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This week, Peloton released its first earnings report as a publicly-traded company.

Peloton has been a divisive stock ever since the company first announced it was going public. The company is the epitome of extremes; it experienced massive growth over the last few years, as well as significant losses. The company’s subscriber base continues to grow, while at the same time, it’s been hurt by ongoing legal challenges. 

With that in mind, it’s no surprise that the company’s first earnings report as a publicly-traded company was just as divisive. Initially, investors reacted favorably to the earnings report, and the stock jumped 6% in pre-market trading. But by mid-morning, the stock lost these gains and fell an additional 6%. 

Let’s look at four things you need to know about the Peloton’s first-quarter earnings report

1. The company’s revenue doubled

During the first quarter, Peloton’s revenue reached $228 million, which is more than double what the company earned a year earlier. It also exceeded Wall Street’s forecasts of $199 million in revenue. 

Peloton’s full-year revenue guidance was just as ambitious. The company expects its revenue to fall between $1.45 billion and $1.5 billion. 

2. Peloton’s subscriber base is growing

Peloton’s revenue continues to grow by leaps and bounds because of its strong base of customers. At the end of the first quarter, the company had 560,000 customers, which is up from 277,000 customers a year earlier. For the full year, the company expects its customer base to fall between 885,000 and 895,000. 

3. The company’s losses are widening

In spite of Peloton’s strong growth, investors continue to focus on the company’s widening losses. The company lost $49.8 million during the first quarter, as opposed to $26.3 million a year earlier. And the company’s operating expenses grew by 46%. 

These losses are partly because Peloton began offering a 30-day trial of its connected fitness equipment. The company will deliver the exercise bike or treadmill for free and pick it up if the customer decides they don’t want to keep it. 

Peloton’s connected fitness equipment costs $2,000, which is a big investment for most customers. So while a free trial could help them see the benefits of such a large expense, it will cut into the company’s profitability. 

4. Peloton is investing heavily in growth

And finally, Peloton’s expenses are widening because the company is investing heavily in further growth. The company continues to invest in new products, opening new Peloton studios, and becoming an international brand. 

On the earnings call with investors, CEO John Foley stated that the company could become profitable if it were willing to cut back on growth. But ultimately, that’s not something Foley or Peloton’s board of directors are willing to do. 

Foley summed this up by stating, “We believe the global opportunity is so big that we’re on the right balance of investing for future growth.”