On June 22, Peloton (NASDAQ:PTON) launched a corporate wellness program — sending its stock up 6%.

What’s the big deal? The home fitness company needed some good news after a series of events that took its stock down 30% in 2021.

• Supply chain issues created long delivery delays — leading Peloton to invest $100m into freight and delivery.
• A child’s death and 70+ injuries led to a recall of Peloton’s treadmills and a PR nightmare.

Despite these issues, Peloton showed no signs of slowing. Sales growth accelerated to 141% in the recent quarter, up from 128% in the prior.

The way to customers’ wallets, corporate subsidies: The program gives Peloton a new growth channel even as workers move back into the office by:

• Helping corporate partners revamp office workout spaces with Peloton’s equipment.
• Offering employees subsidized access to Peloton’s digital fitness memberships and products.

Wayfair, Samsung, and SAP are among the first to join the program.

Looking forward: Peloton is moving beyond just offering bikes. They’ve gotten really good at creating content and producing fitness stars — through online boot camps, dance cardio and other fitness classes.

• In 2020, PTON’s CEO revealed a plan detailing 6 ways to reach 100m paying subscribers from its current 2.1m.
• Part of that plan includes product innovation (i.e. yoga mats with a screen, rowing machines, etc) and expanding its content library for devices like Apple and Amazon TV.

In the near term, Peloton’s growth is expected to slow as gyms reopen and workers move back into the office. But long-term, Peloton has plenty of equipment left to digitize.