forward. First off, I'm pleased that we have finally achieved the critical milestone of becoming free cash flow positive. And I am confident that we will be able to sustain it on a full year basis for fiscal year 2025. I'm also optimistic about the prospect of restructuring our debt and eliminating any potential concerns about the timing of our debt maturity.

在我們開始提問之前，我想回顧一下股東信結尾處關於對我們的前進道路持樂觀態度的評論。首先，我很高興我們終於實現了自由現金流為正的關鍵里程碑。我相信，我們將能夠在 2025 財政年度全年維持這一目標。我還對重組債務和消除對債務到期時間的任何潛在擔憂的前景感到樂觀。

I'm delighted about our strong NPS for our Connected Fitness products because I believe it reflects the value that our members see in our Connected Fitness platform and should help drive organic growth for us. And I'm inspired by the dramatically faster pace of product innovation and marketing transformation that we are seeing internally, which I hope will be able to tell you all about next quarter.

我對我們的 Connected Fitness 產品的強勁 NPS 感到非常高興，因為我相信它反映了我們的會員在 Connected Fitness 平台中看到的價值，並有助於推動我們的有機成長。我對內部產品創新和行銷轉型速度的顯著加快感到鼓舞，我希望這能夠在下個季度告訴大家一切。

I'd be remiss if I didn't mention the important role that Barry McCarthy has played in these accomplishments. During his tenure, Barry successfully re-architected a cost structure that was unsustainable when he arrived. He built a strong and talented leadership team and established a scalable foundation for the business to grow. I'd like to sincerely thank Barry for leading us to this point in Peloton's transformation journey.

如果我不提及巴里·麥卡錫在這些成就中所發揮的重要作用，那我就太失職了。在任職期間，巴里成功地重新設計了他上任時不可持續的成本結構。他組建了一支強大而才華橫溢的領導團隊，為業務發展奠定了可擴展的基礎。我要真誠感謝 Barry 帶領我們走到 Peloton 轉型之旅的這一步。

We have so many reasons for optimism as we move into the next phase of Peloton's transformation focused on returning to profitable growth. And I'm confident that with a stable foundation now in place and with our stellar employees and loyal members, together, we will go far.

隨著我們進入 Peloton 轉型的下一階段，專注於恢復獲利成長，我們有很多理由感到樂觀。我相信，憑藉現在穩定的基礎以及我們優秀的員工和忠誠的會員，我們將會走得更遠。

We can open up to questions.

我們可以公開提問。

(Operator Instructions) Our first question will come from the line of Douglas Anmuth with JPMorgan.

（操作員指示）我們的第一個問題來自摩根大通的道格拉斯·安穆斯。

Can you talk about what drives your confidence in Peloton being meaningfully free cash flow positive in fiscal '25, how you'd get there? And does that require the business to return to growth?

您能否談談是什麼讓您對 Peloton 在 25 財年實現有意義的自由現金流為正充滿信心，您將如何實現這一目標？這是否要求業務恢復成長？

So first, I think it's important to highlight that we have a strong connected fitness subscription business which, as of Q3, generates over $1.7 billion of annualized run rate revenue at a 68% gross margin. Also, we have a very loyal connected fitness subscriber base with 1.2% average net monthly churn as of Q3.

因此，首先，我認為有必要強調的是，我們擁有強大的連網健身訂閱業務，截至第三季度，該業務的年化運行收入超過 17 億美元，毛利率為 68%。此外，我們擁有非常忠誠的連網健身用戶群，截至第三季度，平均每月淨流失率為 1.2%。

And while we firmly intend to return the business to growth, with today's announced cost reductions, we're lowering our cost base. And we see a path to positive free cash flow without requiring a significant improvement in growth to get there. We've architected a plan to achieve positive free cash flow without growth. And I also want to clarify that we have carefully reviewed these cost measures to make sure that we do still have the capability to invest in innovation so that the business can grow profitably.

雖然我們堅定地希望業務恢復成長，但隨著今天宣布的成本削減，我們正在降低成本基礎。我們看到了一條實現正自由現金流的途徑，而不需要顯著提高成長速度。我們制定了一項計劃，以在沒有增長的情況下實現正的自由現金流。我還想澄清的是，我們已經仔細審查了這些成本措施，以確保我們仍然有能力投資創新，從而使業務能夠獲利成長。

And maybe just a follow-up for Karen and Chris. Does anything stand out in particular in terms of what your most excited about in go-to-market initiatives when you think about rental and certified preowned or third-party retail or anything else?

也許只是對 Karen 和 Chris 的後續報導。當您考慮租賃和認證二手車或第三方零售或其他任何事物時，在進入市場計劃方面，有什麼特別讓您興奮的嗎？

Yes, thanks for the question. This is Chris Bruzzo. Yes, I mean, we're -- when we say we're excited about the growth potential for Peloton, we mean things like treadmill and Peloton for Business and the innovation we're bringing to software and continued focus on international. It's all of those areas.

是的，謝謝你的提問。這是克里斯·布魯佐。是的，我的意思是，當我們說我們對 Peloton 的成長潛力感到興奮時，我們指的是跑步機和 Peloton for Business 以及我們為軟體帶來的創新和對國際的持續關注。所有這些領域都是如此。

So treadmill is -- the installed home treadmill base is double that of Bike and yet our Bike demand is still greater than our Tread demand. And to me, that just spells opportunity. Peloton for Business, we made a great announcement yesterday. We'll continue to look for those opportunities. And I think there's lots available to Peloton going forward.

因此，跑步機－安裝的家庭跑步機基數是自行車的兩倍，但我們對自行車的需求仍然大於跑步機的需求。對我來說，這意味著機會。 Peloton for Business，我們昨天發布了一個重大公告。我們將繼續尋找這些機會。我認為 Peloton 未來還有很多可用資源。

And some of what's happening in the product organization around software innovation is pretty exciting. There is much room to get to greater and greater personalization in the experience for our members, things like virtual coaching, helping getting them to the right workouts for them, lots of opportunity there. And we already have an incredibly sticky and engaged experience. So this is -- that's only going to make it better.

產品組織中圍繞軟體創新發生的一些事情相當令人興奮。我們的會員在體驗上還有很大的提升空間，可以實現越來越個性化，例如虛擬教練，幫助他們進行適合自己的鍛煉，並有很多機會。我們已經擁有了令人難以置信的黏性和參與度體驗。所以這——這只會讓情況變得更好。

And although we're talking about optimizing the way we spend to reach international markets, we're not any less interested in that potential. There's a lot of growth potential for us in our existing markets and even looking to efficiently expand to new markets.

儘管我們正在談論優化支出方式以進入國際市場，但我們對這一潛力的興趣絲毫不減。我們在現有市場中擁有很大的成長潛力，甚至希望有效地擴展到新市場。

And then I guess, I should finish, based on my background, with my appreciation for what the marketing team is doing. So Lauren, who's our newly appointed Chief Marketing Officer, has done -- already done some meaningful things to drive cost optimization to focus -- to bring Peloton to some new audiences. All of that is starting to bear fruit. And I'm really excited about it.

然後我想，根據我的背景，我應該以對行銷團隊所做工作的讚賞來結束。因此，我們新任命的行銷長勞倫已經做了一些有意義的事情來推動成本優化，將 Peloton 帶給一些新的受眾。所有這些都開始取得成果。我對此感到非常興奮。

The only thing I would add is, I think, Liz and her team are really looking at growth with an eye for sustainable profitable growth. So as we iterate some of the initiatives and make sure that we're optimizing it to make sure that it's contributing to the bottom line and it's just not growth for growth's sake.

我唯一想補充的是，我認為 Liz 和她的團隊真正關注的是成長，並著眼於可持續的獲利成長。因此，當我們迭代一些舉措並確保對其進行最佳化時，以確保它對底線有所貢獻，而不是為了成長而成長。

And we're both -- Karen and I both have been remarking in the last couple of days about how strong the executive team is here. And that in itself is something to be excited about. We're here to support that team as it continues to drive these levers for growth.

我們兩個——凱倫和我在過去幾天裡都在評論這裡的執行團隊有多強大。這本身就是一件令人興奮的事。我們在這裡支持該團隊繼續推動這些成長槓桿。

Our next question, that will come from the line of Ron Josey with Citi.

我們的下一個問題來自花旗銀行的 Ron Josey。

I want to ask Karen and Chris, when you're looking for a new leader here, talk to us about what you're looking for as you balance overall profitability with product innovation and growth, so any insights on sort of the characteristics that you're looking for.

我想問凱倫和克里斯，當你們在這裡尋找新的領導者時，請告訴我們你們在平衡整體盈利能力與產品創新和增長方面所尋求的是什麼，對於你們所尋求的特徵，有什麼見解嗎？

And then Liz, on the $200 million in restructuring, understood the reduction in force. But maybe talk just a little bit on where you might be focused on that reduction and thoughts on the retail footprint and other areas that might improve overall profitability.

然後，利茲就 2 億美元的重組計劃了解了裁員的情況。但也許您可以稍微談談您在削減開支方面可能關注的重點，以及對零售足跡和其他可能提高整體盈利能力的領域的看法。

Sure. This is Karen. I'll start with the first one. And I think we tried to address some of this in today's release and our opening remarks. But just to -- we do want to reiterate that Barry has done a tremendous job stabilizing the business. He came in at a very challenging time. And he's been really relentless in rightsizing an aggressive build-out that was not uncommon for many companies during the pandemic. He had to navigate a lot of curve balls thrown his way. And he's done some incredible work in re-architecting the cost structure.

當然。這是凱倫。我先從第一個開始。我認為我們在今天的發布會和開場白中已經嘗試解決其中的一些問題。但我們確實想重申，巴里在穩定業務方面做出了巨大貢獻。他是在非常困難的時期加入的。他一直堅持不懈地進行大規模擴張，這在疫情期間對許多公司來說並不罕見。他必須應付許多向他飛來的曲球。他在重新設計成本結構方面做出了令人難以置信的工作。

And again, a really big highlight, I want to highlight that under Barry's leadership, we achieved one of his primary goals, which was generating positive free cash flow this quarter. And we do expect to do the same thing in the fourth quarter and for the full year in '25. But with the business more stable, the Board decided to pivot to a leader who's going to architect and lead the next phase of growth for the company. So the new leader will kind of be pretty focused on architecting, articulating and executing a vision for growth.

再次強調，一個非常重要的亮點是，我想強調的是，在巴里的領導下，我們實現了他的一個主要目標，即本季度產生了正的自由現金流。我們確實希望在 2025 年第四季和全年採取同樣的措施。 但隨著業務更加穩定，董事會決定轉向一位能夠規劃和領導公司下一階段成長的領導者。因此，新領導者將非常專注於設計、闡明和執行成長願景。

Okay. I'll take the cost restructuring question. So as I said earlier, we announced a cost restructuring plan to achieve $200 million in run rate savings by the end of fiscal '25. And a significant share of those cost reductions are going to take place immediately.

好的。我將回答成本重組問題。正如我之前所說，我們宣布了一項成本重組計劃，以在 2025 財年末實現 2 億美元的運行率節約。其中很大一部分成本削減將立即生效。

Roughly about half of them or about $100 million of those reductions are going to come from payroll. The remainder are going to come from key non-payroll areas, including things like lower spending on brand and creative marketing, savings from our reductions in retail store footprint, lower contractor spending, lower IT spending and software spending.

其中大約一半或約 1 億美元的削減將來自工資削減。其餘部分將來自關鍵的非工資領域，包括降低品牌和創意行銷支出、減少零售店面積節省開支、降低承包商支出、降低 IT 支出和軟體支出。

Just to give a little bit more detail in terms of the various lines in our operating expense areas, the biggest reductions are coming from our R&D organization. But those cost reductions, as I said earlier, are still going to allow for continued investment in all of the key initiatives that we are focused on, including software content and hardware innovation.

就我們營運費用領域的各個項目而言，最大的削減來自我們的研發組織。但正如我之前所說，這些成本削減仍將使我們能夠繼續投資於我們關注的所有關鍵計劃，包括軟體內容和硬體創新。

The next largest area will be marketing, where our cost reductions are really focused on things like the brand and creative and a few other areas. But I want to be clear that we aren't relying on significant media spend efficiencies to achieve our cost reductions, although we do see additional opportunities to scale back media spend at a higher efficiency.

下一個最大的領域將是行銷，我們的成本削減主要集中在品牌、創意和其他一些領域。但我想明確表示，我們並不依賴顯著的媒體支出效率來實現成本削減，儘管我們確實看到了以更高效率縮減媒體支出的更多機會。

The third area, while not mapped perfectly to lines in our P&L, is international. As Chris talked about earlier and mentioned that it's still a growth area for us, but we are planning to cut our international operating losses in half this next year or over the next 12 months by reimagining our go-to-market approach and being much more targeted and efficient.

第三個領域雖然沒有完美地映射到我們的損益表中，但卻是國際領域。正如克里斯之前談到的，這對我們來說仍然是一個成長領域，但我們計劃透過重新構想我們的市場進入方式並變得更加有針對性和高效，在明年或未來 12 個月內將我們的國際營運損失減少一半。

And so what we're going to do is we are going to stay in all of our existing markets. We have no plans to exit any of those. But we're focusing on more of global strategies and capabilities. And then that allows us to really consolidate resources so that we can focus on just local execution there.

因此，我們要做的就是留在我們現有的所有市場。我們沒有退出其中任何一個的計劃。但我們更關注的是全球戰略和能力。這樣，我們就能真正整合資源，以便專注於當地的執行。

One moment for our next question, and that will come from the line of Aneesha Sherman with Bernstein.

請稍等片刻，回答我們的下一個問題，該問題來自伯恩斯坦的 Aneesha Sherman。

A follow-up on international, please. So a few quarters ago, you were talking about the growth potential in Germany and U.K. and some of these bigger markets for FY '24. Has your view changed in terms of the total upside of these markets or the kind of ROI of growing in these markets? I understand you're being more targeted and efficient. But has the total size of the pie changed in your view?

請跟進一下國際情況。幾個季度前，您談到了德國、英國以及一些較大市場在 24 財年的成長潛力。就這些市場的整體上漲空間或這些市場成長的投資報酬率而言，您的觀點是否改變了？我知道你的目標越來越明確，效率越來越高。但您認為蛋糕的整體大小有變化嗎？

And then a quick follow-up on marketing. Chris and Liz, you both talked about investing in software and hardware and not as much on marketing. Ultimately, you do need to drive customer acquisition. How do you think about some of these short-term measures to conserve cash by cutting media spend and cutting sales and marketing and how they might impact acquisition in the next couple of quarters?

然後快速跟進行銷。克里斯和利茲，你們都談到了對軟體和硬體的投資，而不是對行銷的投資。最終，您確實需要推動客戶獲取。您如何看待這些透過削減媒體支出、削減銷售和行銷來節省現金的短期措施，以及它們將如何影響未來幾季的收購？

Okay. Well, there's a few questions there, definitely more than one. But I I'll start with the question about international. And really, the question is about upside potential in international. Well, first of all, our international paid connected fitness subs actually grew 8% year-over-year in Q3.

好的。嗯，這裡有幾個問題，肯定不只一個。但我首先要問的是國際問題。事實上，問題在於國際上的上行潛力。首先，我們的國際付費健身訂閱用戶在第三季度實際上比去年同期成長了 8%。

However, when we look at our LTV to CAC ratios associated with that growth, we are currently not hitting our target efficiency levels. And so we need to optimize our marketing investment levels to be much more efficient. And as we reduce our costs there to be more efficient, our growth may be a bit slower, but it will be at a much better LTV to CAC level that allows for profitable growth, which gets at the point that Karen was making earlier.

然而，當我們查看與該成長相關的 LTV 與 CAC 比率時，我們目前尚未達到目標效率水準。因此，我們需要優化我們的行銷投資水平，以提高效率。隨著我們降低成本以提高效率，我們的成長速度可能會稍微慢一些，但 LTV 與 CAC 水平會更好，從而實現盈利增長，這也符合 Karen 先前提出的觀點。

Some of the specific changes, so we talked about some of the changes that we are making on the international side in terms of optimizing and consolidating resources. But we're also going to be focusing our marketing on segments where we have the highest product market fit. So we are not going to be focusing on reaching out to every single -- every one and all of those markets. And we believe that by honing our messaging and targeting the right audiences, we will be much more efficient and be able to ultimately grow.

一些具體的變化，所以我們談到了我們在優化和整合資源方面在國際方面所做的一些改變。但我們也將把行銷重點放在產品市場契合度最高的領域。因此，我們不會專注於接觸每一個市場——每一個市場以及所有的市場。我們相信，透過完善我們的訊息傳遞方式並瞄準正確的受眾，我們將更加高效，並最終實現成長。

We're still optimistic and we remain focused on international as a growth lever. And it's also important to note that while our growth is a bit slower than we had anticipated previously, we're really encouraged by the fact that we do see low paid connected fitness subscription churn internationally at rates that mirror the U.S.

我們仍然保持樂觀，並繼續將國際市場作為成長槓桿。值得注意的是，雖然我們的成長速度比我們之前預期的要慢一些，但我們確實看到國際上低付費連網健身訂閱的流失率與美國類似，這讓我們感到鼓舞。

I also want to point out that our unaided brand awareness is still really pretty low in international markets that we serve today, aside from perhaps maybe Canada. And we see a lot of untapped potential from new countries and markets that we may enter in the future.

我還想指出，除了加拿大以外，在我們目前服務的國際市場上，我們的品牌知名度仍然很低。我們看到未來可能進入的新國家和新市場中存在大量尚未開發的潛力。

And I would just add, this is Chris, I would just add, that's a natural learning curve for companies as they engage in international markets to understand what works, what doesn't, how to do it efficiently. I think you're seeing and hearing a disciplined approach here from Peloton on how to approach those markets in a way where we maximize the number of people we reach and we do that in a way that's really efficient. And some of what Liz just talked about in terms of the product market fit, the quality of the experience and the kind of engagement and low churn, those are really great starting points. That's where the strength of the company and its brand are. And so from there, we know we can grow.

我還要補充一點，我是克里斯，我還要補充一點，對於涉足國際市場的公司來說，這是一個自然的學習曲線，要了解什麼有效，什麼無效，以及如何有效地做到這一點。我認為您看到和聽到了 Peloton 採取的一種嚴謹的方法，即如何以最大限度擴大我們接觸到的人數的方式進入這些市場，並且我們以一種非常有效的方式來做到這一點。 Liz 剛才談到的產品市場契合度、體驗品質、參與度和低流失率，這些都是非常好的起點。這就是公司及其品牌的優勢所在。從那時起，我們知道我們可以成長。

As it relates to the marketing question, I think it's important to realize that our focus is really shifting towards growing new audience, targeting new audiences, expanding to the incredible number of people who have yet to experience or have the Peloton experience. And so it is also a great discipline. Just the same way we talked about and I just mentioned in international, also in marketing, to bring an intense focus, a real drive to getting the cost of acquisition in line with the value of bringing new customers on. And that's where our focus is.

就行銷問題而言，我認為重要的是要認識到我們的重點確實正在轉向發展新受眾、瞄準新受眾，擴展到尚未體驗或擁有 Peloton 體驗的大量人群。所以它也是一門偉大的學科。正如我們討論過的以及我剛才提到的，在國際市場和行銷領域，要集中精力，真正推動收購成本與吸引新客戶的價值保持一致。這正是我們的重點。

So we agree, there is still a good healthy investment by Peloton in marketing spending. But of course, we want the discipline of being efficient with that. And that will actually allow those dollars to return better and reach more people. And that's the ultimate goal. So there's lots that are -- a lot that has already been discovered as Lauren engages in the opportunity here at Peloton. And I think there's -- that we're going to see lots of good return from her work.

因此我們同意，Peloton 在行銷支出方面仍然是一項良好的投資。但當然，我們希望能夠有效率地完成這項任務。這實際上將使這些資金得到更好的回報並惠及更多的人。這就是最終目標。因此，當勞倫 (Lauren) 參與 Peloton 的機會時，已經有許多發現。我認為，我們將從她的工作中看到很多好的回報。

I just wanted to add one thing. When we say that we pulled back on some of our marketing spending, we're not pulling it tremendously back in a way to release stifle growth. We're just looking at our LTV to CAC ratios and looking at the way that we can improve them and bring them back more in line with our target investment levels.

我只是想補充一點。當我們說我們削減了部分行銷支出時，我們並不是為了抑製成長而大幅削減支出。我們只是在關注我們的 LTV 與 CAC 比率，並尋找改善它的方法，使它更符合我們的目標投資水平。

And then it's not just about media spending. I keep honing in on brand and creative spending as well. That's an opportunity that Lauren saw when she got here. We need to make sure that when we look at our marketing spend that we are putting the right balance of working and nonworking dollars in a more optimized way to work. And I just want to make sure that, that comes through. That's really what we're focused on there as opposed to pulling back on spending.

這不僅涉及媒體支出。我也在不斷關注品牌和創意支出。這是勞倫來到這裡時看到的一個機會。我們需要確保，當我們審視我們的行銷支出時，我們能夠以更優化的方式在工作資金和非工作資金之間取得適當的平衡。我只是想確保這一點能夠實現。這才是我們真正關注的重點，而不是削減開支。

And it's important to note, as Liz mentioned there, the amount of marketing adjustments that she just referenced a minute ago includes our fixed costs, includes headcount. And we've made some really tough decisions. And we're going through that restructure plan today. And so some of those reductions in costs related to marketing are about headcount or about fixed costs. So you shouldn't necessarily think of it all as a reduction in media spending. That's just not going to be the case.

值得注意的是，正如 Liz 所提到的，她剛才提到的行銷調整金額包括我們的固定成本和員工人數。我們做了一些非常艱難的決定。今天我們將討論重組計劃。因此，與行銷相關的成本削減部分與員工人數或固定成本有關。所以你不應該認為這一切都是媒體支出的減少。事實絕對不會如此。

One moment for our next question, and that will come from the line of Michael Graham with Canaccord Genuity.

請稍等片刻，回答我們的下一個問題，該問題來自 Canaccord Genuity 的 Michael Graham。

Really helpful set of communications here. I just wanted to ask about the -- with the relaunch of Tread+, just maybe talk about the market size for Tread and how incrementally you think the subscribers there are going to be to the business.

這裡的通訊確實很有幫助。我只是想問一下——隨著 Tread+ 的重新推出，您能否談談 Tread 的市場規模，以及您認為該業務的訂閱用戶數量將如何增長。

Sure. So as we've said previously, we estimate the Tread market to be roughly 2x or the at-home treadmill market to be roughly 2x that of Bike. And as we said also, it's a much smaller share of our connected fitness hardware sales compared to the Bike. So for us, we see a large opportunity market-wise and then a large opportunity for us.

當然。因此，正如我們之前所說，我們估計跑步機市場大約是自行車市場的 2 倍，而家用跑步機市場大約是自行車市場的 2 倍。正如我們所說，與自行車相比，它在我們的連網健身硬體銷售中所佔的份額要小得多。因此，對我們來說，我們看到了一個巨大的市場機遇，同時也為我們帶來了巨大的機會。

We also see that our current Tread and Tread+ sales still skew towards existing members. And so what you're going to see us try to do is really take steps to focus marketing efforts on educating potential customers about our Tread and connecting running with the Peloton brand. And the goal of these efforts is to explain to these potential customers how -- what Peloton can offer them in terms of Tread and running offerings.

我們也發現，我們目前的 Tread 和 Tread+ 銷售仍然偏向現有會員。因此，您將看到我們嘗試真正採取措施，將行銷工作重點放在向潛在客戶介紹我們的 Tread 並將跑步與 Peloton 品牌聯繫起來。這些努力的目標是向潛在客戶解釋 Peloton 可以為他們提供什麼跑步和跑步產品。

So a great example of that is the fact that we launched that New York Road Runners Scenic Collection on Tread and Tread+. And that allows members to run the New York Marathon course using metadata and auto-inclines with the course's gradient, which is really a pretty amazing experience and we believe the first of its kind to be able to be offered.

一個很好的例子就是我們在 Tread 和 Tread+ 上推出了紐約路跑者風景系列。這樣，會員就可以使用元數據來跑紐約馬拉松賽道，並根據賽道的坡度自動傾斜，這確實是一種非常奇妙的體驗，我們相信這是首次提供此類服務。

And then again, when I -- when we talk about Tread and opportunity for us, we do see a significant opportunity for us to improve awareness of Tread. For us, that unaided awareness is roughly about 24% in the U.S. And that's like our Bike unaided awareness is about double that. So lots of opportunity for us.

再說了，當我們談論 Tread 和我們面臨的機會時，我們確實看到了一個提高對 Tread 認識的重要機會。對我們來說，在美國，這種無輔助意識大約是 24%。而我們的自行車無輔助意識大約是這個數字的兩倍。所以對我們來說有很多機會。

One moment for our next question, and that will come from the line of Andrew Boone with JMP Securities.

請稍等片刻，回答我們的下一個問題，問題來自 JMP Securities 的 Andrew Boone。

Can you talk about your learnings from the app strategy over the last year? In what way should we expect those to evolve going forward?

您能談談過去一年應用程式策略的心得嗎？我們應該期待它們未來會如何發展？

So in terms of our app strategy, I think we have had a lot of different learnings. Yes, so first of all, in Q3, our paid app subs underperformed our forecast. We saw lower additions because of softer trial demand than we had expected. And we also had underperformance in our Peloton for Business channel. And that was really related to the timing of deals and when we expected them to happen.

因此，就我們的應用策略而言，我認為我們已經學到了很多不同的知識。是的，首先，在第三季度，我們的付費應用程式訂閱量低於我們的預測。由於試驗需求低於我們的預期，我們看到新增數量減少。我們的 Peloton for Business 頻道表現也不佳。這實際上與交易的時機以及我們預期交易發生的時間有關。

And then also, where previously in Q2 we had seen lower churn than we were expecting, in Q3, we saw slightly higher churn because we saw some of the subscription cohorts whose legacy pricing expired, we saw higher churn from them. But one key learning that we did have is the fact that we are seeing more subscribers select the App Plus tier. And so as a result of that, despite the subscriber decline, we did see our app revenue increase quarter-over-quarter.

此外，之前在第二季度，我們看到的客戶流失率低於預期，而在第三季度，我們看到的客戶流失率略高，因為我們看到一些訂閱群體的舊定價已過期，他們的客戶流失率更高。但我們確實發現一個關鍵事實，那就是越來越多的訂閱者選擇 App Plus 層。因此，儘管用戶數量有所下降，但我們的應用收入卻較上季成長。

And we've been talking a lot about media spend. But while we are improving our LTV to CAC, we're still below our investment targets. And so we have to -- we are actively evaluating our app tiering strategy. That includes like looking at pricing, looking at our tier structure. And in order to have a disciplined investment framework, we have to scale back marketing spend for app until we establish a better product market fit and we see that we can grow our app more efficiently.

我們一直在討論媒體支出問題。但是，儘管我們正在提高 LTV 與 CAC 的比例，但我們仍然低於投資目標。因此我們必須—我們正在積極評估我們的應用分層策略。其中包括查看定價、查看我們的層級結構。為了擁有一個嚴謹的投資框架，我們必須縮減應用程式的行銷支出，直到我們建立更好的產品市場契合度，並且我們發現我們可以更有效地發展我們的應用程式。

So let me talk just really briefly about the subscriber acquisition funnel. So we're looking at ways to improve that. We see an opportunity to improve our conversion from app download to trial and then also from -- then from trial to conversion. And then one example of an improvement we've recently made was removing the free tier or making it less visible, which moves us in the right direction.

那麼讓我簡單談談用戶獲取管道。因此我們正在尋找改善這一狀況的方法。我們看到了提高從應用程式下載到試用的轉換率，以及從試用到轉換率的機會。我們最近做出的改進的一個例子是取消免費套餐或使其不那麼顯眼，這使我們朝著正確的方向前進。

And then we still believe in the app. The app is an important part of our Peloton fitness experience and platform. We're continuing to invest in app product innovation. We have lots of exciting offerings on the way that Nick's team is working on. But we're not ready to share them yet. And we do expect it to be an iterative process as we continue to learn.

我們仍然相信該應用程式。該應用程式是我們 Peloton 健身體驗和平台的重要組成部分。我們將繼續投資於應用產品創新。在 Nick 的團隊的努力下，我們有許多令人興奮的產品。但我們尚未準備好分享它們。我們確實希望隨著我們不斷學習，這將是一個迭代的過程。

I also want to point out that beyond just our paid app sub base, the subscribers that just pay for the app, it's an important part of our connected fitness subscription offering as well. And on average, we do see the majority of our connected fitness subscribers also use our app on a monthly basis.

我還想指出，除了我們的付費應用程式用戶群之外，那些為應用程式付費的訂閱者也是我們連網健身訂閱服務的重要組成部分。平均而言，我們確實看到大多數連網健身用戶每月也會使用我們的應用程式。

It's another great area of where the company is showing discipline and learning. So as we're making these adjustments to tiering strategies and pricing, as we're watching members who had the legacy app actually upgrade, as we're adjusting what the experience is like for groups based on what we're learning, of course, that means we have to optimize our acquisition funnel.

這是該公司展現紀律和學習能力的另一個重要領域。因此，當我們對分層策略和定價進行這些調整時，當我們觀察使用舊版應用程式的會員實際升級時，當我們根據所了解的情況調整團體的體驗時，當然，這意味著我們必須優化我們的收購管道。

And this is a digital product, and we can have -- we have a lot signals as to what's working from an acquisition standpoint and what isn't. And so that just becomes like a constant process of optimizing. So you'll continue to see us do that, whether it's the product, how it's targeted and the way we're driving acquisition.

這是一種數位產品，我們可以獲得許多訊號，顯示從收購的角度來看哪些是有效的，哪些是無效的。所以這就變成了一個不斷優化的過程。因此，您將繼續看到我們這樣做，無論是產品、目標定位還是我們推動收購的方式。

And that question will come from the line of Jonathan Komp with Baird.

這個問題將由貝爾德的喬納森康普 (Jonathan Komp) 提出。

A bit of a follow-up, I'll toss it out to the group. But could you maybe just spend a little time maybe diagnosing a little better, in your view, some of the challenges in returning to growth overall? And I guess, the question really is the spending that you are doing and maintaining, are you spending on the right things? How do you know that? Are you really just beholden to some of the industry trends that are still an overhang? Just any more thoughts there would be helpful.

稍微跟進一下，我會把它丟給小組。但是，您能否花一點時間，更好地診斷您認為恢復整體成長所面臨的一些挑戰？我想，真正的問題在於，你所做的和維持的支出是否花在了正確的事情上？你怎麼知道的？您是否真的只是受制於一些仍然存在的行業趨勢？任何更多的想法都會有所幫助。

Yes, do you want to start? We should start by talking about the connected fitness marketplace. I think that's really important. And there was significant growth leading into the pandemic and then the extraordinary experience that everybody had during that time, especially for companies like ours that -- where the in-home experience was so relevant during that time. And we are still dealing with the whiplash, the normalizing that occurred post COVID. And that was particularly true again for those products and experiences that were focused on in-home.

是的，你想開始嗎？我們應該先談談互聯健身市場。我認為這真的很重要。在疫情爆發之前，業務取得了顯著的成長，在那段時間裡，每個人都獲得了非凡的體驗，尤其是對於像我們這樣的公司來說，在那個時期，家庭體驗非常重要。我們仍在應對疫情後出現的衝擊和正常化。對於那些專注於家庭的產品和體驗尤其如此。

But I think we're excited to see this connected fitness marketplace, we're the dominant market share leader in that space, normalizing. And we can see it -- as we look to the future, we can see it reaching an inflection point and again reaching that kind of stable place of regular growth. And so that's the starting point. Is the marketplace that we're in contracting? Or is it growing? And so we can see good signs that, that market is reaching that inflection point, it's going to return to growth.

但我認為我們很高興看到這個互聯健身市場正在正常化，我們是該領域占主導地位的市場份額領導者。我們可以看到——當我們展望未來時，我們可以看到它達到一個轉折點，並再次達到那種穩定的正常成長狀態。這就是起點。我們所在的市場是否正在萎縮？或者說它正在成長？因此，我們可以看到好的跡象，表明市場正在達到轉折點，並將恢復成長。

But there's the larger question of do we know if we're investing on the right thing? I think that's, in fact, really what the restructure -- a big part of what the restructure was focused on. And so this is a sizable cut in our operating cost base. But it's -- but besides the size of that impact, it's also where we made those choices. And we're intentionally going into those places where we know we can focus more.

但更大的問題是，我們是否知道我們投資的方向是否正確？我認為，事實上，這正是重組的真正目的——重組的很大一部分重點。因此，這對我們的營運成本基礎來說是一個相當大的削減。但除了影響的大小之外，這也是我們做出這些選擇的地方。我們有意去那些我們知道可以讓我們更專注的地方。

And so you're hearing me say again and again on this call, there's an opportunity for us to bring discipline, discipline to the way we approach international markets, discipline to the way we handle marketing spending, discipline to where we invest in innovation and in future growth. So that is absolutely a primary focus here. That's all, Jon. Anything you want to add, Liz?

因此，你們聽到我在這次電話會議上反覆說，我們有機會帶來紀律，紀律是我們進入國際市場的方式，紀律是我們處理行銷支出的方式，紀律是我們投資創新和未來成長的方式。所以這絕對是這裡關注的重點。就這樣吧，喬恩。莉茲，你還有什麼要補充的嗎？

Yes, the only thing I do want to add is aside from the disciplined investments and our strategy, we are going to continue to learn and test and iterate. We are going to measure on a regular basis how we're tracking against the goals that we've set. And we'll be able to course-correct as we get there.

是的，我唯一想補充的是，除了嚴謹的投資和我們的策略之外，我們還將繼續學習、測試和迭代。我們將定期衡量我們設定的目標的實現。當我們到達那裡時，我們將能夠糾正航向。

And one of the key things about the cost reduction program that we've implemented today is that we feel confident about where we are in terms of generating that positive free cash flow. And that gives us the confidence that we can continue to work on different types of innovations and find the right ways to deliver a best-in-class connected fitness experience to a much broader audience over time.

我們今天實施的成本削減計畫的關鍵之一是，我們對產生正自由現金流的現狀充滿信心。這使我們有信心繼續致力於不同類型的創新，並找到正確的方法，隨著時間的推移為更廣泛的受眾提供一流的互聯健身體驗。

I think it's really clear that we do see a long-term potential backed by secular trend of people who are increasingly valuing fitness and wellness in their lives. And that's a trend that is clear and is something that we can use to Peloton's advantage because we are -- we believe we are the leader in the connected fitness space.

我認為很明顯的是，我們確實看到了長期潛力，這種潛力是由人們越來越重視生活中的健身和健康的長期趨勢所支持的。這是一個明顯的趨勢，我們可以利用這一點來為 Peloton 帶來優勢，因為我們相信我們是互聯健身領域的領導者。

And that's really not going away. I just want to double down on what Liz said, the trends in health and wellness, exercise and fitness, they have such benefit to health and to -- and they're great indicators of and predictors of health and longevity. So people are more and more focused on that. It's not going away. People are getting more educated about it. We have a bigger role to play in that conversation as a business and as a brand.

而這種情況確實不會消失。我只是想再次強調 Liz 所說的話，健康和保健、運動和健身的趨勢對健康有很大的好處——它們是健康和長壽的很好的指標和預測因素。因此人們越來越關注這一點。它不會消失。人們對此的了解越來越多。作為一家企業和一個品牌，我們在這場對話中扮演更重要的角色。

And we just have a really good mousetrap. We have premium hardware. We have interactive software. We have incredible music, are engaging and motivating instructors. And we have this community that interacts with each other. They compete alongside each other with the leaderboard. It's just again a really good product market fit and offering for people.

我們剛剛有一個非常好的捕鼠器。我們擁有優質的硬體。我們有互動式軟體。我們擁有美妙的音樂，以及引人入勝、激勵人心的教師。我們有一個相互交流的社區。他們透過排行榜相互競爭。這又是一個真正適合市場並為人們提供的產品。

There are -- people are going back to the office but not every day. Some people are going to stay working from home. And so at-home fitness -- the connected fitness market, we are the leader for a reason because I do think we have the best experience. And so bringing that to more and more people over time, I think, is what we really see as what's going to happen.

人們確實會回到辦公室，但不是每天都回去。有些人將繼續在家工作。因此，在家庭健身——聯網健身市場，我們之所以成為領導者，是因為我確實認為我們擁有最好的經驗。因此，我認為，隨著時間的推移，讓越來越多的人享受這項服務才是我們真正希望發生的事情。

Thank you. I would now like to turn the call over to Karen Boone for any closing remarks.

謝謝。現在我想將電話轉給凱倫·布恩 (Karen Boone) 做最後發言。

Great. Thank you. So I want to close with just reminding everyone that today is a really hard day. Change is always hard. And there's a lot of it to digest today. The restructuring we announced is especially difficult because it's impacting so much of our team. But it's a really critical and necessary step to meeting our objectives around cash flow generation and making sure the business is on solid ground and footing for the years ahead.

偉大的。謝謝。所以最後我想提醒大家，今天真的是個艱難的一天。改變總是困難的。今天有很多內容需要消化。我們宣布的重組尤其困難，因為它對我們團隊的許多成員影響很大。但這對於實現我們的現金流目標以及確保未來幾年業務穩固發展至關重要且必要的一步。

Through all the changes over the last several years, our mission has remained constant, to connect the world through fitness, empowering people to be the best version of themselves anywhere, anytime. It has been and continues to be important and meaningful work. And we're so grateful to all the individuals who have contributed along the way. Thank you for your time.

儘管過去幾年發生了許多變化，但我們的使命始終如一，那就是透過健身連結世界，讓人們隨時隨地都能成為最好的自己。這一直是並且將繼續是一項重要且有意義的工作。我們非常感謝所有在這一路上做出貢獻的人。感謝您抽出時間。

This concludes today's program. Thank you all for participating. You may now disconnect.

今天的節目到此結束。感謝大家的參與。您現在可以斷開連線。