Peloton warns of supply constraints after meteoric demand

FILE PHOTO: A Peloton logo is seen after the ringing of the opening bell for the company's IPO at the Nasdaq Market site in New York City, New York, U.S., September 26, 2019. REUTERS/Shannon Stapleton

(Reuters) - Exercise bike maker Peloton Interactive Inc PTON.O on Thursday warned of near-term supply constraints, as demand for its at-home fitness equipment has shot up due to gym closures during the pandemic.

Peloton shares, which have risen four-fold this year, were down 7% in extended trading, even though the company’s first-quarter results topped Wall Street estimates and it raised the annual revenue forecast.

The exercise bike maker’s Connected Fitness revenue jumped 274% to $601.4 million in the quarter while its subscriptions climbed 137% to $1.33 million.

The segment, Peloton’s primary revenue generator, includes interactive fitness equipment with touchscreen that streams live and on-demand classes.

The company raised its 2021 revenue forecast and said revenue would be at least $3.9 billion, compared with its previous forecast range of $3.50 billion to $3.65 billion.

Peloton’s total quarterly revenue surged more than three-fold to $757.9 million. Net profit attributable to Class A and Class B shareholders was $69.3 million, or 20 cents per share.

Analysts on average had estimated the company to report a profit of 11 cents per share on a revenue of $734.2 million for the quarter.

Reporting by Shreyasee Raj in Bengaluru; Editing by Maju Samuel and Vinay Dwivedi