Turo just filed its 2022 financials as its IPO hunt continues

Turo, a startup that lets consumers rent their cars to each other, filed an update to its IPO filings on Friday, detailing its full financial performance for 2022.

The result ? Turo continued to make progress and even made revenue gains pending better IPO terms.

While the IPO market has been frozen for some time, Turo has not given up on its IPO plan. From a private filing in 2021 and the abandonment of a public S-1 document in early 2022, the unicorn has regularly released quarterly updates to the document. The latest filing fulfills its fourth quarter 2022 performance, allowing us to compare its most recent year to those that follow and providing the market with insight into what could be one of the first IPOs to price and start trading. when the market improves for such offers.

As a private company, Turo has raised around half a billion dollars, including a Series E in 2019 that pegged its valuation at the $1 billion mark; this cycle was later extended into early 2020 according to Crunchbase data.

What does the new dossier show us? This indicates that Turo’s growth after the pandemic slump continued last year after posting rapid revenue gains in 2021. And that the company has reached new levels of profitability that could prove attractive to investors. investors when the time comes. Let’s take a closer look.

Tour 2022

In 2022, Turo generated revenue of $746.6 million, up 59% from the $469 million it brought to the company in 2021. This growth was fueled, in part, by a sharp increase in expenses for the company, which has seen its sales and marketing costs increase. from $52.7 million in 2021 to $111.3 million in 2022.

But rising costs don’t mean Turo had an unprofitable final year. In fact, after posting GAAP net losses in the range of $90 million in 2019 and 2020, Turo reduced the figure to a net loss of $40.4 million in 2021. Last year, the company’s net profit came in at a much brighter and positive $154.7 million, although that figure is based on a more modest operating profit of $33.8 million.

Given that Turo’s income statement after operating costs is a little wonky, its adjusted EBITDA may ironically be a more useful—less sclerotic—indicator of its profitability. Here we see that the company essentially matched its 2021 earnings of $81.1 million in 2022 when it reported adjusted EBITDA earnings of $79.7 million.

Growth? Check. Benefits? Check. Turo is ready to go public, and thanks to his S-1/A record, we know he still wants it. At this point, we’re just waiting for him to launch a roadshow.

Although Turo is eager to enter the public procurement game, it may be better that he waited. Getaround, a competitor of Turo, went public at the end of 2022 by merging with a SPAC. As a result of this combination, the company has lost almost all of its value and is in danger of delisting after falling below the $1 per share threshold. The company announced a series of cost cuts in February, but has yet to report fourth-quarter results. A December investor update was light on precise financial data, but clarified that Getaround is a fraction of the size of Turo.

Turo’s model has evolved from individuals sharing cars to slightly more professional users who provide a handful of cars to the platform. Still, its light asset business appears to have done well in the post-pandemic era, a time when many people felt the need to relocate, and prices for used and new cars were above historic norms. Car rentals, it seems in light of Turo’s results, have benefited from the trends.

It’s hard to price Turo, as its gross margins are a bit outside the normal software bands, and we don’t know precisely how investors will rank it by industry when it debuts. But given its growing revenue and ability to generate adjusted and unadjusted black ink, it seems unlikely that Turo will struggle to defend its ultimate private labels.

Turo, you have the keys. Start the IPO wave please.