Categories Analysis, Consumer, Leisure & Entertainment

Peloton (PTON) swings to profit in Q4 on strong revenue growth; stock surges

Peloton Interactive (NASDAQ: PTON) reported strong fourth quarter 2020 results yesterday as the stay-at-home environment resulted in a 172% growth in the company’s revenue. The interactive fitness platform swung to a profit in its final quarter of 2020. The better-than-expected Q4 results and the strong outlook lifted the PTON stock more than 10% in the pre-market trading hours today.

Peloton Interactive (PTON) Q4 2020 Earnings Infograph

Q4 results

The New-York based firm, which became a public company a year ago, reported a net income of 0.27 per share compared to a loss of $2.07 per share in Q4 2019. Revenue surged 172% year-over-year to $607 million. In Q4, Peloton witnessed strong momentum in Connected Fitness subscriber and revenue growth due to COVID-19 related shelter-at-home orders. As a result of the pandemic, the company halted the majority of its media spend and most of the showrooms were closed during the quarter.

Outlook

For the first quarter of fiscal 2021, Peloton expects revenue to be between $720 million and $730 million, representing 218% growth at the midpoint. Connected Fitness Subscriptions are expected to be in the range of 1.32 million to 1.33 million.

For the full fiscal year 2021, Peloton expects revenue to be between $3.50 billion and $3.65 billion, representing a growth of 96% at the midpoint. Connected Fitness Subscriptions are expected to be in the range of 2.05 million to 2.10 million.

Also read: Peloton: Carving a niche in the virtual fitness space

The company entered into the first quarter of fiscal 2021 with a backlog of $230 million Bike deliveries in all geographies. Sales continue to surpass expectations in the first two months of Q1. Peloton expects demand to moderate in Q1 with the unexpected resurgence of COVID-19 cases in many states resulting in an imbalance of supply and demand in many geographies.

Stock performance

Peloton stock, which reached a new high ($98.61) yesterday, is expected to cross the three-digit mark today. PTON stock had surged above 200% since the beginning of this year.

Most Popular

Does Unity Software (U) stock has more room to run?

Last month, the IPO market was in a full swing. IPOs of Snowflake (NYSE: SNOW) and JFROG (NASDAQ: FROG) had an impressive opening day in September, the former creating a

PepsiCo (PEP): Steady snacking habits amid pandemic drive strong quarter for beverage giant

PepsiCo Inc. (NASDAQ: PEP) beat market expectations on both revenue and earnings for the third quarter of 2020. The company saw the momentum continue in its snacks business while the

Does the virus-driven boom make Electronic Arts (EA) a good investment?

With more and more people turning to virtual entertainment sources, amid the virus-related movement restrictions, video game publishers like Electronic Arts (NASDAQ: EA) are witnessing unusually high demand. Not surprisingly,

Leave a Reply

Your email address will not be published. Required fields are marked *

Add Comment
Loading...

Cancel
Viewing Highlight
Loading...
Highlight
Close
Top