Interactive Strength Inc. · NASDAQ:TRNR
Interactive Strength — IPO Roadshow (February 2023)
20 slides from Interactive Strength's IPO roadshow presentation, Feb 6, 2023
Slide 1: Company Presentation
Filed Pursuant to Rule 433 Issuer Free Writing Prospectus Dated February 6, 2023 Relating to Preliminary Prospectus Dated February 6, 2023 (File No. 333-269246) Company Presentation February 2023
Slide 2: Free Writing Prospectus
FREE WRITING PROSPECTUS This free writing prospectus relates only to the initial public offering of common stock of Interactive Strength Inc. d/b/a Forme (”Forme,” “we,” “us,” or the “Company”) and should be read together with the preliminary prospectus, dated February 6, 2023 (the “Preliminary Prosp
Slide 3: Forward Looking Statements
FORWARD LOOKING STATEMENTS This presentation may not be reproduced or disclosed in whole or in part. This presentation includes statistical and other industry and market data that we obtained from industry publications and research, surveys, studies and other similar third-party sources, as well as
Slide 4: Transaction Overview
TRANSACTION OVERVIEW ISSUER: Interactive Strength Inc. d/b/a FORME OFFERING TYPE: Initial Public Offering PRICE RANGE: $6.00-$8.00 UNITS OFFERED: 2,000,000 GROSS PROCEEDS: $12,000,000* LISTING/SYMBOL: NASDAQ: TRNR PRE-IPO SHARES: 12,000,000-12,300,000** UNDERWRITERS: Aegis Capital Corp. (bookrunning
Slide 5: Who We Are
WHO WE ARE A digital fitness service that combines award-winning smart home gyms with 1:1 personal training (from real humans) to deliver an immersive experience and better outcomes for both consumers and trainers. 5
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Slide 7: Leadership Team - Strong in Fitness and Finance
Leadership Team - Strong in Fitness and Finance CEO & Founder Trent Ward Joshua Ford* VP, Commercial Co-Founder & CEO Experience: 12 years Experience: 20 years Deepak Mike Madigan Chief Financial Officer Mulchandani Chief Technology Officer Experience: 24 years Experience: 31 years *Joined with HipTrain
Slide 8: Our Products - Premium Smart Home Gyms
Our Products - Premium Smart Home Gyms Life-like 43” 4K Variable resistance of reflective display up to 100 lbs per arm Resistance arms and Easy to use, accessories cabinet touchscreen display can stow away Hundreds of on-demand Automated weight classes across multiple adjustment during class types c
Slide 9: Smart Home Gyms - Quality Validated by Key Industry Gatekeepers
Smart Home Gyms - Quality Validated by Key Industry Gatekeepers Best New Best At-Home Best In Fitness Mirror Strength System Concierge Fitness 2023 2023 2023 9
Slide 10: Our Products - 1:1 Personal Training Memberships
Our Products - 1:1 Personal Training Memberships $149/mo* $399/mo* Custom Training Plans Live 1:1 Training ● Guided workouts designed ● Train live with your coach 4x for you by a real coach per month + unlimited custom guided, workouts ● Can be completed Weekly Plan from your trainer anywhere, at an
Slide 11: High Quality Personal Trainers - 50 in-house and growing
High Quality Personal Trainers - 50 in-house and growing Matt Berenc VP, Live 1:1 Coach Development Experience: 20 years, Aaron M. Pauline P. Nina M. Bader S. Bill S. Chris C. Gary B. Chris C. Rachel D. Bruno P. Former Head of Equinox Fitness Training Institute Freddy S. Mark C. Dana G Keith L. Loga
Slide 12: High Quality Trainers - Better Value and Availability through Virtual
High Quality Trainers - Better Value and Availability through Virtual Digital Distribution Labor Market Arbitrage Labor Capacity Utilization Distribution costs are lower Labor costs are lower in Virtual training increases available via digital than via gym less affluent markets sessions during peak pe
Slide 13: Business Model - Attractive Recurring Revenue combined with Hardware
Business Model - Attractive Recurring Revenue combined with Hardware Connected Hardware Smart Home Gyms Services Personal Training FORME FORME Average Annual Revenue Per Device $588 $960-$1,440(1) $1,560-$2,040 (blended) ($80-$120) + (monthly) ($49) ($130-$170) Annual Contribution $420 $360-$480 $78
Slide 14: Development Complete - Focused on Commercialization to Drive Efficiency
Development Complete - Focused on Commercialization to Drive Efficiency 2017 Product Development 2022 2023+ Commercialization Development required many hands (>150 FTE) Commercialization is efficient (<40 FTE) Use of proceeds: Connected Hardware (Studio & Studio Lift) ● General corporate purposes, inclu
Slide 15: Growth Opportunity - Strength is Bigger than Cardio and Just Beginning
Growth Opportunity - Strength is Bigger than Cardio and Just Beginning Strength has more participation than Cardio Strength is 5 years behind and on similar trajectory as Cardio Est. Installed Base (K) PELOTON 4 17 100 168 362 712 1,670 2,767 3,000 4 31 108 150 225 2023-2026 opportunity for further
Slide 16: Disciplined Growth - Focus on Return on Capital
Disciplined Growth - Focus on Return on Capital Revenue per Member Hardware Training membership membership $ $$$ Return on Capital Cost of Acquisition Hardware Mobile acquisition cost acquisition cost $$$ $ 16
Slide 17: Personal Training Generates Significant Incremental Recurring Revenue
Personal Training Generates Significant Incremental Recurring Revenue Average Annual Recurring Revenue per Device ~ (1) Note: 1. Estimate - FORME average recurring revenue assumes 30% penetration of training within member base, average of $450 monthly revenue for training services (training 1-2x per
Slide 18: Go-to-Market Strategy Focused on Efficient Customer Acquisition
Go-to-Market Strategy Focused on Efficient Customer Acquisition Mobile CAC < Hardware CAC Tactical acquisition strategies to mitigate Hardware CAC Upsell to hardware from mobile Public Company Visibility Mobile Hardware Hotels and Commercial Price $99 intro month* $2,495 / $5,995* Fulfillment Digital P
Slide 19: Investment Highlights
Investment Highlights Business Stage and Model Market and Product provides Shareholder Profile offers high potential returns growth and barriers to entry for Long-Term Success Commercialization Opportunity Attractive Market and Consumer Strong Investor Support ● Development complete ● Connected Streng
Slide 20: www.formelife.com | @thisisformelife
www.formelife.com | @thisisformelife
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