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i dont think you use a proper math funnel though. Instead of just SBC & R&D, you should look at total expense cut (these 2 only to make a point). Now Quarter OP is 40mn, mean a cut of 70mn to achieve 110mn Quarter OP, 70mn out of 260mn OPEX is 30% OPEX cut, not impossible & this is OP not EBITDA.

Of course maybe cant cut tht much without impacting loyalty or growth, but the math is easily workable.

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Yes but if you look at the components of OPEX, SG&A make up by far the largest cost components. Also, Einhorn's own valuation is based on EBITDA, not OP or NP.

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Really interesting analysis and critique of Einhorn's PTON thesis. Your focus on cost cutting measures present a clear picture PTON has a lot more to do to justify the proposed $31.50 share price. But I do believe can increase subscription prices. With multiple subscription offerings across its products and low churn rates (monthly churn ~2%) customers would be willing to pay extra to keep using PTON's products especially due to how expensive the equipment can be the cost of not using a 3000 bike seems a lot more than just paying a $44 dollar subscription maybe even a $60 or $70 subscription.

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Yes the main issue is with the valuation. It truly sounds like a reverse margin of safety situation. Also, Einhorn mentioned he didn't bake price increases nor volume increases in his thesis; it's supposedly purely about cost cutting. I just don't see how that happens.

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