Peloton this morning released its second-quarter 2024 results, which included a second-quarter loss and an admittance by CEO Barry McCarthy that the company would not be free cash flow positive for the overall year. Head below to learn more.
Yesterday, Peloton shares took a 20% nosedive after Peloton told its investors that the company is still months away from making a profit. For its holiday quarter, Peloton reported mixed results – it lost a bit more money than Wall Street predicted, but it exceeded revenue estimates.
A survey by analysts at LSEG – formerly Refinitiv – compared how Peloton did during its fiscal second quarter when paralleled with Wall Street Expectations (via CNBC):
- Loss per share: 54 cents vs. 53 cents expected
- Revenue: $743.6 million vs. $733.5 million expected
Peloton reported a net loss ending on December 31 of $194.9 million (54 cents per share) compared with $335.4 million (98 cents a share) in 2022. Additionally, sales fell to $743.6 million, which is done from $792.7 million a year earlier.
For the upcoming fiscal third quarter, Peloton anticipates sales coming between $700 million and $725 million.
As far as the sales of Peloton hardware, CEO Barry McCarthy said:
The underlying economics continue to be attractive, given the current churn and buyout rates for Bike and Bike+. The Bike rental program is attracting a more diverse, more female, and younger customer than it was 6 months ago. Bike rental is growing quickly with attractive economics, and we are leaning into new opportunities aggressively to drive that growth.
However, McCarthy is unsure what demands for Peloton’s other hardware – such as the Tread and the Tread+ – will look like in the coming months. According to McCarthy, Peloton has limited experience when it comes to selling the product at full price without promotions or discounts. Additionally, in a letter sent to shareholders, McCarthy said that if the company isn’t failing in some capacity, then “we’re not being aggressive enough testing new initiatives.”
More on Peloton:
- ‘Peloton Originals’ debuts on Peloton Entertainment
- Peloton’s Lanebreak wheels its way to Peloton Tread+
- Peloton and Tonal reign in this smart at-home gym setup
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