(Reuters) – Peloton Interactive Inc
The strong results validated heightened expectations around the company after analysts hailed Peloton, known for its $2,200 exercise bikes, as one of the few companies to benefit from prolonged lockdowns and a shift in consumer behavior.
The company’s shares rose 5% in extended trading, adding to a more than 40% jump in the last three months.
Peloton said it now expects fiscal year revenue to be in the range of $1.72 billion to $1.74 billion, compared with an earlier forecast of $1.53 billion to $1.55 billion.
The company also raised its outlook for Connected Fitness subscribers for the year to 1.04 million to 1.05 million, from its previous estimate of 920,000 to 930,000.
The loss-making company, which also offers on-demand exercise videos, said that it entered the fourth quarter with a backlog of bike deliveries in all geographies and that its sales continue to surpass expectations.
Peloton also forecast fourth-quarter revenue of $500 million to $520 million, well above the average analyst estimate of $383.26 million.
In the reported third quarter, Peloton’s total revenue surged 65.6% to $524.6 million, handily beating analysts’ estimates of $487.7 million.
Net loss attributable to Class A and Class B shareholders widened to $55.6 million, or 20 cents per share, in the quarter ended March 31, from $38.6 million, or $1.76 per share, a year earlier.
(Reporting by Sanjana Shivdas and Devbrat Saha in Bengaluru; Editing by Saumyadeb Chakrabarty)
