Because of rising inflation, the House of Representatives plans to provide free Peloton (NYSE: PTON) subscriptions to staffers in Washington, D.C., including district offices on a monthly basis. The PTON stock gained substantially in the market trading session today.
The flagship employee benefit will be available to all Capitol Police officers, according to a draught email acquired by FOX Business from the Chief Administrative Officer’s (CAO) office and would provide personnel with Peloton All-Access and Peloton App membership at no monthly cost.
The company released its third-quarter FY22 earnings on May 10, 2022. Peloton’s total revenue for the third quarter was $964.3 million, vs. $1,262.3 million in Covid-impacted Q3 FY21. In contrast to the decline in Connected Fitness revenue, Subscription revenue of $369.9 million grew by 55% year-over-year, and represented 38.4% of total company revenues vs. 19.0% in the year ago quarter. Moreover, total operating expense was $920.0 million, and grew 101% year-over-year, representing 95.4% of total revenue versus the prior year period of 36.3%.
Moreover, Net loss for Q3 was $(757.1) million, versus $(8.6) million in the year ago period. Adjusted EBITDA for the quarter was $(194.0) million, versus $63.2 million in the year ago period.
Gross profit in Q3 was $184.2 million and 19.1% of revenue, representing a 59% year-over-year decline. Compared to the year ago period, their Connected Fitness gross margin was pressured by the August 2021 Peloton Bike price reduction, impact of accessory inventory write-down, higher logistics expenses per delivery, increased port and storage costs, and charges associated with the voluntary recall of our Tread+ product (approximately $19 million impact to gross profit in Q3).
The PTON stock was up by 16.52% and closed at $15.87 (gaining 2.25 points) today. The market capitalization of the stock stood at $5.2 billion. The share volume traded for the PTON stock was 23,256,801, almost double of the average trade volume of 12,049,935.