Amid a tumultuous year, Peloton posted a net loss of $313.2 million in its fiscal fourth quarter, as treadmill recalls weighed on its balance sheet.
The connected fitness company announced on Thursday that it is lowering the price of the Peloton Bike to $1,495 from $1,895. The bike was previously reduced from $2,245 in September 2020.
Peloton took in $937 million in revenue, a 54% increase from the same period last year, though a 25.8% drop from the previous quarter’s $1.3 billion.
Peloton’s underlying numbers show a user base that has grown despite company controversy and a rising group of connected fitness competitors.
- Peloton’s connected fitness membership increased 114% year-over-year to 2.3 million subscribers. The $39-per-month plan allows users to stream workout classes and other content from their machines.
- Digital memberships ($12.99 per month), which allow users to stream classes through phones, tablets, and computers, grew 176% to over 874,000.
- Peloton predicts $5.4 billion in fiscal 2022 revenue.
The company announced last week that it will release a revamped treadmill on Aug. 30 for $2,495 – much less than the $4,300 price of its original model. Peloton recalled its Tread and Tread+ machines in May after reports of numerous injuries and one death.