UPDATE – Sent 12:55PM ET; Thursday, October 6
RE: A Difficult, But Critical Pivot to Growth
I’m sure you all have seen or heard about today’s Wall Street Journal story. We were expecting a story about redemption and the successful turnaround of Peloton, which is why we invested time on background briefing them on the state of our turnaround. The headline should have been that recent strong execution and today’s restructuring have positioned us to meet our fiscal year-end goal of break-even cash flow, with a renewed focus on accelerating our growth, which is why I’ve never felt more optimistic about our future. Would I say this if it weren’t true? Not a chance……
Instead, the article creates the impression we have six months to live, which is at odds with the story we told and the state of the business. That’s on me and I apologize.
I was asked the question: “How much time do you think you have to show success?” My response was 12 months from the time I joined Peloton, knowing that we’re already showing significant progress and in record time. Seemed like a no-brainer at the time.
In the past you’ve heard me say we’re all held accountable for our performance. Me included. But to be unequivocally clear, there is no ticking clock on our performance and even if there was, the business is performing well and making steady progress toward our year-end goal of break-even cash flow. Our immediate focus is on ensuring that our most important stakeholders – beginning with you – understand this to be the case.
Most importantly, I don’t want this news cycle to overshadow the difficult reality that 500 of our colleagues have been impacted today, or the gratitude I have for all they and you have done for the company.