Peloton went public on NASDAQ today with a blockbuster IPO. They are now in the select group of companies known as “Unicorns”; those companies at public offering with a market value of over $1 Billion (their actual IPO value was $8.4B).
As part of going public, the company sold 40 million shares to the public raising $1.1 billion in cash and buidling what is known as a huge "war chest”.
Peloton’s user base and growth numbers are spectacular - # subscribers and # workouts/month, with growth in both major segments of their business - “Connected Fitness Products” (Peloton hardware) and “Subscriptions" (both subscriptions while using their hardware ($40/mo) and their newest, fast growing category, Digital Peloton - a standalone app ($20/mo).
Having been a senior technology executive in the 90s and 2000 era (CEO, CMO, SVP, etc.), major financial announcements by industry participants always drove significant discussions amongst the executive team as to what implications it meant for our company and the industry as a whole. Sticking our heads in the sand and dismissing it as non-relevant was never a consideration. Reactions ranged from “great for us, great for the industry” (a rising tide lifts all boats) to a major threat (due to visibility, cash, backed up by impressive #s).
I will leave my own “2 cents” about this event for later (I’ve commented a bit in other threads, such as when Zwift closed their major private financing), but I’d be interested in hearing how other TrainerRoad users interpret Peloton’s IPO.