Peer car sharing company Turo is filing an IPO to go public - TechCrunch

Peer car sharing company Turo is filing an IPO to

Turo, the pioneer of peer - to - peer car sharing, has filed a release into becoming a publicly traded company in the United States, a process that the company secretly began in August.

The S-1 document filed Monday by the U.S. Securities and Exchange Commission does not include terms for its offer.

Founded in 2010 and compared to Airbnb for Turo, Turo allows private car owners to rent their vehicles through the novice's website or app. The company has 85,000 active hosts and 160,000 active vehicle listings in more than 7,500 cities as of September 30, 2022. Car owners will be able to balance property costs, and consumers will benefit from short rents at an affordable time at a time when car rentals are up. increasing as a result of supply chain issues caused by pandemic. Challenges in the traditional car rental industry have certainly allowed Turo to gain some market share, despite stiff competition, but cost has become very popular at times, read the proportion of risk factors of S-1 displays .

Index

    Quick update on financial level

    First let's take a look at the finances.

    In 2022, Turo generated net revenue of $ 149.9 million in 2022, a growth of 6% from the previous year, according to the S-1. Net loss was $ 97.1 million in 2022, a slight improvement from its $ 98.6 million net loss in 2022.

    Turo identifies some drivers for revenue growth, in particular a digital tool called the Turo Risk Score. This feature, launched in April 2022, will dynamically change the fees Turo charges guests to book a place. Turo said that this device, along with hosting, increased the prices of the vehicles they spend on guests, increasing their net income.

    In 2022, sales and losses went up.

    Turo says it generated $ 330.5 million in net income in the first nine months of 2022, a huge increase of 207% from $ 107.8 million for the same period in 2022. Its net losses also expanded. Turo reported a net loss of $ 129.3 million for the nine months ended September 30, 2022, compared to $ 51.7 million for the same period in 2022.

    The reason? Turo notes in his S-1 that revenue increased as the number of days booked increased along with the full reserve value per day.

    Scanning the S-1, it also looks like Turo tried to do more with less in 2022 and has since turned the financial faucet back on this year. The company tightened its costs in 2022 with operating costs falling from $ 133.9 million in 2022 to $ 95.8 million in 2022.

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    The first nine months of 2022 tell a different story. The company's operating expenses in the first nine months of the year were $ 124.01 million compared to $ 71.6 million in the same period last year. Turo also claims that it hit a modified EBITDA - adjusted profit metric - of $ 69.8 million in the first nine months of 2022. It achieved this despite that net loss of $ 129 million due to a $ 174.7 change million in the fair value of convertible convertible option stock. warranty liability.

    Risk factors

    Risk factors facing the company include the obvious “what if people do not use Turo” and “we are against competition” from similar apps and traditional car rental companies. But a few more hold out.

    For one, Turo notes that the COVID-19 pandemic has added volatility to his industry. The company had to lay off staff and even close its German operations in 2022, just to bring the industry back to "above pre-Covid levels."

    The car rental app notes that it may be liable for the criminal activities of the hosts. There does not appear to be any lawsuit or fine, but last August, Turo and other peer - to - peer rental apps were discovered to have been used by criminals for human trafficking and other crimes, a move that the U.S. and Border Protection acknowledges that movement is growing close to the border.

    Turo is also facing a lawsuit from cities - or in particular airport authorities - that required a long - term start to obtain car rental licenses. And in this area, of course Turo has been accused and charged. There have been four lawsuits over airport use and three of them, including one Turo started against Los Angeles City, are still pending.

    Opportunities and growth

    Despite potential risks, Turo estimates that its current usable navigation market is $ 146 billion and its total shipping market is $ 230 billion.

    “We estimate that our $ 230 billion TAM covers $ 134 billion in North America, $ 65 billion in Europe, and $ 31 billion in the rest of the world. is made up of selected countries in which we believe we have medium- and long-term access. onboard guests), "according to the file.

    In particular, the company appears to be poised to expand its operations within their home market in the US as well as internationally. It is also ready to do some strategic building and partnerships "to offer our guests and guests services and features that we do not currently offer in-house."

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