.August 22, 2024 11:42:00 AM

Peloton Interactive, Inc. (NASDAQ:PTON) experienced a significant stock surge of over 24% today following the release of its fourth-quarter results, which showed the company’s first return to revenue growth in two years.

The fitness equipment maker reported a narrower-than-expected loss of $0.08 per share, surpassing analyst estimates of a $0.17 loss. Revenue for the quarter reached $643.6 million, slightly exceeding the consensus estimate of $628.47 million, marking a 0.2% year-over-year increase.

Peloton’s subscription business saw a 2.3% year-over-year revenue increase to $431 million, contributing to the company’s improved profitability. Adjusted EBITDA for the quarter was $70 million, up $105 million from the previous year.

Despite the positive results, Peloton’s outlook for Q1 and full fiscal year 2025 fell short of expectations. The company projected Q1 revenue between $560 million and $580 million, below the $602 million consensus, and full-year revenue of $2.4 billion to $2.5 billion, missing the expected $2.69 billion.

Investors reacted positively to Peloton’s return to growth, improved profitability, and cost-cutting efforts, which included $15 million in savings during Q4 from its restructuring plan.