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Peloton Bike
Courtesy of Peloton
Peloton Interactive
said on Thursday that it plans to reduce the price of its motorcycle again and reported a wider quarterly loss than expected, which slipped its shares into after-hours operations.
The digital fitness firm that sells high-end bikes and treadmills that sync with membership reduces the price of its flagship bike to $ 1,495, from $ 1,895. Subscriptions will still cost $ 39.99 a month. Almost a year ago, the price of his bike dropped by $ 350 when the company launched its high-end bike + for $ 2,495.
Peloton (ticker: PTON) also reported a fourth-quarter net tax loss of $ 312.2 million, or $ 1.05 per share. According to FactSet, the Wall Street consensus estimate demanded a net loss of 44 cents per share. Sales of $ 937 million also exceeded consensus estimates by $ 928.6 million. Peloton reported an adjusted profit before the loss of interest, taxes, depreciation and amortization of $ 45.1 million, slightly less than analysts expected of $ 46 million.
The company expects sales of $ 800 million in the first fiscal quarter, well below the $ 1 billion analysts previously forecast, according to FactSet.
Shares of Platoon fell 11%, to $ 101, after the earnings were posted. Shares had already fallen 24% to date, amid wider reopening trading.
Peloton said the price reduction will make the bike more affordable. Analysts originally cheered for the company’s decision last year to reduce the price of the device, arguing it would expand the Platoon market. It has invested in logistics capabilities and plans to set up a $ 400 million US factory in 2023.
The company also said it is expanding its Bike + financing offerings to $ 59 a month for 43 months at an annual rate of 0%, compared to the previous $ 64 a month for a 39-month plan. It will offer the same funding for the Peloton Tread, its lowest-priced treadmill that will be launched in the United States, Canada and the United Kingdom on August 30th. in May. The Tread + specifically got headlines after the death of a child and more than 70 other reported incidents.
“We’ve worked hard to make sure the new Tread really earns its place in members’ homes, ”CEO John Foley said earlier this week. “We will always continue to innovate our security hardware, software and features to meet our commitment to member security and enhance the full member experience.”
The company ended the quarter with 2.33 million connected fitness subscribers, up 114% year-over-year and above consensus estimates at 2.28 million.
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