E-COMMERCE: THE GREAT LEAP FORWARD - October 2020 - GCA Advisors
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E-COMMERCE: THE GREAT LEAP FORWARD October 2020
EXECUTIVE SUMMARY
Marketplace & E-commerce Sector Wrap-Up
» Reports from several analysts now estimate that the transition from offline to online shopping has been pulled forward anywhere from 2
to 5 years, in large part because of the impact COVID-19 has had on consumer habits worldwide
» Q3 2020 saw the continued acceleration and growth of marketplace and e-commerce, with the public and private markets fully embracing
the transition and the business models
» Some categories have emerged as huge winners in this shift, which is a direct result of COVID-19 and stay-at-home orders, most notably
those that meet our basic needs hierarchy – namely, food, shelter and water:
― Or in today’s parlance: Groceries (up 8% YTD), Home Improvement (up 27% YTD) and Alcohol (up 9% YTD)
― Amazon has flourished as we might expect, but so have Walmart, Target, Home Depot (online sales doubled in Q2) and Dick’s Sporting
Goods (online sales tripled in Q2)
― While the back-to-school shopping season was a disappointment as ‘back-to-school’ did not really happen, one thing is for sure, we are
in for a very digital holiday season
» Some of the macro trends we are following:
― How e-commerce is benefitting from the current situation
― E-commerce is expected to be 14.5% of total retail in 2020, a big step-up from prior years, as a record number of brick-and-mortar
retailers seek restructuring protection
― The transition from offline to online accelerates and 2020 will be remembered as the inflection point in the growth of e-commerce
― Driven by the secular shift, e-commerce and marketplaces have seen significant growth in share price: Marketplaces up 71% YTD, e-
commerce up 129% YTD
― The home category has experienced tremendous growth throughout the year and some, like Wayfair, have acknowledged, it is “up for
grabs” as the all-digital demographic moves into the core home consumer category
― Etsy continues its rocket-ship growth with the stock price more than doubling, and achieving a ~$17Bn market cap, and by the way,
homewares and home furnishings is its leading segment
― The marketplace continues to evolve….
― …and while business models may vary, one thing is for sure, the KPIs don’t lie: market trends, traffic sources, conversion and
retention data, customer LTV, CAC, NPS, and service all matter
2
I. GCA OVERVIEW
II. MARKETPLACE & E-COMMERCE MARKET TRENDS & INSIGHTS
III. PUBLIC MARKETS
IV. M&A AND FINANCINGS
V. PUBLIC COMPS BACKUP
3
GCA OVERVIEW
Leading Global Investment Bank Providing Strategic M&A and Capital Markets Advisory Services
Global Marketplaces & E-commerce Team
John Lambros Josh Wepman Rupert Sadler Alex Grünwald Sam Fuller Tobias Schultheiss Thomas Egli
Managing Director;
Managing Director; Managing Director Managing Director Managing Director Managing Director Managing Director
Member of Executive
President, GCA US
Management Europe
JLambros@GCAGlobal.com JWepman@GCAGlobal.com RSadler@GCAGlobal.com Alexander.Gruenwald@GCAAltium.com Sam.Fuller@GCAAltium.com Tobias.Schultheiss@GCAAltium.com Thomas.Egli@GCAAltium.com
Highly Active in All Key Disruptive Areas of the Technology Market Full-Suite of M&A and Capital Market Advisory Services
Digital Media Software Tech-Enabled Services
» Marketplaces » Vertical Application » Marketing Services ~60% ~65% ~35% ~80%
» E-commerce » Commerce & Retail » Information Services TRANSACTIONS HAVE SELL-SIDE BUY-SIDE REPEAT OR
» Digital Content & IP Technology » Professional Services TECH COMPONENT TRANSACTIONS TRANSACTIONS REFERRED CLIENTS
» Marketing / Advertising » Data & Analytics » IT Services
Technology » Asset Maintenance & » Customer Care & Claims
» Music, Video & Social Repair Services
» Gaming » Infrastructure ~50% ~50% 500+ 100+
CROSS-BORDER FINANCIAL SPONSOR TOTAL TRANSACTIONS DEBT TRANSACTIONS
58 120 55 TRANSACTIONS TRANSACTIONS IN LAST 3 YEARS IN LAST 3 YEARS
DEALS LAST 3 YEARS DEALS LAST 3 YEARS DEALS LAST 3 YEARS
Leading Franchise in Marketplaces and E-commerce
4
GCA OVERVIEW
Leading Global Investment Bank
STOCKHOLM
MANCHESTER LEEDS
PARIS FRANKFURT
BIRMINGHAM MUNICH
KYOTO NAGOYA
ZURICH TOKYO
LONDON SHANGHAI
NEW YORK LAUSANNE
MILAN
NEW DELHI OSAKA
TEL AVIV FUKUOKA
SAN FRANCISCO
TAIPEI
MUMBAI
SINGAPORE HO CHI MINH CITY
Global platform:
Sector expertise: Exceptional cross-
25 offices in key Experienced team:
Expansive coverage border capabilities:
markets across Over 500 employees
and deep Half of all
America, Asia and across the globe
specialization transactions
Europe
Broad spectrum
Diversified
Strong reputation of clients:
business model:
and track record: Leading
Geographically
High number of conglomerates, top
balanced, synergistic
repeat clients and private equity firms
and complementary
referrals and emerging high-
focus areas
growth companies
San Francisco | New York | Birmingham | Frankfurt | Fukuoka | Ho Chi Minh City | Kyoto | Lausanne | Leeds | London | Manchester | Milan | Mumbai |
Munich | Nagoya | New Delhi | Osaka | Paris | Shanghai | Singapore | Stockhom | Taipei | Tel Aviv | Tokyo | Zurich 5
GCA OVERVIEW
Experience in Marketplace and E-commerce
Marketplace E-commerce
Online auction
Online RV rental Stock photo marketplace Insurance Kitchen & home Online bike Event Online HQ
marketplace marketplace technology marketplace hub retail Streaming pictures
Watch Online job Online B2B Online education Online Online mobile & Online fashion Online bike
marketplace classifieds classifieds portal grocery fashion retailer retail retail
Online Online Online real estate Online Online sport Online pet Online board sports Digital sports content
career portal classifieds classifieds marketplace fashion retail retailer retail & retail
6
GCA OVERVIEW
Experience in Consumer
7
GCA OVERVIEW
Case Study: RVshare Investment Led by KKR (NYSE: KKR)
GCA acted as exclusive financial advisor to RVshare, the leading P2P RV rental marketplace, on its
$100MM+ investment led by KKR
Background Transaction Summary
» RVshare is the first and largest peer-to-peer RV rental » On October 21, 2020, RVshare announced an $100MM+
marketplace. With more than 100,000 vehicles financing round led by KKR
available, RVshare's diverse inventory ranges from
affordable travel trailers to luxury motorhomes and
TRANSACTION DATE can accommodate any outdoor adventure, whether
» RVshare plans to use this new capital infusion to invest in future
October 2020 growth and provide the best experience for owners and
it's a weekend of camping or a cross-country tour of
renters, advancing the company’s mission of expanding the
national parks
INDUSTRY definition of travel
Digital Marketplaces,
Travel, Consumer, Digital » Since the company’s founding in 2013, RVshare has
successfully built a leading position in the emerging
» GCA assisted RVshare and Tritium Partners in effectively
Media navigating the COVID-19 market environment by leveraging
market of RV rentals, amassing more than two million
strong business momentum and recent brand recognition
days booked on its platform
» KKR (NYSE: KKR) made its investment through its Next » GCA also provided execution support throughout what was an
all virtual process, including (i) identifying potential buyers and
Generation Technology Growth Fund II, a global fund
leading outreach, (ii) preparing marketing materials, (iii)
dedicated to growth equity investments in the
negotiating valuation and key terms and (iv) advising on
technology space; Tritium Partners, an existing
definitive agreement matters
investor in RVshare, also participated in the round
» GCA acted as exclusive financial advisor to RVshare in
connection with the transaction
8
GCA OVERVIEW
Case Study: Great Hill Partners acquired Storyblocks
GCA acted as exclusive financial advisor to Great Hill Partners on its acquisition of Storyblocks,
the first and largest subscription-based stock media company
Background Transaction Summary
» Headquartered in Arlington, VA, in the Washington DC » GCA acted as exclusive financial advisor to Great Hill Partners
metropolitan area, Storyblocks provides video, audio on their acquisition of Storyblocks
and imagery through its unique subscription model
» This partnership with Storyblocks is Great Hill Partners’ latest
TRANSACTION DATE » As a testament to its culture of creativity and digital commerce addition to its portfolio and will allow the
June 2020 innovation, Storyblocks has been recognized on the company to accelerate its mission of modernizing the creative
Inc 5000 list for seven consecutive years and was process to better support affordable, efficient video creation
INDUSTRY recently named one of Washington DC’s Top and to extend its current capabilities and product offerings
Digital Marketplaces, Workplaces by The Washington Post and among the
Consumer, Digital Media Best Places to Work by the Washington Business » GCA had a prior relationship with both Storyblocks and Great
Journal Hill Partners and was brought on to advise Great Hill having
previously worked with them on a separate transaction in the
stock media space
» GCA supported Great Hill Partners throughout the negotiation
and due diligence phases of the transaction, as well as
facilitating numerous different calls with industry experts to
help them gain a stronger understanding of the stock media
content landscape
» The process was competitive, with numerous other parties
involved. Great Hill Partners was ultimately selected as the
buyer due to its experience in the past with digital content
companies, purchase price and certainty to close
9
I. GCA OVERVIEW
II. MARKETPLACE & E-COMMERCE MARKET TRENDS & INSIGHTS
III. PUBLIC MARKETS
IV. M&A AND FINANCINGS
V. PUBLIC COMPS BACKUP
101 MARKETPLACE & E-COMMERCE: MARKET TRENDS & INSIGHTS
How E-commerce is Benefitting from the Current Situation
Positive Development Across Most Product Verticals We See Impact on Three Levels
Revenues / » Strong growth since end of February 2020
Strong growth in orders … KPIs
✓✓✓
» KPIs strongly improving (CAC, re-purchase, AOV, etc.)
» Growth for most product categories
(except for travel and a few others)
… driven by first-time customers and increased
re-purchase rate of existing customers … Market » Offline players: We have been approached by some
… expected to result in lasting change in
perception traditional retailers who have decided they need to
strengthen e-commerce inorganically ✓✓✓
consumer behavior … » Consumers: Broadening customer base is here to stay
✓✓
due to convenience and speed. However, risk that
current delivery lags in logistics might damage
… and outperformance of 2020 budget reputation
» Brands / producers: Looking to partner with e-
commerce players as stores are closed. Better
relationship will lead to better access going forward,
also to key brands ✓✓✓
✓
» PE investors: Growing interest, but targets need to
be profitable and have a post-COVID narrative
✓✓✓
Regulatory » Regulators are pushing / supporting e-commerce as
vital to provide supply for inhabitants
✓✓
» We expect the positive environment for e-commerce
to continue post COVID-19
GCA expects that 2020 will be a significant inflection point for the e-commerce market overall
112 MARKETPLACE & E-COMMERCE: MARKET TRENDS & INSIGHTS
In H1 2020, E-commerce Saw Massive Growth as Brick & Mortar Struggled
E-commerce Dramatically Outpaces Retail Spending... …As 20+ Retailers File for Bankruptcy in 2020
» H1 ‘20 online e-commerce totaled $347.6Bn, a 30% Sep-20
increase from 2019
Aug-20
» The overwhelming shift to e-commerce amidst lockdowns Aug-20
has significantly boosted e-commerce sales by 18% in Aug-20
2020
Jul-20
» Analysts estimate that 204MM consumers 14 and older Jul-20
will make online purchases during COVID, two thirds of Jul-20
which are 45 and older, increasing their purchases by 6% Jul-20
Retail E-commerce Sales in the US, 2018-2022
Jul-20
($Bn) $859.3 Jun-20
$765.2
May-20
$709.8
$601.7 May-20
$523.6
May-20
15.5% May-20
14.4%
May-20
14.5%
May-20
11.0%
9.9% Apr-20
Apr-20
2018 2019 2020E 2021E 2022E Mar-20
Retail E-commerce Sales % of Total Retail Sales Feb-20
Notes:
Sources: eMarketer, U.S. Department of Commerce, Wall Street Research. 123 MARKETPLACE & E-COMMERCE: MARKET TRENDS & INSIGHTS
Transition from Offline to Online Shopping Habits Has Been Accelerated by 2 to 5 Years
» 2020 will be seen as the inflection point in the growth of e-commerce, a time when consumer behavior was rapidly changed,
and when traditional retailers were forced to rethink their own e-commerce and brick-and-mortar strategies
» Digital consumer engagement increased massively in Q1 and Q2 of 2020, with the e-commerce industry emerging as the key
beneficiary with expected growth of nearly 20% in 2020
134 MARKETPLACE & E-COMMERCE: MARKET TRENDS & INSIGHTS
Driven by Secular Shift, E-commerce and Marketplaces Experience Significant Growth in Share Price
Perhaps Not Surprising at All, E-commerce & Marketplace Companies Have Significantly Outperformed the S&P 500 in 2020
160%
140%
129%
120%
100%
80%
71%
60%
40%
20%
0% 1%
(20%)
(40%)
(60%)
January February March April May June July August September October
Marketplace E-commerce S&P 500
Marketplace E-commerce
71% 129%
YTD Share Price Performance
Notes:
Sources: Capital IQ as of 10/28/20. 145 MARKETPLACE & E-COMMERCE: MARKET TRENDS & INSIGHTS
Billions Up for Grabs in Home Category with Shift to Online
Even Without a Pandemic, Billions in Retail Revenue was Transitioning from Offline to Online in the Home Category
Large TAM in US Home Market Moving Online Many Verticals Poised for Further Online Transition
Estimated US Online Penetration
US Home Market by Channel ($Bn)
$411
of Selected Verticals (2019E)
43%
$340
30%
$158
$296
$68
$39
Fragmented 14%
brick-and-
mortar market
with regional
and national $272
$257 $253 Home Goods Apparel Consumer Electronics
specialty
retailers, big box All-Digital Demographic Will Change the Marketplace
retailers, and
department Illustrative Distribution
stores of Home Goods Customers by Age
2019A 2023E 2029E
Offline Online
’19A – ‘23E ’23E – ‘29E Millennials
Median Household
Age 20-37
Online 15.0% 15.0% Income: $75K
(80M People)
Offline 1.3% (1.1%) 45% of sales from customers
aged between 31-50
Total 3.5% 3.2% Age 35 Age 65
Notes:
Sources: Euromonitor, Wayfair Q2 ‘20 Investor Presentation, Wall Street Research. 156 MARKETPLACE & E-COMMERCE: MARKET TRENDS & INSIGHTS
Home Improvement Sees Large Consumer Interest
Home Improvement Has Seen a Big Uptick In Growth During 2020
50.0%
HOME IMPROVEMENT 40.0%
27.2%
30.0%
27% YTD Share Price Performance 20.0%
10.0%
1.3%
0.0%
(10.0%)
(20.0%)
(30.0%)
(40.0%)
GROCERIES Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20
Home Improvement S&P 500
8% YTD Share Price Performance
Changing Hierarchy of Needs
1943 - Maslow 2020
Self- Home
Actualization Internet /
ALCOHOL Mobile Phone Improvement,
Esteem Groceries and
9% YTD Share Price Performance Alcohol clearly
Belonging Shelter deemed
essential
Safety needs
Physiological Food / Water
Notes:
Sources: S&P Capital IQ as of 10/28/2020. 167 MARKETPLACE & E-COMMERCE: MARKET TRENDS & INSIGHTS
The Etsy Phenomenon & the Ongoing Rise of the Crafters / DIY Marketplace
Etsy Continues to Lead the Way as the Standout Marketplace for Makers
Etsy Stock Price Has More Than Doubled This Year Etsy’s Top Category GMS ($M) and Y/Y Growth (%) (Q2 ‘20)
$16.6 Bn
Market Cap $800
$740
$160 30.0
$140
25.0 $600 128%
$120
50%
20.0 138%
$400 $362
$100 $333 59%
15.0
$242
$80
$200 11% 187%
10.0
$89 $87
$60
5.0 $0
$40 Homewares Jewelry & Craft Apparel Paper & Beauty &
& Home Accessories Supplies Party Personal
Furnishings Supplies Care
$20 0.0
10/28/19 1/28/20 4/28/20 7/28/20 10/28/20 TTM
GMS ($)
$2.0B $1.2B $826M $774M $316M $431M
Daily Trading Volume (MM) Stock Price
Positive Tailwinds Among Crafters / DIYs
Etsy’s Performance Showcases Market Demand » Millennials (ages 20-37) driving next wave of growth,
» Platform has 60.3M active buyers and 3.1M active sellers,
representing 41% of crafters / creative hobbyists
representing Q2 ’20 Y/Y growth rates of 41% and 35%,
» Global arts & crafts DIY market is $41Bn and expected to
respectively
reach $51Bn by 2024
Notes:
Sources: Association for Creative Industries, Statistica, S&P Capital IQ as of 10/28/2020, Etsy Q2 ‘20 Investor Presentation. 178 MARKETPLACE & E-COMMERCE: MARKET TRENDS & INSIGHTS
Marketplace Evolution
Marketplace Business Models Can Vary Depending On Underlying Offering
Not Managed Lightly Managed Fully Managed
YTD Stock Performance: 223% YTD Stock Performance: 13% YTD Stock Performance: 80%
» Peer-to-Peer transaction » Technology’s important » Operator owns part of
basis role in enhancing the the transaction and
buying experience “manages” the outcome
» Peer reviews influence
purchase behavior » Value-add of intermediary » Trust the “brand”
important to consumer
» Lowest transaction fees » Take rate compensates
trust
for the “hands-on” role
Notes:
Sources: Capital IQ as of 10/28/20. 189 MARKETPLACE & E-COMMERCE: MARKET TRENDS & INSIGHTS
Key Metrics for Marketplaces and E-commerce Models
The KPIs Ultimately Tell the Tale of the Winners in Marketplaces and E-commerce
Market Trend Traffic Shop / Front-End Conversion Customers After sales
Focus of analysis: Focus of analysis: Focus of analysis: Focus of analysis: Focus of analysis: Focus of analysis:
» What are you » What are the sources » Benchmarking of » How are conversion » How high is the » Handling time, picking
expecting in terms of of your traffic (paid, TV load times for rates developing repurchase rate of & shipping costs,
overall market and related marketing specific searches across traffic sources? existing customers? expandability?
growth? vs. unpaid)? vs. key competitors » How is cancellation » How high is the » What is share of orders
» How is your market » What are the CPCs for » What is the exclusive rate developing? churn rate? delivered the
segment benefiting the paid channels? (if any) and total # » How high is the » New customers next day?
from the ongoing » How does the high of products? drop out rate? acquired on average » Share of drop
online growth? brand credibility » Technology of per month? shipping?
» Do you have
» What is your drive direct traffic? front- / back-end retargeting measures » Main traffic source for » How is number of
market share? » What is your net and how scalable and in place for customers new customers? SKUs developing?
» Who are your key promoter score (NPS)? state-of-the art is it? having dropped out » How high is the AOV / » Level of working capital
competitors? » How is traffic » How good is the before completing CAC (split by new vs. requirements in order
» How do you developing and what is filtering function? their order? existing customers)? to ensure high
differentiate from the split of the » How mobile-ready » Do you track (in-house) » Are older cohorts availability?
competitors? sources there? is the website? customer service KPIs spending more? » How high is the share
» Mobile share in traffic? (response-time etc.)? of units in stock?
» Are there differences
» How high is the CPO? on a country-by - » How high is the share
country basis? of returned goods?
» Customer satisfaction » What customer
support KPIs are you
tracking?
19MARKETPLACE & E-COMMERCE: MARKET TRENDS & INSIGHTS
Selected YTD M&A and Financing Activity
M&A Transactions ($MM) Financings ($MM)
Ann. Enterprise Ann.
Acquirer Target Investor Target Amount
Date Value Date
10/13 NA 10/21 $100+
9/29 $420 10/5 $60
9/23 NA 9/23 $100
9/8 $425 9/11 $85
8/3 $252 9/10 $33
6/10 $7,521 8/27 $39
5/28 $280 8/13 $350
5/13 $190 7/1 $453
3/25 $120 6/30 $30
2/24 $7,100 4/29 $128
2/13 $4,050 3/10 $60
Notes:
Sources: Capital IQ, Pitchbook, company press releases. 20MARKETPLACE & E-COMMERCE MARKET SUMMARY
Top 10 Leaders in Private Funding Raised-to-Date
Company Headquarters Founded Amt. Raised ($MM)(1) Company Description
(2) Operator of an online property rental marketplace
San Francisco, CA 2008 $6,430
designed to offer short-term travel stays
Operator of an online real estate marketplace
San Francisco, CA 2014 $4,395
intended to simplify home buying and selling
Provider of an on-demand goods delivery application
San Francisco, CA 2012 $2,270
designed to order groceries from local stores
Operator of the e-commerce business for all major
Jacksonville, FL 1995 $1,970 professional sports leagues, major media brands and
collegiate and professional team properties
Operator of an online shopping platform designed to
Bellevue, WA 2011 $834
offer a simple way to buy and sell locally
Provider of on-demand delivery services intended to
Philadelphia, PA 2013 $758
offer convenience items
Provider of meetings and events technology that offers
McLean, VA 1999 $702
a marketplace that connects venues with professionals
Palo Alto, CA 2009 $664 Operator of an online home furnishing marketplace
Operator of an online lending marketplace intended to
San Carlos, CA 2012 $646
offer personal loans
Provider of a peer-to-peer, car-sharing marketplace
San Francisco, CA 2009 $612
intended to serve cities across the US and Europe
Notes:
Represents U.S. companies. 2) Confidentially filed for IPO on 8/19/2020.
Sources: Pitchbook, LinkedIn, Company Websites. 21
1) Includes debt and equity financing.MARKETPLACE & E-COMMERCE MARKET SUMMARY
Selected Active Investors
Investor Type Investor Logos
Accelerators / Seed
Venture Capital /
Private Equity
Corporate Investors
Alternative
Investors
Notes:
Sources: Capital IQ, Pitchbook, Wall Street Research. 22MARKETPLACE & E-COMMERCE MARKET SUMMARY
Most Active Deal Makers
Company Headquarters Number of Deals Selected Investments & M&A
San Jose, CA 15
Tokyo, Japan 12
Shirebrook, United
Kingdom 10
Seattle, WA 10
Unterföhring,
Germany 10
Hangzhou, China 9
Cape Town, South
Africa 9
Northwich, United
Kingdom 8
Chicago, IL 7
Bentonville, AR 7
Notes:
Represents investments since 2010 in North America and Europe with the exception of Walmart’s acquisition of Flipkart. 23
Sources: Capital IQ, Pitchbook, Wall Street Research.I. GCA OVERVIEW
II. MARKETPLACE & E-COMMERCE MARKET TRENDS & INSIGHTS
III. PUBLIC MARKETS
IV. M&A AND FINANCINGS
V. PUBLIC COMPS BACKUP
24MARKETPLACE & E-COMMERCE MARKET SUMMARY
Valuation Overview – E-commerce and Marketplaces
1 2
Marketplace E-commerce
EV / ’20 Revenue 7.9x EV / ’20 Revenue 2.3x
Revenue CAGR '19-'21 26.8% Revenue CAGR '19-'21 24.6%
EV / ’20 EBITDA 25.2x EV / ’20 EBITDA 24.2x
EBITDA margin 15.1% EBITDA margin 7.7%
Multiples have remained broadly constant despite COVID-19 and will benefit mid-term
Notes:
Sources: Capital IQ as of 10/28/20. 25MARKETPLACE & E-COMMERCE MARKET SUMMARY
Case Study: Vroom’s IPO and Follow-On Offering
IPO and Follow-on Offering Overview Vroom at a Glance
» On June 8, Vroom priced its 21.25 Ticker: VRM (NASDAQ)
million share initial public offering at Headquarters: New York, NY
$22 a share, raising a total of $468
Founded: 2013
million in gross proceeds
Initial Public Description: Vroom operates an online e-commerce platform for
Offering » The IPO priced above its $18 to $20 buying, selling and trading used vehicles. The
~$468MM price range, which was revised up from company's scalable, data-driven technology brings all
the initially filed range of $15 to $17 phases of the vehicle buying and selling process to
consumers wherever they are and offers an extensive
» After opening at $40.25, shares closed selection of vehicles, transparent pricing, competitive
June 8, 2020 on the first day of trading at ~$48 – up financing and contact-free, at-home pick-up and
118% from the initial offer price delivery. Vroom also sources revenue through Texas
» On September 10, Vroom announced the pricing of an underwritten Direct Auto (TDA), their sole physical retail location and
public offering of 10.8 million shares of stock at $54.40 per share, in-house vehicle reconditioning center (VRC), and
raising an additional ~$589 million in gross proceeds through selling trade-ins that don’t meet retail criteria
in wholesale auctions.
“where
We've seen a lot of data coming out in the past quarters
customers are twice as likely to transact online in terms Initial Investor Feedback
of buying a used vehicle… We think it’s a fundamental and
structural change, and this is one of the last verticals to actually “ ✓ Highly fragmented $800Bn+ market, which has room for efficiency,
come online in terms of pure e-commerce and transactions. with the #1 player garnering just a ~2% share
Paul Hennessy, ✓ Asset-light balance sheet, online-only offering and excess
CEO, Vroom reconditioning capacity allows for scalability at a faster pace than
brick-and-mortar competitors
Financial Summary
✓ Secular shift towards online and touchless transactions
$MM 2018A 2019A 2020E 20201E
✓ Experienced management team
Revenue $855.4 $1,191.8 $1,384.9 $2,452.0
% Growth NA 39% 16% 77% × History of losses since inception, with concern about achieving
profitability in the future
EBITDA ($73.0) ($127.0) ($164.8) ($162.0)
× Sensitive to pricing changes and reliant on third parties
Notes:
Sources: Wall Street Research, Capital IQ, Pitchbook, Company website. 26MARKETPLACE & E-COMMERCE MARKET SUMMARY
Case Study: Vroom’s IPO and Follow-On Offering (cont’d)
» One of the most anticipated tech IPOs during the pandemic, Vroom generated strong investor demand due to its strong topline growth and
compelling industry dynamics and tailwinds
» Though there has proven to be stock volatility (partially driven by more general market conditions), VRM is trading at about 100% its initial
offering price of $22 with its market cap remaining at $5.5Bn matching its value post-IPO
» The stock performance since IPO serves as a good baseline for other e-commerce and marketplace businesses to analyze as they weigh in on
their decision to go public
Piper Sandler initiates at Overweight;
sets price target of $82
Announces Q2 earnings; e-
commerce unit sales up 74%
Announces follow-on offering of
18.0 YoY, but disappointing Q3 $80.00
10.8MM shares at $54.40 per share
revenue and GPU guidance
15.0 Added to the $70.00
JP Morgan initiates at S&P TMI Index
Neutral; sets price
target of $55
12.0 $60.00
$42.33 Share Price
$5.5Bn Market Cap
9.0 $50.00
6.0 $47.90 Share Price $40.00
$5.5Bn Market Cap
3.0 $30.00
.0 $20.00
6/9/20 6/30/20 7/21/20 8/11/20 9/1/20 9/22/20 10/13/20
Daily Trading Volume (MM) Stock Price
Notes:
Sources: Wall Street Research, Capital IQ as of 10/28/20. 27MARKETPLACE & E-COMMERCE MARKET SUMMARY
Public Offerings Coming Soon
Capital Raised Latest
Company Status Description
to Date Valuation
Confidentially
Operator of an online property rental marketplace offering short-term travel
filed in
stays. The company's platform helps users to list, discover and book short-term
Aug. 2020; $6.4Bn $18.0Bn
accommodations around the world, enabling users to book unique travel
aiming for 2021
experiences in various cities and countries.
IPO 1
Developer of a food delivery application providing on-demand food-ordering and
Confidentially
delivery services. The company's application offers a wide range of restaurants
filed in
$2.9Bn $16.0Bn and menus to select from for a single meal or large groups enabling users to easily
Feb. 2020; aiming
and conveniently order their favorite food for delivery at the time and place of
for Q4 2020 IPO 1
their choosing.
Operator of an on-demand goods delivery application that facilitates the delivery
In discussion with
of essential goods to busy people and families. The company offers full-service
banks; potential $2.5Bn $17.7Bn
and in-store shopper services through a network of independent shoppers with
H1 2021 IPO 2
same-day delivery and pickup service of fresh groceries and everyday essentials.
Developer of a social commerce platform intended to help users buy, sell and
Confidentially share their personal fashion items online. The company's platform helps people
filed in $166.2MM $625.0MM interested in selling clothing and accessories by posting photos and details on the
Sep. 2020 3 application list in order to sell it online, enabling customers to buy and sell fashion
easily under one platform.
Developer of an online clothing retail platform offering thrift shopping online
Confidentially
while making it mainstream. The company's marketplace allows swapping of old
filed; targeting $337.8MM $670.0MM
clothes for new ones and selling and buying of secondhand clothes, enabling
early 2021 IPO 4
customers and fashion enthusiasts to trade and shop at discounted rates.
Operator of a mobile e-commerce platform making affordable products accessible
Confidentially to everyone. The company's platform offers digital shopping of a wide selection of
filed in $1.8Bn $11.2Bn products by leveraging a global supply chain of direct suppliers and avoiding retail
Sep. 2020 3 overhead costs, enabling users to buy products online at much cheaper rates than
are available in the market.
Notes:
Sources: Capital IQ as of 10/28/20. 4) Bloomberg, October 2020.
1) Nasdaq, October 2020. 5) Tech Crunch, September 2020.
2) Financial Times, October 2020. 28
3) MarketWatch, September 2020.I. GCA OVERVIEW
II. MARKETPLACE & E-COMMERCE MARKET TRENDS & INSIGHTS
III. PUBLIC MARKETS
IV. M&A AND FINANCINGS
V. PUBLIC COMPS BACKUP
29M&A AND FINANCINGS
Precedent M&A Transactions
($MM)
Announced Enterprise EV / Revenue EV / EBITDA
Date Acquirer Target Value (EV) LTM NTM LTM NTM Target Description
10/13/20 NA NA NA NA NA Operator of an online marketplace designed to retail shoes and related accessories
Designer and provider of an online shopping platform designed to offer ways to shop the
10/2/20 NA NA NA NA NA
latest trends in menswear and women's wear
Operator of a digital coupon marketplace, intended to offer a savings destination which
9/29/20 $420 NA NA NA NA
connects consumers with retailers, restaurants and brands, both online and in-store
Direct-to-consumer contact lens retailer offering easy, convenient and hassle-free
9/23/20 NA NA NA NA NA
replacement of contact lenses of the most popular brands at competitive prices
Operator of an online marketplace intended to make wholesale automotive deals simple
9/8/20 $425 NA NA NA NA
and transparent
Operator and retailer of a personalized products online marketplace intended to aspire,
9/1/20 NA NA NA NA NA
inspire, motivate
Provider of online and catalog retail services intended to provide direct-to-consumer
8/28/20 $250 NA NA NA NA
service
8/24/20 $16 1.2 x NA NA NA An e-commerce brand in the health and personal wellness category
8/3/20 $252 NA NA NA NA Online retailer of gifting products
Developer of a digital marketplace and platform intended to help in scheduling on-demand
7/27/20 NA NA NA NA NA
pet care
Developer of an interactive gym designed to bring the essential components of a studio
6/29/20 $500 NA NA NA NA
workout at home
Operator of an online marketplace intended to provide high-quality stock media at a
6/25/20 Confidential
fraction of the cost
Provider of an online shopping platform designed to offer a range of beauty and personal
6/23/20 NA NA NA NA NA
care products, food products, household and kitchen products and stationery
Operator of an online clothing retail store that providing womens clothing and fashion
6/17/20 NA NA NA NA NA
products
6/1/20 $7,521 5.6 x 4.7 x NM NM Provides an online takeout food platform for diners through over 50,000 restaurant partners
5/28/20 $280 8.1 x NA NA NA Provider of an online database for internet graphics
5/27/20 NA NA NA NA NA Retailer of nutritional supplements and fitness-related products
Operator of an online real estate marketplace that allows for the search, listing and
5/13/20 $190 3.3 x NA NA NA
transacting of properties online
Operator of an online design marketplace intended to sell ready-to-use design content
4/30/20 NA NA NA NA NA
from independent creators around the world
3/25/20 $120 NA NA NA NA Developer of a mobile platform designed to facilitate buying and selling of local goods
Notes:
Sources: Capital IQ, Pitchbook, company press releases. 30M&A AND FINANCINGS
Precedent M&A Transactions (cont’d)
($MM)
Announced Enterprise EV / Revenue EV / EBITDA
Date Acquirer Target Value (EV) LTM NTM LTM NTM Target Description
Developer of financial education and recommendation platform intended to offer free
2/24/20 $525 2.5 x 2.4 x 37.2 x 25.8 x
credit scores and reports with monitoring
2/24/20 NA NA NA NA NA Operator of a real estate marketplace platform based in Seattle, Washington
2/13/20 NA NA NA NA NA Operator of an online marketplace for buying and selling highly valued items
Developer of ticketing software and solutions intended to bring the joy of live shows to
2/13/20 $4,050 NA NA NA NA
fans globally
2/11/20 $485 2.3 x NA NM NA Provider of online marketplace for connecting people seeking care services
1/27/20 NA NA NA NA NA Operator of an online store focused on selling indie and vintage-inspired women's clothing
10/31/19 NA NA NA NA NA Operator of an e-commerce website intended to offer apparel, shoes and accessories
10/15/19 NA NA NA NA NA Operator of an online platform intended to provide customizable products for weddings
10/10/19 $100 Confidential Provider of online photography services and photo products
Operator of an e-commerce website offering ergonomic home and office furniture
8/29/19 $35 0.6 x NA NA NA
intended to create energizing spaces
8/21/19 $275 NA NA NA NA Provider of an online marketplace designed for new, used and vintage music gear
Provider of an online marketplace intended to offer a range of sports apparel and
8/6/19 NA NA NA NA NA
accessories
8/2/19 $18 NA NA NA NA Retailer of engraved, monogrammed or custom-made gifts online
Manufacturer and retailer of intimate apparel intended to offer comfortable
7/31/19 $140 NA NA NA NA
undergarments for women
Operator of online retail hunting and outdoor apparel shop headquartered in Franklin,
7/9/19 NA NA NA NA NA
Tennessee
Manufacturer and retailer of photo-based products and services for customers in the United
6/10/19 $2,751 NA NA NA NA
States through its portfolio of brands
Provider of online photo services enabling the users of film cameras, digital cameras and
6/10/19 NA NA NA NA NA
camera phones to share, print and store their photos online
6/13/19 $160 NA NA NA NA Operator of an online marketplace intended to offer various deals on retail stores
Provider of an online marketplace designed for live auctions of collectibles, antiques and
5/21/19 NA NA NA NA NA
fine art
Operator of an e-commerce platform designed to offer exclusive editions of artwork by
5/1/19 NA NA NA NA NA
prominent contemporary artists
Notes:
Sources: Capital IQ, Pitchbook, company press releases. 31M&A AND FINANCINGS
Precedent M&A Transactions (cont’d)
($MM)
Announced Enterprise EV / Revenue EV / EBITDA
Date Acquirer Target Value (EV) LTM NTM LTM NTM Target Description
Provider of an online platform intended to help users feel good and inspire them to do
4/4/19 $750 1.9 x NA NA NA
good as well
Provider of an online platform intended to offer a range of health, wellness and safety
2/22/19 NA NA NA NA NA
products for infants, toddlers and parents
Operater of digital marketplaces specializing in the digital marketplaces and automotive
2/15/19 $6,368 10.3 x 9.4 x 23.1 x 17.9 x
sectors
2/15/19 NA NA NA NA NA Provider of an online platform designed to sell wall art and decorative items
Provider of an online retail platform intended to offer food products especially frozen
2/11/19 NA NA NA NA NA
meals
E-commerce destination for home furnishings, appliances, furniture, home goods and
1/18/19 $5 0.1 x NA 2.4 x NA
related products
Provider of an online interior designing marketplace designed to exhibit and sell
1/16/19 NA NA NA NA NA
furnishings and home decors
Provider of an online e-commerce marketplace created to sell premium sneakers and
1/4/19 $250 NA NA NA NA
streetwear content
12/25/18 $1,060 8.9 x NA NA NA Provider of online food delivery services from restaurants and cafes
Provider of a web-based application designed to suggest shopping sites by comparing prices
11/17/18 NA NA NA NA NA
and attractive deals offered by other retailers
Operator and retailer of personalized products online marketplace intended to aspire,
11/9/18 NA NA NA NM NA
inspire, motivate
Provider of a global online retail platform intended to deliver products directly to
11/8/18 $86 1.8 x NA 12.4 x NA
consumers around the world
10/30/18 $74 NA NA NA NA Manufacturer and retailer of perfumes and personal products
10/12/18 NA NA NA NA NA Online retailer of women's lingerie products
10/2/18 $100 2.5 x NA NA NA Provider of an online platform intended to offer trendy apparel for plus-sized women
9/27/18 NA NA NA NA NA Operator of an online furniture retail platform
Operator of a multi-platform digital marketplace intended to guide couples through
9/25/18 $811 5.0 x 4.6 x 35.9 x 21.4 x
transformative life stages
9/14/18 NA NA NA NA NA Operator of an online boutique retailer of women's apparel, footwear and accessories
9/5/18 NA NA NA NA NA Provider of an online platform designed to provide a social shopping marketplace
Operator of an online retail shop created to sell off-roading vehicle parts, accessories and
8/31/18 NA NA NA NA NA
merchandise
Notes:
Sources: Capital IQ, Pitchbook, company press releases. 32M&A AND FINANCINGS
Precedent M&A Transactions (cont’d)
($MM)
Announced Enterprise EV / Revenue EV / EBITDA
Date Acquirer Target Value (EV) LTM NTM LTM NTM Target Description
8/2/18 NA NA NA NA NA An alcohol delivery application operated in Boston, Massachusetts
8/2/18 $170 NA NA NA NA Manufacturer and online retailer of footwear and accessories for men and women
Operator of an online clothing marketplace intended to provide access to fashion and
7/31/18 NA NA NA NA NA
luxury lifestyle brands
Operator of an e-commerce platform intended to bridge the gap between designers, artists,
7/2/18 $26 NA NA NA NA
producers and consumers
Developer of an e-commerce shopping portal intended to offer a wide range of fashion
6/30/18 $50 NA NA NA NA
products across the US
6/26/18 NA NA NA NA NA Manufacturer and online retailer of home furnishing and decor products
Operator of an online home decor marketplace created to sell stylish home decoration
6/25/18 NA NA NA NA NA
products
5/15/18 NA NA NA NA NA Retailer of fitness gear and technology through its online store
Operator of an e-commerce shopping portal intended to offer a wide range of consumer
5/9/18 $20,779 4.5 x NA NA NA
products
Operator of a tire retail platform intended to offer deals, shipment and tire installation
5/9/18 NA NA NA NA NA
services online
Provider of an online marketplace that provides an intermediary between students and
3/31/18 NA NA NA NA NA
internationally based landlords facilitating easy and transparent apartment selection
2/27/18 NA NA NA NA NA Operator of an online platform intended to retail auto parts and accessories
Provider of an online marketplace for high-end design and furnishings making it easy for
2/13/18 NA NA NA NA NA
owners of high-end furniture to sell their pieces
1/18/18 $94 NA NA NA NA Developer of an online marketplace created to offer grooming products for men
Manufacturer of modular and interchangeable custom watches designed to offer products
1/1/18 NA NA NA NA NA
that serve as a style statement for men and women
Summary Statistics
Mean 3.9x NA 22.2x NA
Median 2.5x NA 23.1x NA
Notes:
Sources: Capital IQ, Pitchbook, company press releases. 33M&A AND FINANCINGS
Precedent Financings
($MM)
Announced Amount Total Enterprise
Date Investor Target Invested Raised Value (EV) Target Description
10/21/20 $100 $164 NA Provider of online peer-to-peer recreational vehicle rental services
Developer of an online food marketplace platform intended to deliver farm-fresh food to doors all across
10/5/20 $60 $166 $450
the United States
9/23/20 $100 $290 $1,750 Provider of an online footwear marketplace intended to buy and sell sneakers online
Developer of an online retail platform designed to provide consumers with well-designed, quality
9/11/20 $85 $145 $635
clothing and accessories at an approachable price point
Operator of an online marketplace for home furniture and home decor items designed to help people to
9/10/20 $33 $65 $108
buy and sell chic furnishings in an easy-to-use online marketplace
9/9/20 $12 $28 NA Provider of an online marketplace for trading used bicycles and cycling accessories
Provider of an online health and beauty marketplace designed to offers a robust catalog directly to
9/3/20 $40 $73 NA
consumers
8/27/20 $39 $62 NA Operator of an e-commerce platform intended to sell secondhand luxury bags
8/17/20 $35 $84 $635 Operator of an online Chinese supermarket intended to offer authentic gourmet delicacies from Asia
8/13/20 $350 $1,970 $6,200 Operator of a multi-channel sports merchandise retailer
7/1/20 $453 $834 NA Operator of an online shopping platform designed to offer a simple way to buy and sell locally
Operator of an online shopping platform intended to offer wholesale club experience for modern
6/30/20 $30 $274 $400
shoppers
5/14/20 $15 $73 $120 Operator of an e-commerce platform and offline stores intended to offer secondhand luxury handbags
4/29/20 $128 $290 $1,328 Provider of an online marketplace designed to trade high-demand and limited edition sneakers
Operator of an online marketplace intended to provide information on residential properties and rented
3/10/20 $60 $150 $400
workspace
Operator of an online marketplace designed to offer access to the global network of fully finished
2/6/20 $30 $45 $95
apartments
2/5/20 $17 $25 $38 Provider of an online retail platform designed to facilitate both offline and online shopping for customers
Developer of an e-commerce platform designed to change the way people discover and shop for designer
1/31/20 $100 $420 $775
fashion
Developer of an online marketplace built on pioneering technology intended to connect today's dynamic
1/31/20 $17 $23 $67
workforce with companies facing increasingly complex staffing requirements
Developer of an online flower delivery platform designed to connect farms and a curated network of
1/30/20 $16 $74 $126
artisan florists directly to consumers
Notes:
Sources: Capital IQ, Pitchbook, company press releases. 34M&A AND FINANCINGS
Precedent Financings (cont’d)
($MM)
Announced Amount Total Enterprise
Date Investor Target Invested Raised Value (EV) Target Description
12/9/19 $10 $12 NA Developer of an online marketplace platform designed to offer products for home decoration
12/2/19 $40 $61 $440 Developer of an online shopping platform designed to help women rediscover fashion
11/18/19 $16 $26 $84 Operator of an online retail platform intended to sell meat and seafood products
11/6/19 $16 $27 $46 Provider of an online marketplace intended to offer and help users browse commercial spaces
10/2/19 $35 $49 $400 Operator of an online retail platform intended to provide professional clothing for women
Developer of a lifestyle membership platform designed to provide women with products from premium
9/1/19 $80 $89 $930
and emerging brands
8/26/19 $100 $112 NA Operator of an online retail platform intended to sell bedding textiles
Developer of an online clothing retail platform designed to offer thrift shopping online while making it
8/21/19 $175 $338 $670
mainstream
Developer of an online marketplace designed to transform the way the meetings are booked to benefit
8/20/19 $50 $56 NA
event planners and hoteliers
8/6/19 $40 $40 NA Provider of an online ticketing marketplace to buy and sell tickets
8/1/19 $300 $1,800 $11,200 Operator of a mobile e-commerce platform designed to make affordable products accessible to everyone
7/5/19 $14 $23 $59 Developer of a retail platform intended to bring modern brick-and-mortar shopping experience online
Developer of an online kids shopping platform intended to help kids to be socially responsible and make
6/26/19 $15 $28 $55
an impact
6/25/19 $150 $424 $1,700 Provider of an online marketplace designed to hire workers and offer local services
Operator of an online luxury footwear platform intended to offer branded shoes and other fashion
6/17/19 $50 $90 $165
apparel and accessories
Operator of an e-commerce platform intended to be used for the wholesale ordering of professional
5/14/19 $25 $31 $95
grade supplements
5/7/19 $43 $64 $193 Developer of an online marketplace designed to provide warehousing spaces on-demand
4/15/19 $25 $48 $110 Operator of an online marketplace intended to make wholesale automotive deals simple and transparent
Developer of a shopping platform aimed to connect consumers to the items and brands that match their
4/12/19 $20 $31 $100
preferences
4/10/19 $181 $303 $511 Provider of an online car marketplace designed to simplify the process of buying and selling cars
Notes:
Sources: Capital IQ, Pitchbook, company press releases. 35M&A AND FINANCINGS
Precedent Financings (cont’d)
($MM)
Announced Amount Total Enterprise
Date Investor Target Invested Raised Value (EV) Target Description
4/9/19 $12 $22 $80 Developer of an online mobile shopping application designed to purchase items directly from retailers
4/1/19 $29 $54 NA Provider of an online marketplace intended to sell pre-owned luxury goods
3/22/19 $50 $338 $1,050 The RealReal Inc provides online marketplace for authenticated and consigned luxury goods
Developer of an online renting platform intended to revolutionize the accessories and dressing retail
3/21/19 $125 $521 $1,000
industry
Developer of a mobile commerce and digital marketing platform designed to connect merchants in the
2/28/19 $20 $29 $95
retail fueling industry to their consumers
Developer of an online wholesale fashion platform designed to improve the entire wholesale buying
2/13/19 $16 $36 $326
process
2/7/19 $80 $252 $520 Provider of an online marketplace intended to offer rare and luxury products
Developer of an online apparel and accessories platform designed to bridge the gap between luxury
2/5/19 $30 $45 $124
goods and affordable fashion
Developer of an online marketplace designed to simplify the leasing process of small to medium-sized
1/17/19 $15 $23 $60
office spaces
1/1/19 $18 $22 $53 Developer of an online platform designed to offer seafood
12/19/18 $50 $131 $800 Developer of an online freight marketplace platform intended to connect shippers with truck drivers
Operator of a lifestyle brand and design marketplace intended to enable the design independence of
12/13/18 $208 $295 $733
both consumers and artists around the world
Operator of an online marketplace intended to reinvent the medical apparel category with
12/10/18 $15 $23 NA
contemporary, runway-inspired fashion
Provider of an on-demand marketplace intended to offer road trips and recreational vehicle (RV)
11/30/18 $50 $93 $350
adventures
11/28/18 $50 $50 NA Operator of an e-commerce platform for the buying, selling and trading of luxury pre-owned timepieces
11/15/18 $40 $97 $410 Developer of an e-commerce platform designed to make shopping easy for women of all shapes and sizes
11/14/18 $59 $102 $209 Operator of an online wine shop intended to offer selection, guidance and convenience
Notes:
Sources: Capital IQ, Pitchbook, company press releases. 36I. GCA OVERVIEW
II. MARKETPLACE & E-COMMERCE MARKET TRENDS & INSIGHTS
III. PUBLIC MARKETS
IV. M&A AND FINANCINGS
V. PUBLIC COMPS BACKUP
37APPENDIX – PUBLIC COMPANY VALUATIONS
($MM, except per share data)
Stock Price Market Cash & Total Enterprise EV / Revenue EV / EBITDA
Company 10/28/2020 Cap ST. Invest. Debt Value (EV) CY20E CY21E CY20E CY21E 20E/19A 21E/20E CY20E CY21E
E-Commerce
Amazon.com $3,211.01 $1,608,362 $71,391 $91,401 $1,628,372 4.4x 3.7x 30.1x 24.0x 32% 18% 15% 15%
JD.com $83.04 $129,584 $17,030 $5,310 $120,648 1.1x 0.9x 37.7x 26.4x 32% 21% 3% 3%
Wayfair Inc. $255.76 $24,397 $2,374 $2,949 $24,972 1.8x 1.6x 40.3x 43.0x 52% 13% 4% 4%
Zalando SE $95.85 $24,112 $1,646 $1,023 $23,489 2.6x 2.2x 32.6x 29.1x 26% 19% 8% 7%
Ocado Group plc $30.33 $22,368 $1,605 $1,363 $22,155 7.4x 6.3x NM NM 31% 17% 2% 3%
Vipshop Holdings Limited $20.85 $14,094 $1,888 $577 $12,885 0.9x 0.8x 12.2x 9.8x 10% 13% 7% 8%
Rakuten $10.03 $13,640 $26,382 $19,201 $6,657 0.5x 0.4x 9.8x 5.6x 21% 12% 5% 8%
ZOZO $26.43 $8,071 $256 $186 $8,000 6.0x 5.6x 21.1x 19.6x 18% 8% 28% 28%
ASOS Plc $57.40 $5,713 $545 $418 $5,587 1.3x 1.1x 18.6x 14.6x 19% 21% 7% 8%
boohoo group plc $3.45 $4,306 $461 $18 $3,864 2.0x 1.5x 19.7x 15.8x 51% 29% 10% 10%
Shop Apotheke Europe N.V. $175.37 $3,137 $173 $190 $3,154 2.9x 2.3x NM NM 39% 26% 1% 2%
Zur Rose Group AG $284.30 $2,975 $273 $553 $3,255 1.9x 1.4x NM NM 19% 32% (2%) 1%
AO World plc $4.71 $2,223 $9 $132 $2,345 1.3x 1.2x 35.7x 26.6x 27% 11% 4% 5%
1-800-FLOWERS.COM $21.37 $1,378 $11 $307 $1,674 1.0x 0.9x 10.4x 9.9x 30% 5% 9% 9%
Kogan.com Ltd $14.82 $1,567 $101 $2 $1,467 3.2x 2.9x 29.1x 25.1x 56% 9% 11% 12%
Boozt AB (publ) $16.04 $929 $97 $76 $908 1.9x 1.6x 21.6x 18.5x 29% 18% 9% 9%
Westwing Group AG $31.13 $623 $97 $35 $557 1.1x 1.0x 10.7x 16.2x 69% 11% 10% 6%
PetMed Express $30.62 $615 $106 $0 $509 1.6x 1.6x 12.8x 11.4x 12% 4% 13% 14%
home24 SE $19.47 $514 $56 $46 $488 0.9x 0.8x 37.7x 24.4x 30% 13% 2% 3%
Summary Statistics
Mean 2.3x 2.0x 23.8x 20.0x 32% 16% 8% 8%
Median 1.8x 1.5x 21.4x 19.0x 30% 13% 7% 8%
Marketplaces
Alibaba Group Holding Limited $312.56 $845,674 $54,720 $21,014 $827,816 8.9x 7.0x 29.0x 21.7x 34% 26% 31% 32%
MercadoLibre $1,300.98 $64,672 $2,764 $1,396 $63,304 17.8x 13.1x NM NM 56% 35% 6% 6%
Uber Technologies $34.06 $59,694 $7,787 $9,592 $62,470 4.9x 3.5x NM NM (10%) 42% (20%) (2%)
eBay Inc. $49.28 $34,490 $3,660 $8,134 $38,964 3.8x 3.6x 10.0x 9.4x (5%) 6% 38% 38%
Copart $111.28 $26,259 $478 $518 $26,299 11.6x 10.1x 27.1x 24.1x 2% 15% 43% 42%
Delivery Hero SE $116.90 $23,280 $2,903 $1,976 $22,350 6.8x 4.7x NM NM 132% 46% NM (8%)
Just Eat Takeaway.com N.V. $114.06 $16,965 $591 $641 $17,020 6.5x 5.5x 44.1x 37.2x 461% 19% 15% 15%
Etsy $132.42 $15,801 $1,525 $1,110 $15,387 10.2x 9.0x 34.5x 31.5x 86% 14% 30% 28%
Farfetch Limited $29.22 $9,923 $802 $610 $9,887 6.4x 4.9x NM NM 59% 30% (5%) 1%
Grubhub Inc. $74.76 $6,899 $467 $617 $7,049 4.3x 3.7x NM 45.9x 27% 16% 5% 8%
Lyft $22.93 $7,156 $2,776 $1,052 $5,432 2.2x 1.4x NM NM (32%) 53% NM (7%)
Fiverr International Ltd. $153.37 $5,386 $214 $5 $5,176 28.5x 21.0x NM NM 71% 36% 4% 9%
Vroom $40.36 $5,252 $651 $126 $4,727 3.5x 1.8x NM NM NA 92% (12%) (5%)
Shutterstock $67.10 $2,431 $383 $43 $2,090 3.2x 3.0x 14.5x 13.9x 1% 7% 22% 21%
The RealReal $13.63 $1,194 $410 $278 $1,062 3.4x 2.5x NM NM 0% 38% NM (14%)
Infibeam Avenues Limited $1.12 $740 $24 $3 $720 9.3x 6.6x 32.4x 21.2x (34%) 41% 29% 31%
Cars.com $7.68 $516 $57 $655 $1,114 2.1x 1.9x 7.4x 6.5x (11%) 9% 28% 29%
Summary Statistics
Mean 7.8x 6.1x 24.9x 23.5x 52% 31% 15% 13%
Median 6.4x 4.7x 28.0x 21.7x 15% 30% 18% 9%
Notes:
Sources: Capital IQ, Wall Street Estimates. Multiples 50x considered NM. 38GCA is a global investment bank that provides strategic M&A, capital markets and private funds advisory services to growth companies and market leaders. The firm offers worldwide coverage with over 500 professionals in 25 offices across America, Asia and Europe. Built by the people that run the business, GCA is a firm of experts who focus on deals that require commitment, original perspective, skill and exceptional networks. www.gcaglobal.com This report was prepared by GCA Advisors, LLC, a registered broker-dealer and member of FINRA and SIPC. Sources of data include Capital IQ and other news organizations. Information obtained from third- party sources is considered reliable, but we do not guarantee that the information herein is accurate and complete. The report shall not constitute an offer to sell or the solicitation of an offer to buy any of the securities mentioned herein; past performance does not guarantee future results. Recipients of this report should not interpret the information herein as sufficient grounds for an investment decision or any other decision. DISCLAIMER: This report includes logos or other words or devices that may be registered trademarks of their respective owners. Such use is solely for purposes of convenience in referring to the trademark owners and their products/services. This report and its contents are not endorsed by, sponsored by or affiliated with any trademark owners. GCA Advisors, LLC and its affiliates are not affiliated with any trademark owner but may provide financial services to one or more trademark owners or their affiliates.
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