Cari Gundee rides her Peloton exercise bike at her home on April 06, 2020 in San Anselmo, California. More people are turning to Peloton due to shelter-in-place orders because of the coronavirus (COVID-19).
Ezra Shaw | Getty Images
Peloton‘s revenue surged 66% during the third quarter, as more people purchased its fitness equipment and tuned into its live classes, to try to break a sweat while stuck at home during the coronavirus pandemic.
Its shares shot up more than 5% in after-hours trading following the report.
Here’s what the company reported during its fiscal third quarter ended March 31:
- Earnings per share: A loss of 20 cents
- Revenue: $524.6 million
Peloton last month said it held its largest class ever, with more than 23,000 people streaming it from home. The company, which sells a spinning bike for $2,245 and a treadmill for $4,295, is predicted to be one beneficiary during the Covid-19 pandemic, as gyms remain shut to the public and people are looking to burn calories elsewhere. Peloton went public in September 2019.
Peloton members, in addition to buying their own equipment, pay $39 per month to have access to the company’s live streaming classes, which boast cult-like followings across social media platforms.
Due to the pandemic, Peloton in March closed its retail stores to the public. It has since been producing content live from its instructors’ homes.
Analysts were expecting the company to report a third-quarter loss of 17 cents, adjusted, on revenue of $487.7 million, according to a poll be Refinitiv.
Peloton shares hit an all-time intraday high Wednesday of $39.26. As of Wednesday’s market close, Peloton’s stock is up more than 31% this year. The company has a market cap of about $10.7 billion.
This is a developing story. Please check back for updates.