Peloton (NASDAQ:PTON) reported a wider-than-expected loss in its third-quarter but topped revenue and guidance estimates.
Peloton shares initially rose following the report, but it is now down over 1% premarket.
The struggling connected fitness equipment company reported a Q3 loss per share of $0.79, $0.31 worse than the analyst estimate of a $0.48 loss per share. Revenue for the quarter came in at $748.9 million versus the consensus estimate of $710.79 million.
While both metrics fell YoY, Peloton did show signs of progress, with CEO and President Barry McCarthy describing the quarter as even better than the last, which he had said was the best in his twelve months with the company.
YoY, Peloton's connected fitness subscriptions grew by 5%. However, McCarthy noted that Q4 will be among its most challenging from a growth perspective, with it historically resulting in a seasonal decline in subscriber growth.
Looking ahead, Peloton sees Q4 2023 revenue between $630M and $650M versus the consensus of $614.4M.