Peloton Q1 results, year outlook beat Wall Street estimates, members top 3.6 million

Peloton said it expects to have 1.63 million Connected Fitness subscriptions by the end of this quarter, and 2.17 million or more for the full year, topping expectations.

Shares of exercise technology vendor Peloton slipped in late trading this afternoon even though the company's fiscal first-quarter results topped Wall Street's expectations for both revenue and profit per share, and its outlook for the full year was higher.

The company's total subscriptions at quarter's end were up 137%, at 1.33 million, Peloton said. It's paid digital subscriptions rose 382% to 510,000, it said. 

Total member count grew to over 3.6 million.

Peloton expects to have 1.63 million total subscriptions by the end of this quarter, it said. For the full year, it projects 2.17 million "or more" Connected Fitness subscriptions. That would be higher than consensus for 2.08 million.

In a letter to shareholders, the company said sales results were "driven by strong Connected Fitness Product sales and continued low Average Net Monthly Connected Fitness Churn of 0.65%." 

Its member engagement, Peloton said, "eased modestly from the prior quarter's level, "but remained well above year-ago levels." 

The number of workouts per subscription declined to 20.7 from 24.7 in the prior quarter.

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Peloton said its members did "90 million workouts in the quarter across over 17,000 classes, up 332% year-over-year."

"We continue to ramp content production and produced over 2,400 new classes in the quarter," the company said.

For the three months ended in September, Peloton reported fiscal Q1 revenue of $758 million, up 232%, year over year, and earnings per share of 20 cents. 

That was higher than consensus for $734 million and 8 cents per share.

For the current quarter, the company sees revenue of $1 billion, higher than consensus for $928.6 million. 

For the full year, the company sees revenue of $3.9 billion, higher than consensus for $3.6 billion. 

Peloton shares traded down by 4% to $121.20 in late trading.