Peloton Beats Estimates - Connected Subscriptions Double

Peloton beat earnings estimates and tripled its paid digital subscriptions.
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Peloton  (PTON) - Get Report shares jumped after hours Thursday after the connected-fitness company reported fiscal-fourth-quarter results that topped analyst estimates. 

For the quarter ended June 20 Peloton earned 27 cents a share, compared with a loss of $2.07 a share in the year-earlier quarter. The latest adjusted earnings were 27 cents a share.

Revenue more than doubled to $607.1 million from $223.3 million.

Analysts surveyed by FactSet were expecting the company to report GAAP earnings of 10 cents a share, or an adjusted 15 cents, on revenue of $586.2 million.

Gross-profit margin was 47.6%, 2.75 percentage points wider than a year earlier. Operating expense was 33% of revenue, less than half the year-earlier figure of 67%. 

Peloton doubled its connected-fitness-subscription base from a year earlier to more than 1.09 million while paid digital subscriptions tripled to more than 316,800. The company pegged its total membership base at 3.1 million. 

"FY 2020 was a transformative year for Peloton. We made great progress in scaling our business, from manufacturing and logistics, to member support and field operations," the New York company said in a statement to investors. 

Peloton shares at last check jumped 7.5% to $94.37.

For the fiscal first quarter, Peloton expects connected-fitness subscriptions of between 1.32 million and 1.33 million. It expects revenue to triple from a year earlier, to between $720 million and $730 million. 

For fiscal 2021, Peloton expects to have between 2.05 million and 2.1 million connected fitness subscriptions and revenue between $3.5 billion and $3.65 billion. 

Analysts in the FactSet survey are expecting current-quarter revenue of $498.5 million and full-year revenue of $2.74 billion.

Earlier this week the company, known for its at-home gym equipment, unveiled Bike+ and the Tread, both retailing for $2,495. In addition, it slashed the price of its main exercise bike by 16%.