Posted on By evrenbaser

Peloton Diving – The New York Times

[ad_1]

Connected fitness bike maker Peloton, one of the hottest companies in the early days of the pandemic, announced this morning that it lost $757 million in the first quarter, much more than analysts expected. It also burned roughly the same amount of cash.

This is the first earnings report below: Barry McCarthy, Peloton’s new CEO. Since taking the reins, McCarthy has been trying to address supply chain issues, reduce costs and experimenting with the company’s pricing model. “Returns are hard work,” McCarthy wrote in a letter to shareholders today.

  • The quarter contained more 200 million dollars in damage, About $30 million of inventory that the company thinks it can no longer sell.

  • Membership increased by only 5% from the last quarter, to 7 million.

  • Revenue fell 24 percent to $964 million from last year. Sixty percent of that came from products and 40 percent from subscriptions.

The company is collecting cash. The company has $879 million. According to McCarthy, that leaves Peloton “with very little capitalization for a business of our scale.” Earlier this week, Peloton signed a time-bound letter of commitment with JP Morgan and Goldman Sachs. $750 million loan

The peloton’s rising losses are another sign that the pandemic bubble has burst. Shares of Peloton are down about 25 percent this morning. The company currently has a market cap of around $4 billion, which is down more than 90 percent from its early 2021 high of $47 billion. Shares of Zoom, another pandemic darling, are down 83 percent from October 2020. The virtual conferencing company currently has a market cap of $27 billion, roughly its pre-pandemic value.

Stocks are poised to recoup some of their losses. Futures markets show that US stocks to rebound slightly today, after more than a month of slump that dropped the S&P 500 16 percent for the year. Bitcoin fell below $30,000 for the first time since July 2021.

Clearview AI files a privacy lawsuit and agrees to limit its sales. The facial recognition software maker has agreed not to sell its database. More than 20 billion face photos Most private individuals and businesses in the US can continue to offer their services to state and federal agencies.

Peter Thiel and Bill Ackman support a new financial firm that will tell companies to stay out of politics. Entrepreneur and bestselling author Vivek Ramaswamy Reportedly raising $20 million to start a fund manager called Strive this will force focus on the bottom line. Ramaswamy has criticized BlackRock, Vanguard, and State Street for having a liberal bias.

Biden signed an updated version of the WWII Lending Act. The original, enacted in 1941, allowed the federal government to send weapons and supplies to Britain, which was facing Nazi Germany. new version It will speed up arms shipments to Ukraine. The president also raised Customs duty on Ukrainian steel.

A dating app maker sues Google over its app store policies. This antitrust claim It’s the latest salvo in a long-running battle by the Match Group, owner of Tinder and OkCupid, over Google and Apple’s fees from app developers for purchases made through apps.

Gay dating app Grindr said yesterday that it plans to go public by merging with a SPAC. The deal is backed by Tiga Acquisition, a blank check firm led by Raymond Zage, the company’s principal investor, which acquired Grindr from a Chinese company in 2020. The deal values ​​Grindr at more than $2 billion, including debt. .

As part of the deal, Grindr released its financial results for the first time as an independent company. (Former Chinese owner has reported some limited results in the past.)

Here are the highlights:

  • Grindr is snowy. the company made $77 million in adjusted earnings last year.

  • Increased revenue from subscription fees about 40 percent reached $146 million last year.

  • Grindr has mostly grown from word of mouth. The company said it spent $1.5 million marketing last year or just 1 percent of income.

  • owned by Grindr 11 million usersand they spend an average of 61 minutes a day on the app. According to Grindr, Tinder and Bumble users spend an average of 18 and 14 minutes a day on these apps.

Low lights:

  • The company’s adjusted earnings eliminate, among other costs, a massive depreciation expense in excess of $40 million. Her $5 million net profit rose from a pandemic year loss last year, but fell from 2019.

  • only 7 percent About 700,000 of Grindr users have paying customers. That compares to 9 percent and 18 percent for rivals Bumble and Tinder.

  • The company says it had a net profit of $8 million in 2019 — but its former owners said it previously made $30 million. that year. It’s not clear why the company revised its profits down.

Grindr has repeatedly faced privacy issues. Last year, the Norwegian Data Protection Authority, Grindr fined 100 million Norwegian crownsor approximately $11.7 million at the time for disclosing private details about its users to advertising companies in violation of European law. Last week, The Wall Street Journal reports that Grindr is selling user location data to ad networks From at least 2017 to 2020, which Grindr says ends the possibility of such data collection.

— Alex Karp, CEO of Palantir Technologies, in a letter to shareholders yesterdayIt researches Silicon Valley companies as they focus on building software for “alternate realities.”

At the Robin Hood charity event at the Javits Center in New York City last night, Citadel’s Ken Griffin was the winning bidder at an auction for a space seat at Jeff Bezos’ rocket company Blue Origin. (Bezos was also there.) Griffin offered $8 million and said he plans to give the ticket to a teacher in New York City.

Alongside the event, Robin Hood hosted venture capitalist Alexis Ohanian, The Bezos Family Foundation and other donors have pledged a total of $50 million to expand access to quality, affordable childcare options to support the city’s overloaded, underfunded system. The city will add another $50 million.

The outbreak highlighted a childcare crisis in New York. already childcare centers working on tight budgets They have had to reduce capacity or shut down completely, removing hundreds of thousands of childcare workers from the industry and leaving little choice for parents.

“More than 40 percent of parents with a young child in New York City have had to leave work or switch from full-time to part-time work due to lack of access to childcare during the pandemic,” Robin CEO Richard Buery said. Hood, a New York City charity with strong ties to Wall Street, told DealBook.

According to one study, women aged 25 to 54 were two and a half times more likely than men in the same age group to count childcare as the primary cause of unemployment. analysis of census data by the non-profit organization Citizens Committee for New York Children.

Fixing the current system would support the local economy by helping many New Yorkers – especially women – get back to work.said Buery. New York’s private childcare options are among the most expensive in the country, with the cost of full-time group babysitting. more than $16,000 On average in 2020, it is out of the reach of many families.

World’s largest energy companies expected to sell more than $100 billion oil fields and other polluting assets while trying to meet corporate climate targets. But these firms often sell to buyers who give little information about their operations, make little or no commitment to tackling climate change, and are determined to increase fossil fuel production. Hiroko Tabuchi of The Times writes.

About 60 percent of oil well deals will likely not result in lower emissions. new Research It shows today that the 3,000 oil and gas deals between 2017 and 2021 are twice the relevant assets passed from net zero commitment operators to non-net-zero commitment operators, and vice versa. This raises concerns that assets will continue to be contaminated, perhaps at a higher rate, but away from the public eye.

  • “You can move your assets to another company and remove the emissions from your own ledgers, but this does not equate to any positive impact on the planet if this is done without any safeguards,” said Andrew Baxter, who heads the energy transition. The Environmental Defense Fund team that performed the analysis.

Actions like this hinder the cleanup of fossil fuel infrastructure and efforts to slow climate change. In a new study, the World Meteorological Organization and the UK Met Office found a very strong possibility: One of the next five years will be the hottest year on record globally, 2016 surpassed the current record year.

Opportunities

  • Philip Morris International is reportedly in talks to acquire smokeless tobacco rival Swedish Match in a deal worth $15 billion or more. (WSJ)

  • All but three of the 53 tech companies that went public last year are currently trading below their bids or opening prices. (CNBC)

  • Goldman Sachs is reportedly withdrawing from SPACs, putting new bids on hold and halting most businesses it has helped go public. (FT)

Russia-Ukraine war

  • Putin has called for the creation of an internal working group on international payments to set the terms for transactions with “non-hostile” states. (Reuters)

  • The brutality of the war is said to have convinced the Italian prime minister to loosen his country’s historically strong ties with Russia. (Bloomberg)

  • VW’s CEO has called for a negotiated end to the war in Ukraine to protect the European economy. (FT)

Policy

  • The IRS paid more than $3 billion in interest in 2021 to taxpayers who had to wait for their repayments. (WSJ)

  • Former heads of state urged Biden to dedicate $5 billion to the global fight against Covid-19. (NYT)

  • Groups representing international businesses operating in China are urging Beijing to relax its Covid approach. (CNN)

best of the rest

  • The Times won a Pulitzer Prize for investigative journalism and cultural criticism. (NYT)

  • Atlas Capital, led by crypto critic Nouriel Roubini, will launch a tokenized dollar. (Bloomberg)

  • Instagram is launching an NFT experiment in the US to test the waters for more NFT offerings. (TechCrunch)

  • “The Good Times for Tens of Millions of Americans Are Right Now” (NYT)

We want your feedback! Please email your thoughts and suggestions. dealbook@nytimes.com.

[ad_2]

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *