Microsoft Earnings, Peloton Earnings

In today’s update, we will wrap up our Big Tech earnings reviews with Microsoft. We will then conclude the discussion with a look at Peloton earnings.

To set the scene, Microsoft and Peloton are in some ways complete opposites. Microsoft has been reporting some of the cleanest, all-around solid earnings releases in Big Tech. Peloton is in the most precarious of positions in terms of companies that we check in on from time to time. It’s been six months since we looked at Peloton’s earnings.

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New Churn Estimates for Paid Video Streaming, Apple Announces Fitness+ Updates, ASML Cancels DUV Shipments Into China


We kick things off with a closer look at new churn estimates for the major video streamers in the U.S. The paid video industry is getting more complicated. The discussion then turns to Neil’s thoughts on new features and content announced for Fitness+. We conclude with ASML needing to cancel advanced deep ultraviolet (DUV) machines shipments into China.

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Roku 3Q22 Earnings, Peloton 1Q23 Earnings (Daily Update)

Hello everyone. In today's update, we will focus on earnings from two of the smaller companies playing in the tech arena (Roku and Peloton). While Roku is an Apple competitor, Peloton remains a good source for assessing how consumers are thinking about different forms of connected fitness.

Let's jump right in.

Roku 3Q22 Earnings

Roku reported earnings back on November 2nd.

With macro issues taking a big toll on Roku's advertising business, the company's user growth and engagement appear to be rare bright spots. We say “appear” as it’s difficult to get comfortable regarding how streaming companies define and measure engagement. According to Roku, an active account is anyone who has streamed something in the past 30 days. It's easy to see how that definition offers quite a bit of wiggle room for volatility.

As shown below, Roku has seen a small rebound in new user growth (on a TTM basis).

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Peloton Launches Peloton Row, What Peloton Should Do With Peloton Row, Spotify Launches Audiobooks (Daily Update)

Hello everyone.

Let's jump right in.

Peloton Launches Peloton Row

My approach regarding analyzing Peloton is changing.This week’s Inside Orchard essay was focused on why it’s now time to begin writing Peloton’s eulogy. We should no longer look at Peloton as a threat to Apple or Apple Fitness+.

However, there are still interesting lessons and notes to observe with Peloton. Specifically, where the hardware versus software balance is found with connected fitness in mind. Peloton believes fitness equipment and software integration are key. My stance is software is vastly more important than fitness equipment when thinking about connected fitness. Apple’s HW/SW/services mantra integration isn’t applicable to every consumer-facing product vertical.

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Payment is processed and secured by Stripe. Apple Pay and other mobile payment options are accepted. Special Inside Orchard bundle pricing is available for Above Avalon members.

The daily updates have become widely read and influential in the world of Apple and technology. They are unmatched in the marketplace in terms of comprehensive analysis and research on all things Apple. Members reside in 60 countries and hold a diverse range of backgrounds and occupations. They include Silicon Valley executives and investors, the largest Apple shareholders, and the leading Apple journalists in the business.

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