1 Question Peloton Has to Answer
There's no question that Peloton (NASDAQ: PTON) has been one of the top "coronavirus stocks" of the year. The connected fitness specialist has gone from a controversial, unprofitable, and hyped-up IPO to a booming star during the pandemic. Its stock has jumped 270% so far this year, and it's easy to see why. Like Zoom Video Communications, Peloton has gone from a niche product to the mainstream during the crisis, as its offerings are perfectly suited to a time of quarantines and social distancing, giving fitness enthusiasts a way to enjoy live classes while they're safely at home.
The company's key metrics speak for themselves. Revenue in the fiscal fourth quarter, which ended June 30, jumped 172% to $607.1 million as connected fitness subscriptions increased 113% year over year to 1.09 million and digital subscriptions, or those separate from Peloton equipment, jumped 210% to 316,800. Bottom-line performance was strong too as the company posted a generally accepted accounting principles (GAAP) profit of $89.1 million, or $0.27 per share, completely reversing its $47.4 million loss from the year-ago period.
Peloton also dazzled investors with its guidance, calling for revenue in fiscal 2021 to essentially double to between $3.50 billion and $3.65 billion, while adjusted EBITDA similarly surges to $200 million to $275 million, up from $117.7 million last year.
Source Fool.com
