Demand for at-home workouts and fitness equipment drove Peloton to its first profitable quarter as a public company, as paid subscriptions and memberships for its connected fitness offerings soared in the fourth quarter amid the ongoing pandemic.
The company, which bills itself as a technology, media, and fitness operation, reported fiscal fourth quarter revenue of $607.1 million, up from $223 million a year ago. The net profit for the quarter was $89.1 million, or 27 cents a share.
Wall Street was looking for fiscal fourth quarter revenue of $582.5 million with earnings of 10 cents a share.
In terms of subscriber growth, Peloton said connected fitness subscriptions climbed 113% to over 1.09 million, while paid digital subscriptions grew 210% to over 316,800. Total members grew to approximately 3.1 million, the company said. Broken down, Peloton said Q4 connected fitness revenue was $485.9 million and subscription revenue grew to $121.2 million.
"In Q4 we saw strong sustained momentum in Connected Fitness subscriber and revenue growth due to COVID-19 while we continued to pause the majority of our media spend and kept most showrooms closed," the company wrote in its shareholder letter.
For the fiscal first quarter, Peloton is projecting 1.32 million to 1.33 connected fitness subscribers with revenue of $720 million to $740 million. For fiscal 2021, Peloton projected 2.05 million to 2.10 million connected fitness subscribers with $1.53 billion to $1.55 billion in revenue.
Shares of Peloton were up over 6% in extended trading.