For the quarter ended March 31, Peloton revealed a loss-per-share of 3 cents vs 12 cents expected. Its net loss dropped to $8.6 million, from last year’s $55.6 million. At the same time, while the market was looking for revenue of $1.1 billion, the figures came in at $1.26 billion, marking a 141% surge from $524.6 million reported at the same time last year.
According to Peloton, the results were driven by an acceleration of expected deliveries.
The results came when the company had to recall all its treadmills after a child died and others were injured in accidents involving the Tread+ machine. Moreover, it announced the delay of its Tread machine in the US until new safety measures are implemented. The cheaper version of Tread+ was supposed to hit the shelves on May 27.
For the future, Peloton expects its fiscal Q4 sales to decrease by $165 million due to the treadmill recall.
Following the news, its stock price gained more than 4%. However, year to date, Peloton share are down 45%.
Source: cnbc.com