Peloton's Impressive Q2 Fails to Get Investors in Gear

Companies and Brands

Published: February 5, 2020 4:30 pm

Pelonton Interactive, Inc. (NASDAQ: PTON) released fiscal second-quarter financial results after markets closed Wednesday. The firm said that it had a net loss of $0.20 per share and $466.3 million in revenue, compared with consensus estimates that called for a net loss of $0.36 per share and $422.93 million in revenue. The same period from last year had a net loss of $4.83 per share and $262.9 million in revenue.

During the quarter, connected fitness subscribers grew 96% to 712,005, and total members grew to over 2.0 million. Connected fitness subscribers worked out over 24.3 million times in the second quarter, with an average of 12.6 monthly workouts per subscriber.

Looking ahead to the fiscal third quarter, the company expects to see a total of 843,000 to 848,000 connected fitness subscribers and revenues of $470 million to $480 million. The consensus estimates are calling for a net loss of $0.21 per share and $494.26 million in revenue for the coming quarter.

John Paul Foley, Co-Founder, chairman, and CEO, commented in the report:

We are pleased to report strong financial results for the second quarter. Ending Connected Fitness Subscribers grew 96% year over year to 712,005, and total revenue grew 77% year over year to $466 million driven by a robust holiday sales period, increased conversion from Home Trial launched in September, and continued low churn of our Connected Fitness Subscribers.

Shares of Peloton closed Wednesday at $32.70, with a post-IPO range of $20.46 to $37.02. The consensus analyst price target is $35.84. Following the announcement, the stock was down 9% at $29.80 in the after-hours session.

Smart Investors Are Quietly Loading Up on These “Dividend Legends” (Sponsored)

If you want your portfolio to pay you cash like clockwork, it’s time to stop blindly following conventional wisdom like relying on Dividend Aristocrats. There’s a better option, and we want to show you. We’re offering a brand-new report on 2 stocks we believe offer the rare combination of a high dividend yield and significant stock appreciation upside. If you’re tired of feeling one step behind in this market, this free report is a must-read for you.

Click here to download your FREE copy of “2 Dividend Legends to Hold Forever” and start improving your portfolio today.