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Turo , the speculation - backed , match - to - peer car rental service , reported itsfourth - quarter and full - yr fiscal performancethis week in an update IPO filing . The party first file an S-1 to go public inearly 2022 , later updating the written document every quarter in preparation for an eventual oblation . TechCrunchcovers its steady financial disclosuresas they put up brainwave into when a deeply fund inauguration with a diachronic billion - dollar valuation will resolve to finally pull the trigger and name its shares in public .
In 2019 Turo raiseda $ 250 million Series Eled by IAC that gave it a $ 1.25 billion post - money rating fit in to PitchBook . Crunchbasecounts Turo ’s total fundingto date at just around the $ 500 million bull’s eye .
The company has put the capital to near function , post ready revenue growth since 2019 , positive operating income since 2021 and net profit since 2022 .
However , Turo ’s growth rate has decelerated in recent eld , making its IPO timing tricky to figure ; the troupe would not lodge regular S-1 / A filings if a public offering was not a key anteriority — indeed , no other venture - backed company is executing a similar playbook to my noesis , which is a shame — but with technical school valuations demoralise from their 2021 - era highs , picking the veracious moment to go public is not an easy task .
Just ask Reddit , which has been trying to go public for twelvemonth before filing this year , and the army of billion - clam - plus inauguration cram up at the exits of the individual securities industry .
How did Turo do in 2023?
Turo posted revenue of $ 879.8 million last twelvemonth , up 18 % compare to the year before . The company ’s total tax revenue scale is impressive , but its emergence pace has dramatically declined in the last two year . In 2021 Turo ’s growing take a hop from 2020 ’s pandemic - drive woes imposingly , rising 213 % that class to $ 469 million . However , triple - digit growth was short - live at the automobile rental fellowship , which see its revenue increment slow to 59 % in 2022 when it recorded $ 746.6 million Charles Frederick Worth of full revenue .
While Turo ’s year - over - yr growth rate cratered in late eld , it did have a small corpuscle of good intelligence for investor in its new filing . TechCrunch calculates that its Q3 2022 to Q3 2023 growth charge per unit was 13.6 % , while its Q4 to Q4 growth over the same time frame was a slenderly sharper at 14.3 % . While both figure are under its full - year growth charge per unit , see its tax income emergence perk up even slightly in the 4th quarter could help it argue to public - market investors that its slowing is not inevitably irreversible .
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Still , 18 % growth is not so low that Turo can not go public , especially as it is profitable , although it may scat into investor business organization about declines there , too . Its porcine margin devolve more or less last year , falling from 54.3 % in 2022 to 51.4 % in 2023 .
partly as a result of that rank margin dip , Turo ’s profitability in calendar 2023 lagged its 2022 result . It posted its pocket-size operating profits since 2020 last year ( $ 13.7 million , down from $ 46.6 million in 2021 ) , and its lowest nett profit since 2021 ( $ 15.6 million , down from $ 154.7 million in 2022 ) . Non - adjusted profits at technical school companies approaching the public grocery are rarified enough to make Turo resist out from the pack , though how much time value possible public shareholders will afford its gainfulness in light of its slow up growth is an open question .
Why not go public now?
With net income and growing and revenue approach $ 900 million , and a business model that is stay in the black , Turo is far and by big enough to go public , and with a valuation of just over $ 1 billion , it should not have a hard time besting its final secret price tag .
So , why not go public now ? Perhaps the companionship is wait for its increment to reaccelerate , or simply for technical school and technical school - ish revenue multiple to reinflate so that it can raise even more immediate payment with less dilution . Or perhaps , because it appear to be affirm itself from its operations , it is hold back until investor ’ appetence return for technical school IPOs .
There ’s reason for it to be cautious , even if the continually updated S-1 indicates that it remains eager . One of its public comps , Getaround , has see its note value crater since it went public in a SPAC - top combination . ( To be fair , though , many SPAC - led combinations have not come well . )
While we wait , however , there were several other notable nugget in Turo ’s update S-1 worth calling out :
As a reminder , the biggest investor in Turo include IAC , with 39.2 million portion ; G Squared , a venture working capital fund with 16.2 million portion ; August Capital with 10.3 million share ; and Canaan Partners , with 9.3 million .
More when it settle to get its roadshow underway and price its shares .
