TechCrunch has secured financial information about ClassPass, the TechStars-backed startup that offers unlimited access to various fitness classes for a flat monthly fee. As it stands now, our sources report that ClassPass is tracking to a $60 million revenue run rate for 2015, a run rate that has doubled in the past three months.
Last week alone, the company brought in $1.5 million and this month will exceed $5 million in top line revenue, all due to the 600,000 reservations made by ClassPass users over the course of February.
To give you a little perspective, ClassPass was seeing around 300,000 reservations a month in December, the same month in which the company received $40 million in Series B funding led by General Catalyst and Thrive Capital.
In the time since, ClassPass has expanded from 20 cities to 30 cities, with a $15 million revenue run rate on the West Coast. In other words, ClassPass is no longer a NYC startup but a nationwide fitness service, with plans to launch internationally in the coming weeks, sources say. In fact, the NYC market (which is continuing to grow) still only comprises 40 percent of ClassPass’s total user base.
All that said, it’s not hard to imagine that $60 million annual run rate doubling or even tripling by the end of the year considering how fast ClassPass is entering new markets (5 per month).
Alongside rapid expansion, ClassPass is investing heavily into growing the engineering team (currently at 20 but set to double in the next few months), as well as marketing initiatives and studio partners.
According to this source, ClassPass is at least 25x bigger (in terms of revenue) than its next competitor, of which there are many.
The most notable ClassPass competitor is FitMob, which pivoted its business from a peer-to-peer marketplace for trainers and students to more closely follow ClassPass’s subscription-based, studio-focused model. FitMob has some minor differences, like the ability to see other ‘mobbers’ in your class, but overall it has certainly positioned itself to try to compete directly with ClassPass in the subscription space.
We reached out to FitMob to confirm, and CEO Raj Kapoor said that the 25x figure is inaccurate, though he wouldn’t provide any actual numbers around revenue or users. He did, however, mention that FitMob’s revenue rate is up 10x in the last five months, and user growth is up 24x year-over-year. This may be due in part to a promotion FitMob is running that offers the first 1,000 people to sign up in a market their first month for just $1.
FitMob is available in seven cities, compared to ClassPass’s 30, though FitMob’s acquisition of Gymsurfing (a service that offers gym day-passes to travelers) may help the company expand.
Without any real numbers from FitMob around revenue or users, we’re essentially comparing apples to oranges. But we can draw one obvious conclusion: The model that ClassPass has seemingly perfected — buying highly discounted inventory from a wide variety of providers and selling it back to consumers in a subscription bundle — well, it works and it’s catching on.
As we speak, BusinessInsider is working on a story about the ClassPass for blowouts. In the same way that Uber’s existence spurred dozens (probably hundreds) of startups to become the “Uber for X”, ClassPass’s momentum signals that we may see a similar trend and uptick in startups looking to be the “ClassPass for X.”
https://twitter.com/ajs/status/571323654954475520
And the numbers aren’t that far off, either. Three years after launching Uber, the company was reported to have a $125 million revenue run rate. ClassPass in its current iteration has been available for about 19 months and is operating at a $60 million revenue run rate. Just saying.
ClassPass has raised a total of $54 million in financing.
We’ve reached out to ClassPass for comment and will update you if we hear anything back.
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