Morning Report: News is out this week that Casper, the mattress startup, has a new CFO, a new CMO, and a new lifetime revenue mark. Let’s investigate.
Casper is a well-known mattress and ecommerce play that has raised nearly a quarter of a billion dollars in its lifetime. Indeed, the firm picked up its last round of capital, a Series C last year, that tipped the scales at $170 million, in a transaction led by Target.
And this week, the company announced several important things, including new executives and a fresh revenue benchmark. To wit, from the company:
[Casper announced] the hire of Greg Macfarlane as Chief Financial Officer and Jeff Brooks as Chief Marketing Officer. […]
Both hires come on the heels of another impressive growth year for Casper. In only its third full year, the company’s total revenue since inception has grown to more than $600M.
In that paragraph, you can see why the firm managed to raise so much, so quickly. Indeed, going from birth to $600 million in revenue is impressive. But how fast is the firm growing inside of its zero-to-$600 million scamper? Let’s find out.
Using various media reports and company-prepared materials, here are Casper’s known financial benchmarks (revenue, stipulated as noted):
- Month 1: $1 million (source).
- 2014: Unclear full-year tally, company launched April 2014 (source).
- 2015: $100 million (source, source).
- 2016: >$200 million (source, source).
- 2017: Unclear.
- January 2018: >$600 million, cumulative (source).
This is a bit of a mess, so let me summarize for you. The company managed millions of revenue in 2014, about $100 million in 2015, more than $200 million in 2016, an unclear sum in 2017, and, in total, around $600 million by early 2018.
Quickly, we can see that the company’s 2017 result could not have put up more than $300 million in top line. We can make that out by subtracting the firm’s 2016 and 2015 results from its early-2018 cumulative sales figure, winding up with $300 million in available revenue.
However, we don’t have a good 2014 full-year figure (keeping in mind that Casper claims to have formally launched in April of that year). We know that at least $1 million of the $300 million or so that we have available to divide between 2014 and 2017 goes to 2014 due to Casper’s first month sales. And every other dollar of revenue that Casper put up in 2014 is a dollar of revenue we can, roughly, deduct from its 2016 results.
So if we presume that Casper saw $25 million in 2014 sales, we can roughly presume that the firm managed around $275 million in 2017 sales. It’s a big number that, when compared to 2016’s 100 percent growth over 2015, is likely a bit slower than the company expected.
We’ll know more in time, and cumulative sales numbers are annoying. But there you have it: Casper probably did more revenue in dollar value than the full extent of its fundraising to-date.
From The Crunchbase Daily:
- Uber shareholders sold about $8 billion in stock to a group of investors led by SoftBank, in a transaction that reportedly values the ride-hailing giant at roughly $48 billion. SoftBank also invested $1.25 billion directly into Uber at a valuation of about $70 billion.
- Varo Money, a San Francisco-based mobile banking startup, closed a $45 million Series B funding round led by Warburg Pincus and The Rise Fund. The round brings total funding for the two-year-old company to $78 million.
- For years, China-based startups have bucked the traditional metrics of a Series A. Compared to what US startups raise, Series A deal amounts in China have averaged more than triple the size over the past five years, a Crunchbase News analysis finds.
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