• Triton

Peloton vs WeWork for Recouping Customer Acquisition Cost

In today's Axios Edge newsletter, Felix Salmon compares the S-1 filing of Peloton to WeWork. Though both companies are similar in requiring large amounts of sales and marketing spending in order to capture customers of its subscription services, Peloton's disclosed financials show a company that returns the capital invested in S&M right away through the sale of its high-margin exercise equipment. In contrast, Salmon cites Triton's Rett Wallace: "WeWork's financials are harder to understand. Rett Wallace, the CEO of private-company intelligence firm Triton, has called the company's S-1 'a masterpiece of obfuscation.' It's therefore hard to work out exactly what WeWork's customer acquisition cost is. But Wallace estimates that a tenant needs to stay in place for 13.5 years, on average, before they break even for the company."

Link to full Axios Edge newsletter - HERE