Turo, a startup that allows consumers to rent cars from each other, filed updated IPO documents on Friday, detailing full financial performance for 2022.
Result is? Turo remains profitable as it waits for IPO conditions to improve.
The IPO market has been frozen for some time, but Turo hasn’t given up on its plans to go public. Since filing privately in 2021 and dropping his S-1 document for public in early 2022, Unicorn has regularly released quarterly updates to the document. Our latest filings fill in our performance for the fourth quarter of 2022, allowing us to compare the most recent year to the year after, and to price and trade when the market improves on such offerings. It provides the market with news that it could be one of the first IPOs to launch.
As a privately held company, Turo has raised approximately $500 million, including a Series E in 2019. That round was extended to early 2020, per Crunchbase data.
What does the new filing show us? It shows Turo’s growth from the pandemic downturn continued last year after posting rapid revenue growth in 2021. Take a closer look. Let’s look at.
Turo 2022
In 2022, Turo’s revenue was $746.6 million, up 59% from the $469 million it brought to the business in 2021. This growth was also due in part to the company’s significantly higher spending, which increased its sales and marketing costs. From $52.7 million in 2021 to $111.3 million in 2022.
But rising costs didn’t mean Turo was unprofitable last year. In fact, after posting his GAAP net loss in the $90 million range in both 2019 and 2020, Turo has lowered his 2021 net loss to his $40.4 million. This figure is based on a conservative operating profit of $33.8 million.
Ironically, Adjusted EBITDA may be a more useful indicator of profitability, given that Turo’s income statement, net of operating expenses, is a little volatile. Here you can see that the company closely matched his 2021 results of $81.1 million and his 2022 Adjusted EBITDA earnings of $79.7 million.
growth? check. profit? check. Turo is ready to go public, and thanks to the S-1/A filing, we know it wants to go public. At the moment we are just waiting for the roadshow to start.
Turo wanted to join the open market game, but it might have been better to wait. Turo’s competitor, Getaround, will go public in late 2022 when he merges with SPAC. The combination has left the company at risk of delisting after losing nearly all of its value and falling below the $1 per share threshold. The company, which he announced a series of cost cuts in February, has yet to announce fourth-quarter earnings. The December investor update downplayed solid financial data, but did detail that Getaround is a fraction of the size of his Turo.
Turo’s model has evolved from individuals sharing cars to slightly more specialized users contributing a handful of cars to the platform. Still, the company’s asset-light business seemed to be doing well in the post-pandemic era, with many people desperate to move and prices for used and new cars surpassing historic levels. It appears to be benefiting from the trend in light of the results of .
Turo’s gross margins are a bit outside the range of normal software, so it’s hard to price Turo, and we don’t know exactly how investors will categorize it by industry when it debuts. yeah. But given revenue growth and the ability to produce reconciled and unreconciled black inks, it seems unlikely that Turo will struggle to defend its eventual proprietary trademark.
Turo, you have the key. Kickstart the IPO wave.
