Peloton Interactive, Inc. shares fell on quarterly results, but the company’s guidance for faster revenue and much narrower full-year losses than expected should provide strong support in coming weeks. That’s according to IPO Edge Editor-in-Chief John Jannarone, who spoke to Cheddar TV late Wednesday as the numbers came across the tape. Two issues may have flustered investors: the fact that some revenue was pulled into the December quarter due to faster deliveries and the imminent lockup expiration that could flood the market with shares in late February.
However, Jannarone pointed out that Peloton stands apart from many other tech unicorns because of its incredibly low monthly churn rate, which the company forecast to remain below 0.95% for the rest of its fiscal year. That should allow investors to put a very high multiple on its subscription revenue, similar to the likes of Netflix, Inc. and Roku, Inc.
Meanwhile, investors saw shares of Casper Sleep Inc. jump Thursday morning after the IPO price range was slashed at the last minute and the shares priced at the bottom of their indicative range Wednesday night. Jannarone argued that Casper’s relatively slow growth and fierce field of competition should keep investors wary.
IPO Edge Contact:
John Jannarone, Editor-in-Chief