Photo: Peloton / Twitter
Indoor fitness startup Peloton that specialized in making inter-connected treadmills and stationary bikes plans to file for an IPO after generating $900 million in revenue in the last fiscal year ending June 30. In its recently released documents and the submission of the S-1 statement to the U.S. Securities and Exchange Commission, Peloton notes that it has doubled its revenue over the previous fiscal year.
However, the company’s loses have also surmounted simultaneously due to increased advertisement spending. Founded in 2012, the New York-based fitness company had a rocky start in the beginning. However, it managed to streamline its operations with time and establish its position as a technology/fitness company in the market.
In the IPO document, the company has mentioned itself as a “technology, media, software, product, experience, fitness, design, retail, apparel, logistics” company, identifying itself beyond selling just the fitness equipment.
Peloton’s Road to Success
As on date, Peloton claims that it serves 1.4 million community members with individual Peloton accounts to their name. While a major part of the company’s revenue comes from selling their smart connected treadmills and bike, some portion of it is also contributed by the company’s monthly subscription model.
Peloton’s connected bike costs around $2245 while its treadmill costs about $4295. Out of 2019 total revenue of $915 million, these physical units contributed $719 million in revenue. The remaining came from the monthly subscriptions which give subscribers a digital library of fitness content at $39 per month. In fiscal 2019, the company’s subscriber base stood at an all-time high of 511,202.
Peloton holds a vision of connecting 67 million households with its own connected equipment. In the S1-document, Peloton co-founder and chief executive officer John Foley says that “Peloton sells happiness”. He added:
“Peloton is so much more than a Bike — we believe we have the opportunity to create one of the most innovative global technology platforms of our time. It is an opportunity to create one of the most important and influential interactive media companies in the world; a media company that changes lives, inspires greatness, and unites people.”
Last year in 2018, Peloton raised $500 million from venture capital funding raising its valuation above $4 billion. The S1-document list some of its principal stakeholders that include CP Interactive Fitness (5.4% pre-IPO stake), Tiger Global (19.8%), TCV (6.7%), Fidelity Investments (6.8%), and True Ventures (12%).
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