Casper
Direct-to-consumer mattress brand Casper was established in 2013 and has raised $339.7 million in funding since then, with investors that include Leonardo DiCaprio, Ashton Kutcher and 50 Cent. The company went public on Feb. 5 with a valuation of $476 million, according to Crunchbase. Casper stated in its filing that it won’t be profitable any time soon, Forbes reported.
Why Casper Isn’t Profitable
Casper now sells products in seven countries and considers itself the “pioneer of the sleep economy,” which it believes is worth $432 billion globally. Although Casper sees lots of earning potential, it’s still in the hole financially. Its IPO filing revealed net losses of $73.4 million in 2017, $92.1 million in 2018 and $67.4 million in the first nine months of 2019, Forbes reported.
“We have a history of losses and expect to have operating losses and negative cash flow as we continue to expand our business,” the company wrote in its S-1 filing, according to Forbes.
Casper’s largest expense is marketing, which it spends nearly one-third of its revenue on — the company spent $420 million on marketing and advertising from 2016 through the first nine months of 2019. It’s also spending money to expand its brick-and-mortar retail locations.
