As a result of gyms being closed amid the global coronavirus pandemic, Peloton, the American exercise equipment and media company, has seen unprecedented levels of success during the first quarter of this year, straying from the overall depressed economic trend witnessed elsewhere.
For US$2,245, the company will deliver you a spinning bike as well as offer you the option of streaming virtual classes for an added US$39 a month. The company was founded in 2012 and launched with help from a Kickstarter funding campaign in 2013.
The New York-based company is emerging from the quarantine-hit economy as a winner, with their stock prices soaring 95%, valuing them at US$10 billion. Mid this week, the company announced that its revenue had risen 66% in the first quarter of this year. However, due to “non-recurring litigation and settlement expenses” in the quarter, the company recorded a wider net loss.
Over 1.1 million people signed up for digital-only free trials in March and April. The letter also read that the company “…entered Q4 with a backlog of Bike deliveries in all geographies and sales continue to surpass expectations in the first several weeks of Q4 due to COVID-19.”
Peloton added that it expected its revenue to more than double in the current quarter. “The demand is through the roof,” John Foley, the company’s chief executive, said in an interview. “It’s not just people wanting more bikes, but if they have one, they’re using it more.”