Peloton revenue surges 172% thanks to lockdown demand

Peloton (NASDAQ: PTON) sales and shares surged after the group became a popular purchase during the lockdown.

As gyms closed across the world, sales at Peloton grew to 3.1m – over double than the membership base a year previously.

Shares jumped 10% on the news as the group revealed fourth-quarter revenue surged 172% at $607.1m. Analysts on average expected a revenue of $583 million.

Chief executive John Foley said: “Demand… remains strong and member engagement remains elevated, despite improving weather and the gradual reopening.”

Peloton has said revenue forecast for the next financial year is expected to reach at least $3.5bn – higher than Wall Street’s expectations.

“FY 2020 was a transformative year for Peloton. We made great progress in scaling our business, from manufacturing and logistics, to member support and field operations,” said the group in a statement.

“We launched operations in Germany, our first foreign language market, and continued to grow our footprint in the United States, Canada, and the United Kingdom. By the end of FY 2020 our Peloton membership base grew to approximately 3.1 million, compared to 1.4 million Members in the prior year. 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.”

 

 

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Safiya Bashir
Safiya focuses on business and political stories for UK Investor Magazine. Her interests include international development, travel and politics.