The company, which sells exercise equipment and streams workout videos, went public in September. The company said its net losses expanded to $55.4 million, which is 20 cents a share, from $55.1 million the previous year.
The company was expected to suffer a larger loss at 36 cents a share.
“At Peloton, we believe we can achieve both growth and profitability over time,” Peloton Chief Financial Officer Jill Woodworth said per CNBC, expanding on that and sharing that she expects the company to see an adjusted-EBITDA profit by 2023. “We’re prioritizing our subscriber growth over profitability.”
Peloton revenue went up 77 percent to $466.3 million, which is up from $262.9 million a year before. While revenue growth beat expectations, it is still slower than before.
Peloton also saw its paid subscriber base rise upward of 712,000 people at the end of the second quarter, which is up from 96 percent from last year.
The company also saw an increase in churn, meaning retention was affected. The company’s total members number upward of 2 million.
“Subscription revenue was $77.1 million in Q2, representing 107 percent year-over-year growth and 17 percent of total revenue. The increase in subscription revenue was a result of strong growth in our Connected Fitness Subscriber base, which reached 712,005 by the end of Q2, representing year-over-year growth of 96 percent,” according to the company’s shareholder letter.
Most of Peloton’s products are sold in the U.S., but it recently entered the U.K. and Canada as well. In November, Peloton expanded to Germany.
“We saw Member engagement continue to grow in the second quarter with 12.6 Average Monthly Workouts per Connected Fitness Subscriber, versus 9.7 Workouts in the same period last year. Our Connected Fitness Subscribers worked out with us 24.3 million times, up from 9.3 million workouts in the same period last year, representing 161 percent year-over-year growth. We ended the quarter with 109,198 Digital Subscribers, up 77 percent year-over-year,” the letter said.