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Peloton surges 13% as higher subscription prices help drive a profitable quarter
Higher prices and growing equipment sales helped lift Peloton’s quarterly profit, even as paid connected fitness subscribers fell 8% to 2.66 million.
- Peloton reported fiscal third-quarter revenue of $630.9 million Thursday, beating Wall Street expectations, while net income reached $26.4 million. Earnings per share were 6 cents, slightly below the 7 cents expected.
- CEO Peter Stern credited the return to profitability to recent equipment and subscription price hikes. Stern defended the changes as 'timely,' saying the company had "added a tremendous amount of value over the succeeding three or four years."
- Subscription revenue grew 2% year over year to $428 million, though paid connected fitness subscribers fell to 2.66 million. Connected fitness revenue reached $202.9 million, exceeding the $196 million estimate.
- Expanding its reach, Peloton launched a partnership with Spotify, making more than 1,400 classes available to Spotify Premium subscribers. The company also introduced its first Bike and Tread products for high-traffic gym floors.
- Full-Year revenue guidance was raised to between $2.42 billion and $2.44 billion, reflecting management confidence despite subscriber challenges. This updated forecast lifts the lower end of prior guidance.
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Peloton Soars 11% on Q3 Profit Turnaround, Raised Guidance, Spotify Partnership
Shares of Peloton Interactive (NASDAQ:PTON) are climbing 11% to $5.76 in premarket trading on Thursday, May 7, after the connected fitness company posted a swing to GAAP profitability and lifted its full-year outlook. The bid follows an 8-K filed at 6:59 a.m. ET and an earnings call that began at 8:30 a.m. ET. The pop ... Peloton Soars 11% on Q3 Profit Turnaround, Raised Guidance, Spotify Partnership
·New York, United States
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Total News Sources9
Leaning Left2Leaning Right0Center5Last UpdatedBias Distribution71% Center
Bias Distribution
- 71% of the sources are Center
71% Center
L 29%
C 71%
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