The Turo IPO went to the market. The peer-to-peer car-sharing company just stepped up to make its first public appearance under the TURO bar. Let’s break the deposit…
Turo IPO: Company Profile
Turo is one of the largest car sharing marketplaces in the world. Provides peer-to-peer lending services for vehicles. The host can create a vehicle listing, modify availability, and change prices upon request. And then, through the platform, guests can book any car they want, anytime and anywhere they want, from the hosts’ community. For example, guests can search by location, type, price, use case and other categories to locate vehicles based on their requirements. Think of it like Airbnb…for cars.
The company’s mission is to make better use of the world’s 1.5 billion cars. Moreover, it is a win-win situation for both parties. Rental users have access to “a variety of use cases—from a minivan for a family road trip, to a convertible for a long-awaited beach vacation, or a simple car to escape the hustle and bustle of the city,” according to the filing. Moreover, affordable short-term rentals are important because supply chain problems drive up car rental prices. At the same time, hosts can also lower their ownership costs by renting them out for a short period.
As of September 30, 2021, the company boasts 85,000 active hosts and 160,000 active vehicle listings in more than 7,500 cities. Moreover, guests can choose from more than 1,300 brands and models of hosted cars.
The company’s recent Turo IPO filing has relieved that its main markets are the United States, the United Kingdom, and Canada. According to the filing, the company has 1.3 million active guests participating in its market. However, the company’s registration revealed a lot of growth potential. Specifically, the Turo profile revealed the existence of a large addressable market. So, let’s look at the details…
Turo takes advantage of huge market opportunities
When researching the filing, the company said it was a “pioneer in a new class of transportation.” It’s no secret that cars are the preferred mode of transportation. However, Turo highlights that peer-to-peer vehicle sharing offers a convenient, cheap and “environmentally and socially responsible” way to drive. With the growing push towards sustainability, Turo can take off for investors.
In the filing, Turo indicated that there is a huge opportunity in the market. According to the US Bureau of Labor Statistics, families in the US alone spent nearly $11,000 annually on commuting needs before the pandemic. The company has identified a serviceable market of $146 billion. Additionally, the company estimates that the total target market could be worth $230 billion across a wider geographic area over the long term. This includes market opportunities from countries in Europe, Latin America, the Middle East, Australia and South Africa.
The Turo addressable market is worth billions. So, how much can a company earn? Let’s break down the financial details of the Turo IPO…
The financial information of the IPO of Turo
Detailed financial information is available in Turo’s IPO prospectus, allowing you to get more information about the company’s finances. Furthermore, if you are in the market to buy TURO shares, let’s take a look at the details.
Turo highlights some key information for investors. The company’s profit and loss statement and balance sheet statements are as follows…
Net revenue: Turo reported net revenue growth. The company reported $141.7 million in net revenue in 2019. In 2020, revenue increased to $149.9 million. Furthermore, revenue increased to $330.5 million for the nine months ended September 2021.
net income (loss): Turo has reported increasing losses recently. For the year ending December 2020, Turo reported a net loss of $97.1 million. Moreover, losses increased to $129.3 million for the nine months ended September 30, 2021. The company warned of further losses in the future, saying…
We have a history of net losses in all years since our inception, and we expect our operating expenses to increase in the future, and we may not achieve or maintain profitability in the future.
loss from operations: Turo’s operating losses have been reduced. The company recorded an operating loss of $105.2 million in 2019 and $55.7 million in 2020. Turo recorded $46.5 million in the nine months ended September 2021.
monetary: Turo’s cash flow grew. The company reported $188.2 million in cash as of 2019. Turo’s cash decreased to $145.2 million in 2020. However, the company returned with $262.9 million in cash as of September 2021.
The company announced that it will be listed under TURO shares on the New York Stock Exchange. Below are the deposit details…
Deposit details for the IPO of Turo
Turo clandestinely debuted in August. However, the S-1 document has only just become publicly available.
The company will be listed on the New York Stock Exchange (NYSE) under the symbol TURO. However, the company did not disclose the IPO date, price range or stock offering. Renaissance Capital estimated that Turo’s initial public offering would raise approximately $300 million.
The company plans to go public as soon as March. Therefore, investors should start preparing to invest in TURO shares. You can learn more about the IPO process in this step-by-step guide to going public.
JP Morgan and Morgan Stanley are leading the show.
In addition, the company’s hosts and guests can have the opportunity to participate in the initial public offering of Turo. Highlighted in the prospectus, Turo plans to hold up to 5% of the shares to be sold. This is eligible for hosts and guests who meet certain conditions, under what is known as the Guided Sharing Program.
The Turo IPO has yet to hit the market. However, stay tuned for the latest updates on the TURO stock on this page.
As always, be sure to research before investing. IPOs can be volatile in the first few months and share prices are constantly changing. Furthermore, if investing in an IPO piques your interest, check out our top IPOs and our IPO calendar. We update the calendar daily to give you the latest news on upcoming and deposited IPOs.
About Amy Bon
Amy Boone graduated from the School of Business and Economics at Towson University. Her background in marketing research helps her uncover valuable trends. Research into initial public offerings and other trends has been her primary focus over the past year. When you’re not writing Aimee for Investment U, you can usually find her doing graphic design or traveling with friends.