Peloton revenue surges as pandemic boosts demand for fitness equipment

Peloton beat analysts’ estimates for quarterly revenue on Thursday as the exercise bike maker benefited from a 172 percent surge in total revenue, with boosts in subscribers and demand for its fitness products during the coronavirus pandemic.

Shares of the company rose 8 percent in extended trading as it forecast full-year revenue above Wall Street expectations.

Stay-at-home stocks like Peloton have benefited from increased demand during the COVID-19 pandemic as closed gyms and fitness clubs turned people towards streaming exercise services and home work-out equipment.

The stock has more than tripled this year.

Sales of Peloton’s electric bikes and other fitness equipment tripled to $485.9 million in the quarter. Its subscriptions rose 113 percent to 1.09 million.

The company forecast revenue for fiscal year 2021 between $3.50 billion and $3.65 billion. Analysts on average were expecting $2.72 billion, according to Refinitiv data.

Net income attributable to Class A and Class B shareholders was $89.1 million, or 27 cents per share, in the fourth quarter ended June 30, compared with a loss of $47.4 million, or $2.07 per share, a year earlier.

Total revenue skyrocketed 172 percent to $607.1 million.

Analysts on average had expected revenue of $583 million.

Source Article