Jon Quast

If you look at the

probably the most underlying important business trends.

Peloton isn't really in a terrible place.

In fact, if we zoom out and take a big picture view, Peloton's growth has been perfectly acceptable over the longterm.

So if we go back in time, five years, same quarter, five years ago, they had 1.3 million connected fitness subscriptions.

And now five years later, they have 2.7 million.

So it's more than doubled.

Over five years.

That's a good growth rate over five years.

Now, it's been bumpy, it's been lumpy, but it has been perfectly acceptable when you take that long-term view.

But I will say that when it was scaling a few years ago, the old management team put this company in a hole that new management has been trying to dig itself out of.

That has not been an easy process, and it hasn't been a quick process, but it is starting to get it done, I think.

It's such a good point.

They reported a drop in revenue, but an increase in gross profit.

That is an incredible thing when you look at they're bringing down the cost of revenue, and that's a good thing structurally.

Also on operations, bringing down those expenses, and particularly when it comes to general and administrative, so your corporate expenses, those have come down significantly.

We're spending far too much on that.

Debt has been coming down.

Took on a lot of debt to maybe acquire some other businesses.

Questionable strategies.