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Peloton Puts Its Own Spin on Accounting Metrics Ahead of IPO (1)

Aug. 28, 2019, 8:58 PMUpdated: Aug. 29, 2019, 1:59 PM

Home-exercise startup Peloton Interactive Inc.’s pitch for its initial public offering includes the good news that its average net monthly connected fitness churn has shrunk over the past three years from 0.70%, to 0.65%.

That may indeed be good, but potential investors could be left scratching their heads as to what exactly that metric—let’s call it ANMCFC—means. That’s not the only unique measurement of performance and growth included in Peloton’s filing and the company isn’t the only IPO-bound company that’s attempted to frame its business with new metrics.

Peloton cites ANMFC 28 times in its prospectus filed Aug. 27 with ...