Peloton: A Back of the Napkin Analysis đ„
Hello readers,
First of all, weâre really excited to be publishing the first issue of the Back of the Napkin newsletter, and even more so that youâre along for the journey in these early stages. Weâll likely play around with the exact format and cadence of how these are sent out, but you can expect a weekly digest of our latest analysis of a business through the Back of the Napkin framework and a longer form Speakeasy post slightly less frequency that ties some of those ideas together across businesses or markets.
This week we looked at Peloton, a business that models extremely well in our framework. We included the napkin sketches and brief descriptions in this email. Follow the links below for extended analysis and commentary at the Back of the Napkin site.
We really appreciate you being along for the journey. If you have any questions, comments, or suggestions, please reach out to me whenever by replying to this email. I promise Iâll respond curiously fast.
Chin chin,
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Peloton Business Equations
Peloton is a pioneer of the âsoftware as a service plus a boxâ business model. The model can offset CAC with the upfront equipment profit, effectively reducing CAC payback period to 0 if CAC
Peloton Unit Economics
Pelotonâs unit economics appear highly favorable. The SaaS + box model enables a CAC payback period of virtually 0, so the SaaS LTV goes straight to the bottom line.
Peloton Flywheels
Peloton generates momentum as it grows, which is an exciting prospect for a business. Its flywheels revolve around its passionate members both in terms of growth and retention.
Thanks again for following along with us as we launch. If you liked what you read, forward us to a friend !
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