Peloton, the connected fitness company, has raised its profit guidance for the full year after surpassing Wall Street’s expectations for the fiscal first quarter, CNBC reports.
However, Peloton tempered its holiday outlook, expecting a weaker-than-anticipated demand for its signature hardware and app subscriptions.
In the fiscal first quarter ending September 30, Peloton reported revenue of $586 million, slightly above analyst projections of $574.8 million. The company achieved a net loss of $900,000, or effectively zero cents per share, improving from a $159.3 million loss a year earlier. Sales were down 1.6% from the previous year’s $596 million.
Peloton’s updated guidance projects annual adjusted EBITDA between $240 million and $290 million, an increase from the previous range of $200 million to $250 million. Fiscal year revenue is expected to fall between $2.4 billion and $2.5 billion, aligning with Wall Street estimates. The company’s cost-cutting measures, which reduced operating expenses by 30% year-over-year, were key to the improved outlook, as well as recent hardware price adjustments and fewer discounts.
Looking ahead, Peloton anticipates holiday quarter revenue between $640 million and $660 million, below the $671.4 million forecast by analysts. Peloton also expects to end the quarter with between 560,000 and 580,000 paid app subscribers, fewer than the 608,200 projected by analysts, as it shifts marketing efforts to product development.
The announcement also introduced Peter Stern, former Ford executive, as the new CEO, succeeding Barry McCarthy. Peloton shares climbed 20% in premarket trading following the update and leadership news.
