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Turo explains ‘flywheel effect’ as part of IPO submission

Turo explains ‘flywheel effect’ as part of IPO submission
Written by publishing team

San Francisco –

Auto-sharing platform Turo announced this week that it has publicly submitted a registration statement on Form S-1 to the Securities and Exchange Commission regarding a proposed initial public offering of its common stock.

Despite incurring a net loss of $97.1 million during 2020, Turo believes the company’s stock is attractive due to what it described through a prospectus filed with the Securities and Exchange Commission as “the Turo flywheel effect.”

While it is not yet decided how many shares will be offered and the price range for the proposed offer, Turo said it intends to list its common stock on the New York Stock Exchange under the symbol TURO.

“Our platform benefits from a self-enhanced value proposition between hosts and guests,” Turo said in the prospectus. Available online. “Hosts interact with our brand and platform due to our unique revenue generation opportunity, and their interaction increases as their profits increase. As existing hosts grow and new hosts join in, our value proposition for guests is enhanced as guests gain access to a unique selection of cars in more locations .

The company continued, “Our unique inventory of compounds not available anywhere else, combined with the seamless experience we provide guests with, stimulates organic growth, word of mouth, and behavioral repetition.” “The growth in demand leads to greater income opportunities for our hosts, which enhances the value proposition of the host, in turn, encouraging existing hosts to grow and new hosts to join.

“As we expand and continue to improve our offerings, our guests book more trips that we leverage to generate data that supports our machine learning algorithms, such as data-driven pricing, search rankings, and vehicle recommendations,” the company continued. “These algorithms improve the host and guest experience and make our business more profitable, leading to reinvestment to further improve the user experience and drive growth.”

Morgan Stanley and JP Morgan will act as the principals directors of the books department and as representatives of the underwriters for the proposed offer. Allen & Company and Citigroup act as book managers.

Quinn, DA Davidson & Co., Wolf | Nomura Alliance, LionTree Advisors, Loop Capital Markets, Ramirez & Co., Inc. and Siebert Williams Shank as co-directors of the proposed proposal.

“The main purposes of this offering are to increase our capital and financial flexibility and create a public market for our common stock,” Turo said in the prospectus. “We currently intend to use the net proceeds we receive from this offering for general corporate purposes, including working capital, operating expenses and capital expenditures.

“We cannot determine with certainty all specific uses of the net proceeds remaining to us from this offering. We may also use a portion of the net proceeds for acquisitions or strategic investments in complementary businesses, products, services, or technologies,” the company continued.

“We will have wide discretion over how we will use the net proceeds from this offering. We intend to invest the net proceeds of the Offering that has not been used as described (in the prospectus) in investment grade and interest bearing instruments.

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