Peloton Interactive Inc. on Tuesday disclosed documents related to its initial public offering, which showed ballooning losses for the maker of high-end exercise bikes.
Peloton confidentially filed for the IPO in June.
Peloton said it lost a net $163.4 million in fiscal 2017, which dwindled to $47.9 million the following year and rose to $245.7 million in fiscal 2019, ended June 30.
The company’s per-share net loss attributable to shareholders was $10.72 in fiscal 2019, compared with a loss of $2.18 a share in fiscal 2018 and a loss of $5.97 a share in the previous year.
Revenue went from $218.6 million in fiscal 2017 to $435 million in 2018 and $915 million in fiscal 2019, the company said in its prospectus.
Peloton filed to sell $500 million worth of shares, although that number is likely a placeholder used to calculate the filing fees of $60,600.
The Wall Street Journal in February reported that Peloton was expected to seek a valuation of more than the roughly $4 billion estimate it received last year after a fundraising round.
The company, founded in 2012, called itself is the “largest interactive fitness platform in the world,” with more than 1.4 million members, which the company defines as any person who has a Peloton account.
“We make fitness entertaining, approachable, effective and convenient, while fostering social connections that encourage our members to be the best versions of themselves,” it said.
The company also highlighted its “first mover advantage” in interactive fitness and its “engaging-to-the-point-of-addictive fitness experience.”
The company listed as business risks that it has “incurred operating losses in the past, expect to incur operating losses in the future, and may not achieve or maintain profitability in the future.”
It also warned about expenses with third-party licenses for its music, about operating in a highly competitive market, and deriving most of its revenue from its bike sales.
The cheapest Peloton bike starts at $2,245, according to the company’s website.
Peloton would list on the Nasdaq under the ticker PTON. Underwriters included Goldman Sachs, J.P. Morgan, and BofA Merrill Lynch.
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