Pre-register: State of Mobile 2025
Sensor Tower · Seema Shah · November 2023
MMM: Wayfair Q3 2023 Earnings Recap; Peloton Q1 FY24 Earnings Recap
Wayfair's profits were boosted in 3Q23, but its revenue growth was hindered by a decrease in average order value. The company is experiencing strong MAU growth in the US and Canada, but is facing challenges in its major European markets, per Sensor Tower data. Peloton struggled to convert free users into paying subscribers, resulting in a miss on its 1Q FY24 EPS estimates. Per Sensor Tower, declines in Peloton mobile app MAUs aligned with reported movement in total members and paid app subscriptions. US Peloton users are more likely to be sports fans and spend more time on sports apps, which could explain the company's recent partnerships in the sports industry.
Key Takeaways:
Wayfair continued to see profit improvement in 3Q23, reporting adjusted EBITDA of $100mn and positive free cash flow, beating bottom line estimates, though revenue missed slightly, up just under 4%
The Wayfair app’s MAUs rose 11% YoY, per Sensor Tower estimates, which was directionally inline with reported Orders Delivered growth (+11% YoY); still the company has struggled with driving usage in its European markets
Wayfair receives nearly 80% of its orders from repeat customers, while 62% of its orders come directly from its mobile app, up from 59% in 3Q22
Peloton’s reported 1Q FY24 revenue exceeded street estimates while EPS missed the mark. Notably, the company flagged difficulties in retaining and converting free users to paying members. Per ST estimates, Peloton 3Q23 worldwide MAUs decreased 4% YoY, in line with reported declines in the company’s total members (-4% YoY) and paid app subscriptions (-12% YoY)
Per Sensor Tower Audience Insights, US Peloton users (across the last 90 days) were 1.5x more likely to fall into the sports fan persona and typically spent 1.5x more time on sports apps compared to the general population of smartphone users. Peloton’s partnerships with various sports-adjacent organizations signals that the company has already begun to capitalize on this over-indexed interest
Another area where Peloton could capitalize on outsized interest is in consumers who travel frequently. Per Audience Insights, US Peloton users (across the last 90 days) were 3.5x and 2.6x more likely to fall into the hotel hopper and frequent flyer personas, respectively, vs the general population of smartphone users. Pursuing partnerships with companies in the travel industry could help Peloton reach more travelers and drive top line growth if the company can successfully convert these potential users into paying subscribers
For more information, request the full report from reports@sensortower.com.
