The photo was taken outside the Nasdaq MarketSite in New York, the USA, of Peloton Interactive Inc. co-founder and CEO John Foley presenting the IPO photo for the company.
In a statement on Thursday, Peloton said that its second-quarter sales would be within previous estimates as it attempts to improve profitability and reduce costs.
According to the company’s most recent figures, it recorded fewer subscriber additions than anticipated until December.
In a press release announcing its financial results, Peloton said it expects to have 2.77 million subscribers to the connected fitness service by the end of the quarter, up from 2.8 million to 2.85 million forecasts. Users of Peloton products who subscribe to Connected Fitness pay a monthly fee to access Peloton’s digital workout content.
For the coming quarter, it is expected that the net churn rate will be 0.79%. As a result, there is a decrease in growth from 0.82% in the first quarter, but a slight increase from 0.76% during the same period last year. Consequently, Peloton’s turnover rate is lower when its churn rate is lower.
According to previous guidance, the company’s revenue for the second quarter was between $ 1.1 billion and $ 1.2 billion.
Against the previously expected losses of $ 350 million to $ 325 million, Peloton’s adjusted losses of $ 270 million to $ 2 million ranged from interest, taxes, depreciation, and pre-amortization. Approximately $ 160 million would be involved in the deal, he said.
On Thursday night, it announced the news after CNBC reported that connected fitness makers had temporarily halted production.
Peloton’s share price rose 2.5% after hours to $20.22, down 23.9% during regular trading hours. On Thursday, reduced Peloton’s market capitalization was by approximately $ 2.5 billion as the stock price fell below $ 29 in its initial public offering.
“Our company has taken significant corrective actions to boost profitability and control costs, as we discussed last quarter,” Foley said in a statement.
” “Specifically, we need to improve gross margins, shift towards a more variable cost structure, and identify opportunities to reduce operating costs associated with building a more focused peloton in the future.”
On February 8, will report Peloton’s second-quarter earnings, and Foley said the company needed to provide more information.
CNBC stated that Peloton is currently consulting for McKinsey & Co. He is looking for cost-saving measures such as layoffs and store closures to reduce costs.
We expect to implement shipping and setup fees for our bike and tread products at the end of this month, partly due to historical inflation. Prices for that Bike is range from $ 1,495 to $ 1,745. Its cheap treadmill will rise from $ 2,495 to $ 2,845. A Peloton website reports that the price for the Bike + remains $2,495.