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.

Posted In: Covid-19Peloton BikePeloton TreadEarningsNewsGuidanceTop StoriesAfter-Hours Center

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.