Need to Know
- Peloton has seen its third-quarter sales surge 66% as the pandemic is forcing everyone to find new ways to work out from home.
- The fitness company also hosted its largest class ever, with 23,000 users joining a live workout together.
- As a result of the company’s $524.6 million quarterly revenue, shares have jumped 8% this week.
As more people are forced to stay indoors and find alternatives to exercise that do not involve hitting the gym, Peloton is posting massive gains.
The fitness company, which sells stationary bikes and an app that allows you to access thousands of virtual workouts on demand, says sales have surged 66% during the third quarter.
Hundreds of thousands of people are now working out from home due to the global lockdown — and in one instance, 23,000 of them joined a live workout last week which was hosted by the company’s head instructor from her home.
Peloton offers two main memberships: an all-access subscription that comes with the purchase of a stationary bike or a digital membership for users with their own bike or who want to utilize the brand’s strength training, yoga, and running classes too.
The fitness brand’s CEO John Foley says the company is seeing many new users subscribe and expects this pandemic will change users’ fitness routines for the long-term.
“Over the past year, we’ve seen steady gains in member engagement as we’ve expanded content verticals and launched new member experiences,” said Foley. “With so many members now under stay at home orders, this quarter saw an even larger gain than expected. Our Connected Fitness Subscribers logged 44.2 million workouts with us in the quarter up from 18.0 million workouts in the same period last year representing 145% year-over-year growth.”
“In addition, we now have over 176,000 digital subscribers with growth attributed to improvements we have made to our fitness content and saw for features available on our digital app.”
The company reported quarterly revenue of $524.6 million (a 66% increase from last year). Due to the results, Peloton shares jumped 8% this week.
Part of that huge success comes from peloton makings it’s app free for certain users during the lockdown. Android TV users are able to try the app for free for 90 days. Users without an Android TV who want to work out from home can still try Peloton on their preferred device for free for 30 days.
In an effort to keep up, Peloton competitor and top spinning studio, Soulcycle, has launched its own smart, at-home bike and streaming app.