Peloton Sees 172% Revenue Increase In Q4

Peloton Interactive Inc PTON reported fourth-quarter and full-year earnings and provided guidance for the next fiscal quarter and year.

What Happened: Peloton reported fourth-quarter revenue of $607.1 million, a year-over-year increase of 172%. Full-year revenue of $1.8 billion was a year-over-year increase of 100%. Earnings of 27 cents per share beat the analyst consensus estimate by 17 cents.

The company reported connected fitness subscribers of 1.09 million, a year-over-year increase of 113%.

Peloton expects to have 1.32-1.33 million connected fitness subscribers at the end of the first quarter and 2.05-2.10 million by the end of the next fiscal year.

Peloton forecasts revenue growing 218% year over year in the first quarter to $725 million, well ahead of the $505 million estimate. Peloton sees the next fiscal year revenue coming in a range of $3.50 to $3.65 billion, year over year growth of 96% at the mid-point.

Why It’s Important: “We made great progress in scaling our business, from manufacturing and logistics, to member support and field operations. We launched operations in Germany, and continued to grow our footprint in the United States, Canada, and the United Kingdom," the company said in a press release. “Fueled in part by the challenges associated with Covid-19, member engagement reached new highs with 164 million connected fitness subscription workouts completed in FY 2020."

Monthly workouts per connected fitness subscriber was 24.7 in the quarter, compared to 12 in the fourth quarter last year.

Peloton enters the first quarter with a backlog of $230 million in bike orders. The company recently confirmed rumors of a new Bike and Treadmill. The new treadmill will be available in early 2021 in the U.S.

Benzinga’s Take: Goldman Sachs analyst Heath Terry recently raised his price target on Pelton to $96 citing unappreciated gains. Terry believed the company would end the year at 1.09 million subscribers, which was correct. Peloton did not quite hit the $630 million figure Terry had forecast.

Peloton shares are up 7% in after-hours trading at $94.23. Shares closed Thursday down 4% at $87.75.

Shares hit 52-week highs of $98.61 earlier in September and are up 221% on the year.