- Peloton CEO John Foley says the fitness company is aiming to have 100 million paying subscribers one day.
- During its first-ever meeting as a public company with analysts and investors Tuesday, Foley listed 6 ways the company thinks it can meet that goal.
- "There's close to 200 million gym-goers in the world," the CEO said. "That's 200 million people paying hard money, month after month, to access what we believe to be inferior fitness equipment in an inferior location."
Peloton just had a breakout quarter, as sales of its high-tech bikes skyrocketed, and its subscriber base surged at a triple-digit rate, with more people than ever working out at home.
And at a time when many other businesses are using the uncertainty brought by the coronavirus pandemic to yank financial forecasts, Peloton is raising the bar for itself. CEO John Foley said the fitness company is aiming to have 100 million paying subscribers.
"100 million subscribers, we believe is a reasonable goal," Foley said Tuesday during Peloton's first investor meeting as a public company, which was held virtually. "There's close to 200 million gym-goers in the world. That's 200 million people paying hard money, month after month, to access what we believe to be inferior fitness equipment in an inferior location."
Peloton ended its latest quarter with more than 1.09 million connected fitness subscribers, up 113% from a year earlier, and roughly 3.1 million members in total, including those who only pay for its digital subscription.
Connected fitness subscribers are people who pay $39 per month to sync workout classes to their Peloton equipment, versus accessing the programs separately through a phone or tablet and paying just $12.99.
Here are the six things Foley said will get the company to 100 million subscribers:
Peloton is looking to grow much larger on its home turf. In the U.S., Foley said, there are 35 million households with a treadmill, "and they're not used because they're just pieces of hardware and they're not fun." He said he believes tens of millions of homes in the U.S. could be Peloton customers in the coming years.
Peloton just earlier this month launched a higher-priced Bike+, which includes a rotating screen for floor workouts and connects with an Apple Watch, among a number of other features. But Foley said there are many more product announcements to come. "Please trust me when I say we have a lot more innovation ... a lot more cool stuff," the CEO said Tuesday.
Peloton is currently in the U.S., Canada, the U.K. and Germany. But it is looking to launch in additional geographies in the coming years, also adding instructors who will teach classes in new languages.
Peloton also wants to make its high-tech bikes and treadmills more accessible and affordable to a wider audience. It knows its equipment is expensive: Its new Bike+ retails for $2,495, while the original Peloton bike's price is $1,895. Peloton's pricier and original treadmill, the Tread+, retails for $4,295. The less-expensive Tread, which is not yet available for sale, is set to retail for $2,495 at its debut.
Foley said Peloton is looking at renting out bikes and also selling used bikes in the future, as two ways the company can lower the cost of a Peloton to potential customers.
In the past 12 months, Peloton has made its app and fitness content accessible via Roku TV, Amazon Fire TV, Apple TV and Android TV. Foley said the company is looking to expand further with other tech giants. And it is also rolling out more of original content online, also growing its music library and partnering with major artists.
"We want to be the best employer and the best place to work," Foley said. "This is a massive, massive global opportunity. I don't think many people really understand how big this opportunity is."
Peloton shares were climbing more than 5% Tuesday afternoon, having risen more than 200% this year. The company has a market cap of $24.9 billion. On Sept. 10, the stock hit an all-time-high of $98.61.