Peloton

1. Bridge Dudley (elbridge)

2. The Problem
- People want to be in shape
- Need motivation
- Personal trainers/exercise classes are inconvenient

3. What’s the easiest way
to get fit?

5. $2,245

7. $4,295

9. $39/mo

12. Meet Mary
- 40-year-old mother of
three
- Used to take yoga and
spin classes, now she’s
too busy with work + kids
- Has a gym membership
she doesn’t use enough
- Fitness has declined over
the past few years

13. Financials
- IPO Sep 25, 2019
- Opening valuation of $8 billion
- Traded 6.9% below initial price on
day 1
- “3rd-worst mega-IPO debut since
financial crisis” - MarketsInsider

14. Financials
- NOT Profitable!
- Lost nearly $200M in
2019
- Sales/marketing
costs doubled this
year

17. “Peloton sells
happiness.”
- John Foley, CEO

18. “Peloton sells
happiness.”
- John Foley, CEO

19. Business Model
- One time payment for bike or treadmill ($2-5k)
- Monthly subscription for online classes ($39/mo)
- ~40% margins for both software and hardware

20. The Founder
- Harvard biz,
Barnes n Noble
- Entrepreneur
and avid cyclist
- Tired of $50 spin
classes

21. History
- 2012 angel investing
- First four employees
all equity, no $$
- Built off-the shelf
prototype and
streamed classes in
the office

22. - Kickstarter & pop-up
stores until first
production release in
2014
- Total 8 funding rounds
- 1.4M members today
History

23. The Sauce

24. The Sauce
- Competitive, supportive social network of
Peloton riders

25. The Sauce
- Competitive, supportive social network of
Peloton riders
- Active engagement with “celebrity”
instructors

27. What’s hot?

28. What’s hot?

29. Competition
Effective cycle
Motivating instructor
Competitive community
24/7 access
Isn’t thousands of $$

30. Prediction

31. Prediction

32. Sources https://www.onepeloton.com
https://www.producthunt.com/posts/peloton-tread
https://www.google.com/search?q=peloton+stock&oq=peloton+s
tock&aqs=chrome..69i57j0l4j69i60.1589j1j4&sourceid=chrome&i
e=UTF-8
https://markets.businessinsider.com/news/stocks/pelton-ipo-stoc
k-price-3rd-worst-megaipo-debut-since-2008-2019-9-102855708
9
https://news.crunchbase.com/news/peloton-finally-drops-its-s-1-r
evealing-sharply-rising-revenue-and-net-losses/
https://www.marketwatch.com/story/peloton-ipo-five-things-to-kn
ow-about-the-interactive-exercise-machine-company-2019-08-28
https://www.inc.com/magazine/201605/kris-frieswick/peloton-stu
dio-cycling-home-fitness.html
https://twitter.com/a_1_original/status/956051449594744832
https://www.pymnts.com/news/retail/2019/peloton-fitness-ipo-listi
ng/
https://www.reddit.com/r/pelotoncycle/comments/b9mtqz/im_new
_to_peloton_so_sorry_if_hes_been_discussed/