Peloton Interactive: From the Balance Sheet: What are the major line items on the balance sheet and are these the ones you would expect for this type of business? What are some trends on the balance sheet?

PELOTON INTERACTIVE, INC. CONSOLIDATED BALANCE SHEETS (in millions, except share and per share amounts) As of June 30, Pro Forma as of June 30, 2019 (unaudited) 2018 2019 $ 150.6 ASSETS Current Assets: Cash and cash equivalents Marketable securities Accounts receivable, net of allowances Inventories Prepaid expenses and other current assets Total current assets Property and equipment, net Intangible assets, net Goodwill Restricted cash Other assets Total assets 9.4 25.3 18.4 203.8 36.2 24.5 4.2 1.0 1.6 271.2 $ 162.1 216.0 18.5 136.6 48.4 581.7 249.7 19.5 4.3 0.8 8.5 $ $ 864.5 $ $ S 28.1 51.4 88.5 2.2 170.2 9.4 92.2 104.5 90.8 3.3 290.8 23.7 147.1 0.4 462.0 1.0 180.5 LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED STOCK, AND STOCKHOLDERS' DEFICIT Current Liabilities: Accounts payable Accrued expenses Customer deposits and deferred revenue Other current liabilities Total current liabilities Deferred rent Build-to-suit liability Other non-current liabilities Total liabilities Commitments and contingencies (Note 11) Redeemable convertible preferred stock, $0.000025 par value, 182, 193,592 and 215,443,468 shares authorized; 176,313,468 and 210,640,629 shares issued and outstanding as of June 30, 2018 and 2019, respectively; no shares issued and outstanding as of June 30, 2019, pro forma (unaudited) Stockholders' Deficit: Common stock, $0.000025 par value, 266,946,216 and 400,000,000 shares authorized; 25,936,848 and 25,301,604 shares issued and outstanding as of June 30, 2018 and 2019, respectively; 235,942,233 shares outstanding pro forma (unaudited) Additional paid-in capital Accumulated other comprehensive loss Accumulated deficit Total stockholders' deficit Total liabilities, redeemable convertible preferred stock, and stockholders' deficit 406.3 941.1 $ 20.5 90.7 0.2 (629.5) (538.6) 864.5 , 2 (336.1) (315.6) 271.2 1,031.8 0.2 (629.5) 402.5 $ $ $ PELOTON INTERACTIVE, INC. CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (in millions, except share and per share amounts) Fiscal Year Ended June 30, 2018 2017 2019 $ $ 183.5 32.5 2.6 218.6 348.6 80.3 6.2 435.0 719.2 181.1 14.7 915.0 113.5 29.3 1.9 144.7 73.9 195.0 45.5 4.9 245.4 189.6 410.8 103.7 17.0 531.4 383.6 13.0 86.0 45.6 144.7 (70.7) 23.4 151.4 62.4 237.1 (47.5) 54.8 324.0 207.0 585.8 (202.3) Revenue: Connected Fitness Products Subscription Other Total revenue Cost of revenue: Connected Fitness Products Subscription Other Total cost of revenue Gross profit Operating expenses: Research and development Sales and marketing General and administrative Total operating expenses Loss from operations Other (expense) income, net: Interest (expense) income, net Other (expense) income, net Total other (expense) income, net Loss before provision for income taxes Provision for income taxes Net loss Net loss attributable to common stockholders Net loss per share attributable to common stockholders, basic and diluted Weighted-average common shares outstanding, basic and diluted Pro forma net loss per share attributable to common stockholders, basic and diluted (unaudited) Pro forma weighted average common shares outstanding, basic and diluted (unaudited) Other comprehensive income: Change in unrealized gain (loss) on marketable securities Total other comprehensive income Comprehensive loss (0.3) (0.3) (0.3) (71.1) 7.0 (0.3) 6.7 (195.6) 0.1 (195.6) (245.7) (10.72) 22,911,764 $ (71.1) $ $ (163.4) $ (5.97 27,379,789 (0.3) (47.8) 0.1 $ (47.9) $ (47.9) $ (2.18) 21,934,228 $ $ $ $ (0.84) 233,552,393 $ $ 0.2 0.2 (195.4) (71.1) (47.9) $ $ (71.1) $ (479) $ (1956) 3.7 10.3 02 0.1 6.6 85 07 0.3 21.7 89.5 0.5 0.3 (2.2) (3.6) 150 (1.0) (1.1) 221 190 7.8 (18.6 196) (12.1) 1.4 41.0 630 1.9 49.7 19.13 (1113) (30.3) (5.5) 1173 22 13.8 (108.6) (102) Cash Flows from Operating Activities Net loss Adjustments to reconcile net loss to net cash provided by (used in) operating activities Depreciation and amortization expense Stock-based compensation expense Impairment of long-lived assets Amortization of debt issuance costs Amortization of discount) on marketable securities Changes in operating assets and liabilities: Accounts receivable Inventories Prepaid expenses and other current assets Other assets Accounts payable and accrued expenses Customer deposits and deferred revenue Other liabilities Net cash (used in) provided by operating activities Cash Flows from Investing Activities Purchases of marketable securities Matunities of marketable securities Cash paid for cost method investment Purchases of property and equipment Acquisition of business net of cash acquired Net cash used in investing activities Cash Flows from Financing Activities Proceeds from issuance of redeemable convertible preferred stock, net of issuance costs Repurchase of common and redeemable convertible preferred stock, including issuance costs Proceeds from borrowings under credit facility Debt repayments Debt issuance costs Proceeds from exercise of stock options Net cash provided by financing activities Effect of exchange rate changes Net change in cash Cash, cash equivalents, and restricted cash - Beginning of period Cash, cash equivalents, and restricted cash-End of period Supplemental Disclosures of Cash Flow Information: Cash paid for interest Supplemental Disclosures of Non-Cash Investing and Financing Information Property and equipment accrued but unpaid Building - build-to-suit asset Stock-based compensation expense capitalized for software development costs (28.0) (287) (567) (249.8) 36.0 (0.6) (83.0) (0.1) (297.5) (102) 539.1 (130.3) 3156 (1700) 10.5 (13.0) (02) 07 143.6 (3.1) (12) 74 3.1 --- (0.9) 93 417.2 0.2 11.3 151.6 163.0 1148 40.7 155.5 (3.9) 155.5 $ 151.6 $ 02 $ 0.3 $ 1.1 0.4 43 12.6 $ 5 S 147.1 0.3 0.8 See accompanying notes to these consolidated financial statements F-5 PELOTON INTERACTIVE, INC. CONSOLIDATED STATEMENTS OF CHANGES IN REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' DEFICIT (in millions) Redeemable Convertible Preferred Stock Shares Amount 138.5 $ 1171 Common Stock Shares Amount 28.1 S. Additional Paid in Capital 3.4 Other Comprehensive Income Accumulated Deficit 5) (81.4) Total Stockholders Deficit 5 (78.01 ) 60.0 315,6 (226) (264) (9.7) (1352) (1352) (0.1) 19 0.7 07 07 Balance - July 1, 2016 Issuance of Series E redeemable convertible preferred stock.net Repurchase of common and redeemable convertible preferred stock Forfioiture of restricted stock awards Exercise of stock options Stock-based compensation expense Netloss Balance - June 30, 2017 Exercise of stock options Stock-based compensation expense Cumulative effect of change in accounting principle Netlogs Balance - June 30, 2018 2.0 176. 5 406 20 2 5.7 (711) (2877 6.1 5.3 2.0 (71.1) (281.6) 5.3 8.6 8.6 0.5 (0.5) (479) (336.1) 176. 5 406 25.5 $ 20.5 (47.9) (315.6) F-6 Redeemable Convertible Preferred Stock Shares Amount Common Stock Shares Amount Additional Paid in Capital Other Comprehensive Income Accumulated Deficit Total Stockholders Deficit 38.1 539.1 ( 43) Issuance of Series F redeemable convertible preferred stock, net Repurchase of common and redeemable preferred stock Exercise of stock options Stock-based compensation expense Other comprehensive income Netlogg Balance - June 30.2019 (4.8) 42 (978) 8.2 (97.8) 8.2 62.1 62.1 0.2 0.2 (195.6 (538.6 210.6 $ 941.1 (1956) 1629.5 25.3 90.7 0.2 PELOTON INTERACTIVE, INC. CONSOLIDATED BALANCE SHEETS (in millions, except share and per share amounts) As of June 30, Pro Forma as of June 30, 2019 (unaudited) 2018 2019 $ 150.6 ASSETS Current Assets: Cash and cash equivalents Marketable securities Accounts receivable, net of allowances Inventories Prepaid expenses and other current assets Total current assets Property and equipment, net Intangible assets, net Goodwill Restricted cash Other assets Total assets 9.4 25.3 18.4 203.8 36.2 24.5 4.2 1.0 1.6 271.2 $ 162.1 216.0 18.5 136.6 48.4 581.7 249.7 19.5 4.3 0.8 8.5 $ $ 864.5 $ $ S 28.1 51.4 88.5 2.2 170.2 9.4 92.2 104.5 90.8 3.3 290.8 23.7 147.1 0.4 462.0 1.0 180.5 LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED STOCK, AND STOCKHOLDERS' DEFICIT Current Liabilities: Accounts payable Accrued expenses Customer deposits and deferred revenue Other current liabilities Total current liabilities Deferred rent Build-to-suit liability Other non-current liabilities Total liabilities Commitments and contingencies (Note 11) Redeemable convertible preferred stock, $0.000025 par value, 182, 193,592 and 215,443,468 shares authorized; 176,313,468 and 210,640,629 shares issued and outstanding as of June 30, 2018 and 2019, respectively; no shares issued and outstanding as of June 30, 2019, pro forma (unaudited) Stockholders' Deficit: Common stock, $0.000025 par value, 266,946,216 and 400,000,000 shares authorized; 25,936,848 and 25,301,604 shares issued and outstanding as of June 30, 2018 and 2019, respectively; 235,942,233 shares outstanding pro forma (unaudited) Additional paid-in capital Accumulated other comprehensive loss Accumulated deficit Total stockholders' deficit Total liabilities, redeemable convertible preferred stock, and stockholders' deficit 406.3 941.1 $ 20.5 90.7 0.2 (629.5) (538.6) 864.5 , 2 (336.1) (315.6) 271.2 1,031.8 0.2 (629.5) 402.5 $ $ $ PELOTON INTERACTIVE, INC. CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (in millions, except share and per share amounts) Fiscal Year Ended June 30, 2018 2017 2019 $ $ 183.5 32.5 2.6 218.6 348.6 80.3 6.2 435.0 719.2 181.1 14.7 915.0 113.5 29.3 1.9 144.7 73.9 195.0 45.5 4.9 245.4 189.6 410.8 103.7 17.0 531.4 383.6 13.0 86.0 45.6 144.7 (70.7) 23.4 151.4 62.4 237.1 (47.5) 54.8 324.0 207.0 585.8 (202.3) Revenue: Connected Fitness Products Subscription Other Total revenue Cost of revenue: Connected Fitness Products Subscription Other Total cost of revenue Gross profit Operating expenses: Research and development Sales and marketing General and administrative Total operating expenses Loss from operations Other (expense) income, net: Interest (expense) income, net Other (expense) income, net Total other (expense) income, net Loss before provision for income taxes Provision for income taxes Net loss Net loss attributable to common stockholders Net loss per share attributable to common stockholders, basic and diluted Weighted-average common shares outstanding, basic and diluted Pro forma net loss per share attributable to common stockholders, basic and diluted (unaudited) Pro forma weighted average common shares outstanding, basic and diluted (unaudited) Other comprehensive income: Change in unrealized gain (loss) on marketable securities Total other comprehensive income Comprehensive loss (0.3) (0.3) (0.3) (71.1) 7.0 (0.3) 6.7 (195.6) 0.1 (195.6) (245.7) (10.72) 22,911,764 $ (71.1) $ $ (163.4) $ (5.97 27,379,789 (0.3) (47.8) 0.1 $ (47.9) $ (47.9) $ (2.18) 21,934,228 $ $ $ $ (0.84) 233,552,393 $ $ 0.2 0.2 (195.4) (71.1) (47.9) $ $ (71.1) $ (479) $ (1956) 3.7 10.3 02 0.1 6.6 85 07 0.3 21.7 89.5 0.5 0.3 (2.2) (3.6) 150 (1.0) (1.1) 221 190 7.8 (18.6 196) (12.1) 1.4 41.0 630 1.9 49.7 19.13 (1113) (30.3) (5.5) 1173 22 13.8 (108.6) (102) Cash Flows from Operating Activities Net loss Adjustments to reconcile net loss to net cash provided by (used in) operating activities Depreciation and amortization expense Stock-based compensation expense Impairment of long-lived assets Amortization of debt issuance costs Amortization of discount) on marketable securities Changes in operating assets and liabilities: Accounts receivable Inventories Prepaid expenses and other current assets Other assets Accounts payable and accrued expenses Customer deposits and deferred revenue Other liabilities Net cash (used in) provided by operating activities Cash Flows from Investing Activities Purchases of marketable securities Matunities of marketable securities Cash paid for cost method investment Purchases of property and equipment Acquisition of business net of cash acquired Net cash used in investing activities Cash Flows from Financing Activities Proceeds from issuance of redeemable convertible preferred stock, net of issuance costs Repurchase of common and redeemable convertible preferred stock, including issuance costs Proceeds from borrowings under credit facility Debt repayments Debt issuance costs Proceeds from exercise of stock options Net cash provided by financing activities Effect of exchange rate changes Net change in cash Cash, cash equivalents, and restricted cash - Beginning of period Cash, cash equivalents, and restricted cash-End of period Supplemental Disclosures of Cash Flow Information: Cash paid for interest Supplemental Disclosures of Non-Cash Investing and Financing Information Property and equipment accrued but unpaid Building - build-to-suit asset Stock-based compensation expense capitalized for software development costs (28.0) (287) (567) (249.8) 36.0 (0.6) (83.0) (0.1) (297.5) (102) 539.1 (130.3) 3156 (1700) 10.5 (13.0) (02) 07 143.6 (3.1) (12) 74 3.1 --- (0.9) 93 417.2 0.2 11.3 151.6 163.0 1148 40.7 155.5 (3.9) 155.5 $ 151.6 $ 02 $ 0.3 $ 1.1 0.4 43 12.6 $ 5 S 147.1 0.3 0.8 See accompanying notes to these consolidated financial statements F-5 PELOTON INTERACTIVE, INC. CONSOLIDATED STATEMENTS OF CHANGES IN REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' DEFICIT (in millions) Redeemable Convertible Preferred Stock Shares Amount 138.5 $ 1171 Common Stock Shares Amount 28.1 S. Additional Paid in Capital 3.4 Other Comprehensive Income Accumulated Deficit 5) (81.4) Total Stockholders Deficit 5 (78.01 ) 60.0 315,6 (226) (264) (9.7) (1352) (1352) (0.1) 19 0.7 07 07 Balance - July 1, 2016 Issuance of Series E redeemable convertible preferred stock.net Repurchase of common and redeemable convertible preferred stock Forfioiture of restricted stock awards Exercise of stock options Stock-based compensation expense Netloss Balance - June 30, 2017 Exercise of stock options Stock-based compensation expense Cumulative effect of change in accounting principle Netlogs Balance - June 30, 2018 2.0 176. 5 406 20 2 5.7 (711) (2877 6.1 5.3 2.0 (71.1) (281.6) 5.3 8.6 8.6 0.5 (0.5) (479) (336.1) 176. 5 406 25.5 $ 20.5 (47.9) (315.6) F-6 Redeemable Convertible Preferred Stock Shares Amount Common Stock Shares Amount Additional Paid in Capital Other Comprehensive Income Accumulated Deficit Total Stockholders Deficit 38.1 539.1 ( 43) Issuance of Series F redeemable convertible preferred stock, net Repurchase of common and redeemable preferred stock Exercise of stock options Stock-based compensation expense Other comprehensive income Netlogg Balance - June 30.2019 (4.8) 42 (978) 8.2 (97.8) 8.2 62.1 62.1 0.2 0.2 (195.6 (538.6 210.6 $ 941.1 (1956) 1629.5 25.3 90.7 0.2