But like many Silicon Valley-backed start-ups looking to go public, the company has faced scrutiny for being unprofitable and for its high costs to acquire new customers, and keep them.
The mattress market in the U.S. has also showed signs of slowing down, analysts say. And Casper's IPO comes on the heels of a WeWork IPO fiasco in 2019, which put a dark cloud over the start-up market. Casper's debut is another sign that going public as an unprofitable company can be a disaster.a share, to $12 to $13 a share, Wednesday morning, ahead of the IPO.
The company is still losing money, giving analysts reason to question if Casper will ever be profitable. In the nine months ended Sept. 30, Casper reported a net loss of $67.3 million and revenue of $312.3 million. While revenue increased 20% year over year, its losses widened a little under 5%. "Casper now is opening its own stores, and that raises expenses and capital needs," said Erik Gordon, a professor at University of Michigan's Ross School of Business. "It is selling through existing retailers, and that shrinks margins. ... A year from now, its shares are more likely to half their opening price than twice the price."
The company launched in 2014 and was one of the pioneers of the mattress-in-a-box trend. It is now expanding its store fleet, and has 60 of them, with goals to have
Cowherd said these are the best mattresses 😛
Nigeria Nigeria Latest News, Nigeria Nigeria Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: BusinessInsider - 🏆 729. / 51 Read more »
Source: CNBC - 🏆 12. / 72 Read more »