UPDATE 2-Peloton beats revenue, subscriber addition estimates
(Adds connected fitness subscriber numbers, CEO comment in paragraphs 2,4, 9)
Feb 1 (Reuters) - Peloton Interactive beat analysts' estimates for second-quarter revenue and added connected-fitness subscribers as the exercise equipment maker executes its turnaround efforts. The company ended the quarter with 3 million connected-fitness subscribers, above FactSet estimates of 2.99 million subscribers.
Peloton has been working to bring back customers through a number of partnerships and to make its services accessible by introducing new plans that will allow subscribers to workout with or without equipment.
The company added 40,000 connected fitness subscribers in the second quarter from the first, while its churn rate fell to 1.2% from 1.5%.
Subscriber growth has been the central to the company's turnaround plan as demand for its equipment plunged after a pandemic-fueled boom.
Peloton reported revenue of $743.6 million for the second quarter, above analysts' expectations of $733.5 million, according to LSEG data.
Net loss came in at 54 cents per share, compared with estimates for a loss of 53 cents.
CEO Barry McCarthy has set a goal of achieving positive cash flow by the second half of 2024.
"We now expect the business to generate positive free cash flow in Q4 but to fall short of achieving our goal for the full year," McCarthy said on Thursday in a letter to shareholders.
The connected-fitness company said it expects third-quarter revenue to come in between $700 million and $725 million, below analysts' estimates of $753.8 million, according to LSEG data.
Shares of the company were marginally higher in premarket trading.
(Reporting by Kannaki Deka in Bengaluru; Editing by Maju Samuel and Sriraj Kalluvila)
