Consumer Products

Is Peloton Back on Track After Q3?

Peloton Interactive Inc. (NASDAQ: PTON) reported its most recent quarterly results after the markets closed on Thursday. The firm said that it had a net loss of $0.03 per share and $1.26 billion in revenue, which compares with consensus estimates of $0.02 in earnings per share (EPS) and revenue of $1.17 billion. The fiscal third quarter of last year reportedly had EPS of $0.27 and $607.1 million in revenue.

During the most recent quarter, total revenue increased 141% year over year. Connected Fitness Product revenue was $1.02 billion, representing 140% year-over-year growth and 81% of total revenue. Subscription revenue was $239.4 million, a 144% year-over-year increase, and 19% of total revenue.

Peloton ended the quarter with 2.08 million Connected Fitness subscriptions, an increase of 135% year over year. At the same time, the company boasted 891,000 Digital subscribers, up 404% from last year.

Connected Fitness Subscription Workouts grew 239% in the first quarter to over 149.5 million, averaging 26.0 Monthly Workouts per Connected Fitness Subscription, versus 17.7 in the same period last year.

On the books, Peloton’s cash, cash equivalents and marketable securities totaled $2.69 billion at the end of the quarter. The firm also has additional liquidity of $285 million in the form of an undrawn revolving credit facility.

The company offered no guidance in the report, but consensus estimates are calling for $0.13 per share and $1.13 million in revenue for the fiscal fourth quarter.

Peloton stock traded up more than 5% to $88.50 on Friday, but shares were still down 10% or so from a week ago. The 52-week range is $38.80 to $171.09, and the consensus price target is $158.67.