What is the future of fitness? – Peloton Interactive w/ CM Karen Lawson | Summer Series

Bryce: [00:00:15] Welcome to another episode of the Equity Mates summer series, proudly brought to you by Superhero over 12 episodes where diving into some of the most exciting, interesting and well-known companies from both here in Australia and over in the U.S. in some instances we'll be hearing directly from the CEOs to give you firsthand insight into their companies. My name is Bryce and as always, I'm joined by my equity buddy Ren. How are you going?

Alec: [00:00:37] I'm very good, Bryce. Not often that I get excited to talk about a company that's down 74 percent from its all time high. 

Bryce: [00:00:45] No, that's that's true. It's not often, but there's good reason and we'll be getting into it all in a moment. We are talking about one of the Covid stocks of 2021, and that is Peloton. The ticker is PTON, and you can find it on the superhero platform. And we're really excited because we've been fortunate enough to get the Australian country manager, Australian CEO of Peloton, Karen Lawson, who will be joining us at the in the second half of this interview to discuss the launch here in Australia and what she sees as the future prospects of the fitness industry. So a massive episode coming up because this is one or was one hot stock, depending on which side of the bull or bear case you see it. 

Alec: [00:01:30] And speaking to some experts that we respect a lot may well one day be again. Yes, that was a mouthful. I'm excited to get into this one because I had a pretty I had a view of Peloton going into this episode, going into the research, and I've come out with a different view, 

Bryce: [00:01:50] and that's investing. 

Alec: [00:01:52] That's investing. 

Bryce: [00:01:54] We are chatting about one of the hottest Covid stocks of 2021 and that is Peloton, over in the US, it's a Nasdaq stock, the ticker is PTON. You can check it out on the superhero platform and a reminder that the summer series is brought to you by a superhero who allow you to buy Aussie and US shares and ETFs with no monthly account fees. Eligibility criteria, terms and conditions and fees and charges apply. So we're going to be spending the next 20 minutes or so having a look at what Peloton does a bit about the industry. It's a fascinating industry. Its financials and future prospects. There are so many amazing facts that came out of the research process for this company, so this gives you the opportunity to win a thousand bucks in a superhero wallet by remembering some of the key facts from this episode heading across to our Instagram page at Equity Mates and dropping in the comment section on the Peloton post. What your favourite stat from this episode was or favourite fact will choose someone from the comments section to win a thousand bucks at the end of the week, so plenty of opportunity to get started investing thanks to superhero. 

Alec: [00:03:06] But Ren let's start from the very beginning. Bryce You're the cyclist. In a past life, you were almost a national champion cyclist, so close to reminding you what could have been. Yes, what still might be? Right. You do have a you 

Bryce: [00:03:23] would be pretty epic to get 

Alec: [00:03:24] back in. Do you do have a 150 K race in? Well, by would have been done by the time this is realised. Yeah. So if they're saying, you know, you're in the news, you know your glory winning the race, then they'll know that that normalises former champion cyclist key. Tell us about Peloton. 

Bryce: [00:03:44] Peloton is the largest interactive fitness platform in the world. You would most likely know it from the fitness bikes that you've seen, but they do plenty more now. It's got a community of more than six point two million members, and the idea is that they offer classes across a variety of fitness and sort of wellness disciplines that you can easily do from the comfort of your own home, which is why it absolutely skyrocketed during COVID. So they do. The big one is their indoor cycling. 

Alec: [00:04:14] Well, it's going to say you're painting it as like this multi fitness experience. I'd probably like to say it. That's it is. It is. And we've actually got some numbers on how that's changed. But like you think Peloton, you think the bike? 

Bryce: [00:04:25] Yeah. Well, it's named after I Peloton. 

Alec: [00:04:28] So I wouldn't know that because I'm not a former champion cyclist. 

Bryce: [00:04:31] Indoor cycling is the big one. You buy the bike, which we'll get into in a moment and you can join an interactive indoor cycling class from your lounge room. But they also do other things like indoor, outdoor running and walking. They have boot camps, they run yoga sessions. They also provide white set up so you can do weights from your own home and join in with the other 6.2 million members around the world. And it's led live by a Peloton instructor on the screen in front of you. So, yeah, look pretty interesting company and one that has got a lot of attention. 

Alec: [00:05:06] Yeah, so as we said, we got some numbers on how the variety of workouts have changed back in 2017. Ninety four percent of the workout. On Peloton was cycling related, it was a bike, it was an indoor bike company by off to now. Cycling is 58 percent of all workouts, so it's still the most popular, but from 94 percent to 58 percent, that is diversifying. 

Bryce: [00:05:31] I've been on air, which is good to say.

Alec: [00:05:33] Yeah, and it makes sense because have you seen some of these other companies that have emerged like the Peloton model, like making exercising at home sexy and cool and seamless and easy has been copied by? There's a whole bunch of fitness mirrors can never sell our fitness mirrors mirrors. Yeah, tonal is the big one there. Yeah. And then there's rollers. Hydro, I think, is the big one there. So there's a bunch that have taken the Peloton playbook and are trying to copy it. So it makes sense that Peloton is trying to stay ahead of them. 

Bryce: [00:06:05] Yeah, yeah. I mean, home fitness is not a new concept. No. Back in the day, you could buy the no home. 

Alec: [00:06:11] Fitness is not a new concept. You have a door. You have a gym. 

Bryce: [00:06:14] Yeah, I mean, even in the 80s, you could buy those like aerobic fitness VCR. 

Alec: [00:06:19] Yeah, yeah, of course. And like, there's all those like AB crunches the slide on your bed and then, you know, like on the um, what do they even call like Global Shop Direct? It's like, you know where it is. 

Bryce: [00:06:29] Yeah, those 40 minute like, Yeah, 

Alec: [00:06:32] yeah, it's been a while since I was free to climb 

Bryce: [00:06:35] anyway. Midday to yeah. 

Alec: [00:06:36] Yeah, yeah. The point is, Peloton made it cool. 

Bryce: [00:06:40] Yeah, they made it sexy. 

Alec: [00:06:41] Peloton made it something that you wouldn't be like. 

Bryce: [00:06:42] Ashamed of it. Yeah, yeah. Yeah, yeah. 

Alec: [00:06:45] And it made it something that you talk about. 

Bryce: [00:06:47] Yeah. And the reason being is because they have these sleek, sexy indoor bikes that have amazing screens and the ability to interact so they generate most of their revenue through the sale of these bikes and their treadmills. But look, it is pretty expensive. Ren, the cheapest bike going around, I think, is about 9500 bucks, and they go up to just shy of 4500 four thousand three hundred for an indoor bike or a treadmill. On top of that. What you then do is you actually buy an All-Access membership and so you pay. I think about thirty nine bucks a month to get access to a range of all these classes. You can join into the fitness sessions using a treadmill or your bike. Yeah, that's the model. 

Alec: [00:07:31] Mm hmm. Before we go deeper, this is I'm not going to go down this rabbit hole. But if people are interested, it's a really interesting rabbit hole to go down. Affirm the buy now, pay later and Peloton. That is the best example of a symbiotic relationship in business I've ever seen. There was I'm not sure what the numbers are now, but like a couple of years ago, it was like the majority of Peloton sales were through a firm and the majority of a firm sales were of Peloton bikes. And it was just like this symbiotic relationship where those two companies grew together. 

Bryce: [00:08:03] Is that still in existence? Because I'm pretty sure now Peloton offer just zero percent repayment on their bikes. 

Alec: [00:08:10] It would be profound. 

Bryce: [00:08:11] Yeah, sure they could. 

Alec: [00:08:13] But anyway, there's there's I think there's an interesting medium article about it, but you can find stuff on it. Really interesting symbiotic relationship. Yeah, but it's expensive. 

Bryce: [00:08:21] The bike is

Alec: [00:08:22] expensive in Australia. An Aussie Dollars two and a half grand. Cheapest bike? Yeah. Then 40 bucks a month taking 

Bryce: [00:08:29] away the capital of the capital injection of the bike. Twenty nine bucks a month for an All-Access membership if you're only going to the gym 

Alec: [00:08:37] taking away the bike. 

Bryce: [00:08:39] Well, I mean, you know what I mean? Like, Yeah, what are you going

Alec: [00:08:41] to do with your most expensive video streaming service? 

Bryce: [00:08:46] No, I mean, you obviously got to get the bike up front, but as a as a membership gym membership, it's actually not that expensive. 

Alec: [00:08:53] Hold on to you. Could you just get the membership? Could I just get a shitty NordicTrack, not a sport bike and stick and stick an iPod on it and then get the Peloton app? Oh yeah, have we just cracked? 

Bryce: [00:09:06] Well, that's what it says. I think they offer a digital membership with no access to bike or tread classes. They go so you don't actually get the classes on a treadmill. You probably just get the weights and the yoga and the other bits and pieces that don't require. Yeah, that's thirteen bucks a month. 

Alec: [00:09:20] So for me, that that price was always a barrier. And fair enough, we will talk about it later, but put a pin in that price because that I've changed my mind on that. And for me, that is a key point in changing my mind about the company as a whole. So we'll get to that. But to keep breaking down the company, I think the number that stood out to us more than anything else that really surprised us when we were doing our research dossier actually found it and it sort of stopped us all and we had to track check it and fact check it again. Was there took a day off? It was the lack of churn for a company that it's something that is quite easily replicable. Spin classes, online spin classes, they have a 92 percent retention rate and previously it was. Ninety six percent, which is just pretty astounding, I think, 

Bryce: [00:10:18] yeah, it's an amazing figure. 

Alec: [00:10:20] I don't know how reticle reckless, but for context, Netflix is 93 percent.

Bryce: [00:10:25] Yeah, it's an amazing figure. 

Alec: [00:10:26] And Netflix, you don't have to do anything like you don't have to Jeff actually be active? Yeah. And to make it whether you are like, 

Bryce: [00:10:35] well, maybe this is perhaps one of the numbers that when people think about the future of fitness and indoors and having the flexibility to do it and aids and not heading to the gym like these might be, this is a number that you kind of think, OK, yeah, there's a there's a future here. If they can replicate 

Alec: [00:10:52] this now, two explanations for that. The first one is they're building this incredible community, or they add so much value through the platform and through the classes. And I believe that to an extent, I believe that the second one is the such a high upfront cost in the life that you feel like you have to keep paying for the membership. Yeah. 

Bryce: [00:11:10] But I also think that there's a lot of instances where there are high upfront costs to a lot of things and people end up just having them is sunk costs. It's not your fault. It's not. And it's like one of those cognitive bias or human nature to, you know, it's not like someone hasn't gone out and bought a $3000 road bike thinking they're going to be an Iron Man and then never done it. Yeah. 

Alec: [00:11:27] Since so, yeah, so all right, let's keep going through the company because I'm mindful of time and we've got so much to still talk about. So to give you an idea of how quickly the users have grown Sep 2019 one million December 2019 So really, just before the pandemic starts to emerge two million by December 2020, 4.4 million. So more than doubled in that first Covid year and now the what six and a bit million as we round out another year. So they've basically gone from two million to four million to a bit over six million. Covid been good for them. 

Bryce: [00:12:08] Covid has been good for them, it's been phenomenal growth as a shareholder. He'd love to say that will be interesting to 

Alec: [00:12:15] see as a shareholder. You would have loved them up to about February this year and then it's been one way downhill skiing. 

Bryce: [00:12:23] It's been pretty slippery.

Alec: [00:12:24] So let's talk about the industry and its competitors because this is I keep flagging the fact that I've changed my mind on their costs, and this is where I think we're talking about that. So industry, global health and wellness industry is valued at about five trillion, expected to be six trillion by 2025. People are getting more health conscious. You know, there's a growing middle class around the world like we're all aware of the trends. Fitness spending is pretty sticky as well. Within that global category, at home, fitness and wellness has accelerated. We don't actually have the numbers, but anecdotally, we all know that gyms were closed around the world. I bought resistance bands didn't from Instagram, from Instagram 

Alec: [00:13:12] And by that time, the motivation had well. But let's talk about their major competitors, because this is where I think it becomes interesting. So there's a bunch of other exercise bikes on the market, and there are cheap exercise bikes. Sure, and we can talk to those numbers in a sec. There's a bunch of gyms, but really what Peloton, who Peloton's core customer is? Well, at least when they start it was people wanting to do spin classes. And in America, there's a few big companies that do spin classes none bigger than SoulCycle or soccer. Yeah, you heard of them. Yeah, absolutely. And so this is where I changed my mind on Peloton, because when we think about spinning classes in Australia, we think about like fitness first or the local gym, where the cost of the classes is included in the gym membership. 

Bryce: [00:14:01] That's that's like traditional. Yeah, yeah. But the I mean, the competitor now would be like an orange theory or whatever. 

Alec: [00:14:09] I don't go to a fancy gym. I think that if you anywhere, if you guys want to say Bryce, he'll be at Barry's most more. Not for the shirt off red light, but SoulCycle, which took off in America $34 a class. If you buy a pack of 10 for three hundred and forty, otherwise it's thirty six dollars a class. And so that's where the maths becomes interesting because if you put Peloton head to head with SoulCycle and you say you buy the Peloton bike with a firm 36 months, no interest, you're paying about fifty nine bucks a month and then you're paying $39 subscription. So a month you're paying a bit under $100 for unlimited spin classes. Compare that to SoulCycle $34 a class like you can do that maths. But if you do three classes at SoulCycle, all of a sudden Peloton is a better offer. And for me in the US, that's a really compelling offering. 

Bryce: [00:15:06] Yeah, it is taking a bet on how people like to like to do their exercise. Obviously, SoulCycle is in-person. That's the biggest difference. And Peloton is still online. But yeah, if you just do the maths on it and you're willing to do it from your comfort of your own lounge room and joining the class online, then the numbers certainly make sense for Peloton.

Alec: [00:15:30] Now here's the question, though it makes sense when you put them head to head with SoulCycle. I don't think it makes sense when you put them head to head with like a fitness first in Australia or like other gym models from around the world. And so my question is how big can they be? Because financially, like maybe going to fitness first and doing spin classes there compared to paying for Peloton does make sense. 

Bryce: [00:15:53] Yeah, I kind of disagree. Well, yeah. Well, it just depends on how you go about trading the bike. Like, if you just go to fitness first to do a spin spin class and you pay a full membership, you're I think you're still paying about 80 bucks a month. And if you're doing like two spins a week, like it's it's not that different. 

Alec: [00:16:13] Yeah, that's true.

Bryce: [00:16:14] If you go and get a discount 30 percent off or whatever, of course, it becomes a lot cheaper. I think my membership of fitness first is six bucks a week or something, so there's always those opportunities. But if you were to go in full price for contracts, short term or whatever, it's and you're just doing spin class, treating it as a spin class, which a lot of people do do, they go 

Alec: [00:16:33] to was going to ask that question Do you reckon they

Bryce: [00:16:35] do 100 percent? I mean, I generally only go to fitness first full classes, but 

Alec: [00:16:39] you go to other classes other than just spin classes. 

Bryce: [00:16:42] I don't actually do a spin class. I go and just do like a body pump or whatever it might be. Okay, you know what I mean? Like, but other people I know go just for a spin. It boils down to how you use it. 

Alec: [00:16:52] Fair enough. Yeah, yeah. Peloton could be an incredibly successful company targeting those people. I guess the the world domination idea of making everyone like getting converting huge swaths of the population to at home fitness. That's where I'm less convinced, but I am convinced on the pricing after learning about SoulCycle, yeah, yeah. 

Bryce: [00:17:13] So what about the other competitive landscape? 

Alec: [00:17:16] I think they've started a category. Well, they've started a trend. The category obviously already existed, but there's now a whole bunch more playing in that space. So I'm on not Amazon. So we mentioned we mentioned hydro and tonal and the and there's a bunch of other companies, a lot of the more traditional exercise equipment at home, exercise equipment, players are taking a leaf out of Peloton's book and creating like digital subscriptions and stuff like that. Obviously, a lot of the wearable companies so like Apple with the Watch, Amazon have launched Halo. They're trying to push into the fitness space more and do like digital subscriptions. Nike have a training club app. I think that's more about running, though Lululemon have an athletic mirror similar to Tonal. So many of these companies are coming to the market, and we haven't even spoken about the Metaverse yet. 

Bryce: [00:18:12] Yeah. Well, let's keep moving through. So we'll take a quick look at the financials before actually looking at what are some of the future prospects for Peloton? So market cap of 13 and a half billion total quarterly revenue in Q1 for 22 was 805 million 12 month. We've spoken about their retention rate, amazing retention rate of 92 percent, so it would be great to see those numbers continue. But in terms of their annual growth for the compound annual growth for revenue, it's a staggering 106 percent since 2016 to 2021. So their revenue just keeps on churning through. Obviously, they've had significant growth over the last couple of years given what's been going on with Covid. So whether or not they can continue with that compound growth rate, we will soon see, but they're not profitable. All tech companies over in the states, that's the trend. 

Alec: [00:19:10] Yeah. 

Bryce: [00:19:10] So good to say that sticking with the trend. But yeah, incredible revenue growth. 

Alec: [00:19:14] $4 billion in sales and revenue. $14 billion market cap at the moment, it's not as out of the realm of fair value as some of the other tech companies. We've seen that $14 billion market cap is at the end of it, falling 75 percent, though. Yeah, yeah, I think let's talk about the future because there's a bunch more things we can talk about, but I think the Metaverse needs to be touched on here. And then I think there's also a conversation, a quick conversation around Flywheel. 

Bryce: [00:19:44] Well, I just also want to bring in I don't know if you've been hearing the chit chat like pellet. This is that the future prospects for Peloton might actually be an acquisition by the likes of Apple, Amazon,

Alec: [00:19:57] but everyone, everyone says that about any company that is sort of sleek hardware. Everyone's like, Oh, Apple might buy them. It's like Tesla a few years ago, Apple might buy them, Peloton, Apple might buy them. It's like if you make consumer tech or consumer hardware that looks good. Apple is an acquisition Typekit. You're excited 

Bryce: [00:20:17] about this podcast and try and make a sleek looking 

Alec: [00:20:20] consumer. Yeah, like the slickest podcasting Mike or Apple Mobile you there in podcasting? So let's talk about Flywheel because they're almost finished with metaverse. And then we got to this interview show. When we think about competitive advantage in this space, it can be hard to think about, like how they compete with all these other fitness apps on the market. There's not really a network effect in its truest sense. It's not like you joining Peloton adds any incremental value to me using Peloton. But what it kind of does is there's a bit of a flywheel in that if Peloton is able to get the most users, they're able to offer more money to get the best instructors and the best instructors then attract more users and build a better experience. you know, the users then recommend it to their friends, which then again, like, gives them more money to get the best instructors and that that flywheel can exist. And the fact that Peloton has a head start mudders, that's probably the the big defence ability play here because this space is crowded. 

Bryce: [00:21:23] Yeah, yeah. Yeah, I want to give it a crack time. 

Alec: [00:21:27] When we asked Peloton for a bike to try and they said, No, no, they 

Bryce: [00:21:31] said they they said they didn't have enough 

Alec: [00:21:34] for just over. Yeah, they've just opened in Australia. They should have enough. 

Bryce: [00:21:38] We're bringing that with Karen and Chad to us. All right. 

Alec: [00:21:40] Well, let's talk metaverse because I know you're you're pumped. 

Bryce: [00:21:44] Well, yeah, I'm not. Yeah, I mean, you can really see where this could fit in the metaverse. If if you think about what the Metaverse could offer in terms of interaction in the digital world and engaging in fitness classes in the digital world, Peloton is certainly setting themselves up to be involved in that sitting on a bike in your lounge room. Probably not looking at a screen, but feeling like you're doing the Tour de France all around you with 10 of your mates going up that out to, as in France, like, you can see that sort of all playing out so. 

Alec: [00:22:16] So Facebook meta acquisition target. 

Bryce: [00:22:18] Hold on. Yeah. But I mean, this comes down to that huge thing around what is the future of fitness? Are we going to see a transition of people moving away from what we've done at 45 in this series and we spoke about how they're sticking to that's sort of traditional in-person classes, and they're betting that that's going to continue. Yet here we have Peloton betting that there's a massive shift going to occur in how people are engaging with fitness away from the in person, taking it into the digital world, doing it from the from their own homes, when it's sort of more convenient and flexible for them. So to different. It's really interesting, actually two different approaches to to the future of fitness. And yeah, I don't really have a view on it. I think people will always want to do some things in person. I I don't know, I think for now, but you can certainly see how these I guess the likes of Peloton, I guess. 

Alec: [00:23:10] But the idea with the metaverse is people need to stop thinking about this distinction of virtual and in-person. What the end state for the metaverse is it? It's impersonal. It gives you that same feeling as it's in-person. It feels like you're in person just digitally. Yeah, yeah, yeah. The obvious question is, is Peloton any better placed to win in the metaverse than any of its exercise bike competitors, like if we're all just going to jump on an exercise bike, log into Facebook and ride together thinking we're on the Tour de France, is that is that something that Peloton necessarily has a comparative advantage? This is the platform actually still going to be like Facebook? 

Bryce: [00:23:50] Well, that's I mean, what's stopping Facebook? Just creating a sexy looking bike and saying, Hi guys.

Alec: [00:23:55] Oh no. Or just saying it's interoperable by any bike? Yeah. And come use our platform because we say the platform is the valuable part of this ecosystem

Bryce: [00:24:03] that once again controlled by Facebook 

Alec: [00:24:06] or like the Winklevoss twins, Web3 Gemini version, like is there a decentralised Ethereum based app that creates the platform that we all ride on and we could ride any bike? That's my question. I'm not technical enough to know the answer, but if it is bike specific, I'd probably be backing Peloton to get there first.

Bryce: [00:24:25] We have a write up on Peloton available on our website, and we will include a link from the TDM Boys over TDM Growth Partners. They are incredibly tiny 

Alec: [00:24:36] and boys and girls

Bryce: [00:24:38] and boys and girls, so they are incredibly bullish on Peloton publicly so and wrote a really good explanation as to their thesis now. You know, take it as it is, but you will be able to see how they're thinking about fitness and how they're coming to understand the potential for Peloton in their eyes and why they think it's going to be a decade long multiplier. 

Alec: [00:25:03] Yeah. So and they wrote it and the hero of the yeah, 

Bryce: [00:25:08] but hey, I don't think they would care. No, I know that investors respect that. They wouldn't care. So we'll include that. Plus a write up in a bit more detail about what we've discussed today. So make sure you go check it out on our website. So Ren. That brings us to the exciting part of the episode where we're going to hear from Karen Lawson, who is the country manager, CEO of Peloton here in Australia. Before we do, we'll take a quick break and then let's jump straight into it. Karen Lawson is Peloton's country manager for Australia, and prior to Peloton, Karen was the managing director for Spotify in Australia and the CEO of Slingshot. So Karen, welcome to Equity Mates. 

Karen Lawson: [00:25:48] Thank you very much. Thanks for having me. 

Bryce: [00:25:50] So as we start all of these interviews with our CEOs, we love to hear them describe their own company in their own words. So what is Peloton?

Karen Lawson: [00:26:00] Well, sometimes a bit difficult to describe what it is. It's better to experience it. But the way that I try and help your listeners understand what it feels like to be part of this world is that we are a global, interactive, connected fitness business. So what that really means is that we bring the excitement and the energy of a boutique fitness class, and you bring that into your home or actually wherever you really want to work out. So that could be you're going to be ordering a course in a park or simply, you know, before a podcast doing a little bit of calming meditation. So, yeah, so I think sometimes the misconception is Peloton is the bike, or actually, Peloton is a connected fitness experience on the app and also with with all their equipment. 

Bryce: [00:26:44] We did actually float the idea before during this interview of trying to do it on the bike so that we actually could experience as we did the interview, but couldn't get it together. But maybe next time, 

Alec: [00:26:55] maybe next time. 

Karen Lawson: [00:26:56] I just want to show me up because you be in front of me on the leaderboard 

Alec: [00:27:01] and Bryce likes to tell everyone that he was a former junior champion cyclist. I don't like selling product, so he would be out in front. I probably be a little bit because 

Karen Lawson: [00:27:12] I might just be making you feel really good about yourself. 

Alec: [00:27:15] So, Karen, a lot of people are probably familiar with Peloton's brand. They probably heard about it in the US, but it's only recently launched in Australia. You're heading up that effort. How's the reception been so far? 

Karen Lawson: [00:27:28] Honestly, it's been amazing. I think we are all really humbled by the response we got from Australians. And even before we really came here or announced that we were coming, it was, you could feel the passion of Australians around, you know, health and wellbeing. And Australians are very worldly in terms of brands. And so there was a lot of demand and reach out to say, When are you coming? When are you coming? So we knew that there was already that pent up demand and all, you know, just all market awareness is very strong. But it actually has been, you know, phenomenal. And we've obviously seen some, you know, real differences in terms of Australians to maybe other places in the world. And we've we've seen a real propensity for Australians to love the bike plus, which is we've got two bikes. So once the bike, the other one's a bike plus with it, a number of different features. And so that's been absolutely phenomenal. So we launched in three markets in July the 14th, so it's imprinted in my brain right in the middle of Covid. So we couldn't launch our retail stores, which was a real shame. But it's just been wonderful. Like our Facebook groups have already growing and we're just seeing that raw energy from our members. So yeah, we're we're absolutely thrilled 

Alec: [00:28:40] and we should shout out that Martin Place and Bondi, the two retail locations. So if people want to see the bikes they can, that's right. 

Karen Lawson: [00:28:48] Yeah, so we've got two owned and operated stores, which are absolutely beautiful. So they're all flagship showrooms, and we recently also announced a partnership with David Jones. So we also have a number of locations with them as well. So we have one in Elizabeth Street. And then we've also got two in Victoria, so one in Bourke Street and the other one in Chadstone, more or affectionately known for any Victorians listening as Chaddie.

Alec: [00:29:16] So, yeah, 

Karen Lawson: [00:29:18] you got to speak to them in the home. I know there are those, those retail locations that people can literally touch and feel the bike, but we also have a really intimate and beautiful premium experience called virtual appointments. So anyone around Australia can actually book into a virtual appointment and have a one to one kind of zoom with the Peloton expert and they show you around the bike. And it's a really personal experience, really tailored to the, you know, the music you like, the kind of fitness you want to like to enjoy. So there is lots of ways to kind of interact with us as brand. Mm-Hmm. 

Bryce: [00:29:54] So there's no doubt the bike is what most people know. Peloton? Yeah, but you know, criticism does sort of centre around the cost of the bike, starting at two thousand two hundred ninety five here in Australia. And you know, if you compare that to other options in the market, it is somewhat expensive. So how do you approach convincing customers to spend this much to get into? 

Karen Lawson: [00:30:16] Yeah, look, we appreciate it is an investment. I think the first thing is we've partnered with a buy now, pay later provider. So actually over thirty nine months, it's $59 a month. And unlike maybe a gym membership, fifty nine covers the bike that can be used by everyone in your household. So that means you know your mom, your dad. Junior and your granny, it's so it's a really it's a shared cost, so I think that makes it really affordable. And then the other thing which I think is really interesting around how much people really are so passionate about us is, I think when you think about the value of it is that we know that all members work out with us a staggering sixteen point six times a month. And in the summer months, actually, if we look at that as a kind of a year number that can go up to, you know, twenty four point nine. So our earnings reports actually kind of share those numbers. So you also can feel really confident that might be on like a gym membership like, Oh, I'm going to go in today, I'm going to use it. Or, you know, maybe business takes me away and you're not around to use it. So then when you think about the cost to be the value, that's slightly different as well. So when we look at our churn rates, you know, we have a retention rate of 92 percent across the app and also a bike. And then if you look at simply connected fitness, we have an incredible 0.8 percent churn rate. Wow. Yeah. So that should tell you to is a something that's really affordable, not just for you, but for your entire family. This is something you're going to use a lot of moms and also you're going to absolutely love it when I think about, you know, is that expensive? Well, it's an investment. But you know what? You're going to use a lot and you got to have a lot of fun using it. And you know, you're going to be the most popular person in your house. Yeah, like you and all your friends 

Alec: [00:32:02] and hopefully the fittest. 

Karen Lawson: [00:32:04] Exactly. Right? Yeah. 

Alec: [00:32:05] Let's talk about that customer churn rate because it was so mind blowing to me that Darcy, who works with us when he found it, I actually made him go and find a second source. The fact that no, 

Karen Lawson: [00:32:16] You didn't believe us? Oh no.

Alec: [00:32:18] I think the first source he found was third party. And so then we checked it on your website, but it is really impressive. And for context, Peloton is ninety two percent, Netflix is 93 percent. Yeah, and Netflix requires a lot less physical exertion to use. So for me, it's just it is testament to once you get people in, they stick around. But can you sort of unpack it? Like why? Why do you think the numbers so high? 

Karen Lawson: [00:32:40] So yeah, look, it's it's kind of magical, isn't it, to run a business knowing that customers love it so much and they're so passionate about it? I think ultimately, when we look at the business and say, why has it been so successful? I kind of put it down to those three CS. So I mean, the first thing is just this incredible content. So when you talk about content, you know, these are not just the best instructors that the best instructors in the world, you know, if you're going to assume it's like, yeah, it's the best, you know in double bay, maybe. But you know, you've got the absolute, very best. And when I say that it is, they excel at what they do. But they also have this charisma and energy and personalities. And we've got over 40 instructors so you can choose who really resonates with your personality. And again, you don't always have that kind of personalisation or choice. And then music and we've seen from our partnership with Spotify, for example, that Australians love their music. They love their playlists. And one of the things I didn't quite get till I started using the app because I actually really enjoy outdoor running was just the I think the detail with which the clasp hands are put together and each body movement is choreographed to a piece of music. So if you're starting off walking, the beats are kind of slow and then they're counting you down into a fast run. And then all of a sudden you're into a chorus and musics so powerful as a motivator. But the fact that we got all these different, you know, artists series, which is on these incredible ones like a 72 hour series with Beyonce, say across all these different modalities, you know, whether you're into like the Bieber or the Beatles, there's just something for you that really intimate personalisation is is is great. So that's kind of for me, the content. And then when I think about the different modalities or the we have again, people think about the bike. But if you look at the app or indeed on the bike, you've got everything from strength to cardio dance, cardio, prenatal meditation, yoga and inside all of those different categories. You can filter down, you know, tend to go like upper arms workout or I want to do flow yoga. I do. So there is just so much choices over, you know, 14, 15000 classes. So again, you can absolutely find something you love. But I think the kind of second point then I talk about the CS is community, which has just been so incredible. So we have been very much a member first organisation. So when we create new features on the bike across the app, it's because members are telling us, Hey, we want this. And so it might sound really obvious. But one thing members have been telling us for a really long time is the pause button. So, you know, if the Amazon turns out with a package and you're on a bike for an hour or actually we, it's kind of funny because when the earthquake was happening in Melbourne, we get a lot. People like, no, I'm just carrying on with the class, I'm not stopping it because I don't want to, I want to lose my place on the leaderboard and that is actually true. I cried because it was like they couldn't have, first of all, was beaten. But the pause button is there. But I use it as a funny anecdote, but it is how we developed the business, which is taking on board that feedback to create these features. And then this membership and community are just driving it forward so you can choose what hashtag you want to work out to find your crew. You know, you can connect to your best mate on a bike with a Zoom call while you're working out. I don't know why anyone would really want to see me. Definitely not. I would recommend. But some people love it. No, my mum's in the UK and she doesn't have a bike. She's in the. But if she did want a bike and she was on it, we could do a Zoom call, you know, between the UK and here. Or you could do a meditation with your mom or your dad or your best friend or your brother that's overseas. So all of a sudden, these you know, these boundaries to relationships that we've missed so much just kind of come down. And then I think the last one is something that resonates with every one of us, which is just life is pretty hard and pretty busy. And so convenience is that loss. Let's see. And the fact is, we're so used to now with our lives, kind of, you know, whether it's Uber Eats or, you know, it's ordering online, there is just this, I think, expectation when consumers. I want it personalised. I want it on demand. I want it now and I want it localised. And fitness hasn't really had any of those elements around convenience. There's always been a barrier. OK, I've got to get my gym kit all and I've got to get it fast, so I've got to go somewhere. And did I broke into a class I can't get in or actually works taken over? Now I'm going to be docked a few points on my membership. So all of those things, I think for a lot of people mean that this is just so much more convenient. But you've got all this connectedness, which is just so much better. 

Bryce: [00:37:29] Yeah, it's fascinating. So back in 2017, the percentage of workouts for that was cycling related for Peloton was, what, 94 percent or thereabouts. Subsequently, now it's much closer to sort of 50 percent, sitting about 58 percent. So no doubt that transition and increase in what you provide for your community is is changing the dynamic. What is the sort of product strategy going forward? Should we expect any? You've got a door, you go a gym type stuff. What has Peloton thinking about? Yeah, even, you know, expanding their offering? 

Karen Lawson: [00:38:07] Yeah. Well, our first lens is always about members. So what are members telling us that they they want to work out to next? We've seen this really, really big take up in strength, so we saw that across our strength category. So, you know, bar palavras whites, and that is something which is really universal around the world is this popularity of strength, which I think goes to our thoughts around fitness. And it's in so many different body types. It's really about health and wellbeing as opposed to, you know, looking at why you might be working out and strength has just been massive for us. So we just announced globally that we're going to be launching Peloton Guide, which is a really interesting piece of technology that can sit on top of your your TV and it recognises your body form. So if anyone's worked out in a class, you know, if you're lucky, an instructor might come over and go, Oh, you're you're lifting that white, not the right way, but how many other times in the hour or forty five minute class is your body not in the right position that could cause injury or actually not getting the most out of your workout? So Guide has a body recognition that is able to help you understand how you're moving in relation to the instructor, and you can also then share with it what different body parts you might want to improve. And so it can then also concentrate on those types of you might say, Hey, I really want to have great biceps or I really want to work out in my legs. And so again, it's able to really detect what kind of emotions are fulfilling your own personal goals. And so that will be launching next year. So we're very excited about that. Wow.

Bryce: [00:39:50] Yeah. What about nutrition? Do you guys do anything in that space? 

Karen Lawson: [00:39:54] No, we haven't yet.

Alec: [00:39:57] Bryce goes to a gym where they do like blood tests and everything, so maybe genomex. 

Karen Lawson: [00:40:02] Yeah, it's fascinating 

Bryce: [00:40:09] now that it's an interesting point you make because you like they do pretty well one on one classes and having that one on one tell you every movement. Walk you through it compared to doing a 45 minute mass class where you just lift weights. Why do you think it should be a massive difference? 

Karen Lawson: [00:40:27] Yeah, it's probably going to hit somebody that's been playing go for a while, and all of a sudden they go and get a class. Maybe it's got to go back to the beginning and. Rebuild everything from scratch. But I always say think with so many different types of modalities as well the, you know, the propensity to be doing something slightly wrong or anyone, for example, has done parties and you could look through a window at someone doing glass eyes and think they're not working very hard because they're such tiny movements. But then when you do that, you're just like, Oh, wow, that really, that's that's tough. But that tiny movement is also about body placement. And so, you know, with your hips not quite in alignment or your leg or your knee actually has, it makes a really big difference. And so when an instructor will adjust you like, Oh, OK, now I get it now, I know I should have been doing a guide will provide you with all of that. And again, it gives you so much flexibility around how you look at those visuals. Are you side by side with the instructor? Do you not want to see the instructor? You just want to see yourself? So again, this, you know, personalisation. But using technology to really help you be the best version of yourself is, I think, very much where we're going. So very much members led. But, you know, we are a business that's been based on innovation. So just watch this space over time. 

Alec: [00:41:45] Personal trainers get nervous. I try anything we can if we if we look at the industry, this is, I guess, how Bryce and I have sort of viewed it. You can completely disagree. But Peloton really like took the cut of the home fitness category out of the like the 1980s infomercial and like into thigh master. Yeah, yeah, those you know, all those different AB crunch machines and all of that stuff into like the modern tech era. And, you know, they created hardware that people wanted to buy and build a community around it with software where Peloton created the category that's now a number of competitors. We saw hydro, which does rowing, tonal and a bunch of mirror and camera competitors, and I'm sure there's plenty more that we didn't find in our research. How do you think about Peloton's edge and competitive edge, and how do you think about staying ahead of the competition that's coming into the space? 

Karen Lawson: [00:42:44] Yeah. Well, first of all, I think it's great. One of the questions a lot of people ask is, you know, is this a fad that this happens reactivated? Is it going to last? And this was undoubtedly a trend that we were seeing before Covid. And also when we look at our retention that tells us people love it. So if you're kind of on the fence and thinking about going going for it, you just need to look at retention stats to say you don't need to worry. This is something you're going to really enjoy because you're going to find the right thing for you. So we very much see that this is the future, and you're absolutely right. I mean, before home fitness was pretty. It was pretty awful. 

Alec: [00:43:23] You wouldn't want to tell your mates

Karen Lawson: [00:43:26] not at all. No. I mean, you know how many people have bought bikes and their clothes horses? You know, they just see you end up being, that's where you put your clothing on to dry. You know, we do joke about it, but this will not be there. And actually, I think one of the great things about Peloton is its very deep commitment to every part of that customer journey. I think we were talking about it earlier. So it's such a fascinating business because it's like eleven businesses in one, you know, you've got these absolutely gorgeous, sexy, beautifully designed bike and someone can be on that and it's silent. It's just so, so well-made. But also it looks beautiful. And it's, you know, it's not something that sits in the back of the room actually minds at the front of the house that people like. 

Alec: [00:44:11] Oh, classic. 

Karen Lawson: [00:44:14] Yeah, I'm not. I'm trying to be show your feet. 

Alec: [00:44:16] People also shouldn't be surprised you have a pet. 

Alec: [00:44:19] Yeah, that's true. 

Karen Lawson: [00:44:21] That's true. But it is really beautiful. And so I think that design where we really committed to create the best bike in the world, we've absolutely done that and no other bike matches up to that. And you can even talk to spin instructors that have been on lots of different bikes. And in fact, a lot of our retail team have made up of really experienced spin instructors, and they just like this is phenomenal. This is the best bike I've ever been on. So you've got an incredible bike, you've got the best content. You know, we've got fuel quality studios $50 million per studio in London and New York. So the quality, the recording, the visuals is just phenomenal. We partnered with, you know, incredible artists all around the world, and there's just the depth of playlists there is. You know, I think a deep inner social responsibility to the business is very fiercely anti-racist. So you also know this is a company that you feel proud to be part of that community for what we're also standing for and what where we're giving back to communities around the world. And then I think that that whole experience from content, they're moving into how you buy the bikes, you can go into Martin Place or some of our other stores, or you can get a. A virtual appointment and then when you buy the bike or don't just rock up and, you know, just leave it there. We actually spend time with you. We get your shoes on. We get you onto the bike and make sure it's properly fitted correctly. We showed you how you said so there is this this wonderful experience end to end, which you get to share with your family and your friends. And if it's not the bike, then you get to experience the world of Peloton, but through an app. And so again, that's something you can take with you everywhere as well. So it's not just simply, you know, people buying bike as well to access it, but I think that that kind of end to end vertically integrated business that we care so much about that member experience that we haven't outsource those parts. We've said it's too important. So in my opinion, we were just starting to have a competitor that is anywhere near to that, you know, to that excellence in everything that we do along that journey. 

Bryce: [00:46:27] So I ride normal bikes and normal bikes. 

Alec: [00:46:31] If it's hard to go

Alec: [00:46:33] because you're a champion soccer player earlier and 

Bryce: [00:46:36] you know, getting on the old school spin class bikes, super uncomfortable, massive, say they're not, you know, they're just designed for sort of pain. Anyone pain? Yeah, I haven't ridden the Peloton, but I'd be interested to can't wait for you guys to send us a copy. But my question is around the innovation of the bike. Like, what if a competitor comes out and just makes a better bike? I've spent two and a half grand buying your bike and then you come out with a Peloton 2.0, like, what's the process or the R&D that goes into that? Or is it all in the tech, all in the delivery of the experience itself? 

Karen Lawson: [00:47:11] You know, to build a really strong business means that you but to some degree, there's business as usual, but you always need to be investing in your future. And so you would just see we've, you know, we've done a capital raise fairly recently. And again, our commitment is that we are investing into this experience to make it always to make it better. So there are always new features coming out, new functionality that is coming out. And so you saw that we, you know, had the bike, the original iconic bike, but there were features that customers wanted, but we kept the original one because the price point, you know, we're very again committed to making sure that we do reach that goal of getting to 100 million people around the world that are part of this community. So having a bike that is accessible price is really important, but also a building on new features and technology is really important. So the auto follow, for example, is just a phenomenal experience in terms of that kind of bike instructor taking over your bike and you're not having to lean down and interrupt your your class to kind of change the the weight on your wheels effectively. So if anyone has done a lot of spinning and they know how often you have to go down and kind of change those weights, it is, it actually can be quite frustrating. So it's, you know, it is really amazing to go go, Oh my God, it's completely connected. I'm really working out and someone's actually changing all of these modalities for me. I think in answer to your question, people shouldn't be worried because we are fiercely competitive. We will be the best. We are the best. And that's part of Jews continuing to invest in in creating you better experiences for our for our members. You know, there have been many times through the year, the years where we've always done the right thing by our members and other companies may not have chosen to react that way. The first thing for us is always looking after them and putting what they want in front of could be profitability or growth, but saying we need to do the right thing by people, and I think that trust in our brand is so important. You know, we get that feedback all the time that people do trust us. So I think that's it's not always what happens when things are right. Sometimes it's what you do when things go wrong. 

Alec: [00:49:21] I think I think there was a time you answered a, well, tough question from Bryce is not you. It's unlikely you would ask Tim Cook if someone comes up with a better laptop. Are you going to replace my? 

Bryce: [00:49:31] Well, yeah, but it's more just like I'm interested in the thought process around, like consistently building new bikes and learning or a custom is more concerned about the the actual tech and the engagement and the offering of classes. And if that's the more engaging part, because you know what I mean? 

Alec: [00:49:48] Yeah, yeah. Well, speaking of tech, I feel like we can't talk about Peloton and digitising fitness without talking about the biggest buzzword in tech at the moment, which is the metaverse. Has there been any internal discussions about how connected digital fitness looks when Zuckerberg drags us all into the metaverse? 

Karen Lawson: [00:50:12] Well, I think, you know, there's elements are already there. I mean, I was working at the other dying people and you said, know, photos or avatars and some of these avatars, a kangaroo. But people are already choosing the hashtags. They're choosing their communities, they're high fiving one another virtually. They're connecting to one another in that in those environments and also. You know, from a social network perspective, people are finding their crew, so whether they're finding their crew through our app or they're using even things like Spotify, for example, so when you like the music that feeds through to Spotify account and builds out your playlists, and so people are finding, you know, other family and friends are enjoying the kind of music they like or they're finding, you know, groups on on Facebook and creating their own kind of social networks. So to some degree, you know, we live our worlds here on the planet, but so much of what we do is also deeply connected to technology. And we live so much of our lives on zooms and in other environments that I think it is, you know, it's a natural evolution of where we go. I still think, you know, people are still humans, and that connectedness is really, really important. And it's been lovely to see, you know, so many friendships and relationships being built through our network to the point that we even have an annual conference every year because our members physically wanted to see one another. And so, you know, that happens every year in New York, and it was virtual this year. So another extension of how we create a festival of Palestine to bring people together. 

Bryce: [00:51:50] So we're asking all of the CEOs that we speak to about sustainability. Very important for the Equity Mates. Yeah. So how is Peloton sort of driving sustainability within the business?

Karen Lawson: [00:52:01] Yeah, I think every company is on a journey and we've been very vocal about in terms of ESG, and we've just launched our first ESG report, which is really comprehensive. So anyone can actually download that from our investor pages. So we've done a huge amount around, I think, social impact. I think we're in, you know, this is our first sustainability report. And when you are representing equipment, which is actually quite heavy, you know, does have a footprint on the world. You know, I'm really proud to work for a company that is saying, we care. This matters because it does. We kind of look at that through, I probably say, you know, five lenses and that's that's detailed in the report. But if I just kind of pick out one of them and in terms of year, how we view, you know, our world view is around, we really want to make an impact on our members. But we do want to make an impact or footprint on the world, and we really want that to be light touch. And so that requires thought and consideration and care around how we start to change the way that we do things. And so that can be everything from power. So we have, you know, factories. One of the things we talked to fairly recently is the fact that we actually are investing to build Peloton in in the US first factory. So again, that has a huge impact on, you know, carbon emissions being much closer to the source of one of the biggest markets for Peloton in the world. But it also gives us a great opportunity to build from scratch. And so whether that's looking at methodologies for different materials or the processes, how we're using water, our commitment to hydrogen and energy, but also thinking about the circular economy, as well as a how are we doing that? We have an apparel business and the same thing. What are the kinds of materials we're using? And we recently launched our own apparel range. We've always had apparel. We're in collaboration with other with other companies. And so now we have the ability to actually think much more deliberately about how we sourcing fabrics. Can that be from recycled material, how we think about returns and where does that go? What do we do with spare parts? And I think as a country manager, also for Australia, it's something I'm deeply passionate about. I always have been. And I think there is a real opportunity for us here to do things differently. And already we've started all, you know, field operations here in Australia. We've been able to do things in a slightly different way to how we rolled our other countries simply by the sheer geography and size of Australia. It means to be more efficient. We have to do things in a slightly different way. And for me, that's really exciting to lead a country with a sustainability first approach, everything from what we do in our office to not having snacks with plastics, you know, all the way through because these things really, really matter. So I'm really excited that we're on our journey and we're we're very committed to doing that. So I think again, over the next year, we're going to be be able to announce much more work, I think, in that space. So it's really exciting for us.

Alec: [00:55:15] It is. It's very exciting. The whole Peloton story is pretty exciting. So Karen, we want to say thank you for giving us some time today. I'm sure it's incredibly busy setting up new countries operation and we always like to end with the same. Final question here, Peloton as a business has been around for a little. Well over 10 years. So it might be hard to think about what the business looks like in 10 years, but if you can cast your mind forward five 10 years into the future, what does success look like for Peloton? 

Karen Lawson: [00:55:47] Well, success always for us is are we making our members happy or making a difference to their life? And are we helping them be better versions of themselves? And I think that is our ultimate guiding light. I think in terms of probably our North Star, we'll give you an acronym now, which is a farce. I mean, that have a name, right? Yeah. Right. Which is I'll just leave a second now if you already design and listeners to think, what is that? But it's fitness as a service. 

Alec: [00:56:18] OK. Yeah. So turquoise and everything is this service.

Karen Lawson: [00:56:23] If you think about what's even played out in the last five to 10 years, you know many consumers, they don't necessarily need to own things. They want access to these experiences. And we've seen that with that kind of collaborative consumption movement from Uber to Airbnb. And I think we're going to see that movement into into fitness. So why couldn't I have, you know, a rower or a next week have a bike or than I could have, you know, Peloton guide? So why couldn't I actually change up my my year, my life each month with whatever I felt like I wanted to have for a subscription price? So I think many people want to have access to the very best in the world, but not necessarily to own that. So I think that's also part of it. I also think the power of us as a social network is going to be really interesting as we go through the years, as people, as we think about connected fitness, all the different modalities, all the different ways. You can kind of bring that to life and all the different ways that people want to interact and gain information and share that information. And we're seeing that a lot at the moment. But I think in the years to come that way, why couldn't we be as big as Facebook? 

Alec: [00:57:43] Well, wow, that's ambitious. 

Bryce: [00:57:44] That's a line to finish.

Alec: [00:57:46] That might be the one of the for. You can start with that one. 

Bryce: [00:57:52] Well, Karen, it's been an absolute pleasure. Thank you so much for taking the time to share the story of Peloton with that audience and the ambitions to be as big as Facebook. So I can't wait to see how the launch goes now that everyone sort of back up and running post COVID and where we can't wait to go in and check out the box 

Alec: [00:58:11] and find 

Karen Lawson: [00:58:12] out a few times. 

Alec: [00:58:14] I'm excited to get Bryce take as the former champion cyclist and we're 

Bryce: [00:58:19] having a look. I think I would do the 30 day free trial to see how it goes, and if I feel like I'm part of that 92 per cent cohort of that retention, right, then I'll think about it.

Karen Lawson: [00:58:29] Well, that's the way forward. Yeah, you get the bike, will come in, will train you out, will set it up. And if you don't like it in 30 days, we'll come pick it up. Absolutely no qualms whatsoever. 

Bryce: [00:58:38] This space, I was just thinking, though, that we're recording this in November and 30 days. It's going to get into a lot of holiday time, so I'll probably do it next year. But you've also 

Alec: [00:58:47] Bryce. Bryce also has one hundred and fifty K bike race in like two weeks. 

Karen Lawson: [00:58:51] Oh my goodness, I 

Bryce: [00:58:52] was thinking it would have been nice to have a Peloton because all of the rain has. 

Karen Lawson: [00:58:56] Yeah, true, but maybe 

Alec: [00:58:58] it's a better ride than your actual bike, and so you would actually be tough to go back to 

Bryce: [00:59:04] it anyway. We can pick this up. Thanks so much. Do you want to buy?

Karen Lawson: [00:59:08] I hear you.

Alec: [00:59:10] And yeah, 

Karen Lawson: [00:59:12] it was really subtle, I'm 

Alec: [00:59:14] sure know, but we actually don't have a podcast. This is just a ruse to get hit by the return of the dedications. Yeah, we really 

Alec: [00:59:23] appreciate you taking the time. 

Karen Lawson: [00:59:25] It's been delightful. Thank you so much 

Alec: [00:59:26] for watching it roll out. 

Karen Lawson: [00:59:27] Yeah, thank you so much. And yeah, really enjoyed the session and I can't wait to hear what you think of the bike. 

Alec: [00:59:34] Thank you. 

Bryce: [00:59:36] So Ren super fascinating company. Really interesting to see and to hear from Karen about future fitness and where this is all going. So we'll try and get that bike so we can give it a crack. 

Alec: [00:59:47] Yeah, and hopefully winter 2022. All I need is that Peloton, 

Bryce: [00:59:55] now we have three episodes to go in the summer series. We're really enjoying this. We hope you guys are as well. It's all thanks to superhero who allow you to buy us and Aussie shares and ETFs with no monthly account fees. And you can now earn Qantas points with superheroes. So visit Super Hero dot com. Today, you slash Qantas to learn more eligibility criteria, terms and conditions and fees and charges apply, and a reminder that you still have the opportunity to win a thousand dollars into a superhero wallet to get your investing journey underway. All you need to do is take your favourite fact from this episode and drop it in the comments on our Instagram post for this episode, that will be. Available now over on Instagram for the Peloton episode and will choose a lucky community member to win a thousand bucks and let you know by the end of the week. But otherwise, Ren we're talking about Calix next week, one of one of the hottest stocks in the Equity Mates community, a stock that has risen an incredible 600 percent in the last 12 months, and we're going to unpack why that is so. Stay with us. We'll pick it up next episode.