Peloton Sales Jump 66% on Covid-19 Boost for Home Workouts
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Peloton Interactive Inc. said quarterly revenue soared 66% and paid digital subscribers jumped 64% after the Covid-19 pandemic spurred thousands of people to work out at home. The company also raised forecasts, sending the shares up more than 4% in extended trading.
The New York-based maker of fitness equipment and online exercise services said it generated $524.6 million in sales and grew to over 886,000 connected fitness subscribers, easily beating analysts’ estimates.
“Connected Fitness Product revenue exceeded our expectations across all geographies driven by strong demand for our Bike,” Peloton said Wednesday in a letter to shareholders. “During the last few weeks of Q3, we saw a significant increase in demand for our bike which has continued into Q4 so far.”
The company also raised its fiscal 2020 revenue guidance to a range of $1.72 billion to $1.74 billion and sees 1.04 million to 1.05 million connected fitness subscribers. For the current quarter, the company expects revenue of $500 million to $520 million, exceeding analysts’ estimates, according to data compiled by Bloomberg.
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