Peloton (NASDAQ:PTON) on Thursday reported a wider-than-expected loss in the fiscal third quarter, but pointed to signs of progress with its turnaround plan.
The connected fitness company reported connected fitness subscription growth and a reduction of free cash flow losses.
Loss per share was found to be 79 cents vs. 46 cents expected, on revenue of $749 million vs. $708 million expected.
Peloton’s net loss for the period was $275.9 million, or 79 cents per share, compared with a loss of $757.1 million, or $2.27 per share, a year earlier. It marked the ninth quarter in a row of the company reporting losses.
Revenue declined 22% from a year ago, dropping from $964.3 million.
The company ended the quarter with about 3.1 million connected fitness subscriptions, up 5% from the year-ago period. Connected fitness subscribers are people who own a Peloton product, such as its Bike or Tread, and pay a monthly fee for access to live and on-demand workout classes.
Average net monthly connected fitness churn ticked up slightly from a year ago, too. It came in at 1.1% for the quarter, consistent with the prior quarter, but above the year-ago churn level of 0.8%.
Peloton’s overall membership, however, did not grow. It ended the quarter with 6.7 million total members, the same as the end of the prior quarter and down from seven million in the year-ago period.
PTON shares blundered $1.23, or 13.9%, to $7.60.
