Casper Sleep Could Be the First Unicorn to Come Public in 2020
New York-based retailer Casper Sleep has filed with the SEC regarding its initial public offering.
Casper Sleep has filed a Form S-1 with the U.S. Securities and Exchange Commission (SEC) regarding its initial public offering (IPO). The company values the offering at $100 million, although this number is usually just a placeholder. The company intends to list its shares on the New York Stock Exchange under the symbol CSPR.
The underwriters for the offering are Morgan Stanley, Goldman Sachs, Jefferies, Merrill Lynch, UBS Investment Bank, Citigroup, Piper Sandler and Guggenheim Securities.
Casper sells mattresses, pillows, blankets and other sleep-related items, both online and in retail locations. The company has served 1.4 million customers in seven countries in its first five years.
It’s no secret that the “sleep economy” is growing, as consumers spend more on wellness and are becoming more aware of the importance of sleep. This has been part of a broader trend as more consumers are pursuing healthier lifestyles.
In the filing, the company detailed:
In our first five years, Casper has experienced rapid growth. We believe our consumer focus, innovative products, and multichannel go-to-market strategy differentiate us both from legacy competitors and new entrants. For the years 2018, 2017, and 2016, our net revenue was $357.9 million, $250.9 million, and $169.1 million, respectively, representing a 45.5% compound annual growth rate, or CAGR, and for the nine months ended September 30, 2019 and 2018, our net revenue was $312.3 million and $259.7 million, respectively, representing 20.3% year-over-year growth.
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Casper intends to use the net proceeds from this offering for working capital, to fund growth and for other general corporate purposes. This includes paying down debt.
After a round of funding in March, analysts are estimating Casper’s valuation at just over $1 billion.
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Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics. Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications. A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.
