Barry McCarthy Stepping Down as CEO, President
and Board Director
Peloton Board Members Karen Boone and
Chris Bruzzo will Serve as Interim
Co-CEOs; Jay Hoag Becomes Chairperson of Board of Directors
Board Commences CEO Search Process
NEW YORK,
May 2,
2024 /PRNewswire/ -- Peloton Interactive, Inc.
(NASDAQ: PTON) today announced Barry
McCarthy is stepping down as President, CEO and a Peloton
Board Director, and will become a strategic advisor to Peloton
through the end of the year. The Board has initiated a
comprehensive search process to identify Peloton's next CEO.
Karen Boone, current Peloton
Chairperson, and Chris Bruzzo, a
Peloton Director, will serve as Interim Co-CEOs. In addition,
Jay Hoag, a Peloton Director, has
been named the new Chairperson of the Board.
"On behalf of the Board, I want to thank Barry
for his contributions to Peloton. Barry joined Peloton during an
incredibly challenging time for the business. During his tenure, he
laid the foundation for scalable growth by steadily rearchitecting
the cost structure of the business to create stability and to reach
the important milestone of achieving positive free cash flow,"
"With a strong leadership team in place and the Company now on
solid footing, the Board has decided that now is an appropriate
time to search for the next CEO of Peloton."
Mr. Bruzzo added "Peloton provides unparalleled
fitness experiences for our Members, which they love as evidenced
by our strong NPS scores. The team continues to innovate across our
hardware, software and content portfolios, while simultaneously
driving transformation in our marketing organization to increase
engagement with new, targeted audiences. There is a huge
opportunity in front of us to significantly expand the number of
people we serve."
Ms. Boone and Mr. Bruzzo jointly added, "As
Interim Co-CEOs, we look forward to working in lockstep with
Peloton's leadership team to ensure the Company doesn't miss a beat
while the CEO search is underway."
Mr. Hoag, newly appointed Chairperson of the
Board, said, "Karen and Chris are two dedicated Directors committed
to fulfilling Peloton's mission, and the full Board and I have the
utmost confidence in their joint leadership of the Company on an
interim basis. The Board is focused on identifying a new CEO who
possesses the ideal combination of skills, experience and vision to
execute Peloton's exciting next chapter and drive shareholder
value."
Mr. Hoag continued, "I have known and worked
closely with Barry for nearly two decades and I am grateful for his
leadership of Peloton during these last two years, including
recruiting a very talented and diverse group of leaders. The Board
and I are deeply appreciative that Barry has agreed to serve as a
strategic advisor to the Company."
Biographies for the full Peloton Board and
leadership team can be found at
https://www.onepeloton.com/company/team.
Separately, Peloton today is announcing financial
results for the third quarter 2024. Please visit the Peloton
investor relations website https://investor.onepeloton.com/ for
more information.
Forward-Looking Statements
This press release contains forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. We intend such forward-looking statements to be
covered by the safe harbor provisions for forward-looking
statements contained in Section 27A of the Securities Act of 1933,
as amended and Section 21E of the Securities Exchange Act of 1934,
as amended. All statements contained in this press release other
than statements of historical fact, including, without limitation,
statements regarding the composition of our board of directors,
changes to our leadership team, our future operating results and
financial position, our profitability, our business strategy and
plans, market growth, and our objectives for future operations, are
forward-looking statements. The words "believe," "may," "will,"
"estimate," "potential," "continue," "anticipate," "intend,"
"expect," "could," "would," "project," "plan," "target," and
similar expressions are intended to identify forward-looking
statements, though not all forward-looking statements use these
words or expressions.
We have based these forward-looking statements on
our current expectations and projections about future events and
trends that we believe may affect our financial condition, results
of operations, business strategy, short-term and long-term business
operations and objectives, and financial needs. These
forward-looking statements are subject to a number of risks,
uncertainties, and assumptions and other important factors that
could cause actual results to differ materially from those stated,
including, without limitation: our ability to achieve and maintain
future profitability; our ability to attract and maintain
Subscribers; our ability to accurately forecast consumer demand for
our products and services and adequately maintain our inventory;
our ability to execute and achieve the expected benefits of our
restructuring initiatives and other cost-saving measures and
whether our efforts will result in further actions or additional
asset impairment charges that adversely affect our business; our
ability to effectively manage our growth and costs; our ability to
anticipate consumer preferences and successfully develop and offer
new products and services in a timely manner, or effectively manage
the introduction of new or enhanced products and services; demand
for our products and services and growth of the Connected Fitness
Products market; our ability to maintain the value and reputation
of the Peloton brand; our reliance on a limited number of
suppliers, contract manufacturers, and logistics partners for our
Connected Fitness Products; our lack of control over suppliers,
contract manufacturers and logistics partners for our Connected
Fitness Products; our ability to predict our long-term performance
and declines in our revenue growth as our business matures; the
effects of increased competition in our markets and our ability to
compete effectively; any declines in sales of our Bike and Bike+;
our dependence on third-party licenses for use of music in our
content; actual or perceived defects in, or safety of, our
products, including any impact of product recalls or legal or
regulatory claims, proceedings or investigations involving our
products; increases in component costs, long lead times, supply
shortages or other supply chain disruptions; accidents, safety
incidents or workforce disruptions; seasonality or other
fluctuations in our quarterly results; our ability to generate
class content; risks related to acquisitions or dispositions,
including the acquisition of Precor; risks related to expansion
into international markets; disruptions or failures of information
technology systems, or websites; risks related to payment
processing, cybersecurity, or data privacy; risks related to the
Peloton App and its ability to work with a range of mobile and
streaming technologies, systems, networks, and standards; our
ability to effectively price and market our Connected Fitness
Products and subscriptions and our limited operating history with
which to predict the profitability of our subscription model; any
inaccuracies in, or failure to achieve, operational and business
metrics or forecasts of market growth; our ability to maintain
effective internal control over financial and management systems
and remediate material weaknesses; impacts from warranty claims or
product returns; our ability to maintain, protect, and enhance our
intellectual property; our ability to stay in compliance with laws
and regulations that currently apply or become applicable to our
business both in the United States
and internationally; our reliance on third parties for computing,
storage, processing and similar services and delivery and
installation of our products; our ability to attract and retain
highly skilled personnel and maintain our culture; risks related to
our common stock and indebtedness; and those risks and
uncertainties described in the sections titled "Management's
Discussion and Analysis of Financial Condition and Results of
Operations" in Part I, Item 2 of our Quarterly Report on Form 10-Q
for the quarterly period ended December 31,
2023 and the sections titled "Risk Factors" in Part I, Item
1A and "Management's Discussion and Analysis of Financial Condition
and Results of Operations" in Part II, Item 7 in our Annual Report
on Form 10-K for the fiscal year ended June
30, 2023, as such factors may be updated in our filings with
the Securities and Exchange Commission, which are available on the
Investor Relations page of our website at
https://investor.onepeloton.com/investor-relations and on the SEC
website at www.sec.gov.
You should not rely upon forward-looking statements as
predictions of future events. The events and circumstances
reflected in the forward-looking statements may not be achieved or
occur. Although we believe that the expectations reflected in the
forward-looking statements are reasonable, we cannot guarantee
future results, performance, or achievements. Our forward-looking
statements speak only as of the date of this shareholder letter,
and we undertake no obligation to update any of these
forward-looking statements for any reason after the date of this
shareholder letter or to conform these statements to actual results
or revised expectations, except as required by law.
About Peloton
Peloton (NASDAQ: PTON), provides Members with
expert instruction, and world class content to create impactful and
entertaining workout experiences for anyone, anywhere and at any
stage in their fitness journey. At home, outdoors, traveling, or at
the gym, Peloton brings together immersive classes, cutting-edge
technology and hardware, and the Peloton App with multiple tiers to
personalize the Peloton experience [with or without equipment].
Founded in 2012 and headquartered in New
York City, Peloton has millions of Members across the US,
UK, Canada, Germany, Australia, and Austria. For more information, visit
www.onepeloton.com.
Investor Relations
Contact:
James Marsh
investor@onepeloton.com
Media Contact:
Letena Lindsay
press@onepeloton.com
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SOURCE Peloton