Peloton named a former Apple executive as its new boss on Friday in hopes of reviving the struggling company — and the move immediately paid off, with its stock price soaring nearly 30%.

Peter Stern, who co-founded Apple Fitness+ before rising to his current role as president of Ford’s digital services business, faces the daunting task of leading a turnaround for the exercise bike maker following a decline of post-pandemic demand.

Peloton has been led by interim co-CEOs since May, when former Spotify and Netflix executive Barry McCarthy resigned after a little over two years.

Stern, 52, will take over as CEO and president on January 1.

“Peter is a seasoned strategist with a track record of driving sustainable growth through innovation, and we have every confidence in his ability to lead Peloton during this important time,” President Jay Hoag said in a statement.

“He brings significant expertise in scaling differentiated technology platforms and has a deep understanding of the health and wellness industry, making him uniquely suited to become Peloton’s next CEO.”

The company’s interim co-CEO Karen Boone will stay on until the end of the calendar year, while co-CEO Chris Bruzzo will step down on Friday.

Boone and Bruzzo will remain on Peloton’s board of directors.

Peloton — which was founded in 2012 — hopes Stern will help expand its subscriber base, as the company works to rely on ongoing subscription fees instead of its one-time bike sales.

In May, the company reduced 15% of its workforce – this is the fifth time it has downsized since 2021 as it struggles to regain its footing in the fitness industry.

Peloton shares rose 28% on Tuesday, to $8.44 – after peaking at over $160 at the height of the pandemic in December 2020.

Stern’s appointment comes as the Manhattan-based company reported a net loss of $900,000 in the fiscal first quarter ended Sept. 30 and warned of disappointing sales and subscription numbers in the period. holidays.

Peloton’s net loss was actually zero cents per share, beating expectations for a loss of 16 cents per share. This is a significant improvement from the massive loss of $159.3 million, or 44 cents per share, during the same period last year.

First-quarter sales fell to $586 million, down about 1.6% from last year’s $596 million, but above expectations of $574.8 million.

But as Peloton prepares for the holiday season – typically its best quarter, alongside most other retailers – the company warned that revenue would likely fall to between $640 million and $660 million, below expectations of $671.4 million, according to StreetAccount.

Its subscription division is unlikely to fare any better. Peloton said it expects to have between 560,000 and 580,000 paid app subscribers by the end of the current quarter, below expectations of 608,200, according to StreetAccount.

In the first quarter, Peloton reduced its operating expenses by 30% compared to last year. It posted nearly $116 million in adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) and about $11 million in free cash flow.

The bicycle maker expects adjusted EBITDA of between $20 million and $30 million for the current quarter, above estimates of $13.9 million, according to StreetAccount.

Despite the gloomy holiday forecast, the company raised its full-year EBITDA guidance to between $240 million and $290 million. Peloton previously forecast adjusted EBITDA in the range of $200 million to $250 million.

Peloton expects revenue between $2.4 billion and $2.5 billion, matching LSEG analysts’ expectations of nearly $2.5 billion.

These gains are due to aggressive cost-cutting measures and price increases.

During the first quarter, Peloton increased the suggested retail prices of its Bike and Bike+ in its international markets and increased the price of its Row in North America.