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Home / Business / Peloton reports the first results since the IPO: 10 top takeaways

Peloton reports the first results since the IPO: 10 top takeaways



<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "It is unclear at first blush from Peloton on initial earnings report as a public company on Wall Street – generally bullish on & nbsp; recently listed home fitness provider & nbsp; – will still see the stock as a healthy long-term investment. "data-reactid =" 1
5 "> It is unclear at first blush from Peloton's first earnings report that a public company on Wall Street – generally bullish on its recently listed, home fitness provider – would still see the stock as a healthy long-term investment.

<p class = "canvas atom canvas text Mb (1.0 em) Mb (0) – sm Mt (0.8 em) – sm" type = "text" content = "To be sure, there is little for both bulls and bears from Peloton's ( PTON ) first fiscal report reported on Tuesday. "data-reactid =" 16 "> To be sure, there is a bit for both bulls and bears from Peloton's (PTON) first fiscal report released on Tuesday.

Here are the main results, compared to consensus expectations:

  • Total revenue: $ 228 million up 103% year-over-year versus analyst forecasts of $ 196.9 million

  • Adjusted EBITDA loss: $ 1.29 per share against analyst projections for a loss of 39 cents per share.

  • Full-year sales guidance: $ 1.45 billion to $ 1.50 billion versus analyst estimates for $ 1.35 billion

  • Full-year adjusted EBITDA loss guidance: $ 150 million to $ 170 million vs. Street estimates range from a $ 124 million loss (Bank of America Merrill Lynch) to as high as $ 266 million (UBS).

The company continued to suffer a loss as it works to add technical staff, instructors and expand its infrastructure globally. Although what appears to be a much worse loss per share in the quarter compared to analyst forecasts is not the best case for Peloton amid concerns about Street on the path to profitability for the latest crop of hot tech IPOs, the company delivered solid on several fronts.

Peloton's President William Lynch says Yahoo Finance investors should look positively at the company's strong revenue growth and ability to share its losses year over year. He refused to share when Peloton could be profitable.

<p class = "canvas atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " What we like "data-reactid =" 25 "> What We Like

  • Peloton's key engagement metric known as average monthly workout spiked to 11.9 workouts from 8.9 a year ago. [19659010] The company's net loss improved by $ 4.8 million year over year.

  • The number of connected training subscribers and the number of training sessions increased solidly in order.

  • Gross profit margin for Peloton's revenue base increased 763 basis points year over year.

  • $ 1.4 billion cash.

  • 1.6 million members in total, up from about 1.4 million at the time of listing at the end of September.

  • Revealed that in October it bought one of its longtime bicycle manufacturers Tonic Fitness Technology for $ 47.4 million in cash. The acquisition will give Peloton more control over the supply chain, which is usually a positive step.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " What we didn't like "data-reactid =" 34 "> What we didn't like

  • Average monthly workouts of 11.7 dipped from 12 in the fourth tax quarter.

  • Gross profit margins in the connected fitness industry – Peloton's largest – hurt when sales of a larger margin The Third Product increased and the company invested in its logistics.

  • is aggressively investing in business – from building a new headquarters in New York City to showrooms for its equipment abroad. These investments are likely to continue to raise concerns about the profitability timeline, not unlike other previous unicorn tech plays (see Uber and Lyft).

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – -sm Mt (0.8em) – sm" type = "text" content = " Brian Sozzi is editor of major and co-founder of The First Trade [19659025] at Yahoo Finance. Follow him on Twitter @BrianSozzi "data-reactid = "39"> Brian Sozzi is editor of major and contributor to The First Trade at Yahoo Finance. Follow him on Twitter @BrianSozzi

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – – sm "type =" text "content =" Read the latest financial and business news from Yahoo Finance "data-reactid =" 40 "> Read the latest financial and business news from Yahoo Finance [19659033] < p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " Follow Yahoo Finance at [19659051] Twitter Facebook Instagram Flipboard SmartNews LinkedIn [19659024] YouTube and reddit . "data-reactid =" 48 "> [19659021] Follow Yahoo Finance on Twitter Facebook Instagram Flipboard SmartNews LinkedIn YouTube and reddit .


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