Peloton on Tuesday slashed its financial outlook for the full year after the company announced CEO John Foley will be stepping down, as part of a broader restructuring of the business.
It now sees fiscal 2022 revenue within a range of $3.7 billion to $3.8 billion, down from a prior range of $4.4 billion to $4.8 billion. The company said it expects to end the year with about 3 million connected fitness subscribers, versus previous estimates of 3.35 million to 3.45 million.
“We are taking steps to best position Peloton for sustainable growth, while also establishing a clear path to consistent profitability,” Foley wrote in a letter to shareholders. For the three-month period ended Dec. 31, Peloton reported a net loss of $439.4 million, or $1.39 per share, compared with net income of $63.6 million, or 18 cents a share, a year earlier.
In an unsurprising result, shares popped 20%+ after posting the quarterly loss.