Peloton (NASDAQ:PTON) shares surged more than 30% since the company’s reported Q2 results on Wednesday, with revenue of $792.7 million coming in better than the Street estimate of $710.45 million. EPS was ($0.98), compared to the Street estimate of ($0.66).

The company expects Q3/23 revenue to be in the range of $690-715 million, compared to the Street estimate of $692.1 million. The quarterly results and outlook were an indication that the deep turnaround is showing signs of continued progress.

In addition to a meaningful revenue beat of 12%, the company reiterated its expectations to generate break-even free cash flow by the June quarter and provided a March quarter top-line guide that was ahead of the Street for the first time since the post-Covid sales slowdown commenced.