Wonder

Automotive Performance Metrics

Delivered February 23rd, 2018

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Automotive Companies Performance Metrics - Part 1 (CarGurus)

OVERVIEW

 CarGurus is an online marketplace where dealers list and sell their cars via paid subscription. The company went public in October 2017, and while some of its financial metrics are publicly available, the full 2017 report will not be released until March 1, 2018. Full year metrics are therefore based on the 2016 report, as indicated in CarGurus' SEC IPO filing document. This excludes growth rate, which is based on the Q3 2017 report.

All the information requested about CarGurus is provided in row 1 of the attached spreadsheet.

FINDINGS

According to Crunchbase data, CarGurus raised $1.8 million in 1 round of funding (Series A, no lead investor) and $150 million at initial public offering (IPO). 

Per CarGurus' full 2016 report, the company raised a total revenue of $198,141,000 in 2016. Earnings before interest, tax, depreciation, and amortization (EBITDA) were $10,965,000. The company's gross merchandise value (GMV), based on CarGurus' marketplace subscription income, was $171,302,000. Transaction volume could not be identified, as the 2016 report does not include the number of subscriptions sold through the CarGurus website.

While the full 2017 report is not yet available, CarGurus reported an annual revenue growth rate of 56% in Q3 2017.

CarGurus has not acquired any companies, nor has it been acquired by another company.

CONCLUSION

While CarGurus' transaction volume could not be identified, we have found all other relevant information regarding this request. A summary of these findings is presented in the attached spreadsheet.

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Automotive Companies Performance Metrics - Part 2 (TrueCar)

 TrueCar is a digital automotive platform, founded in 2005. It has generated a total of $323,119,000 revenue in 2017. All the requested details have been entered into the attached spreadsheet.
OVERVIEWAccording to Crunchbase, TrueCar has done 3 acquisitions including ALG, Carperks, and Honk. It has raised a total of $332,400,000 in 8 rounds of funding. USAA is the lead investor and the initial investment of TrueCar was of $2,300,000.

According to a recent news release, TrueCar has generated a total of $83,100,000 revenue in the fourth quarter of 2017 and $323,119,000 revenue in the financial year 2017. The growth rate has been revealed as 16% up from 2016 and the adjusted EBITDA was $28,900,000 for the year 2017. The company has sold 952,834 units in 2017. 

CONCLUSIONIn conclusion, while I was unable to find data points from which the Gross Merchandise Value (GMV) can be calculated, I found all other relevant information relating to this request. I have presented my findings of the company, TrueCar in row 3 of the attached google spreadsheet. 

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Automotive Companies Performance Metrics - Part 3 (Edmunds)

We successfully located some requested information concerning automotive company Edmunds performance metrics. The community estimation of Edmunds revenue is $250 million and their total, publicly accessible funding amount was $36 million. 

Below you will find the methodology underlying the answers provided in the attached spreadsheet concerning the performance metrics of Edmunds.

MethodologyIn our search for Edmunds performance data, we performed an extensive search of the company's website and press releases. We also made use of the reports offered by such reputable sites as Pitchbook, Privco, CrunchBase, and Owler in an effort to find the requested information. Our results were inconsistent, however, with some data readily available, some clearly in existence behind a paywall, and others seemingly unavailable. 

The underlying factors which derailed our complete success were attributable to Edmunds status as a private company. Public companies are required to make financial information available for public viewing, but private companies are under no such obligation. We were able to locate several instances of paid reports which included the sought after data, but the public venue was far more limited. We have input the information into the attached spreadsheet and here, adding in this report any instances where we were forced to make an assumption to accept the information we located. All points which list the information as N/A were due to the lack of available information explained just above.

Edmunds Performance Markers1. Website: https://www.edmunds.com 

2. Revenue: $250 million, community estimate offered by Owler.com.

3. Acquisitions or Funding Rounds: Series B, $36 million, August 2000 Investors: Cox Enterprises, Inc Rare Ventures 

4. Number of Funding Rounds:	2, although this point is contradicted by conflicting sources. Judging by the amount of information available and the dates on each post, we believe Privco has the more recently updated information.

5. Total Funding Amount: $36 million, this amount is not truly the total, but the total available. It does not include the second purchase discussed by Privco because that site had the fact of the transaction publicly available, bot the transaction amount.

6. Transaction Volume: N/A

7. Lead Investor: Cox Enterprises, Inc, although we cannot be sure without the company names and investment from the other round mentioned within Privco's report.

8. EBITDA: N/A

9. Gross Merchandise Value (GMV): N/A
	
10. Initial Investment: N/A

11. Recent Growth Rate: N/A 

ConclusionThe automotive company, Edmonds, has a revenue which Owler.com estimated at $250 million. There are mentions in Privco and other sources of acquisitions made by Edmonds, but details are either available behind paid reports or not available at all.

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Automotive Companies Performance Metrics - Part 4 (Instamotor)

All the information requested about Instamotor is provided in row 5 of the attached spreadsheet. Being a private company, Instamotor has not released the financial data publicly. Therefore, revenue provided is an estimate by Owler and the EBITDA could not be estimated due to lack of information. 

Key Findings
- Owler stated the revenue of Instamotor to be $60 million.

- Instamotor has raised a total of $7.3 million in four rounds of funding and Maveron was the lead investor in the funding. The last round of funding was debt financing which started in August 2016 and has raised $1.8 million till now. 

- The annual gross merchandise volume was at $150 million/year in 2016 as stated by Val Gui, co-founder of Instamotor with the transaction volume at 1,000cars/ month. In 2017, the annual gross merchandise volume was at $300 million/year. Thus, the recent growth rate is calculated as follows: {($300,000,000-$150,000,000)/$150,000,000}*100 = 100%.

- The initial investment of Instamotor was $525 thousand as per Crunchbase.

- EBITDA could not be calculated because the company has not released their financial information publicly.

Conclusion
In conclusion, while I was unable to find data points from which the EBITDA can be calculated, I have found all other relevant information relating to this request. A summary of findings is presented in row 5 of the attached spreadsheet.

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Automotive Companies Performance Metrics - Part 5 (Shift Technologies)

Shift Technologies is an online and mobile second-hand car marketplace for buying, selling and servicing of used cars. The company operates as a peer-based marketplace and concierge service to its customers.

A summary of the company information relating to its funding and financial performance is compiled in the attached spreadsheet.

shift technologies company profileFounded in 2013, the Shift Technologies operates as a personal concierge service from start to finish. It provides vehicle appraisals, detailed reports on cars, handles test drives, takes care of paperwork etc. The company operates an online platform and mobile app that enables buying, selling and servicing of used cars. Shift Technologies is headquartered in San Fransisco, with an estimated 186 employees. 

fundingBased on several sources such as Crunchbase and Craft, the total funding to date for the company is $112 million. According to Pitchbook, the initial investment amount (Early Stage VC-Series A1) was $23.8 million. There have been 4 funding rounds so far, with 19 investors in total.

The latest funding round was from BMW i Ventures, which invested $38 million in July 2017. According to Crunchbase, this was a series C late-stage venture round. Goldman Sachs has funded $50 million in Shift Technologies, which has been the largest investment in the company to date. The 2 leading investors are BMW i Ventures and Goldman Sachs.

Financial performanceAn article from Bloomberg states that Shift Technologies had increased its revenue fourfold to $9.5 million in 2016. This implies a growth rate of 400% between 2015-2016. Shift Technologies is a private company and has not published a breakdown of its earnings. Hence, data on EBITDA was not available.

CALCULATIONS

2016 Revenue / fourfold increase = 2015 Revenue

 $9.5 million / 4 = $2.75 million 

2016 Revenue / 2015 Revenue = Growth Percentage

 $9.5 million / $2.75 million = 4.0 OR 400%

Despite an extensive search, the transaction volume of the company was not available. However, it was found that Shift Technologies had sold $85 million worth of cars during 2016. While the exact GMV figure was not available, Business Insider had reported that the company expected to reach a GMV of $1 billion in 2016. (GMV by the end of 2015 was expected to be $150 million). 

conclusionIn conclusion, Shift Technologies had a revenue of $9.5 million in 2016, which was a growth of 400% from the previous year. The company expected to reach a GMV of $1 billion by the end of 2016. The company had a total funding of $112 million with Goldman Sachs as its leading investor. A summary of these findings has been compiled in this spreadsheet.

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Automotive Companies Performance Metrics - Part 6 (Autobytel)

All the information requested about Autobytel is provided in row 7 of the attached spreadsheet. The annual merchandise value of the company is not available anywhere publicly. Therefore, I estimated the value with the help of its total sales revenue and its online sales percentage as provided below.

Key Findings
- The total revenue of Autobytel was $156.7 million for the year 2016 which grew at the rate of 17% for 2017 and will grow at the rate of 18% for the year 2018.

- Autobytel generated a total of $18 million from a total of two funding rounds. The lead investor, e-LaSer invested $3 million in venture round which started in February 2000. The company have nine acquisitions till now including Autotropolis, Cyber Venture, and Dealix.

- Autobytel sold about 317,000 new vehicles in the first semester of 2016.

- The EBITDA of Autobytel was $13.99 million for the year 2016. 

- The initial investment of Autobytel was in AutoWeb. Inc with the amount $2.5 million in series A round, in 2013.  

- Autobytel generated revenue of $130.68 million through sales. It also states that the 80% of its sales revenue is generated from its own website. Therefore, gross merchandise value (GMV) of Autobytel is calculated as follows: 0.8*$130,680,000 = $104,544,000.

Conclusion
I have provided all the relevant information related to Autobytel in row 7 of the attached spreadsheet.

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Automotive Companies Performance Metrics - Part 7 (ACV Auctions)

Overview
 ACV Auctions is the fastest growing advanced online auction in the nation. It was founded in 2014 and as per the company's website, it is "expanding into new markets every month". It streamlines the buying and selling of inventory between auto dealers, effectively helping them save money and increase reach. The requested details have been entered into the attached spreadsheet.

As ACV Auctions is a new privately held company, there is no publicly available information regarding its growth rate, revenue, EBITDA, and Gross Merchandise Value (GMV). Its annual report is also not available publicly. I found the estimated revenue of the company on Owler and Saleslift, and the information related to the funding of the company was taken from Crunchbase. I found various news articles to support my findings.  

Currently, ACV Auctions is in news, due to the reason it has "secured $31 million in Series C venture funding led by Bessemer Venture Partners, Tribeca Ventures, SoftBank NY and Armory Square Ventures". George Chamoun is the CEO of ACV Auctions. Till now, the company has earned the total funding of about $53 million or $53,000,000. It is located in Buffalo, New York, United States. 

Growth of the Company 
ACV Auctions is expanding into new territories which include Northeast Ohio, Washington DC and Eastern Massachusetts. Currently, the company operates in "New York, including Buffalo, Rochester, Syracuse, Binghamton and Albany as well as Western Massachusetts, Pittsburgh and Northern New Jersey."

Apart from this, ACV Auctions is hiring aggressively to cater its expansion in new locations. Currently, the company has approximately 60 employees and it is expected to hire more than 100 employees each year. Michael Waterman has joined ACV Auctions as the Vice President of Sales and in September 2016, George Chamoun has joined as the CEO of the company. 

CONCLUSION
I have presented my findings of the company, ACV Auctions in row 8 of the attached google spreadsheet. 

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Automotive Companies Performance Metrics - Part 8 (TradeRev)

In 2014 TradeRev was bought out by KAR Auction Services. They initially purchased 50% shares in the company. Recently they made a deal that involved an initial payout of $50 million and a further $75 million over the next fours years. KAR Auction Services now owns 100% of share in TradeRev. Due to this takeover, financial information on KAR Auction Services was used for data gathering. Full details are available in the attached spreadsheet. 
RESULTSSince KAR Auction Services is a public company, it was relatively easy to find financial information but that also meant lead Investors couldn't be determined.I did find that TradeRev.com is still a functioning website that provides details for those interested in their subscription services. As the company is now owned by KAR Auction Services there is no financial information available on TradeRev as a company.

KAR Auction Services Inc. recently acquired full shares in TradeRev.
They "purchased a 50% stake in TradeRev in 2014 and acquired the remaining interest for $50 million and an additional $75 million over the next four years contingent on certain terms and conditions" such as performance by the TradeRev brand. The Company plans to integrate their business capabilities into TradeRev in order to expand their digital business and strengthen their share in the dealer-to-dealer market that currently represents over 10 million annual transactions.
CONCLUSIONAs TradeRev was sold to KAR Auction Services no financial data is available from the acquired company. I have provided data from KAR Auction Services and the other requested details in the attached spreadsheet. 

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Automotive Companies Performance Metrics - Part 9 (Vroom)

As requested, we have filled out row 10 of the attached spreadsheet. All information entered in columns C to N relates to Vroom company. In 2016, Vroom generated a total of $1,100,000,000 in revenue. Below is a brief overview of our findings. 
FINDINGS
We have searched through company websites, company databases sites, and trusted media sites to find all relevant information. However, after a thorough search, we were not able to find data regarding EBITDA and Gross Merchandise Value (GMV) of Vroom. 

Website: https://www.vroom.com/    

Revenue: $1,100,000,000    

Acquisitions or funding rounds: Vroom generated a total of $329,300,000 from a total of 7 funding rounds with lead investors L Catterton and T. Rowe Price. On December 16, 2015, Vroom completed an acquisition transaction worth $95 million by acquiring Texas Direct Auto. Vroom's last funding type is Series F. 

Number of funding rounds: 7    

Total funding amount: $329,300,000    

Transaction volume: 50,000 units (2016)

Lead investors: L Catterton, T. Rowe Price

EBITDA: After an extensive search, we were not able to find significant data points from which the EBITDA can be calculated. Vroom is a private company, hence, annual reports are not available. 

Gross Merchandise Value (GMV): Vroom does not publish annual reports, hence, no significant data points could warrant a logical triangulation of its Gross Merchandise Value (GMV). Based on an extensive search, however, we have ascertained that Vroom generated a total of $1,100,000,000 in revenue by selling 50,000 units of cars in 2016.  

Initial investment: $7,300,000    

Recent growth rate: In 2016, Vroom posted a total of $1,100,000,000 in revenue following a total of 50,000 cars sold in the same year. In 2015, the company generated $900,000,000 in revenue. Thus, the recent growth rate is calculated as follows: ($1,100,000,000/$900,000,000)*100 or 122.20%.
CONCLUSION
In conclusion, while we were unable to look for data points from which the EBITDA and Gross Merchandise Value (GMV) of Vroom can be calculated, we have found all other relevant information relating to this request. A summary of our findings is presented in the attached spreadsheet. 

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Automotive Companies Performance Metrics - Part 10 (Carfax)

As of March 2013, Carfax is a private subsidiary of IHS Markit Inc. IHS acquired Carfax from R.L. Polk & Co. for $1.4 billion, before which, Carfax was a family owned business since 1984. Ewin Barnett was the primary investor in Carfax until the company was purchased by IHS Markit Inc. As such, no recent information is publicly available on specific revenues, EBITDA, gross merchandise value, or recent growth rates. However, information published previous to the acquisition by IHS Markit Inc. states that in 2011, Carfax had a yearly revenue of $359 million, and by 2012 their revenue grew to $401 million. Hoover's estimates that the revenue for Carfax amounted to around $57.34 million in 2017.

In the 2016 annual IHS Markit Inc. report, the company reported having a total transportation revenue of $892.9 million, of which Carfax was a contributor to. However, there was no breakdown provided for how much Carfax specifically contributed to this revenue. Additionally, the EBITDA for transportation through IHS Markit Inc. in 2016 amounted to $353.3 million. IHS Market Inc. noted in their 2016 annual report that they had $95.9 million in Series A funding, and $53.8 million in Series B funding from institutional investors. This summed to a total of $149,700,000 in funding at the end of 2016. IHS Markit Inc. also acquired Carproof Corp., a Canadian business similar to Carfax, for $460 million in December 2015. 

No information regarding the number of reports that Carfax distributes yearly was available, but it is public information that the company has over 17.5 billion records, for which information is gathered from over 100,000 sources.This information is laid out in row 11 of the attached spreadsheet, with the sources listed as well.

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Automotive Companies Performance Metrics - Part 11 (AutoTrader Group)

In 2014, Cox Automotive, a subsidiary of Cox Enterprises, acquired 98% stake in AutoTrader Group. The performance metrics of the company can be found in the attached spreadsheet. Below, is a brief detail of our findings.

PERFORMANCE METRICSACQUISITIONS + REVENUE

Prior to Cox Automotive's acquisition, AutoTrader had an estimated $1,200,000,000 annual revenue while Cox Automotive has an estimated annual revenue of $7,000,000,000. In 2016, Cox Automotive acquired CarsGuide.com.au and Molicar for undisclosed amounts. In 2015, they acquired Dealertrack for $4,000,000,000. Also in 2014, Xtime was acquired for $325,000,000. 

FUNDING + SALES

In 2015, there was a Series A funding by Vinli which raised $6,500,000. There was also a Series B funding by Getaround which raised $24,000,000 and an unknown series funding by AutoMD which raised $7,000,000 both in 2014 summing up to $37,500,000. They make an estimated annual sales of 17,100,000 per year.

OTHER FINANCIAL DATA

We couldn't ascertain their initial investment because the financial details of the acquisition were not disclosed. Also, their EBITDA, GMV, and recent growth rate were not found. There were reports of the parent company Cox Enterprises having a double-digit growth rate, but no definite figure was quoted.

CONCLUSIONIn conclusion, the requested performance metrics for AutoTrader Group were included in the attached spreadsheet.

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Automotive Companies Performance Metrics - Part 12 (Auto1 Group)

Auto1 Group is an online independent wholesale platform exclusively targeted at buyers and seller of used cars. The company currently operates in over 30 countries and trades over 40,000 cars per month through 35,000 professional partners. 

A summary of the company information relating to its funding and financial performance is compiled in the attached spreadsheet. 
Auto1 Group Company profileFounded in 2012, Auto1 Group is a technology platform which connects buyers and sellers of used cars. It also purchases used cars from original equipment manufacturers (OEMs), dealerships, and its own business units and sells them to its dealership network globally. 

The company's official website states that Auto1 Group currently has a team of over 2500 employees and operates in over 30 countries. According to Bloomberg, it operates in Europe and North America. The company is headquartered in Berlin, Germany. 
fundingBased on several sources such as Crunchbase and Craft, the total funding to date for the company is $1.1 billion. According to Pitchbook, the initial investment amount (Early Stage VC-Series A1) was $132 million. There have been 8 funding rounds so far, with 17 investors in total.

The latest funding round was from Softbank, which invested €460 million ($565 million) in June 2018. The series of this venture funding round is unknown (Crunchbase). Softbank has made the largest investment in Auto1 Group to date. The other leading investors include; Princeville Global, Piton Capital, and DST Global. 
financial performanceAccording to LinkedIn, the revenue of Auto1 Group for 2016 was $1.76 billion. Compared to the revenue of $882.5 million in the previous year, this is a growth of 99.4% ($1.76 billion-$882.5 million/$882.5 million*100). Auto1 Group is a private company, and has not published a breakdown of its earnings. Hence, data on EBITDA was not available.

Techcrunch had reported that Auto1 Group currently sells more than 40,000 units a month. This implies that the annual transaction volume is around 480,000 units (40,000 units*12). 

According to an article from 2016, the company focuses on the low- end vehicle market with an average purchasing price of €5,000 (converted to USD, this will be $6136). It is not clear if this is the price per vehicle for the company, or for the customer. If it is the former, the markup should be included in the calculation. With the annual transaction volume of 480,000 units, the GMV can be calculated as $2.45 billion (480,000 units*$6136). 
conclusionIn conclusion, Auto1 Group had a revenue of $1.76 billion in 2016, which was a growth of 99.4% from the previous year. The GMV is estimated to be $2.45 billion. The company had a total funding of $1.1 billion with Softbank as its leading investor. A summary of these findings has been compiled in this spreadsheet.