Blackwells Capital Activist Presentation Deck
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Peloton can garner a takeout price today that would take years to achieve as a standalone company
Valuation Bridge to $75 per Share as Standalone Company
$19
Current Hardware
Value
OBTAIN FUTURE VALUE TODAY THROUGH A SALE
$9
BW BLACKWELLS CAPITAL
Current Subscriber
Value (Digital +
Connected Fitness)
$47
Value Needed from
New Connected
Fitness Subscribers
$75
Total Value
20,000
18,000
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
Cumulative Subscribers (in millions)
Given current customer
acquisition pace 15.9 m
subscribers would take
-14 years to acquire
362k
712k
168k
CY 2017 CY 2018 CY 2019
1.7m
2.8m
CY 2020 CY 2021
15.8m
Subs
Needed
18.6m
Total Subs
At current valuation levels Peloton would need to more than double last-twelve-months (LTM) revenue and grow connected fitness
subscribers from 2.8 million 18.6 million to organically grow to the $75/ share that Peloton is worth in a sale
Note: Assumes 1) Zero growth on new added LTM connected fitness (~1.1 million new subscribers per year); 2) No changes to in-place connected fitness pricing plan ($39.00 per month or $468.00 per year); 3) Hardware revenue remains
constant (LTM hardware revenue = $2.98 billion); 4) No growth to digital subscriber base (862,000 subscribers); 5) Valuation of current subscriber and current hardware based on EV / FY2022E Revenue multiple.
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