Peloton (PTON) Reports Q2 2021 Profit, Sales Figures

Peloton reported quarterly sales of 128% on Thursday, marking the first quarter of a billion dollars, as momentum continues to rise for the home fitness equipment manufacturer.

The company also raised its full year revenue outlook. But it warned that it still faces short-term hurdles to get items to its customers quickly amid strong demand.

Platoon shares fell more than 6% on Thursday during extended trading. The stock closed the 7% rise to $ 157.53.

Here’s how Peloton fared during its fiscal second quarter compared to what analysts expected, based on a survey by Refinitiv:

• Earnings per share: 18 cents versus 9 cents, expected
• Revenue: $ 1.06 billion vs. $ 1.03 billion expected

For the three-month period ending December 31, Peloton’s earnings grew to $ 63.6 million, or 18 cents a share, from a loss of $ 55.4 million, or 20 cents a share, a year ago. Analysts called on Peloton to earn 9 cents a share, Refinitiv said.

Sales were up 128% to $ 1.06 billion from $ 466.3 million a year earlier, exceeding expectations of $ 1.03 billion.

For the current fiscal third quarter, Peloton is calling for revenue of $ 1.10 billion. Analysts asked for $ 1.09 billion.

In the wake of higher sales, Peloton now expects full-year sales of more than $ 4 billion, up from previous forecasts of more than $ 3.9 billion. Analysts asked for $ 3.95 billion.

The company kept its earnings outlook for fiscal 2021 unchanged.

Peloton said it continues to see strong demand for its products and will make additional investment in its supply chain to reduce bottlenecks, which could weigh on profits.

In a letter to shareholders, the company said it will invest more than $ 100 million in air freight and expedited sea freight over the next six months to accelerate deliveries.

“While this investment will dampen our profitability in the short term, improving our member experience is our number one priority,” the company said.

Peloton said it still expects inventory levels to improve and lead times to shrink, thanks in part to the upcoming $ 420 million acquisition of fitness equipment manufacturer Precor. But it said it expects progress to be “slow but steady” for the rest of the year.

Chief Executive John Foley said Peloton remains “hopeful” that an “acceleration in vaccine distribution and the wider opening up of our economy” will benefit the company in the coming months.

Peloton closed the last quarter with 1.67 million connected fitness subscribers, up 134% from the previous year. Affiliate fitness subscribers are people who pay a monthly fee to sync Peloton’s workout classes with their Peloton equipment, instead of opening the programs individually via a phone or tablet and paying a lower rate.

The company expects to have 2.28 million or more affiliated fitness plans by the end of the fiscal year, compared to the previous outlook for 2.17 million users.

Peloton’s retention rates remain strong, a good indicator of future success. Average net monthly connected fitness attrition was 0.76% in the last quarter, a slight increase from 0.65% in the prior period. But the company said it expects its churn rate to be below 0.75% during the current quarter and its fiscal 2021 churn rate to be below 0.80%, better than a previous forecast of less than 0.90%. The lower the churn percentage, the less revenue Peloton sees from its users.

And the bicycle repairer continues to look for ways to entice his customers to exercise more. It said the total number of workouts during the last period has increased to more than 113 million from 26 million a year ago. It recently launched a feature that allows users to “stack” classes back to back, automatically playing them one after the other. It also recently added Pilates classes to its catalog.

Peloton’s shares are up more than 365% from a year ago. The company has a market capitalization of $ 46 billion.

Find the full income version of Peloton here.

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