Peloton surges after Q4 earnings beat expectations, connected fitness subscribers up 113%
Fitness giant Peloton has been a stock to watch as at-home fitness surges in popularity due to COVID-19. Yahoo Finance's Myles Udland breaks down the company's fourth-quarter earnings report on The Final Round.
Video Transcript
SEANA SMITH: Peloton is out with its earnings report. Myles has the details for us. Myles.
MYLES UDLAND: Yeah, Seana, stock up about 1% here. Obviously, it has had a huge run in the last few months. Peloton reporting probably better than expected quarter here, $0.27 per share in earnings. Better than the $0.12 that the street was looking for. The company's revenues also beating expectations, $607 million against $581 million that was expected. Now this breaks down the $485.9 million in connected fitness revenue. Street was looking for something just under $450 million there. Subscription revenue $121.2 million for Peloton in the quarter, slightly light, under $122.5 million is what the street had expected there.
Guidance here quite strong. I think it speaks really to the step change that Peloton's seen in their business. They're looking for, so this was their fourth quarter, so their first quarter, the current quarter, looking for revenues $720 to $730 million. They're looking for 1.32 million to 1.33 million subscribers. That'd be 135% increase at the midpoint of that guidance. For the full year of its upcoming year, its full year 2021, $3.5 to $3.65 billion in revenue is what the company is now forecasting.
The subscribers, $2.05 to $2.1 million next year, a growth of 90% at the midpoint. So again, just huge growth for the company as the street has sniffed out, as you would expect, in a pandemic, just a couple of metrics that the company had in terms of the number of workouts completed. 76.8 million workouts completed by subscribers in the most recent quarter. That works out to 24.7 per subscriber per month. So people really getting after it with their Peloton the pandemic, Seana.
