Peloton Interactive Inc. Stationary Bicycles are on display on Wednesday, December 18, 2019 in the company’s showroom on New York’s Madison Avenue (USA).
Jeenah Moon | Bloomberg | Getty Images
Peloton on Thursday reported quarterly 128% sales growth, marking its first quarter of $ 1 billion as momentum continues to rise for the home fitness equipment maker.
The company also increased its revenue forecast for the full year. But he warned that he still has short-term problems getting items to his customers quickly, amid rising demand.
Shares of Peloton fell more than 6% in extended trading on Thursday. Shares had closed up 7% to $ 157.53.
Below is how Peloton did during its second fiscal quarter compared to what analysts expected, according to a Refinitiv survey:
- Earnings per share: 18 cents versus 9 cents, expected
- Revenue: $ 1.06 billion vs. $ 1.03 billion, projected
During the three-month period ended Dec. 31, Peloton’s profits grew to $ 63.6 million, or 18 cents per share, from a loss of $ 55.4 million or 20 cents per share, ago one year. Analysts had called for Peloton to earn 9 cents a share, according to Refinitiv.
Revenue soared 128%, to $ 1.06 million, from $ 466.3 million a year earlier, exceeding expectations of $ 1.03 million.
Peloton in its current third fiscal quarter, Peloton is asking for sales to reach $ 1.1 billion. Analysts had asked for $ 1.09 billion.
Invest in supply chain
After higher sales, Peloton now expects year-round revenue to exceed $ 4 billion, compared to previous forecasts of more than $ 3.9 billion. Analysts had asked for $ 3.952 billion.
The company kept its profit forecasts for fiscal 2021 unchanged.
Peloton said it continues to see strong demand for its products and will make additional investments in its supply chain to alleviate bottlenecks, which could weigh on profits.
In a letter to shareholders, the company said it will invest more than $ 100 million in air freight and accelerated sea freight over the next six months to help speed up deliveries.
“While this investment will decrease our short-term return, improving our membership experience is our number one priority,” the company said.
Peloton said it still plans to improve inventory levels and reduce delivery windows, thanks in part to the $ 420 million pending acquisition of fitness equipment maker Precor. But he said he expects his progress to be “slow but steady” for the rest of the year.
Chief Executive John Foley said Peloton remains “hopeful”, however, that “the acceleration in vaccine distribution and the wider opening of our economy” will be beneficial to the business in the coming months.
Retention rates remain strong
Peloton ended its last quarter with 1.67 million connected fitness subscribers, 134% more than the previous year. Connected fitness subscribers are people who pay a monthly fee to sync Peloton training classes with their Peloton team, instead of accessing the programs separately via a phone or tablet and paying a smaller fee. .
The company expects to have 2.28 million or more connected fitness subscriptions at the end of the fiscal year, compared to forecasts for 2.17 million users.
Peloton retention rates remain strong, a good indication of its future success. The average monthly net connected fitness was 0.76% in the last quarter, which was a slight increase of 0.65% in the previous period. But the company said it expects its exchange rate during the current quarter to be below 0.75% and its loss rate for fiscal 2021 will be less than 0.80%, better than a prospect previous less than 0.90%. The lower the dropout rate, the less billing Peloton is seeing with its user base.
And the cycle maker continues to look for ways to attract its customers to exercise more. It was said that the total number of workouts during the last period increased to more than 113 million compared to 26 million a year ago. It recently released a feature where users can “stack” classes behind and have them automatically play one after the other. He has also recently added Pilates classes to his catalog.
Shares of Peloton have risen more than 365% from a year ago. The company has a market cap of $ 46 billion.
Here you will find the full earnings version of Peloton.
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