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SLO software company going public

May 12, 2015

MindbodySan Luis Obispo-based Mindbody, a firm that sells software for managing health and wellness businesses, has announced its plans to become a publicly traded company. [Business Times]

Mindbody filed its offering statement with the Securities and Exchange Commission on Monday with a target of raising $100 million. The software firm is expected to become the first San Luis Obispo-based company in decades to have a non-bank stock offering.

With about 900 employees on the Central Coast, Mindbody is San Luis Obispo County’s 11th largest employer and fourth largest in the private sector. The company recently debuted its new headquarters on Tank Farm Road near the San Luis Obispo airport.

Mind body reported $70 million in revenue in 2014 and raised nearly $100 million in venture capital. However, the company lost $24.6 million last year as it released a major corporate wellness platform.

More losses are expected as Mindbody pushes expansion and research and development of its platform.

Mindbody says it is targeting global expansion with its IPO. Currently, the company has 42,000 local business subscribers in 124 countries.

CEO Rick Stollmeyer owns 11.2 percent of the company. Bessemer Venture Partners, a venture capital firm that was involved in the IPOs of LinkedIn and Yelp, owns a little more than 20 percent of Mindbody.

New York-based Catalyst Investors owns 15.5 percent of Mindbody, and J.P. Morgan, W Capital Partners and Ventura Partners XIII each have stakes of 10 percent or less.

 


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Mind body reported $70 million in revenue in 2014 and raised nearly $100 million in venture capital. However, the company lost $24.6 million last year as it released a major corporate wellness platform.


More losses are expected as Mindbody pushes expansion and research and development of its platform.

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Grossed 75 million with a net loss of 25 million? Isn’t that called bankruptcy?


I can do that all day. I can by a car for say $7,500 and then turn around and flip it for $5,000 losing $2,500 all day long every day.


Funny American logic.


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OPERATING losses of $24.6 million… TOTAL losses for year of $46 million. That’s insanity


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Meathead Movers is next


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Growth is easy, it is sustainability that is the mark of success. If you’re going for a risky investment, you hope for a sizable return, unfortunately even if it succeeds, this company will not provide a huge return on your investment dollar for the risk involved. $24.6 million in losses from $70 million in revenue is bad, and the market for their product is already saturated. and is also highly dependent upon the health of the economy as a whole.


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Not only that but at least one of the venture capitalists involved is known for being orientated towards short-term returns. I wouldn’t be surprised if they put the screws to MindBody if the don’t get profitable quickly. This looks like a big gamble to me and it may be rigged too. I would guess that the employees will be the biggest losers if things don’t work out.


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Exactly.. everyone is fawning over them now, but all that $100 million is going to do will be to buy them time until they can find a buyer for their intellectual property and customer base. They claim to be valued at almost $700 million. I would imagine that $600 million of that is intangible assets. They should have stuck with their bread and butter instead of trying to get into the corporate wellness thing, but they probably realized that they had run out of market space with salons, spas, and yoga studios without yet having made a profit and were in over their head so they needed somewhere to grow.


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Thanks for the advice mr. Buffett.


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Good for them. I hope the local workers have received some shares in their company.


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