Eric Min (2:53)

Yeah, you know, we started the business as a software company, really discounting the hardware. We didn't want to be in the hardware business, but it's just such an important part of the overall experience. And I think after, you know, years of working hard and investing in hardware, I think we really landed a product that resonates with the masses. So it's been very successful. This is our second year, and the sales have been very, very strong so far.

Tim Stankus (3:20)

Talk to us a little bit about how strong they've been. Can you give us some idea in terms of growth year over year, what kind of momentum you're seeing, what kind of growth?

Eric Min (3:31)

Yeah, so, you know, the hardware business is really just to help facilitate the onboarding. You know, we've been. We probably spent the last 10 years figuring out how to just remove friction in the whole onboarding and getting customers just get on Zwift. So we see this as just a huge opportunity as we sort of widen the audience from, you know, sort of the core cycling enthusiast to a broader audience that just, you know, likes to ride bikes and like to exercise indoors. And cycling happens to be one of the, you know, one of the most. The easiest and the safest and one that is most enjoyable, I think, out of all the different activities that are out there. But in terms of growth, we are seeing really strong growth in our. Both in our subscription and our revenues. So, yeah, we think that the hardware is an important aspect of that. I think one of the early and early, early investor that I spoke to, this was like almost 10 years ago, he said to me that the right price point for this hardware, this is the, you know, the trainer part, which you attached to the bike back then. He said $500 is the right price point. And it's taken us 10 years, a lawsuit, lots of investment in hardware to finally get price point. And I can tell you that it's finally working.

Carol Massar (4:54)

How much?

Lucas Shaw (4:54)

Well.

Carol Massar (4:55)

Go ahead, Carol.

Tim Stankus (4:55)

Well, I Know, you're a private company and so you don't necessarily have to reveal tons of metrics, but we are Bloomberg, you know, and I am curious about what kind of growth you've seen in terms of bike sales because it does sound like it's an important part just, or your top line overall, how much it's growing.

Eric Min (5:15)

Yeah, so we've seen, you know, revenues grow, you know, double digit growth. You know, we're not, we're sort of not in that phase of growing, doubling our business every year. We had a crazy, crazy growth during COVID years. I think now we're in sort of responsible growth. And I think, you know, over, over the last few years we sort of went through the painful adjustment of making sure that the, the business is right size and the business is really strong now. We're very profitable and we have, you know, plenty of capital to, to invest in all sorts of a blessing that, and you know, it was a blessing that we were able to raise a lot of capital. I don't think capital is the issue anymore. It's really just where do we want to place our, our bets? And I think it's, it's. Yeah, it's, it's business the old fashioned way. Right.

Carol Massar (6:06)

Well, it's funny, every time I've spoken to you year after year, you've said you don't have to raise more capital, you don't have to raise more capital. I think this is the first time I've heard you say that you're very profitable though.

Eric Min (6:17)

That's right. This isn't the first year we're profitable, but this is the first year we are, I'd say profit in a meaningful, meaningful sense. And that's because we've just become more efficient as a business. You know, we've made a number of mistakes in the past and I think now we know where we're really good at and we're focused on investing in those areas. And I think, you know, we're not going to start making spec of investments like we did back, you know, perhaps a few years ago.

Carol Massar (6:46)

So does that mean an IPO is on the horizon?

Eric Min (6:49)

I think, I think for us we need some more time to, to grow into a story like that. I. What we just need to do is just create a great business, great product experience and I think hardware is a big, big part of that. I think they're exciting. We have an exciting product roadmap both on the software and the hardware side. I think for us going forward, it's got to be side, side to side by side. But our focus will remain for the foreseeable future around the experience of cycling. So then, so.

Carol Massar (7:22)

So what does that roadmap look like?

Eric Min (7:26)

Well, I mean, there's just so much we can do on the. On the. On the product side, the product experience side and AI is something that we're really investing heavily in. I think, you know, many people show up unbeknownst to them perhaps to get into shape. And I think we've done. I think we can do a much better job in demonstrating how they can improve, quantify those metrics and showing progress. I think every Zwifter who shows up on Zwift should be recommended. The best content, given what they've done, you know, perhaps the day before, the week before, the month before. So we're really investing in training and personalized training. So this is where AI comes in, and this is something that we'll start delivering this fall.

Tim Stankus (8:14)

Hey, before we go, Eric, we've just got about a minute or under a minute. How does the new New York City map kind of fit into all of what you are saying?

Eric Min (8:22)

Well, you know, I'm a New Yorker, so I'm super excited. When we launched the business, we didn't start with Central park, so we landed that a number of years ago. And this is the first expansion of the city. I'm really excited. We're going to Brooklyn, we're going to Times Square. And so this is a bit of nostalgia for me. This is my playground for many, many years. So we're here in New York activating and launching the expansion.

Carol Massar (8:52)

Well, next time you hear Eric, come by. We always love it when you join us on Bloomberg Businessweek Daily and give us an update on Zwift. Once again, Eric Min, he's the co founder and CEO of Zwift, joining us this afternoon from New York.

Tim Stankus (9:05)

And there's the Hudson Tunnel in this map.

Carol Massar (9:09)

No bikes allowed in that tunnel, Carol.

Tim Stankus (9:11)

Really?

Carol Massar (9:12)

Yeah. Casey Neistat did it a few years ago. Many years ago.

Tim Stankus (9:16)

Just saying.

Carol Massar (9:16)

There's an old YouTube video of him doing that.

Tim Stankus (9:19)

I'll check it out.

Carol Massar (9:19)

Yeah, it's kind of scary.

Tim Stankus (9:20)

I can only imagine.

Carol Massar (9:21)

Yeah, no bikes in there.

Mint Mobile Representative (9:27)

Mint is still $15 a month for premium wireless. And if you haven't made the switch yet, here are 15 reasons why you should. One, it's $15 a month. Two, seriously, it's $15 a month. Three, no big contracts. Four, I use it. Five, my mom uses it. Are you playing me off? That's what's happening, right? Give it a try@mintmobile.com Switch upfront payment.

Narrator/Announcer (9:50)

Of $45 per three month plan $15 per month equivalent required. New customer offer first three months only, then full price plan options available, taxes and fees extra.

Lucas Shaw (9:56)

See mintmobile.com Bloomberg Screen time is where creators and capital connect. My name is Lucas Shaw and I'll be interviewing industry leaders like Warner Bros. Pam abdy and Mike DeLuca, Instagram's Adam Masseri and director Ryan Coogler. Screen Time is where you can go behind the scenes to hear about the strategies and stories powering what the world watches next. Join us live in Los Angeles October 8th and 9th. You can get your tickets@bloomberglive.com screentime and thanks to our presenting sponsors AWS and Coriant, as well as the supporting sponsors Nielsen, Turkish Airlines and Weil, Gotchael and Manges.