Peloton Interactive, Inc. PTON recently revealed its Q4 fiscal 2024 results, stunning investors with earnings and revenues that exceeded expectations. The outcome was a roaring success as Peloton’s shares surged by a solid 12% during pre-market trading on Aug 22.
Strong Financial Performance
PTON showcased an adjusted loss per share of 8 cents, well below the anticipated loss of 18 cents, showcasing marked improvement from the 68 cents loss reported in the same period last year. The company recorded revenues of $643.6 million, exceeding the expected $626 million, marking substantial growth compared to the previous year.
The Connected Fitness segment saw revenues of $212.1 million, a 4% decrease from the prior year, while Subscription revenues progressed by 2% year over year, reaching $431.4 million.
Peloton Interactive, Inc. Price, Consensus and EPS Surprise
Peloton Interactive, Inc. displayed a positive trend in terms of price, consensus, and EPS surprise. This underlines the company’s strong potential for future growth and performance.
Operational Highlights
As of the quarter’s close, Peloton boasted 2.98 million Ending Paid Connected Fitness Subscriptions, with a net decline of 75 thousand. The average net monthly paid Connected Fitness subscription churn was noted at 1.9%. Furthermore, the company registered 615 thousand Peloton App subscribers, indicating a net decrease of 59 thousand, with an average monthly paid app subscription churn at 8.4%.
Cost Efficiency
In the three months ending on Jun 30, 2024, total operating expenses were recorded at $375.3 million, a decline from $426.8 million in the same period the year before. Notably, general and administrative expenses witnessed a reduction of $23.3 million to $186.2 million compared to the previous year.
Future Expectations
Looking ahead to Q1 fiscal 2025, Peloton anticipates a range of 2.88-2.89 million Ending Paid Connected Fitness Subscriptions, reflecting a 3% decline year over year. Ending Paid App Subscriptions are estimated to be in the range of 0.56-0.57 million, with revenues projected between $560 million and $580 million, a 4% decrease compared to the prior year.
For the entirety of fiscal 2025, Peloton predicts Ending Paid Connected Fitness Subscriptions to range between 2.68-2.75 million, a 9% decrease from the previous year. Ending Paid App Subscriptions are expected to be in the range of 0.57-0.62 million, declining by 3% from the year before. Revenues for the fiscal year are forecasted to be between $2,400 million and $2,500 million, marking a 9% decrease from the previous year’s figures.
As of now, the company holds a Zacks Rank #3 (Hold).
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