At-home fitness firm Peloton, which is best known for its exercise bikes and treadmills with screen peripherals allowing for streamed workout classes, said on Tuesday (August 27) that sales were positive but losses were also growing, according to a report by CNBC.
The company, which was founded in 2012, filed paperwork with regulators ahead of an expected IPO. Sales in the company grew 110 percent to the tune of more than $900 million, from $435 million in fiscal year 2018.
This year, Peleton’s net loss reached $245.7 million, growing from $47.9 million the year before. The company said it will raise around $500 million when it goes public, and that it will expand outside of the United States. That move, the company said, will bring with it additional costs.
Peloton plans to sell Class B stock which will give 20 votes per share, and it’s roughly valued at $8 billion.
The company was the first to combine bikes and treadmills with screens that let people participate in fitness classes with others, from their own location. The company said it wants to allow for people at home to be able to have a workout experience “as physically rewarding and addictive as attending a live, in-studio class.”
Peloton’s subscription base went up to 511,202 from 245,667 in one year, and the company said it has 1.4 million members, although not everyone is an active user of the service.
People who do use the service seem to use it consistently and actually increase their workout frequency, the company said. Subscribers who participate regularly complete an average of 11.5 workouts a month, up from 8.4 last year and 7.5 two years ago. The company said it has had a 95 percent retention rate of fitness subscribers since 2016.
For people who don’t want to invest in the equipment, which is pricey, Peloton offers digital memberships for about $19 a month, and it has 102,000 of these types of subscribers.