However, according to the very first substantive section of Peloton’s PTON, +0.00% filing for an initial public offering, that is not what the company is. Instead, it is described as a technology company, a media company, a software company, a product-design company, a retail company, an apparel company and “a social connection company that enables our community to support one another.”
Less than two months after the end of its fiscal year, Peloton filed to go public Tuesday afternoon, and aims to raise an estimated $500 million. Most notable IPO filings list an initial target of $100 million — a placeholder meant to calculate potential fees while underwriters determine a likely price — so the higher figure suggests large ambitions for Peloton’s capital raise.
Those members have roughly 511,000 subscriptions to Peloton’s core streaming offering, which costs $40 a month and is, on average, used by exactly two “members,” according to Peloton. Another 102,000 people or so pay nearly $20 a month for a lesser subscription, which offers exercise classes that don’t require a machine, such as yoga and walking/running.
1/ $PTON Peloton subscriber churn looks to me to be around 20-30% per year. But they reported churn of 0.7%!!