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Markets News

CORRECTED-UPDATE 2-Peloton warns of supply constraints after meteoric demand (Nov. 5)

(Corrects paragraph 3 to say subscriptions climbed “137% to 1.33 million”, not “137% to $1.33 million”)

Nov 5 (Reuters) - Exercise bike maker Peloton Interactive Inc on Thursday warned of near-term supply constraints, as demand for its at-home fitness equipment has shot up due to gym closures during the pandemic.

Peloton shares, which have risen four-fold this year, were down 7% in extended trading, even though the company’s first-quarter results topped Wall Street estimates and it raised the annual revenue forecast.

The exercise bike maker’s Connected Fitness revenue jumped 274% to $601.4 million in the quarter while its subscriptions climbed 137% to 1.33 million.

The segment, Peloton’s primary revenue generator, includes interactive fitness equipment with touchscreen that streams live and on-demand classes.

The company raised its 2021 revenue forecast and said revenue would be at least $3.9 billion, compared with its previous forecast range of $3.50 billion to $3.65 billion.

Peloton’s total quarterly revenue surged more than three-fold to $757.9 million. Net profit attributable to Class A and Class B shareholders was $69.3 million, or 20 cents per share.

Analysts on average had estimated the company to report a profit of 11 cents per share on a revenue of $734.2 million for the quarter. (Reporting by Shreyasee Raj in Bengaluru; Editing by Maju Samuel and Vinay Dwivedi)

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