Could Promotion-Relegation work in College Football?
Peloton doubled its total revenue and connected fitness subscriber count over the last year as the pandemic-forced shift to at-home fitness propelled the company to profitability for the first time.
It reported $607.1 million in revenue in its fourth fiscal quarter — a 172% increase from the same quarter a year ago — and had $1.8 billion in total revenue for the year in its earrings release on Sept. 10. Peloton’s monthly subscriptions to its bike and treadmill products hit 1.09 million, up from 511,000 a year ago.
“I want to propose a pretty simple concept: Fitness is moving into the home because home is a better location,” Peloton founder CEO John Foley said to close out the earnings call. “With roughly 35 million treadmills in the U.S. homes today, American consumers have said they want fitness at home. It just hasn’t worked until now.
“People are now moving on to Peloton because of our incredible instructors, because of our strong and supportive community, because of our best-in-class hardware … and so much more. These aren’t not COVID dynamics. These are fundamental, sustainable dynamics.”
Peloton said it expects to add one million more connected fitness subscribers with revenues between $3.5-$3.65 billion for its 2021 fiscal year.
The company’s net income for the quarter was $89.1 million, its first profitable quarter. It still lost $68.4 million overall over the last 12 months.
Paid digital subscribers, where users pay $12.99 per month for workouts streamed to smartphones and streaming devices like Apple TV, grew to 316,80, an increase of 210% year-over-year.
Peloton ended its fiscal 2020 with $1.8 billion in cash, cash equivalents and marketable securities.
Peloton’s market cap, the total value of all of a company’s shares, now exceeds $24 billion. By comparison, Planet Fitness, the largest publicly traded gym chain, has a market cap of $5 billion.
Its first fiscal year as a publicly traded company finished much better than it started.
The company closed down 11% of its IPO price of $29 in its first day of trading in October and fell to as low as $17.70 before the pandemic forced gyms to close worldwide and people looked for new options to workout from home.
The stock price has quadrupled since the middle of March and briefly hit an all-time high of $98.61 before the earnings report was released.
Earlier in the week, Peloton announced two new pieces of equipment: a top-end spinning bike and a more affordable treadmill. The Peloton Bike+ costs $2,495 and the price of the original bike dropped to $1,895. The company’s existing treadmill now goes by Peloton Tread+ with a price tag of $4,295. The new Peloton Tread is $2,495.
Peloton struggled, especially earlier in the pandemic, to fulfill orders. Delivery times were as long as 11 weeks, according to Bank of America analysts Justin Post and Joanna Zhao.
