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IPO candidate Lovevery bumps revenue to $226 million

A father plays with his daughter, using toys for early childhood development.

Photo: Courtesy of Lovevery

Childhood development company Lovevery increased its revenue by 15% in fiscal 2023 to $226 million, CEO Rod Morris tells Axios.

Why it matters: The Boise, Idaho-based company still intends to IPO within the next year or two if conditions support it, he says.

How it works: Lovevery provides play kits through a subscription service that includes Montessori-inspired toys designed to foster brain development.

  • It offers a supplementary support system via its website and mobile app with community and parenting content.

By the numbers: About $180 million of its revenue is annually recurring and comes from subscriptions, Morris says.

  • That amount grew by 20% year over year, while gross margin grew to 48% last year.

What's next: Revenue is expected to grow by double digits again this year, Morris says.

  • The company hopes to be EBITDA profitable by the end of 2024.

What they're saying: "We work to put the processes and team in place so that this can be a company that can continue to scale for a really long time," Morris says.

  • "We are building a company that is capable of going public, but we don't know when market conditions will support that. In the meantime, we are focused on serving our customer base with great products," he adds.

Caveat: "We are focused on executing against our plan for profitable growth right now, rather than near-term exit opportunities," the CEO says.

  • "However, longer term, we would consider a potential acquisition (of Lovevery) if it was the best way to fulfill our mission to improve early childhood outcomes and was the right decision and fit for the company and investors."
  • "We don't have the need, and therefore aren't looking to raise more money, debt or equity at this time," he says.

The bottom line: "Our team is focused on building an iconic, global, mass market brand that is of service to families — a company that is well-suited for the public markets," Morris says.

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