Exercise equipment maker Peloton Interactive Inc. widened its losses in the last quarter of the fiscal year 2021 following the recall of several products in May, the company announced in a filing.
- Net loss for the fourth quarter stood at $313.2 million, a reversal of the $89.1-million net income a year ago, and wider than the $8.6-million loss the previous quarter. Basic and diluted losses per share were $1.05.
- Total revenue climbed 54% year-on-year to $936.9 million but was partly offset by the impact of the Tread product recalls. Subscription revenue climbed 132% to $281.6 million, as its subscriber base grew 114% to 2.33 million.
- Adjustments and charges associated with the Tread and Tread+ recall were estimated at $100 million. This includes $81.1 million in losses for current and estimated future returns, $15.7 million in inventory write-downs and logistics costs, and $3.2 million in operating expenses.
- Peloton will also lower the price of its Peloton Bike across all markets to $1,495 or $39 monthly. It will also launch a 43-month 0% financing term option for Bike+ and Tread, equivalent to $59 per month.
Revenue guidance for the first quarter of the fiscal year 2022 was set at $800 million and $5.4 billion for the full year. Subscriptions are seen to grow 3.63 million for the year. PTON is down 1.86%.