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Shares of the fitness equipment maker jumped 7% before the bell after it also reported a slowing cash burn on a string of cost-cutting measures.
Peloton (NASDAQ:PTON) was all the rage among fitness enthusiasts during COVID-19 lockdowns, with the company hitting hit a peak market value of nearly $50 billion in early 2021. But with people returning to gyms the company saw demand for its equipment dwindle.
In response, the company had announced plans to sell its fitness equipment on e-commerce giant Amazon.com (NASDAQ:AMZN) and at Dick’s Sporting Goods (NYSE:DKS) Inc stores.
For the third quarter, Peloton forecast revenue between $690 million and $715 million, above expectations of $689.1 million, as per Refinitiv data.
The company kept its goal of break-even free cash flow by the end of fiscal 2023, a key milestone being watched by investors.
However, Peloton said challenging economic conditions were impacting consumer spending patterns and that near-term demand for connected fitness hardware is likely to remain challenged.
Meanwhile, the company’s net loss narrowed to $335.4 million, or 98 cents per share, in the second quarter from $439.4 million, or $1.39 per share, a year ago.
Cash burn fell to $94.4 million from $546.7 million.
It posted total revenue of $792.7 million, beating analysts’ average expectation of $710.02 million.
