May 07, 2020 (Baystreet.ca via COMTEX) -- Peloton's /zigman2/quotes/208035743/composite PTON +10.35% showed great things on markets Thursday, as revenue surged 66% during the fiscal third quarter. This, as more people purchased its fitness equipment and tuned into its live classes, to try to break a sweat while stuck at home during the coronavirus pandemic.
The momentum and results also led Peloton to boost its sales outlook for the full year. The company said heightened demand for its bikes has continued into the fourth quarter. It said it is seeing new customers -- ones who were not considering buying one of its bikes before the COVID-19 crisis.
CEO John Foley told analysts during a post-earnings call that the pandemic is going to change consumers' exercise routines for the long term.
Peloton's net loss widened during the quarter to $55.6 million, or 20 cents per share, compared with a loss of $38.6 million, or $1.76 a share, a year ago. The company said the loss was primarily due to nonrecurring litigation and settlement expenses.
Total revenue grew 66% to $524.6 million from $316.7 million a year ago.
Analysts were expecting the company to report a third-quarter loss of 17 cents, adjusted, on revenue of $487.7 million.
Sales from its connected fitness products such as its bikes totaled $420.2 million, up 61% from a year ago and representing 80% of total revenue, the company said. Subscription revenue totaled $98.2 million, up 92% year over year and making up 19% of total revenue.
PTON shares gained $5.29, or 13.9%, to $43.32, in Thursday's first hour of trade.