(Peloton) Shares of Peloton Interactive Inc. fell more than 30% in premarket on Friday as the company cut its revenue projection by about $1 billion in 2022.
Peloton projects sales of between $4.4 billion and $4.8 billion in FY22, a lower projection from previous $5.4 billion.
The company also projects to have 3.45 million connected fitness subscriptions in FY22, lower than previously expected 3.63 million subscriptions.
Gross margin is expected to be 32%, a decrease from prior forecast of 34%.
Despite the lowered forecast, Peloton reported a revenue increase of 6% to $805.2 million in the first quarter of 2022, above projected $800 million, but below analysts’ forecast of $809 million.
Revenue in the second quarter is expected to range between $1.1 billion and $1.2 billion, missing analysts’ estimate of $1.5 billion.
The company seeks to launch new products in the coming months as it seeks to boost earnings weighed down by the economic reopening.
PTON: NASDAQ is down -32.54% on premarket.
