Pelotons cash burn slows amid turnaround efforts

Peloton's cash burn slows amid turnaround efforts

(Reuters) – Peloton Interactive Inc on Wednesday reported slower cash burn for the second quarter, after the company carried out a host of cost-cutting measures, including layoffs and store shutdowns.

The fitness equipment maker posted a cash burn of $94.4 million, compared with a burn of $546.7 million a year earlier.

Shares of the company were up about 7% in premarket trading.

It had said it aimed to achieve breakeven cash flow in the second half of fiscal 2023 but had also warned in November that a challenging macro-economic environment could affect its goal of stopping cash burn this fiscal year.

Peloton was all the rage among fitness enthusiasts during COVID-19 lockdowns, with the company hitting hit a peak market value of nearly $50 billion in early 2021. But with people returning to gyms the company saw demand for its equipment dwindle.

The companys net loss narrowed to $335.4 million in the second quarter from $439.4 million a year earlier.

(Reporting by Priyamvada C and Kannaki Deka in Bengaluru; Editing by Maju Samuel)

Natural Gas, WTI Oil, Brent Oil – Oil Markets Rebound As Traders Focus On Chinas PMI ReportsGold, Silver, Platinum – Precious Metals Rebound From Session LowsDOGE Return to $0.100 Hinged on the Fed Despite Musk SupportUSD/JPY Fundamental Daily Forecast – Traders Bracing For Hawkish Tone from Fed Chair PowellXRP and a Return to $0.4250 in the Hands of Fed Chair PowellHang Seng Index, ASX200, Nikkei 225: Hang Seng Continues to Struggle