Peloton shares skyrocket as revenue rose for the first time in years

Peloton Interactive (NASDAQ:PTON) shares skyrocketed on Thursday, rising $1.25 or 37.55% to $4.61, after a modest increase in revenue proved to be much better than Wall Street had feared.

Revenue for the quarter was up just 0.2% to $644 million for its fourth quarter.

Significantly, it was the first time Peloton has seen a quarter of revenue growth since 2022.

‘Hardware’ revenue – i.e. bikes and treadmill sales – were down 4%.

At the same time, Peloton improved profitability with adjusted earnings (EBITDA) reaching $70 million – compared to a $34.7 million loss for the same quarter last year.

Despite the market’s giddiness, Peloton remain quite cautious with guidance predicting lower revenue in the next quarter with its forecast pitched between $560 million and $580 million.

“We ended the 2024 fiscal year with strong Q4 performance, meeting or exceeding our guidance on all key metrics and making continued progress on a number of our financial goals,” Peloton said in a letter to shareholders.

The company added: “Q1 is typically a seasonally low quarter for hardware sales and we also expect continued sales headwinds as a result of an uncertain macroeconomic environment.”