Is This Insanely Popular Home Workout Company Actually Worth $24 Billion?
With gyms shut down and stress piling up, people across the world have turned to online, virtual fitness classes as a way to stay fit and cope. Hugely popular home workout brand Peloton (NASDAQ: PTON) has grown by leaps and bounds since its debut on the stock exchange, and the latest quarters have been no different. But is such a young company really worth so much?
Peloton's subscription and equipment sales have roughly doubled every year recently, with slightly faster growth in subscription revenue (on average). Despite the resulting 735% increase in total revenue over the past three fiscal years, Peloton consistently posted net losses until its latest quarter. Gross margin was a solid 45.8% in the company's recently-completed 2020 fiscal year, but management has been investing heavily in marketing, as well as general and administrative expenses. This kept its net profit margin at -3.9% in fiscal 2020.
Source Fool.com
