Proactive Investors - Peloton Interactive Inc (NASDAQ:PTON) tumbled 21% to $4.36 after the digital fitness company reported lower sales and some failures with its planned growth initiatives, though losses were reduced.
Revenues for its fiscal second quarter of $319.1 were down 16% compared to a year ago, although the festive quarter saw 77% growth compared to the first three months of its financial year.
Member numbers fell 4% to 6.4 million and paid subscribers at the end of the period fell 16% year-on-year to roughly 718,000.
Gross profits increased 27% to $299.4 million and net losses were cut 42% to $194.9 million, or 33% to $81.7 million at the adjusted EBITDA level.
CEO Barry McCarthy candidly addresses recent setbacks: "Several of these new initiatives have performed strongly. Some have not," particularly highlighting the unsuccessful premium co-branded bike experiment with the University of Michigan and the challenges faced by the member support team, which "has tarnished our brand, and we simply must do better."