Peloton (PTON) has warned of widening losses this year as the maker of internet-connected treadmills and stationary bikes continues to execute a turnaround strategy.
In releasing its latest financial results, Peloton guided for a loss in the current quarter of between $20 million U.S. and $30 million U.S.
The forecasted loss is much worse than a loss of $2 million U.S. that analysts had penciled in for the company.
Peloton also said that it anticipates revenue of $700 million U.S. to $725 million U.S. in this year’s first quarter, which is below the $754 million U.S. expected on Wall Street.
The downbeat guidance was issued along with Peloton’s results for the fourth and final quarter of 2023.
The company reported a loss per share of $0.54 U.S. versus a loss of $0.53 U.S. that was anticipated.
Revenue in the quarter came in at $743.6 million U.S. compared to $733.5 million U.S. that had been the consensus estimate of analysts.
Peloton said that it is struggling to grow its paid app subscribers and sees an uncertain macroeconomic outlook.
The company now says that it expects to return to revenue growth within a year.
Peloton’s stock has declined 66% over the last 12 months to trade at $5.56 U.S. per share.