Peloton/Business Insider
- Peloton has confidentially filed to go public.
- The maker of luxury indoor exercise bikes filed a draft registration statement with the Securities and Exchange Commission, a key step in the process of securing a public listing for its stock.
- The price range and number of shares to be offered hasn’t been decided yet.
- Read more about Peloton on Markets Insider.
Peloton has confidentially filed to go public.
The maker of luxury indoor exercise bikes has submitted a draft registration statement for review by the Securities and Exchange Commission — a key step in the process to secure a public listing of its stock — according to a press release.
The price range and number of shares to be offered haven’t been decided yet. Peloton expects the initial public offering to commence after the SEC completes its review of the statement, subject to market and other conditions.
Peloton bikes come equipped with screens, allowing users to traverse digital landscapes and join virtual spinning classes. The company also launched a treadmill earlier this year. Customers pay a monthly subscription fee to access live and pre-recorded classes.
The group raised $550 million in a Series F funding round in August, giving it a $4 billion valuation, according to Crunchbase. It has raised about $995 million to date from investors including Fidelity, Kleiner Perkins, and Comcast-owned NBCUniversal, the website states.
Peleton earned $400 million in sales in 2017 — more than double the $160 million it earned in 2016 — and planned to reach profitability last year, according to the New York Times. As of last August, it was on track to generate $700 million in revenue for the fiscal year to February, according to the Times. The company told the Times that 96 percent of its customers remain subscribers, and its bikes are used an average of 13 times a month per household.
The basic Peloton package — which includes a bike, a one-year limited warranty, and delivery and setup — costs $2,245, according to its website. That rises to nearly $2,700 for a family package that includes two pairs of shoes, two pairs of headphones, two heart-rate monitors, two water bottles, one set of weights, and a bike mat.
Peloton treadmills are almost twice as expensive. The basic treadmill package costs nearly $4,300, while the family package costs more than $4,800.
This story is developing. Check back for updates…
