If you wanted to know what rock-bottom expectations look like, take a gander at 's (NASDAQ: PTON) most recent quarterly report. The connected fitness company, rudderless after former CEO Barry McCarthy left in May, managed to break its streak of revenue declines and slash its net loss. Analysts were expecting a significant slump in sales and a much larger loss, and the stock responded by surging as much as 30% on Thursday.

The story, though, hasn't changed. The company is being led for now by two of its board members, and aggressive cost cutting is acting as a stand-in for a real long-term strategy. Cost cutting is certainly necessary given the excess that accumulated during the company's pandemic-era heyday, but where revenue growth is supposed to come from remains a mystery.

Peloton managed to boost its revenue by 0.2% year over year in the fourth quarter, its first quarter of growth in over two years. Unfortunately, this isn't the start of a trend. The company expects revenue to drop by 4% year over year in the first quarter of fiscal 025 and by a whopping 9% in the full fiscal year.

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Source Fool.com