Peloton Interactive Inc. (NASDAQ:PTON) shares jumped 5% after the exercise equipment company reported a 66% surge in its third-quarter sales that topped $500 million. The number of people who have been purchasing fitness equipment during the COVID-19 lockdowns has grown significantly as people want to maintain fitness whole at home.
Peloton reports $524.6 million in sales thanks to a surge in fitness bikes demand
The company’s sales in Q3 reached $524.6 million thanks to a surge in exercise bike sales in the last weeks of the quarter as most Americans were forced to stay at home because of coronavirus. Customers were not deterred by DIY installation, delayed shipping, or the more than $2,000 price tag for the bikes. Interestingly the company saw its equipment sales grow 61% to around $420.2 million despite the company stopping the sale of treadmills on March 19th.
Because of these incredible sales, the company is now upbeat about its full-year outlook as it expects demand for the bikes to continue in Q4. The company is expecting more customers to purchase bikes, even those who were not considering buying the bikes before the crisis.
Peloton raises its FY guidance by $200 million.
The company has now increased its full-year sales guidance by almost $200 million with fiscal year only remaining with two months before it comes to a close. Peloton is expecting annual sales to be between $1.72 billion and $1.74 billion, and previously the company was expecting between $1.53 billion and $1.55 billion.
In the quarter, the company’s net loss widened to $55.6 million or $0.20 per share compared to the loss of around $38.6 million or $1.76 per share reported in the same period last year. Peloton has cited settlement expense sand nonrecurring litigation as the reason for the losses. Analysts had predicted revenue to be around $487.7 million in the quarter with a net loss of $0.17 per share.
Subscriber revenue in Q3 grew 92% to $98.2 million from last year. The company expects its paid fitness subscribers to grow to around 1o4 million and 1.05 million.