Peloton IPO: Some factors investors should consider

In late August, connected bike and treadmill company Peloton – described as the “Netflix of exercise” – filed paperwork to go public. Their business model is based on a combination of hardware sales and ongoing subscriptions: their community members spend $2,220 – $4,295 on a bike or a treadmill as a one off purchase, and then pay $39/month for access to its library of live streamed and on-demand content. According to the company’s CEO John Foley, “Peloton sells happiness” – at a substantial loss. Peloton reported revenues of $915 million in total revenue in fiscal 2019, up 110% from the…...