Peloton Interactive (NASDAQ: PTON), the well-known maker of connected fitness equipment, has been struggling recently, with new CEO Barry McCarthy trying to turn the business around. With revenue falling more the 20% in the most recent quarter, the company is looking for ways to jump-start sales. Peloton recently introduced a new product, its long-rumored rowing machine, with the first deliveries expected by the end of the year. Is Peloton Row the answer to the company's challenges?
Source: Peloton Interactive Media Kit
To understand the potential benefits of the new Peloton Row, we need to consider Peloton's two main revenue streams. The company generates product revenue from the sale of its connected fitness products, such as its Bike and Tread, and related accessories. Peloton also generates subscription revenue sale of connected fitness subscriptions. These connected fitness subscriptions provide access to live and on-demand fitness classes, both on the company's connected fitness products and through its stand-alone app.
Source Fool.com