The Peloton Interactive Inc (NASDAQ: PTON) stock price fell 30% after its fiscal Q4 2023 earnings results were released. The connected fitness company generated total revenues worth $642.1 million, with subscriptions accounting for $421.7 million and fitness products accounting for the remaining $220.4 million.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.
The company’s revenues marked a decline from Q3 2023 figures, which generated revenues worth $748.9 million and Q4 2022 when its revenues were $678.7 million. The company beat analysts' estimates of revenues despite the lower figures compared to previous quarters. Analysts' expectations were set at $639.9 million.
Top Broker Recommendation
- eToro Top stock trading platform with 0% commission – Read our Review
- Admiral Markets More than 4500 stocks & ETFs available – Read our Review
- BlackBull 26,000+ Shares, Options, ETFs, Bonds, and other underlying assets – Read our Review
- IG Top-tier regulation – Read our Review
- XTB UK regulated by the FCA – Read our Review
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY
Peloton attributed its lower revenues to the product recall issued in May, which affected 2.2 million customers. About 15,000 to 20,000 affected customers paused their subscriptions while waiting for their seat replacements. The bike seat recall also cost the company an additional accrual of $40 million.
However, despite its upbeat revenue figures, Peloton reported a net loss of $241.8 million, or 68 cents per share, for the three months that ended June 30, compared with a loss of $1.26 billion, or $3.72 a share, a year earlier.
The fitness company noted that the quarter to June 30, 2023, was typically a slow period due to the summer holidays that saw many people reduce their workouts as they travel and take time out to enjoy other activities.
The company further explained that it was barely free cash flow positive as it reported a $1 million free cash flow figure. The fitness company further warned that it expects to return to free cash flow generation sometime in H2 fiscal 2024 due to seasonality and other fundamental factors.
Barry McCarthy, Peloton’s CEO and President, said: “For the last ten years, Peloton has been the Henry Ford of stationary bikes. We sold any color bike frame you wanted as long as you wanted black. I’m excited to announce a change in strategy. This quarter, we began work to bring a variety of limited edition bike frame colors and graphics to both the consumer and commercial markets, like yesterday’s University of Michigan announcement. Expect to hear more about this exciting initiative this fall.”
Peloton stock price.
The Peloton stock price fell 30.04% to trade at $4.89, from Tuesday’s closing price of $6.99.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.