Investing in Priv: Join the On-Demand Beauty and Wellness Revolution
/Priv is the leading provider of on-demand beauty and wellness services in the United States. Founded in 2014, they deliver top-rated professionals straight to your door in over 30 markets in the U.S.
Now Priv is planning to scale up, and they’ve opened the door for anyone to invest in Priv. The Priv investment opportunity is open to anyone, not just accredited investors or Wall Street.
Here’s why Priv stock is gaining attention…
Since 2020, Priv has increased its revenue 4x and achieved profitability in 2022. The company expects to reach $6M in revenue in 2023, a 30% increase over last year’s revenue.
Over the next ten years, Priv has plans to expand its U.S. market presence, scale its services, launch its international presence, and sell third-party products to professionals and clients. And now, Priv is making it possible for the everyday investor to be a part of its exponential growth.
But, is investing in Priv worth the risk? Keep reading to decide for yourself.
What is Priv?
You can invest in Priv, but what does this company do?
Priv is an app-based marketplace for beauty and wellness services. Consumers can book beauty and wellness services on the app where the professional will come directly to them, whether the home, a business/event, or a hotel.
In 2014, beGlammed and Priv launched as separate companies. The founder of beGlammed is a former MAC Cosmetics makeup artist and the founder of the original Priv has a technology background.
In 2019, the two companies merged to create the current Priv, Inc. The big idea was to create a platform/marketplace to make beauty and wellness services more accessible, with an app-enabled experience that makes it easier for clients to connect with professionals and at the same time to empower the professionals to prosper personally, professionally and gain greater independence over their careers.
Why investors are looking at Priv stock
When evaluating potential investments, it’s necessary to develop a comprehensive understanding of a company’s industry. Knowing the overall market size will help gauge the company’s revenue potential.
Priv falls within the beauty and wellness services industry. The market size is $289 billion globally and $86 billion in the US market.
To put this into perspective, let’s draw a parallel with another thriving industry. The video games sector, renowned for its widespread popularity, touts a global market size of $195 billion. Not shabby, but it pales in comparison to the beauty industry.
The sheer magnitude of the beauty and wellness industry makes it a big draw for investors. Priv’s achievements up to this point serve as a tantalizing glimpse into its massive potential.
Priv’s traction and business model
In 2020, despite Covid, Priv posted $1.2 million in revenue. In 2021, the company’s revenue was $2.6 million. In 2022, Priv reached profitability and posted revenue of $4.6 million. In 2023, the company is projected to reach $6 million in revenue.
Investors are always glad to see a company has traction, which is proof of demand for the company’s services. But Priv investors are also interested in knowing how the company generates this revenue.
Its business model is three-pronged and includes consumer, B2B, and Bridal segments. The gross margin across all groups ranges from 37% to 67%.
The consumer market includes individual appointments that take place in the client’s home, office, or hotel. The price point ranges from $60-$280 per service. The gross margin for this segment is 37%.
The B2B market segment includes special events and employee perks programs developed in partnership with other brands. Some of Priv’s B2B clients include Facebook/Meta, Tiktok, Disney, Sports Illustrated, Netflix, Amazon and Fashion Nova. For example, Facebook/Meta and Tiktok have included Priv’s services as employee perks, Disney has partnered with Priv on events at Coachella, Stagecoach, and other festivals, and Sports Illustrated hired Priv pros to provide hair styling services at its swimsuit launch party. The company’s nail technicians joined Netflix events for movie/TV show premieres, and the Amazon Beauty roadshow sourced some of Priv’s beauty professionals. Priv’s B2B price point is a flat $200 per hour per professional. The gross margin for this segment is 67%.
The Bridal market segment includes on-location wedding appointments for the bride, bridesmaids, groomsmen, and wedding party. The price point is $115 - $280 per service. The gross margin is 38.5%.
Diving deeper, here is a breakdown of Priv’s unit economics:
The average revenue per booking is $135.
The average pro pay per booking is $81
The average gross profit per booking is $54
The Net margin long-term value (LTV) of the average customer is $300
The blended customer acquisition cost $25
The pro acquisition cost $55
Currently, Priv has a presence in 31 markets across the United States. To date, over 350,000 services have been performed by over 2,500 professionals for over 115,000 customers.
How does the Priv app work?
Priv’s platform is a full-featured consumer app and website, with a fully integrated B2B support tech feature, and a highly customized customer service suite.The services offered on the app include hair, makeup, nails, massage, facials, ear piercing, spray tan, men's grooming, fitness, and lashes.
In order to provide the highest quality service, Priv has a thorough vetting process for the professionals who can offer services on the app. All of Priv’s professionals are top-rated, certified, and fully screened. Each professional must pass background checks, go through a live audition process, and be highly skilled in the latest trends.
Priv is also committed to empowering its beauty professionals to prosper both professionally and personally. Each professional is an independent contractor which allows them complete freedom and flexibility over their careers. The average commission paid to each contractor is 60%.
How Priv plans to grow shareholder value
Priv has meticulously outlined a comprehensive ten-year growth strategy that includes five key growth pillars. The pillars are market expansion, optimizing service offerings, bolstering customer engagement, growing the B2B and Bridal customer segments, and launching an e-commerce platform.
In the immediate horizon of 12 to 24 months, Priv will leverage its additional marketing resources, technological improvements, and improved customer engagement to drive growth in its current markets and boost demand for its newer services, such as massage, facials, and ear piercing. Priv’s top markets are NYC, LA, and Miami, and it has tremendous opportunity to replicate that success in its secondary markets, including Dallas, Austin, Chicago, Las Vegas, San Francisco, and Atlanta. Priv will be collaborating with influencers, industry experts, and elite beauty brands to increase brand awareness. A loyalty program will be launched to encourage client retention and growth. Additionally, Priv will focus on growing its B2B and Bridal businesses, including rolling out partnerships with national retailers for in-store service offerings.
During Year Two through Year Five, the focus will be geographic expansion into new U.S. markets, while the Company continues to scale in its current markets. As Priv gains critical mass in current markets, it will launch its e-commerce platform to sell third-party beauty and wellness products to clients through its network of professionals. The Engineering team also will focus on enhancing the product’s platform with advanced features such as facial recognition, virtual beauty consultations, augmented reality “see it first”, and personalized recommendations based on their client profile and inspiration.
As the timeline unfolds across Years Five to Ten, Priv will initiate its international expansion beginning with key global cities. Simultaneously, it will look to scale its e-commerce sale of products by white labeling certain beauty and wellness products with the Priv name. Additionally, educational resources will be offered to its network of professionals to nurture their ongoing skill development.
Is Priv a good investment?
If you’re wondering, “should I invest in Priv?”, at Money & Mimosas we encourage you to ask yourself three questions:
What are the potential roadblocks?
What is the potential growth or upside?
How does this align with my values and/or overall investment strategy?
The biggest roadblock we see for the Priv investment is the competitive landscape. Competitors include Soothe, Glamsquad, Zeel, and local brick-and-mortar salons. However, none of these competitors offer the comprehensive combination of suite of services and geographical reach that Priv provides.
Overall, we see huge potential for Priv shares. Priv is tapping into a successful trend where people are looking for more convenience and services that come to their homes. This shift in consumer preferences is largely due to Covid. Amidst these shifts, Priv demonstrated resilience and adaptability during the height of Covid when it had to shut down its services. This was largely due to its stellar team which is comprised of seasoned and experienced beauty/wellness professionals who expertly navigated the industry’s complex market dynamics.
Priv has laid a solid foundation and is strategically poised to capitalize on this paradigm shift in consumer behavior within the beauty/wellness services industry.
How to invest in Priv stock
You can invest in Priv for $5.15 per share. The minimum investment is $1,030 and is open to all investors. You don’t have to be an accredited investor to invest in Priv.
The process of investing is really easy. You head over to the investment page and click the ‘Invest Now’ button. From there, the website will walk you through the seamless process of becoming an investor with Priv.
