almost 4 years ago • 2 mins
Okay, Peloton in New York, let’s do this: the luxury exercise equipment-maker made its quarterly update count late on Wednesday, and its stock dug deep to climb 17% higher on Thursday. Great job, you smashed it! 💦
$2000 price tag or not, Peloton’s workout bikes didn’t seem too expensive for the higher-than-expected number of customers who bought them last quarter, which led to 66% higher revenue versus the same time last year. Likewise, Peloton’s digital subscription revenue rose by 64% as would-be gym bunnies hunkered down in their rabbit holes, only popping their heads up to scout out fresh workout content 🐇 And in what’s become a rare feat among recent earnings reports, the company even raised its revenue forecast for this quarter.
Since the company’s stock market debut last year, analysts have been debating whether Peloton would attract and keep enough customers to become a lasting business. And its latest update added fuel to both sides’ fires: a raft of new customers suggested coronavirus might’ve accelerated the home workout trend, sure, but the sky-high percentage of monthly – rather than annual – subscriptions hinted that customers might be poised to flock back to their gyms 🚴♂️ Still, the naysayers seem to be losing the argument for now: Peloton’s stock was up 34% this year before Thursday.
In a textbook example of how a brand can try to increase its customer appeal, Peloton’s planning to broaden its product range with a rowing machine and a cheaper treadmill. The company might be hoping that if it turns you into a die-hard customer, you’ll become an investor too 🤨 Warren Buffett, after all, reportedly invested in Coca-Cola because he liked the taste of the soft drink and figured others would too – making the business one he understood and, in turn, meeting one of his investment conditions.
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