Peloton Appoints Peter Stern as CEO

(Reuters) – Peloton Interactive has appointed former Apple (NASDAQ:AAPL) executive Peter Stern as its CEO and president effective Jan. 1, the fitness-equipment maker announced on Thursday. This move aims to steer the company’s turnaround efforts following a post-pandemic decline in demand.

Peloton (NASDAQ:PTON)'s shares jumped 12.5% before the bell.

Stern, 52, is currently president of Ford Motor (NYSE:F)'s digital services business, where he oversees a portfolio of subscription services. He has held that role for just over a year.

Previously, he spent more than six years as Apple’s vice president of services, managing services such as Apple TV+, Sports, iCloud, Apple News, and Apple Books.

Stern has over 20 years of experience at the intersection of hardware, software, content, and services across companies like Ford, Apple, and Time Warner Cable, as stated by Peloton.

The company has been led by interim co-CEOs since May, after Barry McCarthy, a former executive from Spotify (NYSE:SPOT) and Netflix (NASDAQ:NFLX), stepped down after two years as CEO.

Chairperson Karen Boone will serve as the sole interim CEO until Stern arrives, while board director Chris Bruzzo will step down as interim co-CEO on Nov. 1.

Peloton brought in McCarthy in February 2022 as the company struggled to maintain the rapid growth experienced during the COVID-19 pandemic.

In addition to implementing cost cuts and forming retail partnerships, McCarthy led a rebranding initiative aimed at transforming Peloton into a software-focused company, emphasizing exclusive content to drive subscriber growth.

On Thursday, Peloton also reported a 2% decline in first-quarter revenue to $595.5 million due to decreased demand for its fitness equipment. However, it achieved positive cash flow, a turnaround from cash burn last year, thanks to cost-cutting measures.