Shares of Peloton (NASDAQ:PTON) sank Thursday after the company reported a wider-than-expected quarterly loss, a tepid holiday forecast and “bad news” for paid subscriptions.
Loss per share amounted to 44 cents vs. 34 cents expected, on revenue of $595.5 million vs. $591 million expected.
The company’s reported net loss for the three-month period that ended Sept. 30 was $159.3 million, or 44 cents per share, compared with a loss of $408.5 million, or $1.20 per share, a year earlier.
Sales dropped to $595.5 million, down from $616.5 million a year earlier.
Once again, revenue from Peloton’s subscriptions — at $415 million — far outpaced sales of its hardware — $180.6 million — which has been an ongoing trend at the company.
For its holiday quarter, Peloton is expecting revenue of between $715 million and $750 million, an 8% drop at the midpoint compared to the year-ago period. That falls short of the $763.2 million analysts had expected for the company’s fiscal second quarter, according to LSEG.
It expects paid connected fitness subscriptions to be between 2.97 million and 2.98 million, which falls short of the 3.03 million that analysts had expected, according to StreetAccount. It’s forecasting paid app subscriptions to be between 660,000 and 680,000, representing a 21% year-over-year drop off and 12% sequential churn. That’s below the 780,400 subscribers analysts had expected, according to StreetAccount.
PTON shares dipped 12 cents, or 2.5%, to $4.69.
