Peloton Interactive Inc. gave an upbeat sales forecast on continued demand for its exercise bikes, treadmills and subscription services while many gyms remain closed across the U.S. Investors, however, seemed disappointed in the results, sending shares down more than 5 per cent in extended trading.

The company projected revenue of US$1 billion in the period ending in December. That compares with analysts’ average estimate of US$932.2 million, according to data compiled by Bloomberg. Peloton also raised its annual sales forecast to US$3.9 billion from as much as US$3.65 billion previously.

Peloton has been one of the biggest beneficiaries of the COVID-19 pandemic. Widespread shelter-in-place orders have kept people away from gyms and spurred increased purchases of the company’s at-home exercise products and services. The stock has jumped more than fourfold this year, closing Thursday at US$126.63 in New York.

Revenue more than tripled to US$757.9 million in the fiscal first quarter from a year earlier, Peloton said Thursday in a statement. Analysts projected US$734.5 million. Profit, excluding certain items, was 20 cents a share, beating estimates of 13 cents.

The company also said connected fitness subscriptions more than doubled to 1.33 million, in line with Wall Street estimates. Peloton said it expects these subscribers to grow to 1.63 million in the fiscal second quarter. Analysts estimated 1.61 million. Connected fitness subscribers are consumers who subscribe through a Peloton device, rather than an app.

Peloton added that workouts grew 306 per cent to 77.8 million in the quarter, an average of almost 21 workouts per month per subscriber.

In September, the company announced a pricier Bike+ and a cheaper Tread, which may drive sales in fiscal 2021. Still, the company has still been plagued by shortages and shipping delays for its products.