Peloton (PTON) earnings Q2 2024

Peloton managed to turn a gross profit off of its pricey connected fitness products for a second quarter in a row, but the company said Thursday it expects more challenges ahead after it failed to reach a number of goals CEO Barry McCarthy outlined a year ago. 

The retailer delivered mixed results for its holiday quarter, as it lost slightly more money per share than Wall Street expected but beat sales estimates.

Shares fell more than 8% in premarket trading.

Here’s how Peloton did in its second fiscal quarter compared with what Wall Street was anticipating, based on a survey of analysts by LSEG, formerly known as Refinitiv:

• Loss per share: 54 cents vs. 53 cents expected  
• Revenue: $743.6 million vs. $733.5 million expected 

The company reported a net loss for the three-month period that ended December 31 of $194.9 million, or 54 cents per share, compared with a loss of $335.4 million, or 98 cents per share, a year earlier. 

Sales dropped to $743.6 million, down from $792.7 million a year earlier. 

The company issued dismal guidance for the current quarter and a tepid full-year sales outlook. 

For its fiscal third quarter, Peloton expects sales to be between $700 million and $725 million, compared to a Wall Street estimate of $754 million, according to LSEG. The company expects its adjusted EBITDA loss to be between $20 million and $30 million, compared to analyst estimates of a loss of $2 million, according to StreetAccount. 

“Our outlook is tempered by uncertainty surrounding our ability to efficiently grow Paid App subscribers and the performance of other new initiatives, as well as an uncertain macroeconomic outlook,” finance chief Liz Coddington wrote in a letter to shareholders. 

Peloton’s connected fitness subscription guidance came in higher than expected. The company also said it saw strong sales at retail partners like Dick’s Sporting Goods and Amazon, and demand for its Tread+ came in “significantly stronger” than expected. 

For the second quarter in a…