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Peloton Notches Q2 Beats on Dramatic Rise in Subscriptions

By Eric Volkman - Feb 5, 2021 at 7:18PM

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The coronavirus pandemic is keeping people at home; many of them are working out with Peloton equipment and taking Peloton classes.

Peloton Interactive (PTON 4.39%) continues to flex its muscles. The purveyor of exercise equipment and online classes released its results from its second quarter of fiscal year 2021 Thursday, and they showed rather energetic growth.

The company booked revenue of $1.06 billion, up 128% on a year-over-year basis. That was on the back of 134% growth in subscriptions for its Connected Fitness service; the total subscriber number was around 1.67 million.

On the bottom line, Peloton earned $63.6 million, or $0.18 per share. This was far better than the year-ago result, which was a loss of $55.4 million.

A Peloton user taking an exercise class.

Image source: Peloton Interactive.

Peloton's headline figures exceeded analyst expectations. On average, prognosticators tracking the stock had estimated the company would earn $1.03 billion on the top line, and net a per-share profit of only $0.09.

With a customer base still spending far more time at home during the coronavirus pandemic than it did in the pre-outbreak days, Peloton offers an ideal way to burn away time productively indoors.

The company said that the delivery bottlenecks of the recent past are being alleviated by the build-out of new capacity. In its earnings release, Peloton said, "Our supply chain investments over the last several months are helping us better match our supply and demand going forward."

It added that it is also ramping up production capacity, citing the example of a recently opened factory in Taiwan.

Meanwhile, the company revised its full-year fiscal 2021 guidance. It now believes its revenue will land at just under $4.08 billion, up from the previous forecast of $3.90 billion. Adjusted EBITDA should come in at a minimum of $300 million; it did not provide a net profit figure.

Peloton has established itself quickly as a go-to home exercise purveyor. As such a convenient option, the company should continue to do well, even after the pandemic (hopefully) subsides.


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