Casper Sleep, the tech startup known for selling mattresses on the internet, is planning to go public.
On Friday, the company filed its initial public offering document with the Securities and Exchange Commission. Casper applied to list the company’s common stock on the New York Stock Exchange under the ticker “CSPR.”
“People spend more time sleeping than on any other single activity throughout their lives,” the company said. “We believe sleep is rapidly becoming the third pillar of wellness and is poised to undergo the same massive transformation that fitness and nutrition have as they became major consumer categories.”
Here’s some key information from the IPO filing.
Strong Growth, But Big Losses
The first thing investors look for when a company files to go public are the financials. Casper’s sales have grown 46% annually from 2016 to 2018. It generated $358 million in sales in 2018.
But the company loses money. It lost $92 million in 2018 and lost $73 million in 2017.
‘Global Sleep Economy’ Is Massive
Casper cites a Frost & Sullivan market size forecast of $432 billion for the “Global Sleep Economy” in 2019. The research firm predicts the market will grow 6% annually to $585 billion by 2024.
The 2019 “Global Sleep Economy” includes $106 billion for bedroom furniture, $81 billion for mattresses, and $98 billion for bedding, among other categories.
Physical Stores and Partnerships
Casper is not an internet-only operation. It has 60 retail stores in the U.S. and Canada, along with 18 retail partners including Amazon (ticker: AMZN), Costco (COST), and Target (TGT).
“Our presence in physical retail stores has proven complementary to our e-commerce channel,” the filing said.
The company noted e-commerce sales in cities with retail stores have grown 100% faster on average than cities without its retail stores.
Over time the company believes there is an opportunity to have more than 200 retail stores in North America.
A Million Customers
Casper has more than 1.4 million customers and sells to consumers in 7 countries.
Write to Tae Kim at tae.kim@barrons.com
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January 11, 2020 at 03:43AM
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Casper Sleep’s IPO Filing: 4 Facts You Must Know - Barron's
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