Peloton CEO John Foley, center, celebrates his company’s IPO at the Nasdaq MarketSite, Thursday, Sept. 26, 2019 in New York.
Mark Lennihan | AP
Peloton Interactive‘s shares jumped Tuesday after releasing its first earnings report since going public, showing that the fitness company more than doubled its revenue over the last year.
In the first fiscal quarter of 2020, Peloton’s revenue rose to $ 228 million, up from $ 112.1 million in the year-ago period. The company narrowed its net loss to $ 49.8 million, or a loss of $ 1.29 a share, from a loss of $ 54.5 million, or a loss of $ 2.18 per share, a year earlier.
Peloton also doubled its connected fitness subscribers, defined as a Peloton user with a paid subscription. The company boasted more than 560,000 such members at the end of the first fiscal quarter, up from almost 277,000 a year ago.
For the full year, Peloton expects revenue between $ 1.45 billion and $ 1.50 billion. The company expects to grow connected fitness subscribers to 885,000 to 895,000.
Shares of Peloton rose about 5% Tuesday in premarket trading.
The company, which sells connected fitness equipment and subscriptions to stream its workout classes, made its public debut in September. Wall Street is growing increasingly skeptical of money-losing start-ups, with names like SmileDirectClub, Uber, and Pinterest all struggling in the public market this year.
Peloton’s stock is trading around $ 24, below its IPO price of $ 29. Peloton had the second-worst debut of a so-called unicorn, or a company with an offering size larger than $ 1 billion, this year.
CEO John Foley co-founded Peloton in 2012. The company sells exercise bikes and treadmills for about $ 2,000 and $ 4,000, respectively. Members pay $ 39 a month to stream classes on the screens attached to the equipment. Peloton also sells a digital membership that for $ 19.49 gives people access to classes on its phone app.
Disclosure: CNBC parent Comcast-NBCUniversal is an investor in Peloton.