Peloton It still has a “steep hill” that can achieve profitable growth under its new CEO, but the connected fitness company beats holiday sales expectations Well -being.
The bike maker released its second quarter results as it surpassed Wall Street sales estimates but lost more than expected as continued efforts to make its expensive hardware business more profitable.
The company also cut costs in three key areas facing criticism Too much spend About marketing, administrative costs and research and development – resulting in its expectations for adjusted EBITDA blowing away analyst expectations.
Peloton shares climbed more than 13% in Thursday’s listing trading.
Peloton predicts sales in the current quarter are worse than expected sales, but expects better than expected cash flows to be expected, and may earn a recovery rate of revenue by the end of the year.
Peloton expects sales to be between $665 million and $625 million in the quarter, worse than analysts expected by $652 million, according to LSEG. However, according to StreetAccount, it expects adjusted EBITDA to be between $70 million and $85 million, far exceeding the expected $50.4 million Wall Street.
Peloton expects revenue in fiscal 2025 to roughly meet expectations. According to LSEG, sales are forecasted to be between $2.43 billion and $2.48 billion, compared with an estimated $2.47 billion.
According to an LSEG survey of analysts, Peloton’s performance in the second quarter of fiscal 2025 is compared to Peloton’s performance:
- Loss per share: 24 cents, estimated at 18 cents
- income: $674 million vs. $654 million
The company reported a net loss of $92 million, or 24 cents per share, over a three-month period ending December 31, compared with $195 million per share or 54 cents per share a year ago.
Sales fell to $674 million, down more than 9% from $744 million a year ago. Peloton’s holiday quarter was usually the strongest hardware sales, but most of its revenue decline came from the business as sales fell by about 21%.
Still, it has been a business that lost money for more money than it was before selling its expensive fixed bikes and treadmills. The company said it connected to the fitness gross margin was 12.9% in the quarter, the first double-digit number in more than three years.
Peloton also saw a lot of benefits from it Seasonal partnership with CostcoIt sold as much bike+ in the holiday quarter as any other third-party retailer, such as Amazon and Dick’s sporting goods.
In October, Peloton announced that former Ford executive and co-founder of Apple Fitness+ Peter Stern will be his Next CEO and CEO After Barry McCarthy Resign Earlier this year, two board members took over briefly.
Stern was selected in part because of his experience running Ford’s subscription business, showing that Peloton’s main value proposition is triple: its high profit, recurring subscription revenue.
Stern began the position on January 1 and plans to make his public debut to investors on a company revenue call at 8:30 a.m. ET.
He is expected to continue Peloton’s efforts to cut costs and map profitability, while also trying to improve the membership experience to reduce stirring and attract new customers.
Currently, Peloton attracts Investors of different categories This is more interesting to see companies leverage their high-margin subscription revenue to boost profits rather than growing sales, so their focus shifts to the ability to generate free cash flow and EBITDA.
During the quarter, Peloton blows away adjusted EBITDA expectations. Its adjusted EBITDA is priced at $58.4 million, more than double the $26.7 million analysts expected, according to StreetAccount. Even in the field where investors and analysts say Peloton overspending, it managed to figure out that number.
Sales and marketing costs fell by 34%, general and administrative expenses fell by 18%, R&D expenditures fell by 25%, and total operating expenses fell by 25% compared to the same period last year.
