Peloton’s Q1: When Incredible Isn’t Good Enough
Peloton reported solid earnings after the markets closed Thursday, but these weren't enough for investors.
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
Peloton Interactive Inc. (NASDAQ: PTON) released its fiscal first-quarter earnings report after the closing bell Thursday. The firm said that it had $0.20 in earnings per share (EPS) and $757.9 million in revenue, which compares with consensus estimates calling for $0.11 in EPS and $748.04 million in revenue. The same period of last year reportedly had a net loss of $1.29 per share and $196.86 million in revenue.
During the most recent quarter, total revenue increased 232% year over year. Connected Fitness Product revenue was $601.4 million, representing 274% year over year growth and 79% of total revenue. Subscription revenue was $156.5 million, a 133% year over year increase, and 21% of total revenue.
Peloton ended the quarter with 1.33 million Connected Fitness subscribers, an increase of 137% year over year. As of quarter’s end, 96% of Connected Fitness subscribers were on month-to-month payment plans. At the same time, the company boasted 510,000 Digital subscribers, up 382% from last year.
Connected Fitness Subscription Workouts grew 306% in the first quarter to over 77.8 million, averaging 20.7 Monthly Workouts per Connected Fitness Subscription, versus 11.7 in the same period last year.
On the books, cash, cash equivalents, and marketable securities totaled $2.0 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.
[nativounit]
Looking ahead to the fiscal second quarter, the company expects to see total revenue reaching $1.0 billion and an adjusted EBITDA of $70 million. The consensus estimates are calling for $0.09 per share and $939.04 million in revenue for the quarter.
Shares of Peloton closed Thursday at $126.63, in a post-IPO range of $17.70 to $139.75. The consensus price target is $122.54. Following the announcement, the stock was down 6% at $118.99 in the after-hours trading session on Thursday.
[wallst_email_signup]
Contact [email protected] for any questions or corrections.
Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics. Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications. A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.
