American fitness startup Peloton files for an Initial Public Offering
Category: #headline  By Mateen Dalal  Date: 2019-08-29
  • share
  • Twitter
  • Facebook
  • LinkedIn

American fitness startup Peloton files for an Initial Public Offering

The startup has recorded annual revenue of $915 million and hopes to raise at least $500 million from its IPO.

Peloton, a U.S.-based fitness startup that produces exercise equipment has reportedly submitted its paperwork for an initial public offering (IPO). According to reliable sources, the company has successfully managed to post around $915 million in revenue in its recent fiscal year, almost twice compared to the 2018’s revenue.

However, Peloton’s net losses are also constantly increasing, with recorded loss of around $195.6 million in the recent year, which has risen sharply from $47.9 million in 2018.

As per reports, the company is looking to get $500 million from its IPO, which is expected to change with growing investor demands. Furthermore, the startup was valued at $4 billion in 2018 and was likely to file for an IPO in 2019.

Reportedly, Peloton, which is renowned for its subscription cycling classes that can be streamed live or on-demand into homes and internet-connected indoor bikes, claims that it has more than 511,000 subscribers, and has over 1.4 million members, which accounts anyone with a Peloton account.

Moreover, a majority of the company’s revenue is generated from the sale of its indoor bikes and a slack in its sales would hugely impact operating results and future revenue. Sources cite that in addition to the exercise bikes which is retailed at around $2,245, the company also offers a treadmill with a High Definition touchscreen for $4,295.

Apparently, customers pay subscription fees for classes that cost $39 per month along with its treadmill and bikes. The company also offers a digital membership for $19.49 per month enabling users to access its digital classes, which range from Bootcamp to running to yoga.

Additionally, Peloton also provides its user an alternative to participate in a live class at one of its studios, but claims that it hasn’t been able to generate a significant amount of revenue from this program.

Source Credit: https://edition.cnn.com/2019/08/27/tech/peloton-ipo-filing/index.html

About Author

Mateen Dalal    

Mateen Dalal

Despite working as a professional testing engineer, Mateen Dalal always held a liking for content creation. Following his passion, he now pens down articles for itresearchbrief.com and a couple of similar portals. Mateen is a qualified electronics and telecommunicat...

Read More>>

More News By Mateen Dalal

Ellipsis Health, Augmedix to offer automated mental health patient screenings
Ellipsis Health, Augmedix to offer automated mental health patient screenings
By Mateen Dalal

AI vocal biomarker technology provider Ellipsis Health has reportedly disclosed a strategic partners...

Enevate, NantG Power partner to develop next-gen ultra-high-performance battery
Enevate, NantG Power partner to develop next-gen ultra-high-performance battery
By Mateen Dalal

A strategic agreement to produce next-generation battery was announced by Enevate and NantG Power, t...

TPG in plans to invest $336M in Denodo for accelerating growth
TPG in plans to invest $336M in Denodo for accelerating growth
By Mateen Dalal

Denodo, a leading data management company, and TPG, a global alternative asset management ...