Peloton revenue soars on continued stay-at-home pandemic boost
Peloton Interactive Inc. reported quarterly sales that topped analyst projections as stay-at-home orders and gym closures continued to spur purchases of the company’s exercise equipment and workout subscriptions. The shares rose more than 3 percent.
The New York-based fitness technology company said fiscal fourth-quarter revenue came in at $607.1 million, up 172 percent from a year earlier. Analysts were looking for $581 million, according to data compiled by Bloomberg.
Profit, excluding certain items, was $89.1 million, or 27 cents a share, in the latest period.
Peloton also forecast $3.5 billion to $3.65 billion in revenue for fiscal 2021 and $720 million to $720 million for the fiscal first quarter—both well above Wall Street expectations.
The COVID-19 pandemic has boosted demand for Peloton’s products and services as consumers look for new ways to work out at home. Many gyms across the U.S. were forced to shut down this year, giving the company an opportunity to lure new customers and subscribers.
The stock has more than tripled this year. That set a high bar for Thursday’s results.
Earlier this week, the company announced it is cutting the price of its flagship bike by a few hundred dollars and unveiled a new higher-end bike. Next year, it’s also releasing a cheaper treadmill.
Connected fitness subscribers in the quarter reached 1.09 million, slightly topping Wall Street estimates of 1.08 million subscribers.