Shares of Peloton Interactive Inc. PTON ran up 7.7% toward an 8-month high in premarket trading Wednesday, after the at-home fitness company reported a big revenue beat for the fiscal second quarter and provided an upbeat outlook. Net losses for the quarter to Dec. 31 narrowed to $335.4 million, or 98 cents a share, from $439.4 million, or $1.39 a share, in the year-ago period. The FactSet consensus for net losses was $243.6 million. Revenue dropped 30.1% to $792.7 million, but was well above the FactSet consensus of $709.8 million, as members declined 1% but ending connected fitness subscriptions grew 10%. The company expects third-quarter revenue of $690 million to $715 million, compared with the FactSet consensus of $690.5 million. “Despite seasonally strong hardware sales, for the third consecutive quarter, we generated more revenue from subscriptions than we did from hardware sales,” said Chief Executive Barry McCarthy in a letter to shareholders. “This was by far our best quarterly performance in my twelve months with Peloton.” The stock has tumbled 40.5% over the past three months through Tuesday while the S&P 500 SPX has gained 5.7%.
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