Earnings As Far As The Eye Can See

Peloton maxis sing its praises, but investors have been feeling quite different about the digital workout brand this year. 😬

This year has been punishing for Peloton — supply chain woes, recalls, and unfortunate earnings are to blame. In May 2021, the company recalled its new treadmill. Peloton has since-resolved the treadmill shortcomings, but faces new problems in the supply chain.

In many ways, it’s good to have this much demand. However, Peloton has been consistently failing to meet the robust demand for its workout devices. 👎 Peloton’s reports in early 2021 were bold, setting the stage for disappointment in the latest two quarters. In August, the company reported disappointing outlook and sad revenue growth. Today, Peloton did it again. 😓

Peloton reported a net loss of $376 million in its first FY 2022 quarterly report (its calendar year ends Sept. 30.) That worked out to an EPS of ($1.25) per share. Revenue was up just 6% to $805.2 million. These numbers were upsetting to analysts, but it got worse — the company cut its full-year outlook. ✂️ 💰

$PTON fell 32% today. Ouch. It’s down 41% YTD. Read the company’s full report here.

Telecom giants AT&T and Verizon agreed to punt the rollout of new 5G service, citing a request from the Federal Aviation Administration (FAA.) 🙅‍♀️

The new 5G service in question, C-band spectrum, is designed to provide “wide average coverage and throughput uniformity“ for customers. It’s different from mmWave band spectrum, which provides more concentrated, super-high throughput.

The problem with C-band? It might cause interference in sensitive aircraft electronics due to similarities between the C-band and aviation operation spectrums. Industry specialists claim there is no evidence of interference. 🤷

The two telecom companies will work with the FAA to “address concerns about potential interference between key cockpit safety devices and towers on the ground transmitting 5G signals.” 

Regardless of the outcomes of their work, both telecom giants will not be stopped from rolling out C-band. They shelled out big time for the spectrum last March — telecoms paid over $81 billion for licenses.

Verizon plans to deploy service on C-band spectrum in Q1 2022, covering over 100 million people. AT&T will delay its 5G deployment until the start of next year, but will continue its rollout in early January.

AT&T ($T) closed down 1.51%. Verizon ($VZ) lost 2.06%. 👎

Redbox isn’t all video game & DVD rentals anymore. Yes, the automated video rental company has over 40,000 Redbox kiosks out there in the wild (and they’re not going anywhere 😅), but they’ve shown that they’re more than just a DVD rental company…

In fact, while you were busy not paying attention to Redbox, the company expanded its rental horizons to free streaming. Today, Redbox signed a content deal with Fremantle to support its streaming ambitions.

The deal will add ad-support TV content to Redbox’s free streaming service, allowing the company to launch three new channels (mostly dedicated to game shows.) 

The news was well-received by Redbox investors, which sent the stock climbing over 45% in session today. In after-hours trading, the stock fell 10%.

Redbox finished up its SPAC merger last week, which valued the company just shy of $700 million. It now trades under $RDBX. 💰

Airbnb‘s CEO Brian Chesky had two big travel predictions this year. 1) That we could “expect longer trips after COVID” and 2) that “a record accrual of PTO” would boost end-of-year travel. Was he right about one or both? 🤔

Airbnb reported its Q3 2021 earnings today, and although it’s too early to say, Chesky’s two predictions are taking form in the company’s earnings.

Airbnb reported that long-term stays are becoming increasingly popular, an early confirmation of Chesky’s first prediction. Stays longer than 28 days were the company’s “fastest-growing category … and accounted for 20% of gross nights booked in Q3 2021.” 

Q4 may still lie ahead, but Chesky’s second prediction is shaping up nicely. A small decline in booking QoQ might set the stage for a bold Q4. The company raised its revenue outlook (by a lilllll’ bit) to reflect its confidence.

Airbnb reported net income of $834 million, up 280% YoY, on revenue of $2.24 billion. That revenue figure was 36% higher than the comparable period in 2019 (and lightyears ahead of this time last year, when COVID battered the travel industry.)  EPS worked out to $1.22, which had no comparable estimates (that’s a really good thing, in this case.) 

$ABNB accelerated 3.2% today. You can read the whole report here.

Live Nation, the largest concert promoter in the world, is finally back to being profitable after almost two straight years of COVID-related losses. 🥳

The company posted earnings for Q3 and knocked our socks off — $LYV reported $2.7 billion in revenue for the quarter and adjusted operating income of $305.7 million, a stellar recovery from Live Nation’s $319.2 million loss a year ago. 🌟

Now that COVID restrictions are cooling off, fans are eager to see shows again, which means a big opportunity to raise ticket prices. Live Nation attributed much of its financial success this quarter to higher ticket prices, higher quantities of premium and VIP tickets sold, and a 20% increase in drink and merch sales.

Ticketmaster, Live Nation’s most profitable segment, reported that ticket sales were up 10% from pre-pandemic levels, though the company expects sales to return to pre-pandemic levels in 2022. Michael Rapino, Live Nation’s CEO, shared: 

“As we get close to turning the page on 2021, I remain more convinced than ever on the power and potential of live entertainment, and the strength of our position. No industry was more impacted by the pandemic over the last two years, and no industry has so proven its durability of demand in the face of such disruption.” 

$LYV rocked 2.13% today. 🤘