Peloton CEO predicts 100 million users within 10 years
Present Trump presents the Medal of Honor to Army Sergeant Major Thomas Payne-FBN
High tech connected bike giant Peloton, which has become a favorite stock and product during the coronavirus pandemic, may have a longer runway than even the most bullish analysts and investors imagined.
Continue Reading Below
In an interview with FOX Business' Claman Countdown, CEO John Foley put a point on the time horizon as to when Peloton could crack through a sky-high ceiling.
“I believe we can have — in ten or fifteen, twenty years from now – we could have 100 million subscribers," Foley said/. "Right now we have one million. So we're one percent into our opportunity from the way we're defining it. And so it just feels like very early days.”
PELOTON LAUNCHING CHEAPER TREADMILL, CUTTING BIKE PRICE
The company best known for its subscription, on-demand bike workouts reported its first-ever profitable quarter, swamping both top and bottom line Wall Street estimates. Peloton's fiscal fourth-quarter revenue hit $607.1 million, a 172% jump year-over-year.
PELOTON WORKS OUT A HUGE INCREASE IN SALES AS STOCK SOARS
Adjusted earnings per share came in at $0.27 cents per share, which beat expectations of $0.10 cents, and the company's fiscal year 2021 sales guidance spans $3.5 billion – $3.65 billion, which far outpaced the $2.7 billion estimate.
With demand through the roof, the company said backlogs for bikes will remain in place likely through early next year, the company's fiscal second quarter.
Foley says Peloton's check-all-boxes approach gives his company the edge in an increasingly crowded field. Peloton just discounted its current stationary bike, rolled out a new Bike+ complete with a swiveling screen and 4 speakers, and a new treadmill. But it's Peloton's membership app, which requires no equipment, that Foley believes will solidify its leadership position as the ultimate workout-from-home choice because it can be streamed from just about any device.
“Your television screen, your Roku, your Apple TV, your Amazon fire TV or your phone, your IOW device, or your Android device. So, however, the consumer wants to take our classes, whether they have our hardware, whether they don't. We are again, agnostic. But it was an explosion. As we went into COVID, we had very quickly over a million members on our trial, which we gave a 90-day free trial to get content into people's homes. And we were happy to do our part for our communities to keep them active” he added.
Shares of Peloton have gained nearly 200% this year.
Source: Read Full Article