Peloton Interactive Inc (NASDAQ:PTON) shares surged more than 13% after the fitness company known for its exercise bikes beat sales estimates for the December quarter and boosted its full-year profit outlook.
The company reported a net loss for the fiscal second quarter of $92 million or $0.24 per share, down from $195 million or $0.54 per share in the year-ago quarter. Analysts had expected a loss per share of $0.20.
Sales fell 9% year-over-year to $674 million, ahead of estimates of $654 million.
Adjusted EBITDA was $58.4 million, more than double the $26.7 million expected by analysts.
The company projected weaker revenue but better-than-expected EBITDA for the current quarter.
It expects sales in the range of $605 million to $625 million, below the $652 consensus but adjusted EBITDA between $70 million and $85 million, far ahead of Street estimates of $50.4 million.
Full-year revenue is expected to be between $2.43 billion and $2.48 billion, in line with estimates.
The company raised its guidance for adjusted EBITDA to a range of $300 million to $350 million, a step-up from the previous range of $240 million to $290 million, and upped its free cash flow target to at least $200 million from $125 million.
Shares of Peloton added 13.7% at $8.60 in early trade on Thursday.