Peloton, New York, on Aug. 27 submitted its initial public offering (IPO) to the United States Securities and Exchange Commission (SEC), formally initiating the indoor bike company's plan to go public before the end of 2019.
Peloton reported $915 million in revenue for its most recent fiscal year (ending on June 30, 2019), a 110 percent increase over the previous year ($435 million), according to its SEC filing. However, the company also reported a 308 percent increase in net losses ($47.9 million to $195.6 million) and a 134 percent increase in adjusted EBITDA losses ($30.4 million to $71.3 million).
In its filing, Peloton notes the risks associated with its business and cites its active competitors, limited operating history and large reliance on direct product sales.
"We have incurred operating losses in the past, expect to incur operating losses in the future and may not achieve or maintain profitability in the future," the filing states. "We may be unable to attract and retain subscribers, which could have an adverse effect on our business and rate of growth. The market for our products and services is still in the early stages of growth and if it does not continue to grow, grows more slowly than we expect, or fails to grow as large as we expect, our business, financial condition, and operating results may be adversely affected.”
The company is aiming to raise $500 million for its IPO—a generic sum that will likely shift based on investor behavior. It plans to list its common stock under "PTON" on the NASDAQ Global Market.
The company is expected to be valued at approximately $8 billion when it goes public, according to Quartz.
Peloton, founded in 2012, claims 1.4 million members of its digital platform of live and on-demand classes. Price-wise, Peloton’s bikes start at $2,245, and a digital subscription costs an additional $39 per month or $468 per year. All bike packages require one subscription per household bike.
Additionally, the IPO filing describes Peloton as a media company, an interactive software company, a product design company and an apparel company.
“We are … a media company that creates engaging-to-the-point-of-addictive original programming with the best instructors in the world … an interactive software company that motivates our members to achieve their goals … a product design company that develops beautiful and intuitive equipment that anticipates the needs of our members … an apparel company that allows Members to display their passion for Peloton. We are driven by our members-first obsession and we will be any company we need to be in order to deliver the best fitness experience possible.”
On other fronts, Peloton is facing a $150 million lawsuit filed in March by multiple music publishers that claim Peloton has committed copyright violations by illegally using more than 1,000 songs in its streaming and on-demand classes.
Peloton is also suing competitor Flywheel in Texas federal court on claims that Flywheel had used proprietary Peloton technology to stream classes and track performance on its at-home FLY Anywhere bike.
On Aug. 7, Peloton competitor SoulCycle teased the launch of its first at-home bike and digital content platform that are expected to hit the consumer market later this year.