Former Chief Executive Officer, President & Director, Peloton Interactive
Search every verified W. Mccarthy interview, podcast appearance, and on-the-record quote — each transcript cross-checked by AI and human review to confirm speaker identity. In a February 2022 appearance on CNBC's "Mad Money," newly appointed Peloton CEO Barry McCarthy discussed the company's pricing strategy and financial outlook. McCarthy stated that he was not focused on raising prices, but rather on "doing exactly the opposite" and exploring "how much price elasticity there is for the business." He described an "enormous opportunity" to "flex the business model" and "dramatically increase the TAM by lowering the cost of entry for new members," as well as "playing around" with the relationship between monthly recurring revenue and upfront revenue. McCarthy also addressed the company's recent liquidity challenges, noting that Peloton's performance in the "COVID world" was "quite a bit different than the management team was expecting," which had "dramatic implications for liquidity." He stated that the company was "less good than they would have liked to have been at forecasting what the cash needs of the business were," and that "until we can prove that we are capable of forecasting the performance of the business and meeting those forecast expectations then there will continue to be some uncertainty." However, McCarthy added that from his perspective, the company appeared "pretty well capitalized for the challenge ahead, principally because of some of the pain that investors have already felt."
“I think there's enormous opportunity for us to flex the business model and dramatically increase the TAM by lowering the cost of entry for new members.”
“And playing around, if you will, with the relationship between the monthly recurring revenue and the upfront revenue, and I think there's tremendous opportunity for us to double down on our investment in the user experience, in the content, features and functionality to increase consumer delight with the product.”
“All of which will contribute to an increase in the TAM — okay so no I'm not focusing on raising prices; I'm focusing on doing exactly the opposite and exploring how much price elasticity there is for the business.”
“For the longest time the company, I'm told, was pretty accurate in its forecast of its performance but not in the COVID world, and so as a consequence the performance of the business was quite a bit different than the management team was expecting and that had some dramatic implications for liquidity.”
Barry McCarthy, the recently hired CEO of Peloton, appeared on Wednesday's episode of "Mad Money."
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