Peloton Post First Profit In Fitness Tech Boom
Smart fitness equipment maker, Peloton, has reported its first ever quarterly profit, with a spike in home workout demand prompting a three-fold revenue boom.
Shares jumped around 10% after reporting Q4 revenue of US$607.1 million – up 172% year-on-year.
Quarterly profit notched US$89.1 million, or 27 cents per share.
Peloton has announced around 1.1 million individuals are subscribed to its remote fitness classes as at June 30, reflecting demand for its premium US$2,000+ smart treadmills and exercise bikes during the COVID19 pandemic.
The company has continued to battle supply shortages, warning it doesn’t expect to return to normal delivery times in the United States for several months.
Concerning future outlook, Peloton projects US$3.5 billion – US$3.65 billion for fiscal 2021, and US$720 million – US$730 million for the fiscal first quarter.
The news comes as athleisure giant, Lululemon, expands into fitness technology, with its Mirror smart displays set to be sold from retail stores internationally.
Purchased by Lululemon for US$500 million, Mirror sells ~US$1,500 smart displays which allow users to stream and participate in workout classes from the comfort of home via an intuitive touch screen.
The smart mirrors are positioned as an option to traditional gyms, with its interactive screen playing workouts, tracking personal progress, and offering the opportunity to monitor form.
Peloton broadcasts fitness videos onto its branded bikes and treadmills globally, whilst offering a digital subscription to classes too.
Responding to criticism that its products are only accessible by the wealthy, Peloton is has announced it’s launching a more affordable smart treadmill next year.
The company has also confirmed it’s cutting the price of its flagship bike by a few hundred dollars.
Reflecting broader industry trends, Peloton expects the number of fitness subscribers to climb around 90% in the next fiscal year.