Beating its own expectations, fitness brand Peloton on Wednesday reported second-quarter revenue of $792.7 million, according to a company press release. This marked a 30% drop year over year, but a 29% increase on a quarterly basis. The company’s net loss narrowed to $335.4 million from $439.4 million a year ago.
Revenue from content subscriptions was once again higher than revenue from its connected fitness products, such as its Bike or Tread. However, even subscription revenue declined, falling from $412.3 million in the previous quarter to $411.3 million despite an increase in connected fitness subscribers (customers with both Peloton hardware and a content subscription).
In a letter to shareholders, CEO Barry McCarthy said the company had planned to sell its Ohio manufacturing facility and its Precor owner-operator supplier business, but neither effort came to fruition. The sale of the facility has been delayed by up to six months, and the company has pivoted to restructuring Precor to maximize growth after clearing prices were lower than Peloton thought it was worth.
Source: Retail Dive
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