Peloton’s profits plunge $757 million, a sign the pandemic bubble has burst.

Peloton, the maker of linked health bikes that was one of many hottest corporations within the early days of the pandemic, introduced this morning that it misplaced $757 million within the first three months of the 12 months, way over analysts had been anticipating. It additionally burned by way of roughly the identical amount of money.

It’s the primary earnings report below Peloton’s new chief govt, Barry McCarthy. Since taking the reins, Mr. McCarthy has targeted on addressing provide chain points, decreasing prices and experimenting with the corporate’s pricing mannequin. “Turnarounds are exhausting work,” Mr. McCarthy wrote in a letter to shareholders at the moment.

The quarter included greater than $200 million in write downs, with about $30 million of that protecting stock that the corporate now not thinks it may promote. Membership was up simply 5 p.c from final quarter, to seven million. And income fell 24 p.c, to $964 million. Sixty p.c of that got here from merchandise, and 40 p.c from subscriptions.

The corporate has $879 million in money, which based on Mr. McCarthy leaves Peloton “thinly capitalized for a enterprise of our scale.” Earlier this week, Peloton signed a binding dedication letter with JP Morgan and Goldman Sachs for a $750 million mortgage.

Peloton’s earnings drop is one more signal that the pandemic bubble has burst. Shares of Peloton had been set to fall one other 10 p.c this morning. The corporate now has a market worth of about $4 billion, down greater than 90 p.c from its excessive in early 2021 of $47 billion. Shares of Zoom, one other pandemic darling, are additionally down 83 p.c from October 2020. The digital conferencing firm now has a market worth of $27 billion, or about its worth earlier than the pandemic.