A Peloton IPO is in the works for the fitness company.
Here’s what potential investors need to know about a possible Peloton IPO.
- The company is looking to raise $500 million through the IPO.
- However, this is likely only proxy number that the company has in place while it measures interest.
- The company’s most recent year saw it report revenue of $915.00 million.
- That much better than its 2017 revenue of $218.60 million and 2018 revenue of $435.00 million.
- However, this larger revenue also comes with wider losses.
- Peloton notes that its net losses for 2019 were $195.60 million.
- For comparison, the company’s net losses for 2017 and 2018 were $71.10 million and $47.90 million, respectively.
- That’s likely a red flag for investors, but there’s more.
- The Peloton IPO filing warns that the company may never “achieve or maintain profitability in the future.”
- Peloton also notes that part of its strategy for the future is to grow its membership while retaining its current members.
- While that sounds nice, it could be a problem for the company due to its target audience.
- The fitness company sells premium exercise equipment that isn’t something the average individual will have in their homes.
- That includes its $2,000 exercise bikes and $4,000 treadmills.
- It also sells subscription memberships that give customers access to its workout sessions.
- These are displayed to the customers via the HD screens that are equipped on the workout devices.
You can follow this link to check out the Peloton IPO filing for yourself.
As of this writing, William White did not hold a position in any of the aforementioned securities.