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Peloton Posts Wider-Than-Expected Loss, Slashes Price of Fitness Bike

Peloton cut the price of its original at-home exercise bike by nearly 20% across all markets.
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Shares of in-home exercise equipment maker Peloton Interactive  (PTON) - Get Peloton Interactive, Inc. Class A Report dropped after hours Thursday after the company reported fourth quarter results below analyst expectations.

The company reported a fourth-quarter net loss of $1.05 per share on revenue of $936.9 million. Analysts polled by FactSet were expecting a fourth quarter net loss of 44 cents per share on revenue of $929.6 billion. 

Peloton reported a net loss of $313.2 million in the quarter, compared to a net loss of $89.1 million a year ago. 

Peloton announced that it is cutting the price of its original at-home exercise bike for the second time this year Thursday. Starting today, the company's core bike will cost $1,495, a nearly 20% reduction.

Monthly financing for the bike dropped $10 to $39 per month. While the company said the move was to make the bike's more attainable, it could be a sign that competition is increasing in the at-home workout market. 

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Shares of Peloton dropped 12.6% to $99.69 after hours Thursday. 

The company ended the quarter with 2.33 million connected fitness subscribers, a 114% year over year increase. Digital subs, boosted by free trials, rose 176% to more than 874,000. 

Average monthly workouts per connected fitness subscriber fell to 19.9 from 24.7 a year earlier. 

Earlier this week analysts at Oppenheimer slashed Peleton's price target to $140 from $150, sending the stock tumbling ahead of Thursday's release. 

For the first quarter, the company expects sales of $800 million compared to $1 billion anticipated by analysts. 

Oppenheimer analyst Jason Helfstein kept his outperform rating on Peloton saying in an investors note that third-party data suggest a slowdown in June/July product deliveries and connected-fitness subscriber growth.