Peloton Interactive, Inc. PTON announced its fourth-quarter fiscal 2024 results with earnings and revenues exceeding the Zacks Consensus Estimate. This favorable news propelled the company’s shares to a remarkable 12% surge in the pre-market trading session on Aug 22.
Exceeding Expectations: Earnings and Revenues
PTON reported an adjusted loss per share of 8 cents, surpassing the Zacks Consensus Estimate of a loss of 18 cents. In the corresponding quarter of the previous year, the company had reported an adjusted loss of 68 cents per share. The revenues for the quarter stood at $643.6 million, outshining the Zacks Consensus Estimate of $626 million. Notably, this figure was almost unchanged compared to the previous year.
The company reported Connected Fitness segment revenues of $212.1 million, showcasing a 4% decline year over year. However, Subscription revenues experienced a 2% increase year over year, totaling $431.4 million.
Peloton Interactive, Inc. Price, Consensus and EPS Surprise
Peloton Interactive, Inc. price-consensus-eps-surprise-chart | Peloton Interactive, Inc. Quote
Operational Insights
By the end of the quarter, Peloton recorded 2.98 million Ending Paid Connected Fitness Subscriptions, marking a net decline of 75 thousand. The average net monthly paid Connected Fitness subscription churn stood at 1.9%.
Concluding the quarter, it registered 615 thousand Peloton App subscribers, reflecting a net decrease of 59 thousand. The average monthly paid app subscription churn stood at 8.4%.
Managing Costs
In the three months ending on Jun 30, 2024, total operating expenses, incorporating restructuring and impairment expenses, amounted to $375.3 million compared with $426.8 million in the prior-year quarter. General and administrative expenses saw a decline of $23.3 million to $186.2 million compared with a year ago.
Future Outlook
For the first quarter of fiscal 2025, management anticipates Ending Paid Connected Fitness Subscriptions between 2.88-2.89 million, down 3% year over year. On the other hand, Ending Paid App Subscriptions are expected to be in the range of 0.56-0.57 million. Revenues for the quarter are projected to range between $560 million and $580 million, down 4% from the year-ago level.
Looking ahead to fiscal 2025, the company forecasts Ending Paid Connected Fitness Subscriptions between 2.68-2.75 million, down 9% from the prior year. Ending Paid App Subscriptions are anticipated to be in the range of 0.57-0.62 million, down 3% from the previous year. Revenues for the year are expected to be between $2,400 million and $2,500 million, down 9% from the prior year.
The company currently holds a Zacks Rank #3 (Hold).
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