Peloton CEO John Foley says fitness company is 'weirdly profitable'

  • Peloton co-founder and CEO John Foley told CNBC the fitness, technology and media company is more than doubling its size every year.
  • Foley said Peloton is considering going public, but nothing is planned yet. Competitor SoulCycle filed for an IPO in 2015 but still hasn't gone public.

Peloton CEO and co-founder John Foley told CNBC's "Squawk on the Street" on Wednesday that the company is "weirdly profitable."

"It's a beautiful business model. Our investors are happy," said Foley, whose company was ranked No. 20 on CNBC's 2018 Disruptor 50 list.

Foley said it's not weird to him that Peloton is profitable, rather it's unusual for a four-year-old company to already be making money. He describes Peloton as a fitness, technology and media company. It was founded in 2012 and sold its first spinning bike in 2014.

The company is more than doubling the size of the company every year, Foley told CNBC.

Peloton sells $2,000 spinning bikes that are equipped with a screen to stream recorded and live classes that are filmed from its New York-based studio. Subscriptions to access them cost $39 a month.

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This fall, Peloton will start shipping its new $3,995 treadmills, called Peloton Tread. Foley previously told CNBC the treadmill market is five times larger than the bike market.

The company announced Wednesday it's investing in a 40,000-square-foot facility in New York City to film classes. It's also planning to open a studio in London to cover other time zones and foreign-language classes to reach international audiences, Foley said.

Peloton has raised almost $445 million from Wellington Management, Fidelity Investments, Kleiner Perkins and GGV Capital, to name a few. It's valued at $1.4 billion.

The company is considering going public but isn't planning anything just yet, Foley said.

"I mean, any of these high-growth private companies of our size think about all our options, so it's certainly discussed," he said.

Disclosure: Comcast-NBCUniversal is an investor in Peloton.

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