Peloton's loss narrows to $49.8M as sales double

Peloton Interactive’s loss narrowed as revenue topped expectations, sending shares higher.

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The home-fitness company lost $49.8 million, or $1.29 a share, in the first quarter of fiscal year 2020, a $4.8 million improvement from the year before. Revenue rose 103 percent year-over-year to $228 million. Wall Street analysts surveyed by Refinitiv were expecting a loss of 40 cents a share on revenue of $197 million.

“We benefited from continued strong demand for our connected fitness experience, attributable to our effective brand and performance marketing and growing word-of-mouth referrals from our loyal Members,” the company said in its earnings release.

Peloton’s 103 percent growth in connected fitness subscribers raised its total to 562,774. Its member base stood at more than 1.6 million through the end of its fiscal year 2019.

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On average, workouts per connected fitness subscriber rose to 11.7 per month, from 8.9 a year ago. Peloton’s average net monthly connected fitness churn rate was 0.9 percent while its 12-month retention rate was 94 percent.

Looking ahead, Peloton sees connected fitness subscribers growing 88 percent in the second quarter to between 680,000 and 685,000. It sees total revenue of $410 million to $420 million, up 58 percent at its midpoint.

For fiscal year 2020, Peloton sees 885,000 to 895,000 ending connected fitness subscribers and total revenue of $1.45 billion to $1.5 billion.

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On Sept. 26, Pelton went public at $27 a share, down from the $29 where it priced the evening prior. Shares settled at $24.61 apiece on Monday, down 8.8 percent from the initial public offering price.