What's going on?

Peloton announced yet another massive quarterly loss on Thursday.

What does this mean?

You don�t have to be a financial expert to tell that a company is in dire straits when its own freshly minted CEO compares it to �a cargo ship in peril�. And it�s easy to see why: the number of subscribers to Peloton�s services didn�t rise at all last quarter from the one before, while the number of workouts on its equipment fell by a fifth (tweet this). That led revenue to plunge 28% in the same period, and its losses to scrape $1.2 billion � quadruple what it lost this time last year. Peloton�s expecting its revenue to come in well below analysts� predictions too, which was the final straw for investors: they sent its stock down 7%, bringing its total drop in the last year to 90%.

Why should I care?

Zooming in: Look on the bright side.
There was a bright spot in Peloton�s results: it was the first time subscription revenue � which is much more profitable than equipment � made up the majority of its sales. There are rumors that it might even give customers access to its workouts via non-Peloton fitness equipment, which would help on that front too. And this would only be one step in its grand turnaround plan: the company has also cut costs by laying off thousands of workers and shuttering factories, with big ambitions to outsource its manufacturing to third parties.

The bigger picture: If in doubt, ask Amazon.
Peloton also announced this week that it would start selling its products on Amazon, having sold them exclusively on its own website up to now. It�s all in view of achieving its goal of positive cash flow in the second half of the next financial year, and analysts think it�s onto something: Amazon accounts for around 40% of all US ecommerce sales, so it should help reduce distribution costs while expanding Peloton�s reach even further.