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Peloton shares slipped sharply after the maker of connected fitness bikes and treadmills cut its guidance and continued to blame “supply chain constraints”.

The company said holiday quarter revenue should be between $1.1bn and $1.2bn, well below forecasts at $1.5bn. For its most recent quarter, Peloton reported that revenues grew 6 per cent to $805m, missing forecasts of $810.7m.

Peloton shares, which were down 41 per cent year to date before the results, dropped a further 25 per cent in after-hours trading.

The company now has a market capitalisation of about $20bn. That is higher than the $8.1bn valuation at the time of its IPO in September 2019 but far from the $47bn it reached in January before it was forced to recall its treadmills following reports of injuries and one death involving the machines.

Chief executive John Foley said the outlook was “very challenging” to forecast “given unusual year-ago comparisons” flattered by extra demand because many people started working out from home during the pandemic.

He cited “demand uncertainty” as economies reopen and blamed “supply chain constraints and commodity cost pressures”.

Peloton reported a net loss of $376m in its fiscal first quarter, deeper than the $331m loss expected by analysts and compared with a net profit of $69.3m a year ago.

The company expects revenue of $4.4bn to $4.8bn in all of fiscal 2022.

Peloton said it now had 2.49m connected fitness subscribers, who typically pay about $39 a month for bike or running classes, representing an 87 per cent increase from the level a year ago.

The number of paid digital subscribers, who are signed up to $13-a-month plans that do not require equipment, rose 74 per cent from a year ago to 887,000.

Subscription revenue grew 94 per cent to $304.1m, accounting for more than a third of overall revenue.



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