Peloton’s Q1: When Incredible Isn’t Good Enough

Peloton Interactive Inc. (NASDAQ: PTON) released its fiscal first-quarter earnings report after the closing bell Thursday. The firm said that it had $0.20 in earnings per share (EPS) and $757.9 million in revenue, which compares with consensus estimates calling for $0.11 in EPS and $748.04 million in revenue. The same period of last year reportedly had a net loss of $1.29 per share and $196.86 million in revenue.

During the most recent quarter, total revenue increased 232% year over year. Connected Fitness Product revenue was $601.4 million, representing 274% year over year growth and 79% of total revenue. Subscription revenue was $156.5 million, a 133% year over year increase, and 21% of total revenue.

Peloton ended the quarter with 1.33 million Connected Fitness subscribers, an increase of 137% year over year. As of quarter’s end, 96% of Connected Fitness subscribers were on month-to-month payment plans. At the same time, the company boasted 510,000 Digital subscribers, up 382% from last year.

Connected Fitness Subscription Workouts grew 306% in the first quarter to over 77.8 million, averaging 20.7 Monthly Workouts per Connected Fitness Subscription, versus 11.7 in the same period last year.

On the books, cash, cash equivalents, and marketable securities totaled $2.0 billion at the end of the quarter. The firm also has additional liquidity of $250.0 million in the form of an undrawn revolving credit facility.

Looking ahead to the fiscal second quarter, the company expects to see total revenue reaching $1.0 billion and an adjusted EBITDA of $70 million. The consensus estimates are calling for $0.09 per share and $939.04 million in revenue for the quarter.

Shares of Peloton closed Thursday at $126.63, in a post-IPO range of $17.70 to $139.75. The consensus price target is $122.54. Following the announcement, the stock was down 6% at $118.99 in the after-hours trading session on Thursday.

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