Exercise startup Peloton narrows losses
Fitness startup Peloton narrowed its losses in its first quarter despite pushing forward with expansion plans and investment in its online platform.
The company posted a loss of $49.8m (£38.71m) in the three months to 30 September, reducing the figure by $4.8m on the previous year as the firm continued to target international growth.
Read more: Peloton shares sink on second day of trading
Total revenue grew 103 per cent to $228m during the quarter.
Founded in 2012, Peloton sells indoor exercise bicycles and offers packages requiring memberships to access live and on-demand classes from home.
Peloton invested in its software during the first quarter, and launched more live classes with new instructors and seven new show rooms.
In the UK the company is targeting customers outside of London by opening new showrooms in the run-up to the key Christmas trading period, as well as additional warehouses to cope with demand.
Later this month the company plans to launch in Germany through showrooms in the major cities, which will involve producing classes in German from its London studio.
Peloton joined the ranks of this year’s disappointing tech initial public offerings when it listed in New York in September.
Shares were initially priced at $29 when the company floated, but closed down more than 11 per cent at $25.75 that day. The at-home exercise firm’s shares are trading at around $22.70 this afternoon.
Read more: Peloton IPO: Exercise start-up prices float at $29 per share
The lacklustre IPO followed in the footsteps of Uber, Lyft and Slack, which all suffered share price plunges after their stock market debuts. Meanwhile Wework last month abandoned its plans to float.
Main image credit: Getty