Peloton is widely known as the popular maker of connected indoor exercise bikes and treadmills that can be used to live-stream fitness classes, a business that drew much interest as a Covid-19 pandemic widely shuttered physical gyms in 2020. As such, Peloton has seen good fortunes over the past year and just posted its financial results for its fiscal 2021 second quarter, showing that it surpassed $1 billion in quarterly sales for the first time ever.

Peloton posted $1.1 billion in sales in its fiscal 2021 second quarter and a profit of $63.6 million in the same period. This compares to $466 million in sales and a net loss of $55.4 million in the same quarter of the previous year.

Enjoying strong business growth over the past year, Peloton recently posted its first profitable quarter and has now topped $1 billion in quarterly sales for the first time ever, major milestones for the company.

For a fact, Peloton has seen so much demand for its connected fitness bikes and treadmills over the past year that it’s struggled to fulfill that demand. In December, the company moved to buy Precor, a US-based manufacturer of fitness equipment, mainly for its manufacturing expertise in order to help meet up with the high demand for its products. 

Peloton’s manufacturing chain currently exists mostly outside the US but the company has now sought to begin producing its fitness equipment in the US and saw fit to pay a steep price of $420 million for Precor as a way to achieve that. 

Precor has a manufacturing capacity that’s 625,000-square-feet strong and a dedicated team of about 100 R&D employees that’ll pass on to Peloton once its sale is closed. With that, Peloton aims to increase its production capabilities as it sees increasing demand for its products.

Peloton reports now having 625,000 paying subscribers for its live fitness content service, up 472% over the year. Coupled with increased sales of its equipment, it’s then no surprise that the company’s quarterly revenue in its fiscal 2021 second quarter grew 128% over the year.

Forecast

For its full fiscal 2021 year, Peloton is forecasting $4.1 billion in sales, a record for the company. Its full Q2 2021 report can be seen below.

Photo credit: Peloton

Peloton Q2 2021 Shareholder Letter on Scribd

Share this...

Facebook

Pinterest

Twitter

Linkedin

Whatsapp

Email

Print