Peloton guts revenue projections and gets new CEO

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.

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