Peloton (PTON) reports Q2 2021’s revenue, sales beat

The peloton on Thursday reported a quarterly sales growth of 128%, indicating its first billion dollar quarter as the momentum for the home fitness equipment business continues to climb.

The company also increased its revenue outlook for the full year. But he warned that in the short term, he still faces hurdles to quickly collect items from his customers, amid the increase in demand.

Peloton shares fell more than 6% on Thursday. The stock closed up 7% at $ 157.53.

Here’s how Peloton fared in the second fiscal 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 versus $ 1.03 billion, expected

For the three-month period ended December 31, Peloton’s earnings grew to $ 63.6 million, or 18 cents per share, from a loss of $ 55.4 million, or 20 cents per share, a year ago. According to Refinitiv, analysts have requested that Peloton earn 9 cents per share.

Revenue rose 128% to $ 1.06 billion, from $ 466.3 million a year earlier, topping $ 1.03 billion.

For the current fiscal third quarter, Peloton expects sales to reach $ 1.10 billion. Analysts have asked for $ 1.09 billion.

In the wake of higher sales, Peloton expects annual revenue to increase to $ 4 billion, compared to the forecast of more than $ 3.9 billion. Analysts have asked for $ 3.95 billion.

The company kept its profit outlook for fiscal 2021 unchanged.

Peloton said it still sees strong demand for its products, and that it will make additional investments in its supply chain to alleviate bottlenecks, which could outweigh profits.

In a letter to shareholders, the company said it would invest more than $ 100 million in air freight and fast sea freight over the next six months to speed up delivery.

“While this investment will dampen our short-term profitability, improving our members’ experience is our first priority,” the company said.

Peloton said it still expects inventory levels to improve and shrink delivery windows, thanks in part to the pending $ 420 million acquired by training equipment maker Precor. According to him, progress for the rest of the year is expected to be ‘slow but steady’.

However, CEO John Foley said Peloton remains “hopeful” that an acceleration in vaccine distribution and the broader opening of our economy “will benefit the business in the coming months.

Peloton closed its most recent quarter with 1.67 million connected fitness subscribers, 134% higher than in the previous year. Affiliated fitness subscribers are people who pay a monthly fee to synchronize Peloton’s exercise classes with their Peloton equipment, as opposed to accessing the programs separately via a phone or tablet and at a lower rate.

The company expects that there will be 2.28 million or more connected fitness entries by the end of the financial year, compared to a previous outlook for 2.17 million users.

Peloton’s retention rates remain strong, which is a good indication of its future success. Average net monthly coupled fitness income was 0.76% during the last quarter, which was a slight increase of 0.65% in the previous period. However, the company said it expects its rate to be below 0.75% during the current quarter, and that the fiscal rate for 2021 will be below 0.80%, better than a forecast of less than 0.90% . The lower the rate, the less revenue Peloton sees with its user base.

And the bike maker continues to look for ways to entice its customers to exercise more. The total workouts are said to have increased during the most recent period to more than 113 million from 26 million a year ago. It recently launched a feature in which users can “stack” classes one after the other and have one after the other play automatically. It also recently added Pilates classes to its catalog.

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

Find the full earnings release of Peloton here.

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