Peloton (PTON) Q1 2024 Earnings

shares Peloton It fell about 8% in premarket trading Thursday after the company reported a wider-than-expected quarterly loss and tepid holiday outlook.

Here’s how the connected fitness company did First fiscal quarter Compared to what Wall Street expected, based on a survey of analysts conducted by LSEG, formerly known as Refinitiv:

• Loss per share: 44 cents versus 34 cents expected
• he won: $595.5 million vs. $591 million expected

The company’s reported net loss for the three-month period ending September 30 was $159.3 million, or 44 cents per share, compared to a loss of $408.5 million, or $1.20 per share, in the previous year.

Sales fell to $595.5 million from $616.5 million the previous year.

For the holiday quarter, Peloton expects revenue between $715 million and $750 million, an 8% decline at the midpoint compared to the same period last year. That’s less than the $763.2 million analysts expected for the company’s fiscal second quarter, according to LSEG.

Peloton is launching a series of new strategies as it seeks to recapture its pandemic-era heyday.

In late September, the company announced a five-year partnership with its former rival Lululemon Which brought Peloton’s valuable fitness content to the clothing retailer’s workout app. The partnership marked the first time Peloton was willing to share its content with another company as it looks to attract Lululemon’s 13 million members and convince them to sign up for its subscriptions.

The day before announcing its partnership with Lululemon, Peloton revealed that it was parting ways with chief product officer and co-founder Tom Cortese, who helped start the company alongside ousted founder John Foley. With Cortez’s departure, only two executives from Peloton’s early days remain in its executive suite: Jennifer Cotter, the company’s chief content officer, and Deon Camp Sanders, its chief emerging business officer.

A few weeks later, the company announced a multi-year partnership with the NBA and WNBA, which agreed to name Peloton as the official fitness partner of the sports leagues. As part of the partnership, NBA league pass — the league’s live game subscription service — will be available for streaming via Peloton devices. The company also plans to develop NBA and WNBA-themed fitness classes.

When it comes to hardware, Peloton now sells its Rowing Machine in Canada and its Bike and Bike+ in Austria, its fifth market outside the U.S., as it looks to boost sales of its connected fitness products, which have been declining.

All of the strategies are part of CEO Barry McCarthy’s goal to return the company to growth and boost membership so it can eventually find a path to profitability. During the previous quarter, Peloton saw higher-than-expected churn which the company suspects was related to a recall of its bike seat, along with seasonality.

The strut, which had a tendency to detach and break unexpectedly during use and caused injury to some riders, was recalled in May and affected more than 2 million bikes. During the previous quarter, the recall cost the company $40 million, much more than it expected.

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