ROVR

Rover Group Inc - Ordinary Shares - Class A

Consumer, TMT


Presented:03/30/2022
Price:$5.69
Cap:$1.03B
Current Price:$10.99
Cap:$2.00B

Presented

Date03/30/2022
Price$5.69
Market Cap$1.03B
Ent Value$1.48B
P/E RatioN/A
Book Value$1.65
Div Yield0%
Shares O/S180.26M
Ave Daily Vol883,379
Short IntN/A

Current

Price$10.99
Market Cap$2.00B
Rover Group, Inc. is an online marketplace for pet care that connects dog owners with local dog sitters. Its services include dog boarding, in-home pet sitting, doggy daycare, dog walking, drop-in visits, and grooming. The firm builds a platform and mobile app to enable pet parents to discover, book, pay, and review loving pet care providers online and eliminates many of the barriers of pet ownership. The company was founded on June 16, 2011 and is headquartered in Olympia, WA.

Publicly traded companies mentioned herein: Airbnb Inc (ABNB), Care.com Inc (CRCM), Chewy Inc (CHWY), Rover Group Inc (ROVR), Trupanion Inc (TRUP)

Highlights

The presenter is long shares of Rover Group Inc (ROVR) that began trading after merging with the SPAC Nebula Caravel Acquisition Corp on July 28th, 2021. Rover provides an online marketplace called Rover.com for a wide range of pet care services, matching pet parents to dog walkers and pet sitters. Rover is a $1B market cap company with $280MM of cash on its balance sheet, and it earns its revenue by charging a 20% take rate as well as an initial processing fee of $35 for sitters and walkers. Sales are highly correlated with domestic travel volumes, as pet owners obviously need to hire dog sitters when they are away from home. With the travel industry rebounding, the company is guiding for ~55% topline growth this year with EBITDA growing at a faster rate of ~67%. With market penetration of only LSD%, there is significant additional growth runway. The presenter also believes that Rover could be a lucrative acquisition target for a number of players looking to offer ancillary services on their larger platforms such as Chewy, Airbnb, and Trupanion. 

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