Peloton shares jump on earnings beat, revenue growth

Peloton (NASDAQ:PTON ) shares surged 16.7% in premarket trading on Thursday after the fitness equipment maker reported better-than-expected fourth-quarter results and returned to revenue growth for the first time in two years.

The company posted a narrower-than-anticipated loss of $0.08 per share, beating analysts' estimates of a $0.17 loss. Revenue came in at $643.6 million, surpassing the consensus forecast of $628.47 million and marking a 0.2% YoY increase - the first positive growth since Q2 FY22.

Peloton's subscription segment was a key driver, with revenue rising 2.3% YoY to $431 million. The company also made significant strides in profitability, reporting positive Adjusted EBITDA of $70 million, up $105 million YoY.

"We ended the 2024 fiscal year with strong Q4 performance, meeting or exceeding our guidance on all key metrics and making continued progress on a number of our financial goals," said Peloton in its earnings release.

However, the company's outlook for the current quarter and full fiscal year 2025 came in below analysts' expectations. Peloton forecasts Q1 revenue of $560-580 million, compared to the $602 million consensus. For FY2025, the company projects revenue of $2.4-2.5 billion, below the $2.69 billion analysts were expecting.

Despite the softer guidance, investors appeared to focus on the company's return to growth and improved profitability metrics. Peloton also highlighted its progress in cost-cutting initiatives, including approximately $15 million in savings during Q4 from its restructuring plan.

Source: Investing.com