Are your finances keeping you up at night? That’s O.K. Casper, the popular mattress and bedding company, is preparing an initial public offering. On Friday the company filed its S-1 document, a key step in the IPO process that allows investors to review the details of the business.
The Story: Casper was founded in 2014 and has taken the mattress world by storm with its catchy marketing campaigns, streamlined product portfolio, and direct-to-consumer business model. The company sells only three mattress types as well as accessories including pillows, linens and bed frames.
The Reality: Casper isn’t a mattress company – they are a marketing company. The company’s S-1 document reveals they don’t manufacture any of their own products, instead relying exclusively on third-parties. Yet they are widely regarded as one of the most innovative consumer product companies. In 2016 they were named the most innovative brand at the Digiday Awards.
Cash Flow Problems: The company’s name isn’t the only spooky part of the business. Casper ghosted $69 million of cash in 2018 despite selling $312 million worth of product. After debacles such as the failed WeWork IPO, investors aren’t as enthused about money-losing operations.
- The Takeaway: Casper’s IPO will be closely watched by investors due to the high-profile, consumer-facing nature of the business. It will be a big test for the IPO market and will set the tone for 2020.