SoulCycle Holdings LLC was converted into SoulCycle Inc. That agreement can be terminated by either party on 30 days written notice. The classes themselves cost about $32 per session, and attendees have spent millions of dollars on accessories and ancillary products, ranging from clothing to sports drinks.
Advertisement
The company describes itself as “a rapidly growing lifestyle brand that strives to empower our riders in an immersive fitness experience”. One of the founders, Julie Rice, worked in Hollywood for eight years as a talent agent. Pretty impressive handlers there, so you would expect a professional filing full of no-nonsense figures and cold-ass statistics.
“Our studios in the New York metropolitan area and in and around Los Angeles and San Francisco generated approximately 95% of our revenues for [the first quarter of 2015] and 97% of our revenues for [2014]”, the company said. Total revenue has increased from $36.2 million in 2012 to $112.0 million in 2014, thereby representing a CAGR of 76%. Thirty percent of its weekly rides are reserved within the first 15 minutes of availability in its “Monday at noon” experience. Competition, the ability to attract and retain riders, and gaining acceptance in new markets are all listed as possible hurdles the indoor-cycling company faces. Each studio generates about $4 million a year in revenue, the company said.
We believe SoulCycle is more than a business, it’s a movement.
“For many of our riders, SoulCycle is not about how much weight they can lose”, the company said. The company cited grassroots marketing initiatives, digital engagement programs and social responsibility activities as nurturing the growth of the brand.
Part of SoulCycle’s appeal is its devoted celebrity followers, which include Taylor Swift, Lady Gaga, Jake Gyllenhaal, Chelsea Clinton, and a number of supermodels and socialites. Lululemon and Under Armour were IPO’ed by Goldman Sachs, who is also assisting SoulCycle with their IPO.
Advertisement
According to New York Magazine, Cutler and Rice met over lunch at the swanky members’ only club Soho House – that should give you a hint of the clientele SoulCycle caters to – and decided then and there to build a spinning empire. “In 2014, SoulCycle had over 10,000 unsolicited print and online press placements across local and national news outlets, including publications ranging from The New York Times and The Wall Street Journal to current events and fashion periodicals such as Vanity Fair and Vogue“.
