e-commerce: the great leap forward · executive summary marketplace & e-commerce sector wrap-up 2...
TRANSCRIPT
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E-COMMERCE: THE GREAT LEAP FORWARD
October 2020
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EXECUTIVE SUMMARY
Marketplace & E-commerce Sector Wrap-Up
2
» 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 forgrabs” 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
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3
I. GCA OVERVIEW
II. MARKETPLACE & E-COMMERCE MARKET TRENDS & INSIGHTS
III. PUBLIC MARKETS
IV. M&A AND FINANCINGS
V. PUBLIC COMPS BACKUP
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Sam Fuller
Thomas Egli
Tobias Schultheiss
GCA OVERVIEW
Leading Global Investment Bank Providing Strategic M&A and Capital Markets Advisory Services
4
[email protected] [email protected] [email protected]@GCAGlobal.com
John Lambros Josh Wepman Rupert Sadler Alex Grünwald
Full-Suite of M&A and Capital Market Advisory Services
Leading Franchise in Marketplaces and E-commerce
~60%TRANSACTIONS HAVETECH COMPONENT
~35%BUY-SIDE
TRANSACTIONS
~80%REPEAT OR
REFERRED CLIENTS
~50%CROSS-BORDERTRANSACTIONS
~50%FINANCIAL SPONSOR
TRANSACTIONS
100+DEBT TRANSACTIONS
IN LAST 3 YEARS
~65%SELL-SIDE
TRANSACTIONS
500+TOTAL TRANSACTIONS
IN LAST 3 YEARS
Highly Active in All Key Disruptive Areas of the Technology Market
Digital Media
» Marketplaces» E-commerce» Digital Content & IP» Marketing / Advertising
Technology» Music, Video & Social» Gaming
Software
» Vertical Application» Commerce & Retail
Technology» Data & Analytics» Asset Maintenance &
Repair » Infrastructure
Tech-Enabled Services
» Marketing Services» Information Services» Professional Services» IT Services» Customer Care & Claims
Services
58DEALS LAST 3 YEARS
120DEALS LAST 3 YEARS
55DEALS LAST 3 YEARS
Global Marketplaces & E-commerce Team
Managing Director; President, GCA US
Managing Director Managing DirectorManaging Director;
Member of Executive Management Europe
Managing Director Managing Director Managing Director
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GCA OVERVIEW
Leading Global Investment Bank
5
ZURICH
MILAN
FRANKFURT
MUNICH
TEL AVIV
LONDON
BIRMINGHAM
MUMBAI
SHANGHAI
SINGAPORE
TOKYO
NEW DELHI
NAGOYA
HO CHI MINH CITY
TAIPEI
PARISLEEDS
FUKUOKA
NEW YORK
SAN FRANCISCO
Sector expertise: Expansive coverage
and deep specialization
Exceptional cross-border capabilities:
Half of all transactions
Global platform:25 offices in key markets across
America, Asia and Europe
Broad spectrum of clients:
Leading
conglomerates, top
private equity firms and emerging high-
growth companies
Experienced team: Over 500 employees
across the globe
Strong reputation and track record: High number of
repeat clients and referrals
Diversified business model:
Geographically balanced, synergistic
and complementary focus areas
KYOTO
OSAKA
MANCHESTER
LAUSANNE
STOCKHOLM
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
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Insurance marketplace
Online classifieds
Online B2B classifieds
Online auction marketplace technology
Online job classifieds
Online career portal
Online marketplace
Watch marketplace
Online education portal
Online real estate classifieds
Stock photo marketplace
Online RV rental marketplace
GCA OVERVIEW
Experience in Marketplace and E-commerce
6
Marketplace E-commerce
Online mobile & fashion retailer
Kitchen & home hub
Online grocery
Online bike retail
Online board sports retail
Online bikeretail
Online sportfashion retail
Event Streaming
Digital sports content & retail
Online HQ pictures
Online fashion retail
Online pet retailer
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GCA OVERVIEW
Experience in Consumer
7
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GCA OVERVIEW
8
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
TRANSACTION DATE
October 2020
INDUSTRY
Digital Marketplaces,
Travel, Consumer, Digital
Media
Background
» RVshare is the first and largest peer-to-peer RV rental marketplace. With more than 100,000 vehicles
available, RVshare's diverse inventory ranges from
affordable travel trailers to luxury motorhomes and
can accommodate any outdoor adventure, whether
it's a weekend of camping or a cross-country tour of
national parks
» Since the company’s founding in 2013, RVshare has successfully built a leading position in the emerging
market of RV rentals, amassing more than two million
days booked on its platform
» KKR (NYSE: KKR) made its investment through its Next Generation Technology Growth Fund II, a global fund
dedicated to growth equity investments in the
technology space; Tritium Partners, an existing
investor in RVshare, also participated in the round
Transaction Summary
» On October 21, 2020, RVshare announced an $100MM+ financing round led by KKR
» RVshare plans to use this new capital infusion to invest in future growth and provide the best experience for owners and
renters, advancing the company’s mission of expanding the
definition of travel
» GCA assisted RVshare and Tritium Partners in effectively navigating the COVID-19 market environment by leveraging
strong business momentum and recent brand recognition
» GCA also provided execution support throughout what was an all virtual process, including (i) identifying potential buyers and
leading outreach, (ii) preparing marketing materials, (iii)
negotiating valuation and key terms and (iv) advising on
definitive agreement matters
» GCA acted as exclusive financial advisor to RVshare in connection with the transaction
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GCA OVERVIEW
9
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
TRANSACTION DATE
June 2020
INDUSTRY
Digital Marketplaces,
Consumer, Digital Media
Background
» Headquartered in Arlington, VA, in the Washington DC metropolitan area, Storyblocks provides video, audio
and imagery through its unique subscription model
» As a testament to its culture of creativity and innovation, Storyblocks has been recognized on the
Inc 5000 list for seven consecutive years and was
recently named one of Washington DC’s Top
Workplaces by The Washington Post and among the
Best Places to Work by the Washington Business
Journal
Transaction Summary
» GCA acted as exclusive financial advisor to Great Hill Partners on their acquisition of Storyblocks
» This partnership with Storyblocks is Great Hill Partners’ latest digital commerce addition to its portfolio and will allow the
company to accelerate its mission of modernizing the creative
process to better support affordable, efficient video creation
and to extend its current capabilities and product offerings
» GCA had a prior relationship with both Storyblocks and Great 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
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10
I. GCA OVERVIEW
II. MARKETPLACE & E-COMMERCE MARKET TRENDS & INSIGHTS
III. PUBLIC MARKETS
IV. M&A AND FINANCINGS
V. PUBLIC COMPS BACKUP
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MARKETPLACE & E-COMMERCE: MARKET TRENDS & INSIGHTS
How E-commerce is Benefitting from the Current Situation
11
GCA expects that 2020 will be a significant inflection point for the e-commerce market overall
✓✓✓
✓✓✓
✓✓
✓✓✓
✓
» Strong growth since end of February 2020
» KPIs strongly improving (CAC, re-purchase, AOV, etc.)
» Growth for most product categories
(except for travel and a few others)
» Offline players: We have been approached by some
traditional retailers who have decided they need to
strengthen e-commerce inorganically
» Consumers: Broadening customer base is here to stay
due to convenience and speed. However, risk that
current delivery lags in logistics might damage
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
» 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
✓✓✓
✓✓
Market
perception
Revenues /
KPIs
Regulatory
… and outperformance of 2020 budget
… expected to result in lasting change in consumer behavior …
… driven by first-time customers and increased re-purchase rate of existing customers …
Strong growth in orders …
Positive Development Across Most Product Verticals We See Impact on Three Levels
1
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MARKETPLACE & E-COMMERCE: MARKET TRENDS & INSIGHTS
In H1 2020, E-commerce Saw Massive Growth as Brick & Mortar Struggled
12
Sep-20
Aug-20
Aug-20
Aug-20
Jul-20
Jul-20
Jul-20
Jul-20
Jun-20
May-20
May-20
May-20
May-20
May-20
May-20
Apr-20
Apr-20
Feb-20
$523.6
$601.7
$709.8
$765.2
$859.3
9.9%11.0%
14.5%
14.4%15.5%
2018 2019 2020E 2021E 2022E
Retail E-commerce Sales % of Total Retail Sales
» H1 ‘20 online e-commerce totaled $347.6Bn, a 30%
increase from 2019
» The overwhelming shift to e-commerce amidst lockdowns
has significantly boosted e-commerce sales by 18% in
2020
» Analysts estimate that 204MM consumers 14 and older
will make online purchases during COVID, two thirds of
which are 45 and older, increasing their purchases by 6%
Retail E-commerce Sales in the US, 2018-2022
($Bn)
Mar-20
Jul-20
2
Notes:Sources: eMarketer, U.S. Department of Commerce, Wall Street Research.
E-commerce Dramatically Outpaces Retail Spending... …As 20+ Retailers File for Bankruptcy in 2020
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MARKETPLACE & E-COMMERCE: MARKET TRENDS & INSIGHTS
Transition from Offline to Online Shopping Habits Has Been Accelerated by 2 to 5 Years
13
» 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
3
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MARKETPLACE & E-COMMERCE: MARKET TRENDS & INSIGHTS
Driven by Secular Shift, E-commerce and Marketplaces Experience Significant Growth in Share Price
14Notes:Sources: Capital IQ as of 10/28/20.
Marketplace
129%
71%
1%
71% 129%YTD Share Price Performance
E-commerce
4
Perhaps Not Surprising at All, E-commerce & Marketplace Companies Have Significantly Outperformed the S&P 500 in 2020
(60%)
(40%)
(20%)
0%
20%
40%
60%
80%
100%
120%
140%
160%
January February March April May June July August September October
Marketplace S&P 500E-commerce
-
$257 $272 $253
$39
$68
$158 $296
$340
$411
2019A 2023E 2029E
Large TAM in US Home Market Moving Online
MARKETPLACE & E-COMMERCE: MARKET TRENDS & INSIGHTS
Billions Up for Grabs in Home Category with Shift to Online
15Notes:Sources: Euromonitor, Wayfair Q2 ‘20 Investor Presentation, Wall Street Research.
5
Even Without a Pandemic, Billions in Retail Revenue was Transitioning from Offline to Online in the Home Category
US Home Market by Channel ($Bn)
Fragmented
brick-and-
mortar market
with regional
and national
specialty
retailers, big box
retailers, and
department
stores
’19A – ‘23E ’23E – ‘29E
Online 15.0% 15.0%
Offline 1.3% (1.1%)
Total 3.5% 3.2%
Offline Online
14%
30%
43%
Home Goods Apparel Consumer Electronics
Estimated US Online Penetration of Selected Verticals (2019E)
Illustrative Distribution of Home Goods Customers by Age
Millennials
Age 20-37
(80M People)
Median Household
Income: $75K
45% of sales from customersaged between 31-50
Age 35 Age 65
Many Verticals Poised for Further Online Transition
All-Digital Demographic Will Change the Marketplace
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(40.0%)
(30.0%)
(20.0%)
(10.0%)
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20
MARKETPLACE & E-COMMERCE: MARKET TRENDS & INSIGHTS
Home Improvement Sees Large Consumer Interest
16Notes:Sources: S&P Capital IQ as of 10/28/2020.
6
Home Improvement Has Seen a Big Uptick In Growth During 2020
Self-Actualization
Esteem
Belonging
Safety
Physiological
Internet / Mobile Phone
Food / Water
1943 - Maslow 2020
Shelter
Changing Hierarchy of Needs
27.2%
1.3%
Home Improvement S&P 500
GROCERIES
8% YTD Share Price Performance
ALCOHOL
9% YTD Share Price Performance
HOME IMPROVEMENT
27% YTD Share Price Performance
Home
Improvement,
Groceries and
Alcohol clearly
deemed
essential
needs
-
0.0
5.0
10.0
15.0
20.0
25.0
30.0
$20
$40
$60
$80
$100
$120
$140
$160
10/28/19 1/28/20 4/28/20 7/28/20 10/28/20
Daily Trading Volume (MM) Stock Price
MARKETPLACE & E-COMMERCE: MARKET TRENDS & INSIGHTS
The Etsy Phenomenon & the Ongoing Rise of the Crafters / DIY Marketplace
17
$740
$362$333
$242
$89 $87
$0
$200
$400
$600
$800
Homewares& Home
Furnishings
Jewelry &Accessories
CraftSupplies
Apparel Paper &Party
Supplies
Beauty &Personal
Care
128%
$2.0B $1.2B $826M $774M $316M $431MTTM
GMS ($)
187%
50%138%
59%
11%
Etsy’s Performance Showcases Market Demand » Platform has 60.3M active buyers and 3.1M active sellers,
representing Q2 ’20 Y/Y growth rates of 41% and 35%, respectively
Positive Tailwinds Among Crafters / DIYs » Millennials (ages 20-37) driving next wave of growth,
representing 41% of crafters / creative hobbyists» Global arts & crafts DIY market is $41Bn and expected to
reach $51Bn by 2024
Etsy Stock Price Has More Than Doubled This Year Etsy’s Top Category GMS ($M) and Y/Y Growth (%) (Q2 ‘20)
$16.6 Bn Market Cap
7
Notes:Sources: Association for Creative Industries, Statistica, S&P Capital IQ as of 10/28/2020, Etsy Q2 ‘20 Investor Presentation.
Etsy Continues to Lead the Way as the Standout Marketplace for Makers
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MARKETPLACE & E-COMMERCE: MARKET TRENDS & INSIGHTS
Marketplace Evolution
18Notes:Sources: Capital IQ as of 10/28/20.
Not Managed
YTD Stock Performance: 223%
» Peer-to-Peer transaction
basis
» Peer reviews influence
purchase behavior
» Lowest transaction fees
» Technology’s important
role in enhancing the
buying experience
» Value-add of intermediary
important to consumer
trust
» Operator owns part of
the transaction and
“manages” the outcome
» Trust the “brand”
» Take rate compensates
for the “hands-on” role
Marketplace Business Models Can Vary Depending On Underlying Offering
Fully ManagedLightly Managed
YTD Stock Performance: 13% YTD Stock Performance: 80%
8
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MARKETPLACE & E-COMMERCE: MARKET TRENDS & INSIGHTS
Key Metrics for Marketplaces and E-commerce Models
19
Traffic
Focus of analysis:
» What are the sources
of your traffic (paid, TV
and related marketing
vs. unpaid)?
» What are the CPCs for
the paid channels?
» How does the high
brand credibility
drive direct traffic?
» What is your net
promoter score (NPS)?
» How is traffic
developing and what is
the split of the
sources there?
» Mobile share in traffic?
» How high is the CPO?
Market Trend
Focus of analysis:
» What are you
expecting in terms of
overall market
growth?
» How is your market
segment benefiting
from the ongoing
online growth?
» What is your
market share?
» Who are your key
competitors?
» How do you
differentiate from
competitors?
Shop / Front-End
Focus of analysis:
» Benchmarking of
load times for
specific searches
vs. key competitors
» What is the exclusive
(if any) and total #
of products?
» Technology of
front- / back-end
and how scalable and
state-of-the art is it?
» How good is the
filtering function?
» How mobile-ready
is the website?
Focus of analysis:
» How are conversion
rates developing
across traffic sources?
» How is cancellation
rate developing?
» How high is the
drop out rate?
» Do you have
retargeting measures
in place for customers
having dropped out
before completing
their order?
» Do you track (in-house)
customer service KPIs
(response-time etc.)?
Conversion Customers
Focus of analysis:
» How high is the
repurchase rate of
existing customers?
» How high is the
churn rate?
» New customers
acquired on average
per month?
» Main traffic source for
new customers?
» How high is the AOV /
CAC (split by new vs.
existing customers)?
» Are older cohorts
spending more?
» Are there differences
on a country-by -
country basis?
» Customer satisfaction
After sales
Focus of analysis:
» Handling time, picking
& shipping costs,
expandability?
» What is share of orders
delivered the
next day?
» Share of drop
shipping?
» How is number of
SKUs developing?
» Level of working capital
requirements in order
to ensure high
availability?
» How high is the share
of units in stock?
» How high is the share
of returned goods?
» What customer
support KPIs are you
tracking?
The KPIs Ultimately Tell the Tale of the Winners in Marketplaces and E-commerce
9
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MARKETPLACE & E-COMMERCE: MARKET TRENDS & INSIGHTS
Selected YTD M&A and Financing Activity
20
Ann. Date
Acquirer TargetEnterprise
Value
10/13 NA
9/29 $420
9/23 NA
9/8 $425
8/3 $252
6/10 $7,521
5/28 $280
5/13 $190
3/25 $120
2/24 $7,100
2/13 $4,050
Ann. Date
Investor Target Amount
10/21 $100+
10/5 $60
9/23 $100
9/11 $85
9/10 $33
8/27 $39
8/13 $350
7/1 $453
6/30 $30
4/29 $128
3/10 $60
Financings ($MM)M&A Transactions ($MM)
Notes:Sources: Capital IQ, Pitchbook, company press releases.
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MARKETPLACE & E-COMMERCE MARKET SUMMARY
Top 10 Leaders in Private Funding Raised-to-Date
21
Notes:Represents U.S. companies.Sources: Pitchbook, LinkedIn, Company Websites.1) Includes debt and equity financing.
2) Confidentially filed for IPO on 8/19/2020.
Company Headquarters Founded Amt. Raised ($MM)(1) Company Description
San Francisco, CA 2008 $6,430Operator of an online property rental marketplace designed to offer short-term travel stays
San Francisco, CA 2014 $4,395Operator of an online real estate marketplace intended to simplify home buying and selling
San Francisco, CA 2012 $2,270Provider of an on-demand goods delivery application designed to order groceries from local stores
Jacksonville, FL 1995 $1,970Operator of the e-commerce business for all major professional sports leagues, major media brands and collegiate and professional team properties
Bellevue, WA 2011 $834Operator of an online shopping platform designed to offer a simple way to buy and sell locally
Philadelphia, PA 2013 $758Provider of on-demand delivery services intended to offer convenience items
McLean, VA 1999 $702Provider of meetings and events technology that offers a marketplace that connects venues with professionals
Palo Alto, CA 2009 $664 Operator of an online home furnishing marketplace
San Carlos, CA 2012 $646Operator of an online lending marketplace intended to offer personal loans
San Francisco, CA 2009 $612Provider of a peer-to-peer, car-sharing marketplace intended to serve cities across the US and Europe
(2)
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MARKETPLACE & E-COMMERCE MARKET SUMMARY
Selected Active Investors
22Notes:Sources: Capital IQ, Pitchbook, Wall Street Research.
Investor Type Investor Logos
Accelerators / Seed
Venture Capital /Private Equity
Corporate Investors
Alternative Investors
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MARKETPLACE & E-COMMERCE MARKET SUMMARY
Most Active Deal Makers
23Notes:Represents investments since 2010 in North America and Europe with the exception of Walmart’s acquisition of Flipkart.Sources: Capital IQ, Pitchbook, Wall Street Research.
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
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24
I. GCA OVERVIEW
II. MARKETPLACE & E-COMMERCE MARKET TRENDS & INSIGHTS
III. PUBLIC MARKETS
IV. M&A AND FINANCINGS
V. PUBLIC COMPS BACKUP
-
MARKETPLACE & E-COMMERCE MARKET SUMMARY
Valuation Overview – E-commerce and Marketplaces
25
Multiples have remained broadly constant despite COVID-19 and will benefit mid-term
Marketplace
1
Revenue CAGR '19-'21 26.8%
EV / ’20 Revenue 7.9x
EV / ’20 EBITDA 25.2x
EBITDA margin 15.1%
E-commerce
2
Revenue CAGR '19-'21 24.6%
EV / ’20 Revenue 2.3x
EV / ’20 EBITDA 24.2x
EBITDA margin 7.7%
Notes:Sources: Capital IQ as of 10/28/20.
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MARKETPLACE & E-COMMERCE MARKET SUMMARY
Case Study: Vroom’s IPO and Follow-On Offering
26Notes:Sources: Wall Street Research, Capital IQ, Pitchbook, Company website.
IPO and Follow-on Offering Overview
Initial PublicOffering
~$468MM
» On June 8, Vroom priced its 21.25 million share initial public offering at $22 a share, raising a total of $468 million in gross proceeds
» The IPO priced above its $18 to $20 price range, which was revised up from the initially filed range of $15 to $17
» After opening at $40.25, shares closed on the first day of trading at ~$48 – up 118% from the initial offer price
June 8, 2020
We've seen a lot of data coming out in the past quarters where customers are twice as likely to transact online in terms of buying a used vehicle… We think it’s a fundamental and structural change, and this is one of the last verticals to actually come online in terms of pure e-commerce and transactions.
Paul Hennessy,
CEO, Vroom
“
“
» On September 10, Vroom announced the pricing of an underwritten public offering of 10.8 million shares of stock at $54.40 per share, raising an additional ~$589 million in gross proceeds
Financial Summary
$MM 2018A 2019A 2020E 20201E
Revenue $855.4 $1,191.8 $1,384.9 $2,452.0
% Growth NA 39% 16% 77%
EBITDA ($73.0) ($127.0) ($164.8) ($162.0)
Vroom at a Glance
Ticker: VRM (NASDAQ)
Headquarters: New York, NY
Founded: 2013
Description: Vroom operates an online e-commerce platform forbuying, selling and trading used vehicles. Thecompany's scalable, data-driven technology brings allphases of the vehicle buying and selling process toconsumers wherever they are and offers an extensiveselection of vehicles, transparent pricing, competitivefinancing and contact-free, at-home pick-up anddelivery. Vroom also sources revenue through TexasDirect Auto (TDA), their sole physical retail location andin-house vehicle reconditioning center (VRC), andthrough selling trade-ins that don’t meet retail criteriain wholesale auctions.
Initial Investor Feedback
✓ Highly fragmented $800Bn+ market, which has room for efficiency, with the #1 player garnering just a ~2% share
✓ Asset-light balance sheet, online-only offering and excess reconditioning capacity allows for scalability at a faster pace than brick-and-mortar competitors
✓ Secular shift towards online and touchless transactions
✓ Experienced management team
× History of losses since inception, with concern about achieving profitability in the future
× Sensitive to pricing changes and reliant on third parties
-
$20.00
$30.00
$40.00
$50.00
$60.00
$70.00
$80.00
.0
3.0
6.0
9.0
12.0
15.0
18.0
6/9/20 6/30/20 7/21/20 8/11/20 9/1/20 9/22/20 10/13/20Daily Trading Volume (MM) Stock Price
MARKETPLACE & E-COMMERCE MARKET SUMMARY
Case Study: Vroom’s IPO and Follow-On Offering (cont’d)
27Notes:Sources: Wall Street Research, Capital IQ as of 10/28/20.
$47.90 Share Price$5.5Bn Market Cap
$42.33 Share Price$5.5Bn Market Cap
Announces follow-on offering of 10.8MM shares at $54.40 per share
Announces Q2 earnings; e-commerce unit sales up 74%
YoY, but disappointing Q3 revenue and GPU guidance
» 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
Added to the S&P TMI Index
Piper Sandler initiates at Overweight; sets price target of $82
JP Morgan initiates at Neutral; sets price
target of $55
-
MARKETPLACE & E-COMMERCE MARKET SUMMARY
Public Offerings Coming Soon
Company StatusCapital Raised
to DateLatest
ValuationDescription
Confidentially filed in
Aug. 2020; aiming for 2021
IPO 1
$6.4Bn $18.0Bn
Operator of an online property rental marketplace offering short-term travel stays. The company's platform helps users to list, discover and book short-term
accommodations around the world, enabling users to book unique travel experiences in various cities and countries.
Confidentially filed in
Feb. 2020; aiming for Q4 2020 IPO 1
$2.9Bn $16.0Bn
Developer of a food delivery application providing on-demand food-ordering and delivery services. The company's application offers a wide range of restaurants
and menus to select from for a single meal or large groups enabling users to easily and conveniently order their favorite food for delivery at the time and place of
their choosing.
In discussion with banks; potential
H1 2021 IPO 2$2.5Bn $17.7Bn
Operator of an on-demand goods delivery application that facilitates the delivery of essential goods to busy people and families. The company offers full-service and in-store shopper services through a network of independent shoppers with same-day delivery and pickup service of fresh groceries and everyday essentials.
Confidentially filed in
Sep. 2020 3$166.2MM $625.0MM
Developer of a social commerce platform intended to help users buy, sell and share their personal fashion items online. The company's platform helps people
interested in selling clothing and accessories by posting photos and details on the application list in order to sell it online, enabling customers to buy and sell fashion
easily under one platform.
Confidentially filed; targeting early 2021 IPO 4
$337.8MM $670.0MM
Developer of an online clothing retail platform offering thrift shopping online while making it mainstream. The company's marketplace allows swapping of old
clothes for new ones and selling and buying of secondhand clothes, enabling customers and fashion enthusiasts to trade and shop at discounted rates.
Confidentially filed in
Sep. 2020 3$1.8Bn $11.2Bn
Operator of a mobile e-commerce platform making affordable products accessible to everyone. The company's platform offers digital shopping of a wide selection of products by leveraging a global supply chain of direct suppliers and avoiding retail overhead costs, enabling users to buy products online at much cheaper rates than
are available in the market.
Notes:Sources: Capital IQ as of 10/28/20.1) Nasdaq, October 2020. 2) Financial Times, October 2020.3) MarketWatch, September 2020.
4) Bloomberg, October 2020.5) Tech Crunch, September 2020.
28
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29
I. GCA OVERVIEW
II. MARKETPLACE & E-COMMERCE MARKET TRENDS & INSIGHTS
III. PUBLIC MARKETS
IV. M&A AND FINANCINGS
V. PUBLIC COMPS BACKUP
-
M&A AND FINANCINGS
Precedent M&A Transactions
30
($MM)
Announced Enterprise EV / Revenue EV / EBITDA
Date Acquirer Target Value (EV) LTM NTM LTM NTM Target Description
Notes:Sources: Capital IQ, Pitchbook, company press releases.
10/13/20 NA NA NA NA NA Operator of an online marketplace designed to retail shoes and related accessories
10/2/20 NA NA NA NA NADesigner and provider of an online shopping platform designed to offer ways to shop the
latest trends in menswear and women's wear
9/29/20 $420 NA NA NA NAOperator of a digital coupon marketplace, intended to offer a savings destination which
connects consumers with retailers, restaurants and brands, both online and in-store
9/23/20 NA NA NA NA NADirect-to-consumer contact lens retailer offering easy, convenient and hassle-free
replacement of contact lenses of the most popular brands at competitive prices
9/8/20 $425 NA NA NA NAOperator of an online marketplace intended to make wholesale automotive deals simple
and transparent
9/1/20 NA NA NA NA NAOperator and retailer of a personalized products online marketplace intended to aspire,
inspire, motivate
8/28/20 $250 NA NA NA NAProvider of online and catalog retail services intended to provide direct-to-consumer
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
7/27/20 NA NA NA NA NADeveloper of a digital marketplace and platform intended to help in scheduling on-demand
pet care
6/29/20 $500 NA NA NA NADeveloper of an interactive gym designed to bring the essential components of a studio
workout at home
6/25/20 ConfidentialOperator of an online marketplace intended to provide high-quality stock media at a
fraction of the cost
6/23/20 NA NA NA NA NAProvider of an online shopping platform designed to offer a range of beauty and personal
care products, food products, household and kitchen products and stationery
6/17/20 NA NA NA NA NAOperator of an online clothing retail store that providing womens clothing and fashion
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
5/13/20 $190 3.3 x NA NA NAOperator of an online real estate marketplace that allows for the search, listing and
transacting of properties online
4/30/20 NA NA NA NA NAOperator of an online design marketplace intended to sell ready-to-use design content
from independent creators around the world
3/25/20 $120 NA NA NA NA Developer of a mobile platform designed to facilitate buying and selling of local goods
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M&A AND FINANCINGS
Precedent M&A Transactions (cont’d)
31Notes:Sources: Capital IQ, Pitchbook, company press releases.
($MM)
Announced Enterprise EV / Revenue EV / EBITDA
Date Acquirer Target Value (EV) LTM NTM LTM NTM Target Description
2/24/20 $525 2.5 x 2.4 x 37.2 x 25.8 xDeveloper of financial education and recommendation platform intended to offer free
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
2/13/20 $4,050 NA NA NA NADeveloper of ticketing software and solutions intended to bring the joy of live shows to
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
8/29/19 $35 0.6 x NA NA NAOperator of an e-commerce website offering ergonomic home and office furniture
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
8/6/19 NA NA NA NA NAProvider of an online marketplace intended to offer a range of sports apparel and
accessories
8/2/19 $18 NA NA NA NA Retailer of engraved, monogrammed or custom-made gifts online
7/31/19 $140 NA NA NA NAManufacturer and retailer of intimate apparel intended to offer comfortable
undergarments for women
7/9/19 NA NA NA NA NAOperator of online retail hunting and outdoor apparel shop headquartered in Franklin,
Tennessee
6/10/19 $2,751 NA NA NA NAManufacturer and retailer of photo-based products and services for customers in the United
States through its portfolio of brands
6/10/19 NA NA NA NA NAProvider of online photo services enabling the users of film cameras, digital cameras and
camera phones to share, print and store their photos online
6/13/19 $160 NA NA NA NA Operator of an online marketplace intended to offer various deals on retail stores
5/21/19 NA NA NA NA NAProvider of an online marketplace designed for live auctions of collectibles, antiques and
fine art
5/1/19 NA NA NA NA NAOperator of an e-commerce platform designed to offer exclusive editions of artwork by
prominent contemporary artists
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M&A AND FINANCINGS
Precedent M&A Transactions (cont’d)
32Notes:Sources: Capital IQ, Pitchbook, company press releases.
($MM)
Announced Enterprise EV / Revenue EV / EBITDA
Date Acquirer Target Value (EV) LTM NTM LTM NTM Target Description
4/4/19 $750 1.9 x NA NA NAProvider of an online platform intended to help users feel good and inspire them to do
good as well
2/22/19 NA NA NA NA NAProvider of an online platform intended to offer a range of health, wellness and safety
products for infants, toddlers and parents
2/15/19 $6,368 10.3 x 9.4 x 23.1 x 17.9 xOperater of digital marketplaces specializing in the digital marketplaces and automotive
sectors
2/15/19 NA NA NA NA NA Provider of an online platform designed to sell wall art and decorative items
2/11/19 NA NA NA NA NAProvider of an online retail platform intended to offer food products especially frozen
meals
1/18/19 $5 0.1 x NA 2.4 x NAE-commerce destination for home furnishings, appliances, furniture, home goods and
related products
1/16/19 NA NA NA NA NAProvider of an online interior designing marketplace designed to exhibit and sell
furnishings and home decors
1/4/19 $250 NA NA NA NAProvider of an online e-commerce marketplace created to sell premium sneakers and
streetwear content
12/25/18 $1,060 8.9 x NA NA NA Provider of online food delivery services from restaurants and cafes
11/17/18 NA NA NA NA NAProvider of a web-based application designed to suggest shopping sites by comparing prices
and attractive deals offered by other retailers
11/9/18 NA NA NA NM NAOperator and retailer of personalized products online marketplace intended to aspire,
inspire, motivate
11/8/18 $86 1.8 x NA 12.4 x NAProvider of a global online retail platform intended to deliver products directly to
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
9/25/18 $811 5.0 x 4.6 x 35.9 x 21.4 xOperator of a multi-platform digital marketplace intended to guide couples through
transformative life stages
9/14/18 NA NA NA NA NA Operator of an online boutique retailer of women's apparel, footwear and accessories
9/5/18 NA NA NA NA NA Provider of an online platform designed to provide a social shopping marketplace
8/31/18 NA NA NA NA NAOperator of an online retail shop created to sell off-roading vehicle parts, accessories and
merchandise
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M&A AND FINANCINGS
Precedent M&A Transactions (cont’d)
33Notes:Sources: Capital IQ, Pitchbook, company press releases.
($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
7/31/18 NA NA NA NA NAOperator of an online clothing marketplace intended to provide access to fashion and
luxury lifestyle brands
7/2/18 $26 NA NA NA NAOperator of an e-commerce platform intended to bridge the gap between designers, artists,
producers and consumers
6/30/18 $50 NA NA NA NADeveloper of an e-commerce shopping portal intended to offer a wide range of fashion
products across the US
6/26/18 NA NA NA NA NA Manufacturer and online retailer of home furnishing and decor products
6/25/18 NA NA NA NA NAOperator of an online home decor marketplace created to sell stylish home decoration
products
5/15/18 NA NA NA NA NA Retailer of fitness gear and technology through its online store
5/9/18 $20,779 4.5 x NA NA NAOperator of an e-commerce shopping portal intended to offer a wide range of consumer
products
5/9/18 NA NA NA NA NAOperator of a tire retail platform intended to offer deals, shipment and tire installation
services online
3/31/18 NA NA NA NA NAProvider of an online marketplace that provides an intermediary between students and
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
2/13/18 NA NA NA NA NAProvider of an online marketplace for high-end design and furnishings making it easy for
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
1/1/18 NA NA NA NA NAManufacturer of modular and interchangeable custom watches designed to offer products
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
-
10/21/20 $100 $164 NA Provider of online peer-to-peer recreational vehicle rental services
10/5/20 $60 $166 $450Developer of an online food marketplace platform intended to deliver farm-fresh food to doors all across
the United States
9/23/20 $100 $290 $1,750 Provider of an online footwear marketplace intended to buy and sell sneakers online
9/11/20 $85 $145 $635Developer of an online retail platform designed to provide consumers with well-designed, quality
clothing and accessories at an approachable price point
9/10/20 $33 $65 $108Operator of an online marketplace for home furniture and home decor items designed to help people to
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
9/3/20 $40 $73 NAProvider of an online health and beauty marketplace designed to offers a robust catalog directly to
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
6/30/20 $30 $274 $400Operator of an online shopping platform intended to offer wholesale club experience for modern
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
3/10/20 $60 $150 $400Operator of an online marketplace intended to provide information on residential properties and rented
workspace
2/6/20 $30 $45 $95Operator of an online marketplace designed to offer access to the global network of fully finished
apartments
2/5/20 $17 $25 $38 Provider of an online retail platform designed to facilitate both offline and online shopping for customers
1/31/20 $100 $420 $775Developer of an e-commerce platform designed to change the way people discover and shop for designer
fashion
1/31/20 $17 $23 $67Developer of an online marketplace built on pioneering technology intended to connect today's dynamic
workforce with companies facing increasingly complex staffing requirements
1/30/20 $16 $74 $126Developer of an online flower delivery platform designed to connect farms and a curated network of
artisan florists directly to consumers
M&A AND FINANCINGS
Precedent Financings
34
($MM)
Announced Amount Total Enterprise
Date Investor Target Invested Raised Value (EV) Target Description
Notes:Sources: Capital IQ, Pitchbook, company press releases.
-
M&A AND FINANCINGS
Precedent Financings (cont’d)
35Notes:Sources: Capital IQ, Pitchbook, company press releases.
($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
9/1/19 $80 $89 $930Developer of a lifestyle membership platform designed to provide women with products from premium
and emerging brands
8/26/19 $100 $112 NA Operator of an online retail platform intended to sell bedding textiles
8/21/19 $175 $338 $670Developer of an online clothing retail platform designed to offer thrift shopping online while making it
mainstream
8/20/19 $50 $56 NADeveloper of an online marketplace designed to transform the way the meetings are booked to benefit
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
6/26/19 $15 $28 $55Developer of an online kids shopping platform intended to help kids to be socially responsible and make
an impact
6/25/19 $150 $424 $1,700 Provider of an online marketplace designed to hire workers and offer local services
6/17/19 $50 $90 $165Operator of an online luxury footwear platform intended to offer branded shoes and other fashion
apparel and accessories
5/14/19 $25 $31 $95Operator of an e-commerce platform intended to be used for the wholesale ordering of professional
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
4/12/19 $20 $31 $100Developer of a shopping platform aimed to connect consumers to the items and brands that match their
preferences
4/10/19 $181 $303 $511 Provider of an online car marketplace designed to simplify the process of buying and selling cars
-
M&A AND FINANCINGS
Precedent Financings (cont’d)
36Notes:Sources: Capital IQ, Pitchbook, company press releases.
($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
3/21/19 $125 $521 $1,000Developer of an online renting platform intended to revolutionize the accessories and dressing retail
industry
2/28/19 $20 $29 $95Developer of a mobile commerce and digital marketing platform designed to connect merchants in the
retail fueling industry to their consumers
2/13/19 $16 $36 $326Developer of an online wholesale fashion platform designed to improve the entire wholesale buying
process
2/7/19 $80 $252 $520 Provider of an online marketplace intended to offer rare and luxury products
2/5/19 $30 $45 $124Developer of an online apparel and accessories platform designed to bridge the gap between luxury
goods and affordable fashion
1/17/19 $15 $23 $60Developer of an online marketplace designed to simplify the leasing process of small to medium-sized
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
12/13/18 $208 $295 $733Operator of a lifestyle brand and design marketplace intended to enable the design independence of
both consumers and artists around the world
12/10/18 $15 $23 NAOperator of an online marketplace intended to reinvent the medical apparel category with
contemporary, runway-inspired fashion
11/30/18 $50 $93 $350Provider of an on-demand marketplace intended to offer road trips and recreational vehicle (RV)
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 $209 Operator of an online wine shop intended to offer selection, guidance and convenience
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37
I. GCA OVERVIEW
II. MARKETPLACE & E-COMMERCE MARKET TRENDS & INSIGHTS
III. PUBLIC MARKETS
IV. M&A AND FINANCINGS
V. PUBLIC COMPS BACKUP
-
APPENDIX – PUBLIC COMPANY VALUATIONS
38Notes:Sources: Capital IQ, Wall Street Estimates. Multiples 50x considered NM.
($MM, except per share data)
CIQ
Stock Price Market Cash & Total Enterprise EV / Revenue EV / EBITDA Revenue
Company 10/28/2020 Cap ST. Invest. Debt Value (EV) CY20E CY21E CY20E CY21E 20E/19A 21E/20E CY20E CY21E
E-CommerceAmazon.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%
MarketplacesAlibaba 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%
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GCA 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.