Peloton (NASDAQ:PTON) stock is in full focus today after the company announced it would delay its annual 10-K filing. Companies must submit a 10-K to the U.S. Securities and Exchange Commission (SEC) once per year, detailing organizational structure, financial statements and any other relevant data. Peloton has already reported its fiscal fourth-quarter earnings report, which is usually followed by a 10-K filing.
During Q4, revenue totaled $678.7 million, down 28% year-over-year (YOY). Meanwhile, net losses tallied in at $1.24 billion, equating to an earnings per share (EPS) loss of $3.68. A year ago, Peloton had reported a net loss of just $313.2 million.
On the bright side, the company did book subscription revenue of $383.1 million, marking a 36% YOY increase. But Peloton did not provide guidance for the upcoming fiscal year. CEO Barry McCarthy disclosed that he’s aiming for positive free cash flow during the second half of fiscal 2023, however.
This at-home fitness company recently made an effort to shift away from in-house deliveries, instead relying on partners. In addition, Peloton is planning on outsourcing its manufacturing process to third-party facilities. The changes from these moves have added to the company’s decision to delay its annual filing.
PTON Stock: Peloton Delays 10-K Filing
Peloton says that it needs to work on disclosures related to “management’s assessment of the effectiveness of internal controls over financial reporting as it relates to its accounts and disclosures related to these strategic business developments.”
Last week, the company announced a new collaboration with Amazon (NASDAQ:AMZN) to sell its products on the e-commerce platform. After the announcement, shares of PTON stock rose by about 20%, then soon fell by the same amount following earnings. This collaboration is the first time that Peloton will be selling its products on another platform. Before, the company completed sales through its website and showrooms.
Chief Commercial Officer Kevin Cornils notes that there are already about half a million searches for Peloton products on Amazon each month, per CNBC. As a result, this new collaboration has the potential to increase sales through a vendor that already has high search interest.
Rohit Kulkarni, Managing Director of Internet & Capital Markets at MKM Partners, sees the collaboration as a positive signal. Kulkarni explains:
“Amazon is the largest distributor of all e-commerce products. So I think this is a very big positive step for Peloton. No matter how you cut it, this takes the company forward.”
On the date of publication, Eddie Pan held a long position in AMZN. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
