Peloton delivers blockbuster Q4 amid pandemic demand surge

Peloton said connected fitness subscriptions climbed 113% to over 1.09 million, while paid digital subscriptions grew 210% to over 316,800.

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. 

ZDNet Recommends

Best home gym fitness equipment in 2020: Peloton, Hydrow, Mirror, Bowflex, and more

We hand-picked a bunch of exercise equipment for your quarantine home.

Read More

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.

Must read:

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.

screen-shot-2020-09-10-at-4-39-13-pm.png

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.