Peloton stock surges on partnership with Google Fitbit

Google's (NASDAQ:GOOGL ) Fitbit has entered into a partnership with Peloton Interactive (NASDAQ:PTON ), allowing its premium users access to Peloton's fitness content starting in early September, according to an announcement by the companies on Tuesday.

Peloton shares jumped nearly 9% in premarket trading Wednesday.

Under the terms of the agreement, Fitbit premium members in the U.S., UK, Canada, and Australia will be able to access Peloton's classes in various categories, including pilates, running, boxing, and cycling.

In return, Peloton members will receive special offers on Google Pixel watches and Fitbit Charge 6 devices.

Financial terms of the deal were not disclosed.

“We're thrilled to bring Peloton's classes and world-class Instructors to Fitbit users, and continue to establish Peloton as a one-stop shop for all types of fitness content,” said Greg Hybl, Senior Vice President and General Manager of Peloton for Business.

“Together we share a commitment to make health and wellness more accessible and ensure even more people can reach their fitness goals.”

Peloton’s collaboration with Google comes as exercise equipment maker faces declining sales due to uncertain demand for its stationary bikes and treadmills, prompting the company to refinance its debt.

The company reported wider-than-expected loss for the fiscal third quarter and forecasted its first-ever decline in subscribers amid an uncertain economic backdrop.

Peloton reported a net loss of $275.9 million, or 79 cents per share, for the period, compared to a loss of $757.1 million, or $2.27 per share, a year earlier. This marked the company's ninth consecutive quarter of losses.

Revenue dropped 22% year-over-year, falling from $964.3 million.

Still, Peloton highlighted some progress in its turnaround strategy, recording growth in connected fitness subscriptions and a reduction in free cash flow losses.

Source: Investing.com