Just days after a disastrous earnings report cut its stock in half, Peloton is expanding its hardware and subscription businesses, unveiling a $500 set-top-box with a camera that helps users with strength training.

Known as the Peloton Guide, kibo ecommerce the device lets users access a library of strength training videos from their TV, while using a camera and artificial intelligence to correct people’s form and posture, compared to the instructor.

Fitness fanatics can use the $495 Peloton Guide with their own equipment, weights and accessories, which could be a problem for people who don’t already own equipment.  

Shares dropped nearly 50 percent after the company lost $376 million on $805.2 million in revenue in its fiscal third-quarter, citing slowdowns in its hardware and subscription businesses.

Peloton is unveiling a $500 set-top-box with a camera that helps users with strength training

Peloton shares dropped nearly 50 percent last week after the company lost $376 million on $805.2 million in revenue in its fiscal third-quarter, citing slowdowns in its hardware and subscription businesses

Peloton revenue grew 6 percent to $805.2 million from $757.9 million a year earlier, missing estimates for $810.7 million. Peloton’s sales of its connected fitness products, including its bikes and treads, fell 17 percent to $501 million.

Subscription revenue rose by 94 percent to $304.1 million. Connected fitness sales accounted for 62 percent of Peloton’s business in the quarter.

Peloton had 2.49 million connected fitness subscribers, or those who own a Peloton product and pay a monthly fee to access the company’s digital workout content at the end of the third quarter, an increase of 87 percent from the previous year.

In August, Peloton lowered the price of its original Bike to $1,495 – a nearly 20 percent price cut from the $2,245 it costed this time last year.

This came after Peloton temporarily stopped making their treadmills due to the death of a child and the injuries of 29 others. 

Shares dropped significantly last week after the company lost $376 million on in the third-quarter citing slowdowns in its hardware and subscription businesses

The August price drop marked the second time Peloton has reduced the original Bike’s price.When the Bike+ machine debuted last September for $2,495 the original bike’s price was slashed to $1,895.

The popular at-home fitness equipment maker rocketed in popularity during the pandemic as people desperate to stay fit while gyms were closed bought its bikes.

That also sent the firm’s stock price soaring.As gyms began reopening last fall, and masking rules relaxed further this year as the availability of COVID vaccines increased, with many people now choosing to return to the weights room and in-person group class instead.  

In August, Peloton lowered the price of its original Bike to $1,495 – a nearly 20 percent price cut from the $2,245 it costed this time last year

The company also lowered its 2022 revenue guidance by $1 billion, as people return to offices and gyms and purchase less home fitness equipment. 

Using the camera, the Peloton Guide shows people which muscle groups they recently worked and will recommend classes.

It also uses an on-board voice activation so it can be controlled hands free.The company said that voice activation would be available in the U.S., Canada and the U.K., with ‘other markets to come.’

Billed as the ‘most accessibly-priced Peloton connected fitness product,’ users will also have to pay a $12.99 per month fee to access the content library.

However, existing members who already subscribe to Peloton can access the library for no added cost.

The Guide also works with Peloton’s new Heart Rate Band, whic