Shares of fitness platform operator Peloton Interactive (NASDAQ:PTON) accelerate their surge today after the company posted promising second-quarter numbers. While revenue dropped 30.5% year-over-year to $792.7 million, the figure still came in ahead of expectations by $80.4 million.
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Further, net loss per share at $0.98 came in narrower than expectations by $0.32. Additionally, connected fitness churn during the period was 1.1% on a monthly basis. Peloton is seeing an improvement in margins coupled with rising subscription revenue. Impressively, the company had ~3 million connected fitness subscriptions at the end of this period.
Looking ahead to the third quarter, Peloton now expects the top line to hover between $690 million and $715 million. Further adjusted EBITDA loss is seen landing between $50 million and $35 million.
Overall, Wall Street has a consensus price target of $12.23 on PTON, implying a 5.4% potential downside in the stock. That’s on top of a nearly 52.7% slide in the company’s share price over the past year.
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