Yasin Ebrahim
Investing.com - Peloton slumped in afterhours trading on Thursday after the exercise equipment company cut its revenue guidance and first-quarter results fell short Wall Street estimates as recent price cuts failed to spark a jump in subscriber numbers.
Peloton Interactive (NASDAQ:PTON) stock plunged 20% following the report.
Peloton posted a loss per share of $1.25 on revenue of $805.2 million, topping estimates for a $1.14 per share loss on revenue of $808.9 million.
For the full-year 2022 revenue guidance was cut to a range of $4.4 billion to $4.8 billion from $5.4 billion previously. That was well below the $6.91 billion expected.
Connected fitness subscriptions grew 87% to over 2.49 million in the quarter compared to expectations of 2.48 million, while paid Digital Subscriptions grew 74% to 887,000.
The company lowered the price of its original bike to $1,495, or $39 per month with 39-month 0% APR financing
"We continue to believe price remains a barrier to purchase for many consumers and this is our latest step to improve the accessibility of our platform. We are pleased with the consumer response to our new price, which quickly converted many consumers already in our purchase funnel and is helping to generate a significant number of new leads," the company said.
Looking ahead to Q2, the company guided revenue in a range of $1.1 billion to $1.2 billion and connected fitness subscriptions between 2.8 million to 2.85 million. That compared with estimates for revenue of $1.49 billion.