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- Peloton raised nearly $ 1.2 billion on its IPO, hitting its $ 26 to $ 29 per share high. This gave it an initial market capitalization of $ 8.1 billion and a fully diluted market value of $ 9.6 billion.
- Shares opened below the IPO price have declined steadily. To date, they are down more than 11% to 25.58 dollars per share.
Foley spoke to Axios several hours after the first exchanges, and he acknowledged that his company had taken its prices on an IPO market disrupted by WeWork's problems.
About the reaction to the road show: "It was binary: people loved it and worshiped or did not understand it and scratched their heads by asking some super-cynical questions about fitness being a fashion." In the last two meetings, I I asked people to raise their hand if they thought that fitness was good fashion.Nobody actually did it.In fact, even if there are fantastic things in the field of fitness, the fitness him -will not go away and we go to the heart of cardio, cycling, strength, etc. "
Cheap rivals: "I do not worry about that, there will be a flight to quality … and we have a lot of money in the balance sheet.
What happens if bike buyers miss their financing projects? "We do not hold the paper.Affirm takes all the risks related to financing, and they think the risk of default is less than 1 %.We receive the money in advance and pay to Affirm a commission – a kind of product concept, Ernst & Young encouraged us to consider this a reduction. "
margins: "We are making reasonable savings on the bike, say it costs us $ 1. Now we are doing it at less than 60 cents thanks to recognition of the real scale of the supply chain. a sufficient margin on equipment between bicycles and treads to pay for all sales and marketing investments, dollar for dollar. "
So why not profitable? "Our bike business in the US is profitable, we are investing $ 100 million in two new studios and $ 100 million in a new headquarters in New York, but we are not going to go to any of these before 12 months, then we're also in investment mode, we are hiring German instructors for launch in this country and we are investing in other growth vectors.Roughly, we are changing our spending line, but we think it will do it, pay dividends on the line. "
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