Public Markets Startups

Fitness Startup Peloton Reportedly Prices Shares At $29 Per Share

High-end fitness startup Peloton priced at $29 per share on Wednesday, at the top of its expected price range, according to CNBC.

The company, which will begin trading on the Nasdaq under the ticker “PTON,” raised $1.16 billion in its initial public offering by selling 40 million shares. Peloton expected to price its equity at between $26 and $29 per share.

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The New York-based fitness hardware company, known for its nearly $2000 stationary exercise bike and streaming workouts, confidentially filed to go public back in June. We covered its S-1 and its funding history, which you can read about here and here.

The Numbers

Peloton raised nearly $1 billion while private, with its most recent raise totalling $550 million last August, according to Crunchbase data. The company last had a private valuation of $4.15 billion and was backed by investors like Tiger Global Management and Kleiner Perkins along its road to the public market.s.

Peloton’s reported revenue of $915 million in its fiscal 2019, up sharply from its $435 million total revenue in its fiscal 2018. That’s a gain of 110 percent. But its losses also mounted–the company reported a net loss of $195.6 million in fiscal 2019, compared to $47.9 million in fiscal 2018.

During that time frame, Peloton ramped up its spending on sales and marketing. It spent $314 million on sales and marketing in fiscal 2019, more than double the $151.4 million it spent on the line item in fiscal 2018.

The marketing efforts must have paid off, as Peloton quickly became a well-known consumer favorite, heralded for its pricey bike and home workouts.

The company’s customer base is growing, with 1.4 million Peloton members so far, per its S-1. Customers can choose from Peloton’s bike, treadmill, and fitness subscription services, and the company said in its S-1 filing that its fastest growing demographic is people under 35 years old and with household incomes under $75,000.

Check back tomorrow for updates when Peloton starts trading on the public market.

Illustration Credit: Li-Anne Dias


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