Connected exercise bike maker Peloton's quarterly revenue tops forecasts

Investing.com -- Peloton Interactive (NASDAQ: PTON) has reported a 6.2% drop in fiscal second quarter sales versus the year-ago period to $743.6M, but still topped projections of $733.7M, thanks in part to resilience in its digital subscriptions business.

The connected exercise bike maker also unveiled a third-quarter revenue forecast of $700 million to $725 million, missing Bloomberg consensus estimates of $755.6 million, but said it expects revenue to return to growth in its fourth quarter.

Shares in Peloton moved marginally higher in premarket U.S. trading.

In a letter to shareholders, Chief Executive Barry McCarthy called the three months ended on Dec. 31 the "most important quarter of the year" for the firm, which has been battling to boost subscriber growth as part of a wider push to re-focus the business on software instead of hardware.

The number of paid digital subscribers using the Peloton App fell to 718,000 during the period. However, this figure still beat expectations, with McCarthy noting that there was a lower than anticipated churn in average monthly subscriptions.

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