Question 1

What is Casper and what does the company do?

Accepted Answer

Casper is a direct-to-consumer mattress brand that revolutionized the sleep industry by pioneering the mattress-in-a-box model. Founded in 2014, Casper designs and sells premium mattresses online and through 60+ retail locations, eliminating traditional showrooms and middlemen to offer better value to consumers. The company ships compressed mattresses directly to customers' homes and has expanded to become one of the most recognized names in the modern mattress market.

Question 2

Who founded Casper and when?

Accepted Answer

Casper was founded in 2014 in New York City by Philip Krim (CEO), Neil Parikh, Jeff Chapin, Luke Sherwin, and Gabe Flateman. The founders were inspired by the Warby Parker model of disrupting traditional retail industries and applied that vision to the mattress market. Their goal was to create a premium mattress brand that would be more accessible and convenient for consumers by cutting out the traditional retail middlemen.

Question 3

What happened to Casper's IPO and stock price?

Accepted Answer

Casper went public on the NASDAQ in February 2020 under the ticker symbol CSPR with an initial valuation of $500 million. However, the IPO proved disappointing, with the stock price crashing from $12 to just $3, representing a 75% decline. The poor performance reflected profitability challenges and increased competition in the mattress market, contributing to the company's eventual take-private by private equity firm Durational Capital in 2021.

Question 4

How much did Durational Capital pay for Casper and when?

Accepted Answer

In 2021, private equity firm Durational Capital acquired Casper for $300 million and took the company private, delisting it from the NASDAQ. This acquisition came after the company's disappointing IPO performance and ongoing profitability challenges. Under Durational's ownership, Casper has continued operating with a focus on achieving sustainable profitability while maintaining its retail expansion strategy.

Question 5

What is Casper's revenue and current financial status?

Accepted Answer

Casper generated $500 million in revenue during 2024, making it one of the largest players in the sleep and mattress industry. While the company has achieved significant revenue scale, it has faced persistent profitability challenges historically, having accumulated over $500 million in cumulative losses across its operating history. The company continues to operate with 60+ retail stores and 800 employees, down from a peak of 1,200 during its earlier growth phase.

Question 6

What is Casper's flagship product and how much does it cost?

Accepted Answer

Casper's flagship product is their signature mattress, priced at $1,200 for a queen size. The mattress is sold exclusively direct-to-consumer online and in physical stores, with customers able to order it compressed in a box for convenient delivery. The company also offers a 100-night risk-free trial period, allowing customers to test the mattress in their home and return it if unsatisfied.

Question 7

Does Casper offer a trial period for mattresses?

Accepted Answer

Yes, Casper offers a 100-night risk-free trial period with all mattress purchases. This means customers can test their mattress in their own home for over three months and return it for a full refund if they are not satisfied. The generous trial period is a cornerstone of Casper's direct-to-consumer model, designed to reduce purchase risk and increase consumer confidence in buying a mattress online.

Question 8

What are the main competitive advantages of Casper?

Accepted Answer

Casper's primary competitive advantages stem from its direct-to-consumer model, which allows for lower costs and better pricing compared to traditional mattress retailers. The mattress-in-a-box design reduces shipping costs and storage requirements, while the brand's strong marketing and focus on convenience have made it a household name in the online mattress category. The 100-night trial period and focus on premium quality at a reasonable price point differentiate Casper from both traditional mattress stores and newer competitors.

Question 9

Who are Casper's main competitors?

Accepted Answer

Casper operates in a competitive market with several major players. Purple is another direct-to-consumer mattress brand with significant market presence, while Tuft & Needle offers a value-oriented mattress-in-a-box alternative. Traditional mattress retailers like Mattress Firm, which operates thousands of physical locations, also compete for market share. The broader mattress industry has become increasingly fragmented, with numerous DTC brands entering the market since Casper's founding.

Question 10

How does Casper distribute and deliver mattresses?

Accepted Answer

Casper uses a hybrid distribution model combining direct online sales with physical retail locations. Customers can order mattresses online through Casper's website for home delivery, with the mattress shipped in a compressed box for convenient delivery and setup. The company also operates 60+ retail stores where customers can visit to test mattresses in person before purchasing, providing a blend of direct-to-consumer convenience and traditional retail experience.

Question 11

How many employees does Casper currently have?

Accepted Answer

Casper currently employs approximately 800 people across its operations, representing a reduction from its peak of 1,200 employees during earlier growth phases. The company is led by CEO Emilie Arel, who took the helm in 2022. This streamlined workforce reflects Casper's focus on achieving operational efficiency and profitability under Durational Capital's ownership.

Question 12

What was Casper's funding history before going public?

Accepted Answer

Before its 2020 IPO, Casper raised approximately $340 million in venture funding from prominent investors including IVP (InterWest Partners) and Lerer Hippeau. This funding fueled rapid growth from 2015-2019, allowing the company to achieve a $1.1 billion valuation and invest heavily in brand building, including approximately $100 million in television advertising. The strong venture backing reflected early investor enthusiasm for the mattress-in-a-box model and Casper's potential to disrupt the traditional mattress industry.

Question 13

What was Casper's original mission and vision?

Accepted Answer

Casper's original mission was to revolutionize sleep by offering a premium mattress-in-a-box sold directly to consumers with a risk-free trial, eliminating traditional showrooms and middlemen. The founders were inspired by Warby Parker's model of disrupting incumbent retail industries and sought to apply similar principles to the mattress market. This vision prioritized consumer convenience, better pricing through DTC distribution, and accessibility to high-quality sleep products for a broader audience.

Question 14

What challenges has Casper faced in its business?

Accepted Answer

Casper has faced significant profitability challenges throughout its operating history, accumulating over $500 million in cumulative losses despite generating substantial revenue. The company has struggled with high customer acquisition costs of approximately $300 per customer, making profitability difficult in a competitive market. Additionally, the mattress-in-a-box category has become increasingly commoditized with competition from established players and new entrants, while the company's 2020 IPO underperformance forced a return to private ownership.

Question 15

What is the customer acquisition cost for Casper?

Accepted Answer

Casper's customer acquisition cost (CAC) has been approximately $300 per customer, which represents a significant marketing expense in the highly competitive mattress industry. These costs reflect the company's substantial investment in brand building and digital marketing to establish Casper as a leading mattress brand. Managing and optimizing these acquisition costs has been central to Casper's efforts to achieve profitability, particularly during its hypergrowth phase from 2015-2019.

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Frequently Asked Questions

What is Casper and what does the company do?

Who founded Casper and when?

What happened to Casper's IPO and stock price?

How much did Durational Capital pay for Casper and when?

What is Casper's revenue and current financial status?

What is Casper's flagship product and how much does it cost?

Does Casper offer a trial period for mattresses?

What are the main competitive advantages of Casper?

Who are Casper's main competitors?

How does Casper distribute and deliver mattresses?

How many employees does Casper currently have?

What was Casper's funding history before going public?

What was Casper's original mission and vision?

What challenges has Casper faced in its business?

What is the customer acquisition cost for Casper?

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