State of AI Apps Report 2025 is Live!
Seema Shah · August 2023
Peloton Rides Digital Fitness Wave
Peloton's mobile app saw a 23% YoY increase in downloads in FY4Q23, outperforming other fitness apps. The app revamp helped drive new monthly active users (MAUs), which rose 10% QoQ. Peloton's increased marketing spend on the app also contributed to user growth. However, Peloton's reported results for FY4Q23 fell short of expectations due to seasonality, seat post recalls, and weak hardware sales. Active users and member count both declined YoY.
Key Takeaways:
After eight consecutive quarters of declining download growth, Peloton’s mobile app’s FY4Q23 downloads rose 23% YoY, ahead of a majority of the fitness app cohort, per Sensor Tower data, as it works to reposition itself to take advantage of the growth in connected fitness
Peloton’s mobile app revamp was necessary to drive new MAUs, which rose 10% QoQ in FY4Q23, per ST data. The sequential growth in both new and resurrected (10% QoQ) users is particularly critical for Peloton’s ability to grow its installed base and MAUs, given the increase in churn
Peloton’s marketing likely also led to user growth. While overall US ad spend fell QoQ in FY4Q23, Peloton’s spending that focused on its app increased 200% QoQ and made up 35% of FY4Q23 US ad spend, per Pathmatics by ST data
Relative to competitors, Peloton has seen a spike in its engagement metrics over the last six quarters, with both average session count (16% YoY in FY2H23) and average time spent rising (15% YoY in FY2H23)on a YoY basis each quarter
Peloton’s reported FY4Q23 results fell short of expectations as seasonality, the recall of seat posts and weak hardware sales offset the positive impact from the brand relaunch in May. While the new app accelerated download growth, ST data indicates that active users continue to soften, with ST DAUs sliding 8% YoY in FY4Q23, inline with Peloton’s FY4Q23 reported member count, which fell 6% YoY
For more information, request the full report from reports@sensortower.com.
