>> EVERYONE WELCOME BACK TO
EACH OTHER ALL THE TIME IS
GEARING UP TO MAKE ITS PUBLIC
DEBUT THIS WEEK IN THE
CONNECTED BIKE AND
WORKOUT COMPANY IS LOOKING TO
RAISE AS MUCH AS ONE 0.1 $6
BILLION SAME PRICE RANGE
OF 26. THE $29 A SHARE THEY
HAVEN'T ACTUALLY SET THE PRICE
YET BUT WE'RE GOING TO BE
SAYING TO THAT LIVE ON THIS WE
COUNT ON SPECTRUM. THE LIST
ON THE NASDAQ THURSDAY TICKER
SYMBOL PT OVER
AND DONE IT'S NOW TO HELP US
BREAK ALL THINGS PROTON DOWN
PLUS MORE ON THE FITNESS SPACE
LIKE A PRO
AND WHO IS THE MANAGING
DIRECTOR AT SCRUM VENTURES
MICHAEL GREAT TO HAVE YOU HERE
WITH US TODAY, WHAT DOES THE
PROTON IPO MEAN WE'RE CONNECTED
FITNESS AT HOME FITNESS THE NEW
DISRUPTIVE SPACE.
>> YEAH, IT'S A
GREAT QUESTION. YOU KNOW HOPE
TENNIS IN GENERAL HAS REALLY
JUST TAKEN IS NO QUESTION ABOUT
IT IN IN WHAT'S REALLY DRIVING
THE TREND ARE 3 MAIN THINGS
NUMBER ONE. THE MATURITY OF THE
WEARABLES MARKET RIGHT SO THIS
IS A NEW DADS
WEARABLE ANYMORE THAT MARKET
HAS REALLY REALLY TAKEN OFF I'M
LOOKING IT CONNECTED DEVICES TO
THINGS LIKE TO KNOW THINGS
LIKE SWIFT. HE'S LIKE HYDRO
RIGHT. THESE ARE
MAINSTREAM PRODUCTS THESE DAYS
AND THERE'S A REASON WHY THIS
MARKET PLACE IS SUPPOSED
TO BE. BILLION INDUSTRY IN THE
NEXT 5 YEARS THE OTHER ASPECTS
OF
FOR ONE IS THE CONNECTIVITY
RIGHT YOU HAVE VIRTUALLY
TRAINERS AND COACHES COMING
FROM ALL
DIFFERENT PLACES AROUND THE
WORLD NOW YOU DON'T HAVE TO GO
TO THE GYM ANYMORE TO GET ALL
OF THE
WORKOUT ENGAGEMENT. MY FORMER
EMPLOYER, THE NATIONAL
BASKETBALL ASSOCIATION ACTUALLY
JUST TOOK AN EQUITY STAKE IN A
COMPANY CALL HOME COURT RIGHT
THERE KIND OF THE GOLD STANDARD
FOR POACHING IN AFRICA SEEN IN
BASKET ALL BUT THAT REALLY WHAT
THAT
SHOWS IS THAT YOU CAN CONNECT
NOT JUST EQUALITY BIT SCARED.
AND THEN THE LAST PIECE IN
PROBABLY THE MOST OBVIOUS HERE
IS THE WHOLE NOTION OF TIME
IN IT. ALL RIGHT WE'RE ALL
JUGGLING IN WIND TUNNELS THESE
DAYS JUST TRYING TO GET TO THE
DAY AND IN
DOING WELL. YOU GO ASK THEM THE
LINEAL ESPECIALLY ONE THAT HAS
YOUNG KIDS HOW EASY IT IS TO
BREAK AWAY AND GO TO THE GYM.
IT YOU WANT TO GET A QUALITY 45
MINUTE WORKOUT AND IT TAKES 45
MINUTES TO GET TO A GYM IN
BACKED FORGET ABOUT IT RIGHT
AND THIS IS
REALLY ABOUT MORE OF AN NEED
THESE DAYS THEY DON'T WANT
HIM TO REALLY PRIORITIZING
HEALTH AND WELLNESS FOR A LOT
OF FOLKS AT 20 OR $30 A MONTH.
>> CAN YOU MAYBE HELP EXPLAIN
WHERE THE DEMAND IS COMING FROM
OUR OTHER COLLEAGUES IN THAT
EVENT HAS MADE THE ARGUMENT
THAT THIS IS REALLY THE SAME
TARGET MARKET
AND DEMOGRAPHIC FOR THOSE THAT
ARE THEY BEING IT CANNOT MEMBER
THINKING ABOUT JOINING ONE A
LOT OF THESE YOU KNOW PLACES
ON THE MOST LINES OF THE US BUT
HOW MUCH IS IT REALLY THAT
RATING THE REST OF THE COUNTRY.
>> WELL I LIVE RIGHT HERE IN
THE MIDWEST RIGHT IN
MINNEAPOLIS MAKING TELL YOU THE
WEATHER SOX 6 MONTHS OF
THE YEAR. AND FOR ME TO NOT
HAVE TO DRIVE TO A GYM IN THE
DEAD OF WINTER AND ROLL OUT
OF BED IN AND GET TO GET ON A
BIKE OR ON A TREADMILL WITHIN 5
MINUTES OF MINE.
MY BEDROOM THAT'S A PRETTY
COMPELLING PROPOSITION I GET IT
YOU KNOW THE MAY
SEEM EXPENSIVE. IT BUT THE IF
THE END OF THE DAY YOU CAN
EITHER PAY RIGHT NOW OR YOU CAN
PAY LATER AND I THINK
MILLENNIALS ARE SMART ENOUGH TO
REALIZE AND THE VALUE THAT IS
YOUR PERSONAL WELLNESS HAS AND
WHERE THAT NEEDS TO
BE PRIORITIZED.
>> YOU KNOW WITH ALL OF THE
DIFFERENT TRENDS FITNESS TRENDS
THAT WE'VE SEEN OVER THE YEARS
WHETHER IT'S BOTH FLEX WHETHER
IT'S THE AFTER WERE
BILLY BLANKS, ALL OF THESE
DIFFERENT EXERCISES ZOOM BUT
FOR GOODNESS SAKES IS THIS A
FAD OR FIXTURE.
>> IT IS DEFINITELY A FIXTURE.
THERE'S NO QUESTION ABOUT IT
AND I THINK YOU'RE ALREADY
SEEING THE TEA LEAVES AND WHERE
THE WIND IS BLOWING AND YOU
LOOK AT BEST BUY
FOR EXAMPLE, YOU KNOW THIS IS A
COMPANY THAT COULD BE IN ANY
SPACE WHEN IT COMES TO CONSUMER
ELECTRONICS AND THEY'VE ELECTED
ESSENTIALLY
DOUBLED IT AND ON THEIR HEALTH
AND WELLNESS BUSINESS STATE
JUST ANNOUNCED IN THE LAST
COUPLE MONTHS THAT THEY'RE
GOING TO BE SELLING HYDRO'S TO
BE SOLD FLYWHEELS THE
NORM ATTACK YOU NAME IT SO THIS
IS GOING IN ONE DIRECTION
IN RETAIL. YOU CAN ALSO START
TO SEE IT ACTUALLY AT THE MOST
SUSCEPTIBLE AUDIENCE AND WAS
THE US AND THE GYMS IN TOWN YOU
KNOW THEY ARE FOR AND TO THIS
DAY I THINK THAT
PRETTY 38 MILLION AMERICANS
BELONG TO JIM'S THAT THEY CAN
THIS MASSIVE SHERIFF'S
THEY DONATE REAL ADJUSTMENTS
RIGHT AND SO THEY SEE I THINK
IT DID EXAMPLE IS IS LIFE TIME
FITNESS RIGHT.
THEY'RE BUILDING TAJ MAHAL
ASTUTENESS HERE AND AROUND THE
COUNTRY FOR THAT MATTER IN THAT
THE MARKETING THEMSELVES MORE
AS A WELLNESS COMPANY, EVEN
JUST A JIM PER SE SO I THINK
THEY RECOGNIZE THAT AT HOME
FITNESS IS GOING TO IS HERE TO
STAY. IT CERTAINLY IS IT ASPECT
OF SOME BUDDIES GAME IT MAY NOT
BE THE ENTIRE.
>> AND SO I ASK THAT BECAUSE I
MEAN WHAT IS CALLED ON GETTING
RIGHT THAT SOMETHING LIKE THAT
WASN'T GETTING RIGHT
IS IT. SURELY JUST THE FACT
THAT THEY'VE GOT INSTRUCTORS
THAT ARE ACTUALLY POWERING THIS
ISN'T JUST
THE NATURE OF TIME, PROGRESSING
AND CONSUMERS. FINALLY COMING
AROUND TO HAVING SOME OF
THIS TECHNOLOGY BECAUSE QUITE
FRANKLY BUYING UP THE CONSUL IS
MUCH CHEAPER THAN BUYING A
PELOTON BIKE.
>> TRUE I DON'T KNOW IF YOU'RE
GOING TO WORK OUT AND
AH BUT.
>> IF YOU THINK THERE IS THAT
KOL LIKE FOLLOWING RIGHT IT'S
TRIBALISM ITS BEST IS A REASON
WHY PEOPLE ARE
SPORTS FANS AND THAT I CAN GO
TO A MINNESOTA VIKINGS GAME AND
WHERE MY ADAM THIELEN JERSEY
INCENTIVES TO SUM TOTAL
STRANGER, WE'RE CONNECTED BY
THE
SCENE TRIED RIGHT AND SO ON
BECAUSE WE'RE BOTH VIKINGS FANS
AND INTO THE REALITY YEARS IT'S
THE SAME THING
AND THEY'VE JUST TAKEN THAT
CONCEPT INTO YOUR HOUSE AND ME
TO FEEL LIKE YOU'RE PART OF
THAT COMMUNITY AND THEY DO A
REALLY NICE JOB OF IT.
>> I'M GLAD YOU BROUGHT THAT UP
BECAUSE I WANTED SORT OF ASK
ABOUT JUST WHY YOU FEEL LIKE
IT'S BECOME. THE CULTISH RIGHT
WE TALK A LOT WHEN SOULCYCLE
FIRST CAME AROUND THAT PEOPLE
WERE JUST LIVID SOULCYCLE ME
YOU HAVE CERTAIN TYPES OUT
THERE THAT YOU WOULD SAY OH
THAT'S A US ALL SIDES PERSON OR
A CROSS FIT PERSON NOW IT'S
ALMOST LIKE A STATUS.
WELL IF YOU'VE BEEN ABLE TO
ALSO AFFORD ONE OF
THESE THINGS. SO WHAT POINT DO
THAT MAYBE EVEN BREAK OUT
BECAUSE YOU CAN'T MAYBE I DON'T
KNOW YOU TELL ME IS IT JUST
BETTER FOR THEM TO SELL DEEPER
INTO THIS ONE IN CORAL BOAT
RIDE WORSE IS TRYING TO APPEAL
TO THE BROAD MASSES.
>> WELL I THINK IT REALLY COMES
DOWN TO THE IS IS THAT YOU KNOW
2 WORDS RIGHT WE LIVE IN A
SUBSCRIPTION ECONOMY.
>> THEY HAVE AN EXCEPTIONAL JOB
OF RECOGNIZING THAT AND
MONETIZING ACCORDINGLY YOU KNOW
YOU HAVE ONE
0.5 MILLION ACTIVE USERS RIGHT
NOW AND THAT NUMBER IS GROWING
EXPONENTIALLY AND YOU KNOW YOU
HAVE HALF A MILLION PEOPLE WHO
HAVE THE ACTUAL HARDWARE TODAY
SO TO BE ABLE TO
HOOK PEOPLE WELL AND THEN DO IT
ON A MORE RECURRING BASIS
THAT'S A VERY STRONG VALUE
PROPOSITION I MEAN YOU LOOK AT
A COMPANY LIKE SHIP THAT RIGHT.
A COMPANY THAT WENT PUBLIC 4
YEARS FOR BILL MILLION DOLLAR
VALUATION ON THE WENT UP TO
61, BUT TO SHARE SOMETHING LIKE
THAT IN
FACT YESTERDAY. YOU KNOW THEY
ANNOUNCE THAT THEIR STREET
SEEKING STRATEGIC ALTERNATIVES
IN THE RACE UNTIL 6. SO YOU
KNOW IT IT'S TO
ME THAT'S MORE LOOK AT CANNED
FRUITS, FRESH FRUIT, YOU KNOW
DEBATE AND THERE MAY BE A LOT
OF COMPARISON.
>> OK WELL ON THIS NOTION OF
THIS BEING NOW A SUBSCRIPTION
BASED POP ELATION THAT WE'VE
ALL SORT OF ADAPTED INTO WHAT
ABOUT OTHER BUSINESSES THAT MAY
NOW BE AT RISK BECAUSE OF OUR
TIMES
RIGHT NOW FLYWHEEL FOR EXAMPLE
SHUTTING DOWN DOZENS OF THEIR
LOCATIONS BECAUSE YOU CAN NOW
JUST BASICALLY AT HOME WHERE
ARE THE OTHER POCKETS OF
WEAKNESS.
>> WELL I THINK IT'S ANY OF
THE JUNE. THAT ARE KIND OF
DIGGING THEIR HEELS IN AND
SAYING THAT
THIS ISN'T YOU KNOW THE
LONG-TERM TREND THAT THIS IS AN
ABERRATION RIGHT, I MEAN IT'S
KIND OF LIKE THE CIRCUIT CITY
DEFENSE. SEE HOW WELL THAT
WORKED FOR THEM ABOUT 10 YEARS
AGO RIGHT IS A THIS IS JUST IN
THE PAST THAT REALITY HERE IS
A THING THE GYMS THAT ARE
STARTING TO RECOGNIZE THAT FACT
THAT THE JUNE IS NOT
NECESSARILY YOUR EXCLUSIVE
OUT WITH TO BURN CALORIES ARE
GOING TO BE THE ONES THAT
SURVIVED THE ONES THAT YOU KNOW
ESSENTIALLY LOOK AT THIS
AND SAY YOU KNOW WHAT WE'RE
STILL GOING TO DO OUR BUSINESS
I DON'T GIVE THEM MUCH HOPE I
MEAN TO ME IT'S KIND OF LIKE
THE MALL DEBATE RIGHT. I MEAN
IT'S VERY ANALOGOUS SAYS THAT
THE MALL IS HE GOING THE WAY
IT'S JUST EVOLVING AND THEY
THINK THAT'S WHAT GOING ON
RIGHT NOW WITH A LOT OF THESE
GEMS.
>> AND DON'T FORGET, YOU KNOW
AMAZON NOW GETTING MORE INTO
HEALTH CARE GOOGLE AND ALL
THESE FITNESS I YOU KNOW
DEVICES THAT ARE CONNECTED
AMAZON.