Peloton on Thursday posted its second profitable quarter in a row as it released strong guidance for the crucial holiday shopping season, banking on its relaunched product assortment to drive growth. The connected fitness company posted a surprise net income of $13.9 million in the three months ended Sept. 30, compared with a loss of $900,000 a year earlier. For the current quarter, Peloton's strongest for hardware sales, the company is expecting revenue to be between $665 million and $685 million, a slight ...

Core Insights - Peloton is attempting a significant comeback with new AI-enabled fitness equipment ahead of the holiday season [1][2] - The company has faced challenges following its rapid growth during the pandemic, including a decline in stock value and leadership changes [2][11] Product Launch and Features - Peloton launched five new products, including upgraded versions of its bike and treadmill, and a new rowing machine, all featuring Peloton IQ, an AI coaching system [3][5] - The new equipment includes personalization features and a movement tracking camera for real-time feedback [2][3] - An advanced swiveling screen and improved WiFi connectivity are also part of the upgrades [4] Pricing Strategy - The prices of existing products have increased, with the original Bike now priced at $1,695 (up $150), and the Tread+ at $6,695 (up $700) [5] - Monthly membership fees have risen by $5 to $49.99, marking the first increase in three years [5] Company Strategy and Leadership - The company emphasizes the value of its extensive content library and continuous innovation compared to traditional fitness options [6] - The new AI initiative represents a major shift under CEO Peter Stern, who has a background in technology and automotive industries [10] - Stern's leadership has also seen a workforce reduction of 6% as part of the company's restructuring efforts [10] Market Reaction - Following the product launch, Peloton's shares initially rose in premarket trading but ultimately fell by 3.67% by the end of the trading day [12] - The stock has seen a significant decline of over 90% since its peak in January 2021, indicating ongoing investor skepticism despite new product offerings [11][12]