Peloton Races Ahead With Q4 Results

By Chris Lange Published Sep 10, 6:08PM EDT

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Peloton Races Ahead With Q4 Results — © Andrei Stanescu / iStock Editorial via Getty Images

Peloton Interactive Inc. (NASDAQ: PTON) released its fiscal fourth-quarter earnings report before the opening bell Tuesday. The firm said that it had $0.27 in earnings per share (EPS) and $607.1 million in revenue, which compares with consensus estimates calling for $0.10 in EPS and $582.51 million in revenue. The same period of last year reportedly had a net loss of $2.07 per share and $223.3 million in revenue.

During the most recent quarter, total revenue increased 172% year over year. Connected Fitness Product revenue was $157.6 million, representing 102% year-over-year growth and 69% of total revenue. Subscription revenue was $67.2 million, a 112% year-over-year increase, and 29% of total revenue.

Peloton ended the quarter with 1.09 million Connected Fitness subscribers, an increase of 113% year over year. As of quarter’s end, 90% of Connected Fitness subscribers were on month-to-month payment plans. At the same time, the company boasted 316,800 Digital subscribers, up 210% from last year.

Connected Fitness Subscription Workouts grew 333% in the fourth quarter to over 76.8 million, averaging 24.7 Monthly Workouts per Connected Fitness Subscription, versus 12.0 in the same period last year.

On the books, cash, cash equivalents, and marketable securities totaled $1.8 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.

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Looking ahead to the fiscal first quarter, the company expects to see total revenue in the range of $720 million to $730 million and an adjusted EBITDA between $80 million and $90 million. The consensus estimates are a net loss of $0.04 per share and $505.21 million in revenue for the quarter.

Shares of Peloton closed Thursday at $87.75, in a post-IPO range of $17.70 to $98.61. The consensus price target is $74.29. Following the announcement, the stock was up over 4% at $91.91 in early trading indications Tuesday.

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About the Author Chris Lange →

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.