Peloton Interactive Inc. (NASDAQ: PTON) had an inauspicious start to trading on Thursday in its initial public offering. The stock entered the market at $27 a share, below the pricing at $29. The company originally intended to price its 40.0 million shares in the range of $26 to $29, with an overallotment option for an additional 6.0 million shares. At the $29 price, the entire offering was valued up to $1.334 billion.
The underwriters for the offering are Goldman Sachs, JPMorgan, Merrill Lynch, Barclays, UBS Investment Bank, Cowen, Canaccord Genuity, Evercore ISI, JMP Securities, KeyBanc, Needham, Oppenheimer, Raymond James, Stifel, SunTrust Robinson Humphrey, William Blair, Telsey Advisory, Academy Securities, Siebert Cisneros Shank, R. Seelaus and Williams Capital.
Peloton is the largest interactive fitness platform in the world, with a loyal community of over 1.4 million members. The firm has pioneered connected, technology-enabled fitness and the streaming of immersive, instructor-led boutique classes to members anytime, anywhere.
Driven by a members-first mindset, the firm has built a vertically integrated platform that ensures a best-in-class, end-to-end experience. Peloton has a direct-to-consumer multichannel sales platform, including 74 showrooms with knowledgeable sales specialists, a high-touch delivery service and helpful member support teams.
The firm detailed its finances as follows:
- We generated total revenue of $218.6 million, $435.0 million, and $915.0 million, respectively, representing 99.0% and 110.3% year-over-year growth;
- We incurred net losses of $(71.1) million, $(47.9) million, and $(195.6) million, respectively; and
- Our Adjusted EBITDA was $(51.8) million, $(30.4) million, and $(71.3) million, respectively.
The company intends to use the net proceeds from this offering for working capital and general corporate purposes.
Shares of Peloton were last seen down 7% at $26.95, in a range of $26.25 to $27.98 on the day thus far. About 23 million shares have moved as of 12:45 p.m. Eastern.
It’s Your Money, Your Future—Own It (sponsor)
Retirement can be daunting, but it doesn’t need to be.
Imagine having an expert in your corner to help you with your financial goals. Someone to help you determine if you’re ahead, behind, or right on track. With SmartAsset, that’s not just a dream—it’s reality. This free tool connects you with pre-screened financial advisors who work in your best interests. It’s quick, it’s easy, so take the leap today and start planning smarter!
Don’t waste another minute; get started right here and help your retirement dreams become a retirement reality.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.