Peloton posts deeper loss than estimated, cuts outlook
BNN Bloomberg
Peloton reported a deeper loss than analysts predicted, cut its revenue guidance, and signed a deal with JPMorgan Chase and Goldman Sachs to borrow US$750 million in five-year term debt.
The results suggest Peloton’s comeback effort is still a long way from taking hold, despite a shake-up earlier this year. In February, co-founder John Foley was ousted as chief executive officer after sales slowed and Peloton struggled to manage its production. He was replaced by former Spotify Technology SA and Netflix Inc. Chief Financial Officer Barry McCarthy, who vowed to cut costs and generate more of Peloton’s revenue from subscriptions.
The fitness technology company reported revenue of US$964.3 million in the fiscal third quarter on Tuesday, missing a Wall Street estimate of US$971.6 million. The net loss was US$757.1 million, excluding some items, compared with an average estimate of US$132.1 million.
Looking forward, Peloton expects to report US$675 million to US$700 million in revenue in the fourth quarter, well below analysts’ average estimate of US$820.9 million. Peloton put the forecast miss down to “softer demand” compared to its previous guidance, and recent hardware price reductions.
