(Reuters)

Peloton Interactive Inc on Thursday (August 26) lowered the price of its exercise bike and said its near-term profitability would take a hit due to the pricing change and higher costs.

Shares of the company were down about 13 per cent in extended trading.

It posted a 54 per cent jump in fourth-quarter revenue, beating market estimates, as more people subscribed to its digital fitness classes and demand stayed strong for its exercise bikes.

Net loss attributable to Class A and Class B shareholders was US$313.2 million, or 1.05 US cents per share, compared with a profit of US$89.1 million, or 31 UScents per share, a year ago.