#PelotonEarnings #SubscriptionGrowth #FinancialAnalysis
Peloton ($PTON) Reports Q4 2024 Earnings: A Mixed Bag
Peloton Interactive, Inc. ($PTON) released its fourth-quarter earnings report for 2024, revealing a mixed performance that left investors both optimistic and cautious. The fitness technology company, known for its high-end exercise bikes and subscription-based workout services, reported a revenue of $1.04 billion, slightly below the expected $1.07 billion. This represents a 12% year-over-year increase, but a 5% decline from the previous quarter.
On the positive side, Peloton's subscription revenue grew 22% year-over-year to $344 million, driven by an increase in connected fitness subscribers. The company now boasts over 3.5 million subscribers, a testament to its ability to attract and retain customers. Additionally, Peloton's gross margin expanded to 44.5%, up from 42.3% in the same quarter last year, indicating improved operational efficiency.
However, the company's net loss widened to $123.4 million, or $0.45 per share, compared to a loss of $105.4 million, or $0.35 per share, in the same quarter last year. This was largely due to increased operating expenses, including investments in marketing and research and development.
Peloton's guidance for the first quarter of 2025 was also mixed. The company expects revenue to range between $1.03 billion and $1.05 billion, below analysts' expectations. However, it anticipates a narrower net loss of $0.35 to $0.40 per share.
In response to the earnings report, Peloton's stock price initially fell but later recovered, reflecting the mixed sentiment among investors. While the company's subscription growth and improving gross margin are encouraging signs, the widening net loss and cautious guidance have raised concerns about its long-term profitability.
Original Article: https://www.cnbc.com/2024/08/22/peloton-pton-earnings-q4-2024.html
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