Peloton Races Ahead With Q4 Results

Published September 10, 2020, 6:08pm ET · 2 min read

The exterior of a Peloton retail store. Large, white, raised letters spell 'PELOTON' against a textured dark grey horizontal plank facade. Below the main sign, a smaller black rectangular sign with 'PELOTON' in white text hangs to the right. The large glass storefront windows reflect trees, sky, and buildings, and inside, partial text reads 'THE BEST CARDIO MACHINE ON THE PLANET' and 'MEN'S HEALTH'. — The exterior of a Peloton store, reflecting the company's brand presence as its stock rises following a strong Q3 profit turnaround and optimistic guidance. © Andrei Stanescu / iStock Editorial via Getty Images

Peloton Interactive Inc. (NASDAQ: PTON) released its fiscal fourth-quarter earnings report before the opening bell Tuesday. The firm said that it had $0.27 in earnings per share (EPS) and $607.1 million in revenue, which compares with consensus estimates calling for $0.10 in EPS and $582.51 million in revenue. The same period of last year reportedly had a net loss of $2.07 per share and $223.3 million in revenue.

During the most recent quarter, total revenue increased 172% year over year. Connected Fitness Product revenue was $157.6 million, representing 102% year-over-year growth and 69% of total revenue. Subscription revenue was $67.2 million, a 112% year-over-year increase, and 29% of total revenue.

Peloton ended the quarter with 1.09 million Connected Fitness subscribers, an increase of 113% year over year. As of quarter’s end, 90% of Connected Fitness subscribers were on month-to-month payment plans. At the same time, the company boasted 316,800 Digital subscribers, up 210% from last year.

Connected Fitness Subscription Workouts grew 333% in the fourth quarter to over 76.8 million, averaging 24.7 Monthly Workouts per Connected Fitness Subscription, versus 12.0 in the same period last year.

On the books, cash, cash equivalents, and marketable securities totaled $1.8 billion at the end of the quarter. The firm also has additional liquidity of $250.0 million in the form of an undrawn revolving credit facility.

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Looking ahead to the fiscal first quarter, the company expects to see total revenue in the range of $720 million to $730 million and an adjusted EBITDA between $80 million and $90 million. The consensus estimates are a net loss of $0.04 per share and $505.21 million in revenue for the quarter.

Shares of Peloton closed Thursday at $87.75, in a post-IPO range of $17.70 to $98.61. The consensus price target is $74.29. Following the announcement, the stock was up over 4% at $91.91 in early trading indications Tuesday.

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Chris Lange

Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.

His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.

When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.

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