Last week, Turo, a venture-backed startup that allows consumers to rent their cars to one another, updated its IPO filing to include full-year data from 2022. This update provides a clearer picture of the company’s post-COVID performance and raises questions about its potential public offering.
A Brief Background on Turo
Turo was founded in 2009 as RelayRides and has since expanded its model to support users offering multiple cars for rent. The company has raised hundreds of millions of dollars while private, making it a unicorn long in the making.
Turo’s Financial Data: A Closer Look
Let’s dive into Turo’s financial data:
- In 2022, Turo reported:
- Revenues of $[insert revenue figure]
- Gross margins of above 50%
- Strong growth in recent years
- The company has posted impressive financials, with a clear upward trend.
Why Wait for the Right Moment?
Turo might be waiting for the Getaround mess to clear itself from the public markets. This would allow Turo to price its IPO without being associated with a struggling competitor.
Thought Exercise: Valuing Turo
Considering Turo’s strong financials, it’s worth at least 2x its trailing revenues. At this valuation, Turo is not in danger of a down-round IPO.
Conclusion
Turo’s impressive financials make it an attractive candidate for a public offering. However, the company might be waiting for a prime market moment to price its IPO. Between banking stress and Getaround’s struggles after going public, this probably isn’t it. Still, we must nearly be there, right? Turo probably wants to price its IPO while its 2022 results are still in people’s minds.
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