Peloton surpasses $ 1 billion in quarterly revenue for the first time, but higher shipping costs weigh on prospects

Peloton draws comparisons to Netflix and Amazon as demand booms

<div id=”js-article__body” itemprop=”articleBody” data-sbid=”WP-MKTW-0000155977″>

Peloton Interactive Inc. posted its first quarter with revenue in excess of $ 1 billion, but its shares plunged in after-hours trading Thursday after the company’s investments in shipping and other areas aimed at addressing the Delivery delays weighed on its earnings outlook for the current period. The connected fitness equipment maker saw its sales rise to $ 1.06 billion from $ 466 million a year ago in its second fiscal quarter, up from the $ 1.04 billion that analysts tracked by FactSet had been projecting. Peloton continues to face inventory shortages “with longer than acceptable lead times for delivery of our products” despite increased production of its two exercise bike models in recent months, according to the letter to shareholders from the company. company.

The shares fell 6% in after-hours trading on Thursday. The company posted net income of $ 63.6 million, or 18 cents a share, compared to a loss of $ 55 million, or 20 cents a share, in the same period last year. Analysts surveyed by FactSet expected 8 cents a share in GAAP earnings. Peloton reported adjusted earnings before interest, taxes, depreciation and amortization (Ebitda) of $ 116.9 million, compared to a loss of $ 28 million a year before and before the FactSet consensus, which called for $ 78 million. The company had 1.67 million Connected Fitness subscribers in the last quarter and 625,000 paid digital subscriptions. For the March quarter, Peloton expects revenue of $ 1.1 billion and Adjusted Ebitda of $ 10 million. Analysts modeled $ 1.08 billion in revenue and $ 66 million in Adjusted Ebitda. The company also anticipates 1.98 million Connected Fitness subscribers, up from the 1.65 million projected by analysts tracked by FactSet. The company plans to invest more than $ 100 million in “air freight and expedited shipping” in the next six months to improve its delivery times. Investments in transportation, research and development and other categories “are impacting our profitability in the short term,” Peloton said in his letter to investors, but the company believes they will lead to better customer satisfaction. Peloton continues to expect at least $ 300 million in Ebitda for the full fiscal year, and raised its revenue outlook for the period to $ 4.075 billion from $ 3.9 billion. Shares of Peloton have gained 33% in the last three months, as the S&P 500 SPX, + 1.09% has risen 12%.