Peloton Interactive, Inc. (NASDAQ:PTON) Q3 2023 Earnings Call Transcript

Youssef Squali: Great. Thank you very much and good morning all. So Barry, the Peloton brand was built on just great quality physical product historically. As the business moves to an app-centric strategy, asset-light strategy, can you maybe just speak to the competitive advantages that you are bringing, the moat you’re trying to build? And what gives you confidence that you’ll be able to maintain the same type of advantage that you’ve been able to build in the physical world? Thank you.

Barry McCarthy: I think both Liz and I will comment here. From my part, I would say we faced many challenges in the past year, almost in every aspect of the business, except for content. Content is kind of the golden goose. Is the bike a great experience from a hardware perspective and better than things that had come before it? Absolutely is. But the magic and the glue that binds the community with almost religious fervor amongst the members is the content and the instructors. And so if we’re successful in extending that into the app world and if we architect the app in ways that drive personalization so that you can find and engage with all that content in a — quickly and in a frictionless way, then I think will do quite well. If we don’t do those things, we won’t.

Liz Coddington: Yes. I mean, I completely agree with your comments there. The one thing that I will add is that it’s important for us to continue to innovate on the content experience over time, and that is something that we are focused on doing, and we’ll continue to do that. And over time, you’ll see new forms of content coming from us. And that will be something that continues to keep that competitive moat there. And so content is — to your point, is really our secret sauce at Peloton, our golden goose at Peloton.

Youssef Squali: Thank you.

Operator: Thank you. That is all the time we have today for our question-and-answers. Thank you again for participating. This concludes today’s program. You may now disconnect.