Peloton raises revenue forecast as people turn to home workouts in lockdowns

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A Peloton logo is seen after the ringing of the opening bell for the company’s IPO at the Nasdaq Market site in New York City, New York, U.S., September 26, 2019. REUTERS/Shannon Stapleton

(Reuters) – Peloton Interactive Inc (PTON.O) raised its forecast for full-year revenue on Wednesday as “stay at home” orders encouraged more people to buy the company’s exercise bikes and fitness subscriptions plans.

The strong results validated heightened expectations around the company after analysts hailed Peloton, known for its $2,200 exercise bikes, as one of the few companies to benefit from prolonged lockdowns and a shift in consumer behavior.

The company’s shares rose 5% in extended trading, adding to a more than 40% jump in the last three months.

Peloton said it now expects fiscal year revenue to be in the range of $1.72 billion to $1.74 billion, compared with an earlier forecast of $1.53 billion to $1.55 billion.

The company also raised its outlook for Connected Fitness subscribers for the year to 1.04 million to 1.05 million, from its previous estimate of 920,000 to 930,000.

The loss-making company, which also offers on-demand exercise videos, said that it entered the fourth quarter with a backlog of bike deliveries in all geographies and that its sales continue to surpass expectations.

Peloton also forecast fourth-quarter revenue of $500 million to $520 million, well above the average analyst estimate of $383.26 million.

In the reported third quarter, Peloton’s total revenue surged 65.6% to $524.6 million, handily beating analysts’ estimates of $487.7 million.

Net loss attributable to Class A and Class B shareholders widened to $55.6 million, or 20 cents per share, in the quarter ended March 31, from $38.6 million, or $1.76 per share, a year earlier.

Reporting by Sanjana Shivdas and Devbrat Saha in Bengaluru; Editing by Saumyadeb Chakrabarty

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Peloton gets lockdown boost as home workouts drive exercise bike sales

(Reuters) – Peloton Interactive Inc (PTON.O) raised its forecast for full-year revenue on Wednesday as “stay at home” orders led to a surge in sales of the company’s exercise bikes and fitness subscriptions, sending its shares up 5%. A Peloton logo is seen after the ringing of the opening bell […]