Shares of connected-fitness company Peloton Interactive (NASDAQ: PTON) plunged on Thursday following the release of its latest quarterly financial results. As of 11:30 a.m. ET, Peloton stock was down nearly 15%.

Today, Peloton reported financial results for its fiscal third quarter of 2023, which ended on March 31. Starting with the top line, the company generated Q3 revenue of $749 million, down 22% year over year and down 6% quarter over quarter. While revenue was down, it was better than what analysts had projected.

Subscription revenue drove Peloton's top-line surprise. The company's revenue is comprised of one-time hardware sales and recurring monthly subscription revenue. In Q3, hardware revenue was down a whopping 45% year over year to $324 million. By comparison, subscription revenue was up 15% to almost $425 million, thanks to growing its connected-fitness subscriber base 5% to 3.1 million.

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Source Fool.com