Peloton Interactive Inc (NASDAQ:PTON) reported a wider-than-expected quarterly loss and warned investors it expects to sign up fewer members for the year.
The fitness equipment maker's fiscal 3Q 2023 results raised concerns about its growth prospects after a tepid subscription forecast.
For the first time, Peloton guided a net decline in memberships for the subsequent quarter, raising concerns over a smaller total addressable market.
During the quarter ended March 31, 2023, Peloton reported a net loss of $0.79 per share, missing Refinitiv estimates of a loss of $0.43.
Third quarter revenue came in at $748.90 million, a 22% drop but ahead of expectations of $708.05 million.
The firm did forecast fourth-quarter revenue between $630 million and $650 million, above estimates of $607.7 million, as it benefits from expanding its sales channels to third-party platforms.
Peloton's stock fell 14.3% in afternoon trading after initially rising on a stronger-than-expected forecast for fourth-quarter revenue.
Contact Angela at angela@proactiveinvestors.com
Follow her on Twitter @AHarmantas