Casper CEO Philip Krim. The company was valued at $1.1 billion in its latest funding round last … [+]
2017 Benjamin Lowy/Getty Images
Topline: Privately held online mattress startup Casper filed the regulatory paperwork for an initial public offering on Friday, making a bold bet that it can be a pioneer in what it calls the multi-billion dollar “sleep economy,” though it remains far from profitable, and warns that it won’t be for some time.
- The company said in its S-1 filing today that it plans to list shares on the New York Stock Exchange under the ticker “CSPR,” with Morgan Stanley, Goldman Sachs and Jefferies as the lead underwriters.
- Casper has not yet determined the starting share price or the number of shares that will be available in the IPO.
- Filings reveal the mattress-in-a-box company has yet to turn a profit. The company, which sells its products in seven countries, recorded net losses of $73.4 million in 2017, $92.1 million in 2018 and $67.4 million in the first nine months of 2019.
- Casper calls itself the “pioneer of the sleep economy” which it estimates is worth $432 billion globally. The U.S. sleep economy is worth almost $80 billion, leaving it plenty of room for future growth, the company said.
- From 2016 through the first nine months of 2019, Casper spent over $420 million on marketing and advertising to elevate its brand. Based on its paperwork, the company spends nearly a third of its revenue every year on marketing. For comparison, Tuft & Needle, one of Casper’s competitors, spent just under $15 million on marketing in 2018.
- Casper was valued at $1.1 billion after its latest funding round in March 2019, but based on the new S-1 filing, the company underwhelmed on its goal of $556 million revenue in 2019 (Casper has so far only brought in $312 million over the first nine months of the year).
Crucial statistics: Revenue increased over 40% between 2017 and 2018, rising from just over $250 million to more than $350 million—though the company still has net losses.
Crucial quote: “We have a history of losses and expect to have operating losses and negative cash flow as we continue to expand our business,” the company wrote in its S-1 filing.
Key background: New York-based Casper, which has become extremely popular with urban millennials, started out selling mattresses on the internet five years ago. The e-commerce company has expanded its product line and now sells sleep products including sheets and pillows. The IPO announcement comes amid Casper’s ongoing efforts to expand into brick-and-mortar retail. Casper currently has more than 60 stores across the U.S. and Canada, and also sells its products in larger retail stores including Target.