Stitch Fix files for IPO… and miraculously, they’re almost profitable

6-year-old clothing subscription box service Stitch Fix has filed for IPO — and in an industry known for burning through cash, they’re sporting some pretty solid numbers

Filings indicate a $100m target raise, but we’re guessing that that number’s just a placeholder. The actual figure could be much larger.

The price of shares sold back in January pegs the company at a nearly $2B valuation, and they closed out the most recent fiscal year just $594k in the red, with $977m in revenue. Their filing also reports that they were profitable in both 2015 and 2016.

In the world of VC-backed e-commerce, profitability is rare…

Particularly in the seemingly dime-a-dozen subscription box space.

But where companies like Blue Apron are struggling, Stitch Fix is thriving: they’ve raised less than $50m in VC cash, compared with the $194m Blue Apron’s raised prior to their IPO.

They’re also running a large data-science operation. To use the service, customers fill out a survey about their style, pay a $20 upfront styling fee, and get sent 5 clothing items specific to their taste.

These in-depth surveys help Stitch Fix make more accurate styling choices for customers — and are a big value-add for investors.