Peloton shares plunged 24% on Thursday after the company reported a net loss of $376 million in its third quarter, as the company struggles to recover from a voluntary treadmill recall sparked by an infant's death and 29 other injuries.
Meanwhile, Airbnb profits have skyrocketed in the third quarter by $2.24 billion, or a whopping 280%, as more guests are comfortable traveling again.
Other digital companies seeing significant changes in third quarter results include Uber, which lost $2.4 billion due to a drop in the value of its investment holdings in other ride-sharing apps. Lyft also saw a drop in third-quarter revenue, as losses came in at $71.5 million.
Peloton is searching for ways to keep revenue growing and find new customers, which has been particularly difficult after recalling their treadmill earlier this year due to the death of a child pulled under its belt, and the injuries of 29 others.
Peloton shares took a steep drop by 24% on Thursday after the company reported a net loss of $376 million in its third quarter
Peloton shares fell between July and September, as the company struggles to recover from a voluntary treadmill recall sparked by an infant's fatal accident and 29 other injuries
Shares dropped by 24% today after the company announced its third quarter results
For the three-month period ended Sept. 30, Peloton reported a net loss of $376 million, or $1.25 per share, compared with net income of $69.3 million, or earnings of 20 cents a share, a year earlier. Analysts expected Peloton would see a loss of $1.07 per share, CNBC reported.
Peloton revenue grew 6% to $805.2 million from $757.9 million a year earlier, missing it estimates for $810.7 million. Peloton's sales of its connected fitness products, including its bikes and treads, fell 17% to $501 million.
Subscription revenue rose by 94% to $304.1 million. Connected fitness sales accounted for 62% of Peloton's business in the quarter.
Peloton had 2.49 million connected fitness subscribers, or those who own a Peloton product and pay a monthly fee to access the company's digital workout content at the end of the third quarter, which was an increase of 87% from the previous year.
Peloton temporarily stopped making their treadmills due to the death of a child and the injuries of 29 others. In a video released by the Consumer Product Safety Commission, a young boy is seen walking behind the Peloton Tread+ with a large pink ball while a young girl is on it, which gets pulled under the treadmill
In August, Peloton lowered the price of its original Bike to $1,495 - a nearly 20 per cent price cut from the $2,245 it costed this time last year.
This came after Peloton temporarily stopped making their treadmills due to the death of a child and the injuries of 29 others.
In a video released by the Consumer Product Safety Commission, a young boy is seen walking behind the Peloton Tread+ with a large pink ball while a young girl is on it, which gets pulled under the treadmill.
The August price drop marked the second time Peloton has reduced the original Bike's price. When the Bike+ machine debuted last September for $2,495 the original bike's price was slashed to $1,895.
The popular at-home fitness equipment maker rocketed in popularity during the pandemic as people desperate to stay fit while gyms were closed bought its bikes.
That also sent the firm's stock price soaring. But gyms began reopening last fall, and masking rules relaxed further this year as the availability of COVID vaccines increased, with many people now choosing to return to the weights room and in-person group class instead.
