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The rumored SoulCycle IPO is happening. According to a press release, the company filed a registration statement for proposed initial public offering; the number of shares to be offered and the price range are TBD. What is clear is that SoulCycle is basically made of money. Bloomberg's Joseph Weisenthal tweets:
Soulcycle had revenue of $112 million in 2014 and net income of $26.5 million. pic.twitter.com/zfjP44qCyG— Joseph Weisenthal (@TheStalwart) July 30, 2015
According to SoulCycle, in 2014, each studio generated an average annual revenue of $4 million. Here's what else Soulcycle reveals in its IPO:
SoulCycle could go digital with at-home classes. "We believe a clear opportunity exists to expand our digital platform with content created or curated by our world-renowned instructor talent. Additionally, we believe there is also an opportunity to expand SoulCycle class content to an 'at-home' audience. We intend to explore these brand extension opportunities going forward."
SoulCycle's nationwide takeover is kicking into even higher gear, with a plan for 250+ US studios. "Since opening our first studio in 2006, we have expanded significantly and as of March 31, 2015, operate 38 studios across seven metropolitan areas. We believe there is significant whitespace to continue expanding in both existing and new US markets, with both urban and suburban locations and a long-term opportunity to grow our current SoulCycle domestic footprint to at least 250 studios."
So far, almost all revenue has come from NYC, SF and LA. "As of March 31, 2015, we operate in seven metropolitan areas, all in the coastal areas of the United States, and our studios in the New York metropolitan area and in and around Los Angeles and San Francisco generated approximately 95% of our revenues for the three months ended March 31, 2015 and 97% of our revenues for the year ended December 31, 2014."
SoulCycle riders are incredibly loyal. In 2015 alone, there's been 934,500 rides, 25,641 classes, and 10,378 rides per day.
The website traffic for the brand is sky-high. "This strong engagement with our community elicits inspiring rider testimonials, which are published on our website and attracted approximately 11.0 million visits in 2014."
"Monday at Noon" panic is real: "In 2006, our founders created one of the first online reservation systems for fitness classes, which allows our riders to reserve classes for the upcoming week. This reservation system has created a frenzied experience on 'Monday at Noon' when approximately 30% of our weekly rides are selected within 15 minutes."
SoulCycle communicates a ton with its riders outside of classes. "As part of our hospitality-focused culture, we maintain continual dialogue with our riders through our 'Your Soul Matters' team, responding to 50,000 rider emails annually, and our Twitter feed, which primarily consists of conversations: riders actively reaching out and receiving an immediate response in real-time."
The company's creating a Soul University: "In addition to our eight-week instructor training program, we have created 'Soul University' with over 45 proprietary training programs to scale the distinctive culture and service of our studio operation."
The press can't stop writing about SoulCycle. "In 2014, SoulCycle had over 10,000 unsolicited print and online press placements across local and national news outlets, including publications ranging from The New York Times and The Wall Street Journal to current events and fashion periodicals such as Vanity Fair and Vogue."
The company believes that the sky is the limit in terms of adding new riders: "We do not have a target demographic because at SoulCycle, ANYONE can be an Athlete, a Legend, a Warrior, a Renegade or a Rockstar. It is the place people come, regardless of their age, athletic ability, size, shape, profession or personality, to connect with their best selves."