Casper Sleep Inc., the company best-known for selling mattresses online, slashed the price range for its upcoming IPO by more than 30 percent on Wednesday, indicating lukewarm demand for what was supposed to be one of the hottest IPOs of 2020 so far.
According to an , Casper is now aiming to sell 8.35 million shares for $12 to $13 each, which would cut the company鈥檚 valuation in half compared to its latest private funding round, which gave the mattress startup a $1.1 billion price tag in March 2019. Casper originally sought to sell its shares for $17 to $19, which would already have underscored its latest valuation as a private company.
While citing an addressable market of $432 billion in its IPO prospectus, Casper鈥檚 current slice of the 鈥済lobal sleep economy鈥 is far less impressive. According to preliminary estimates, the company鈥檚 revenue came in between $437.3 and $441.3 million in 2019, up from $357.9 million the year before.
What potential investors might be losing sleep over is Casper鈥檚 inability to turn a profit though. The company鈥檚 success depends heavily on marketing spending, making the path to profitability look steep and rocky. In the past twelve months, Casper expects to have lost more than $90 million, virtually unchanged from 2018 and up $20 million from its 2017 loss.
