Peloton reported its first billion-dollar quarter and announced it's investing $100 million to help speed up deliveries amid supply-chain delay (PTON)

<p><img src="https://static4.businessinsider.com/image/601c735619cbd800188afdaa-1778/peloton bike.jpg" border="0" alt="peloton bike" data-mce-source="Scott Heins/Getty Images" data-link="https://www.gettyimages.com/detail/news-photo/peloton-stationary-bike-sits-on-display-at-one-of-the-news-photo/1186506761'adppopup=true"></p><p></p><bi-shortcode id="summary-shortcode" data-type="summary-shortcode" class="mceNonEditable" contenteditable="false">Summary List Placement</bi-shortcode><p>Peloton just had its best quarter ever.&nbsp;</p><p>The fitness company reported more than $1 billion in total revenue in the second quarter of fiscal year 2021, sparked by strong sales during the holiday season and increased demand for at-home fitness as the pandemic continues.</p><p>Subscribers to the company's $39 per month Connected Fitness membership increased by 134% compared to the same time last year. The company said it recorded its largest single day of Member workouts during the quarter at 1.6 million riders.</p><p>The boom in demand for Peloton bikes this year has led to <a href="https://www.businessinsider.com/peloton-customers-complain-delays-cancellations-during-lockdown-2020-6">monthslong delays</a> and last-minute cancellations. Some users told <a href="https://www.businessinsider.com/peloton-members-describe-customer-service-issues-for-broken-bikes-pedals-2020-9">Insider's Madeline Stone</a> Peloton's customer service offered little help when customers reported issues with delivery.</p><p>The company said delivery challenges stem from pandemic-related slowdowns and congestion in West Coast ports as e-commerce booms. Peloton plans to invest $100 million to expedite the movements of bikes worldwide.&nbsp;</p><p>In a letter to shareholders, Peloton said, "While this investment will dampen our near-term profitability, improving our Member experience is our first priority."</p><p>In an email to members, the company explained the investment further: "Effective immediately, we are investing over $100 million to help expedite the movement of Bikes and Treads globally, in order to meet our delivery commitments. On average, in the coming months, we will be incurring a transportation and delivery cost that is over ten times our usual cost per Bike and Tread, including, in many cases, shipping them by air instead of by sea."</p><p>The company <a href="https://www.businessinsider.com/peloton-to-acquire-precor-fitness-equipment-maker-for-420-million-2020-12">announced plans to acquire Precor</a>, a fitness manufacturer for health clubs and hotels, in December for $420 million, its first and largest acquisition.</p><p><a href="https://www.businessinsider.com/peloton-fiscal-q2-2021-earnings-1-billion-in-revenue-2021-2#comments">Join the conversation about this story &#187;</a></p> <p>NOW WATCH: <a href="https://www.businessinsider.com/worlds-most-expensive-liquid-thoroughbred-horse-semen-2020-3">Why thoroughbred horse semen is the world's most expensive liquid</a></p>
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