Ethan Agarwal, Founder And Ceo discussed on The Big Biz Radio Show

Automatic TRANSCRIPT

Fifty five twenty three this business rockstars from the nasdaq market site I'm Jeannie are men and our guest today is Ethan Agarwal he is the founder and CEO of active all right so active audio based fitness right that's right tell me more about that sure so active as an additional health company and what we do is we create workout classes which combine the voice and guidance of a really acts for world class trainer with an amazing playlists we put that together and create a class that we stream directly to our members and we talked about it a little bit and are the first part of our conversation but let's let's revisit why audio versus video sure so it when you look at the digital content landscape specifically within fitness prior to active all of the focus was on video and video has its place in certain cases but when you think about working out you're never staring at a four inch range for forty five minutes right that's a bad way to work out you need freedom of movement you move your head you move your body you move your lands that's how you work out you run down the street and so I realize that all the content that was being created through video was actually hindering our ability to work out because we were so tethered to the small piece of hardware the reason it audio works better is that it provides freedom of movement right so if you think about running for example you can't run down the street while staring at a video on your phone or on an iPad right that doesn't make any sense if you're doing yoga you know you're you're doing a downward dog for example you don't to be craning your neck up to look at the screen while doing downward dog to see what the next poses because that's bad form so DO is actually hurting that instead of benefiting it so once you realize that the best content in the past experience can be conveyed through audio it just felt like a natural fit and we are the pioneers Nadia based can I ask you who your competitors are like how who else is doing but it went well are the way we think about the landscape is our biggest competition frankly is the person who doesn't know about active you know when I go to the gym and I see people who are working out they have already taken the initiative to go to the jam they're already working out there typically listening to some music and I'm confident that we have a class that will make them work out better so our job is to ensure that they know that active exist because once they try it it'll definitely be better than whatever they're doing right now that's the only real competition we see in the space that said fitness is obvious too crowded there's a there's a lot of people that are doing something in the tracking space you know like Dr Nike running and not my run and all these companies have started GPS track what you're doing there is companies that are focused on retail locations like studios campus that are and then there's companies that develop really big and expensive hardware that do you I guess use at home but none of those are particularly exciting or competitive tossed right were softer business were content business we are direct to consumer we are global and it as we know software wins at the end of the day that's how any come that's why Netflix Netflix and not a movie theater that's why Spotify Spotify and not selling CD's software and content wins and so we are the Netflix of the fitness space there's no one else that's approaching the market the way we are interesting so let's talk about gross aren't you're about three years old and my right less than three years less than three years old but you've seen extraordinary grows so both in terms of dollars and users where are you in location for that matter I mean in terms of distribution sure so we are now in twenty countries we just launched internationally last week thank you we were in the U. S. exclusively and we added nineteen more markets last week so we think that active is the global product we've always built it to be accessible to a wide demographic and that's why I think we've seen the growth that we've seen the last two and a half years and now we're excited to bring that growth it you know twenty times over in countries around the world from the capital perspective we've raised about fifty five million dollars in twenty months we have investments from the leading venture firms in the world including insight venture partners who did our series a in our series me Interserie see received investments from Amazon from Disney Warner Music Group and bows so you know where the only come in the world that both Amazon and Disney have invested in Amazon is the leading consumer company in the world Disney's the leading content crater in the world and they have both invested in us so I think it says you know it's it's humbling but it says something about well we have the potential to achieve what's the biggest challenge specific to this business it's really a question of educating their customer and educating the member of who we are and what we do it's very rarely a challenge to get them to stick with us our retention rates are by far the best in the industry it's it's it's not even close to what when but with that being our monthly retention our monthly churn is less than four percent if you notice fitness space which I'm sure you do companies are looking at twenty to twenty five percent monthly churn and we're at four percent so it doesn't really get better than that and the reason is that people take our classes and they love them and they have no problems sticking with the product so we don't really you you know that it's important for us to develop a product that people want to use and stick with the opportunity that we see is seeing that there's forty to fifty million people in the US who would use a product like this how do we educate them about it and how do we get in front of them that's what's exciting time and how do you do that ideas opportunities you know certainly we advertise on traditional sort of social social networks we had done a great job of word of mouth when I say we did a great job I should say our members have done a great job of word of mouth they are telling their friends and spouses and siblings and parents and often their kids about it and we we see we see there's a teacher at that we use it in her class of twenty students and there's families are sending us pictures of three generations of people doing after work outs and living room at the same time and so the word of mouth component to it is so significant that we don't really see a need to you know waste unnecessary marketing dollars on advertising when I was a good investment capital into the product development and what I found kind of interesting and doing a little bit homework is that like if you're jogging or something at some point you're hoping to have a the service just kind of talk to the person right in the moment and and maybe even like almost like a coach right alongside of you saying you know you need to run faster right that's exactly right and it you know that's that day is closer than you might think already you when you're running you have our trainers near here telling you how fast run slow their motivating you there reminding you you know shoulders back neck up their money by your form etcetera but the real time customisation of it is something that will come as we have more data around engagement and yes that is something that we will launch you know in the not too distant future well we'll certainly an impact but I.

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