From CNBC: 2024-08-22 16:07:22

Peloton slashes losses, sees slight sales increase in fourth quarter. Wall Street anticipated 17 cent loss per share, company delivered 8 cent loss. Revenue of $644 million exceeded $631 million estimate. Quarterly losses narrowed to $30.5 million from $241.8 million year over year. Peloton posted first year-over-year revenue growth since 2021. Shares spiked 35%.

Sales of Peloton’s Bike and Tread down 4%, but subscription revenue rose 2.3%. Gross margin increased by 1 percentage point. Hardware subscription revenue from secondary market grew 16% year over year. Tread sales up 42% after recall. Bike rental program showing positive signs, higher retention rates.

Adjusted EBITDA and free cash flow increased for second consecutive quarter. Adjusted EBITDA at $70 million exceeded $53 million estimate, up $105 million from year ago. Free cash flow at $26 million compared to negative $74 million last year. Refinancing efforts improved balance sheet, staved off liquidity issues.

Peloton shifting focus to profitability over growth, reducing marketing and sales spending. Company projects sales to be lower than expected, but higher adjusted EBITDA. Sales anticipated to be $560-580 million for current quarter. Connected fitness subscribers projected to be 2.88-2.89 million. Full year sales expected to be $2.4-2.5 billion, lower than estimates.



Read more at CNBC: Peloton (PTON) earnings Q4 2024