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Peloton opens at $27 per share in first day of trading

Published September 26, 2019

NEW YORK (BRAIN) — Peloton, which priced shares at $29 in its IPO Wedneday, fell to $27 per share when the market opened Thursday morning on the Nasdaq.

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In the IPO, the company raised $1.16 billion, giving it a valuation of $8.1 billion. 

Peloton has run a loss since it launched in 2012. Net losses were $71.1 million in 2017, $47.9 million in 2018, and $195.6 million in fiscal 2019. 

Subscribers pay between $19 and $40 a month for access to live exercise classes on the stationary bikes, which sell for about $2,000. The brand's direct-to-consumer multi-channel sales platform includes 74 retail showrooms.

Revenue growth has been significant. Sales during the most recent fiscal year grew 110% to $915 million. So far, Peloton has amassed 511,000 connected fitness subscribers since launch, as of the fiscal year ending in June. The company reported its most recent churn rate was just 0.65% per month. 

More information: Stock quote via Yahoo

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