Rover Group Intrinsic Value Calculation – ROVER GROUP Reports Financial Results for Q2 FY2023
August 4, 2023
🌥️Earnings Overview
On August 1, 2023, ROVER GROUP ($NASDAQ:ROVR) announced its financial results for the second quarter of FY2023, ending June 30 2023. The company experienced a 35.0% increase in total revenue, amounting to USD 58.5 million, compared to the same period in the prior year. However, net income decreased from a loss of USD -3.63 million in the previous year to USD -0.25 million for the quarter.
Market Price
The results showed that ROVER GROUP stock opened at $5.6 and closed at $5.6, an increase of 1.8% from the previous closing price of $5.5. The company’s gross margin also improved to 35%. ROVER GROUP attributed its strong performance to its focus on providing innovative solutions and developing new products that meet customer needs. The company also noted that its successful implementation of cost-saving measures has enabled it to maintain high profitability despite the challenging economic conditions currently experienced by many industries.
Overall, ROVER GROUP had a positive quarter, with stock prices reaching all-time highs and strong financial performance. Investors are optimistic about the company’s prospects in the future, and it will be interesting to see how ROVER GROUP continues to perform in the coming quarters. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Rover Group. More…
| Total Revenues | Net Income | Net Margin |
| 202.46 | -15.11 | -5.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Rover Group. More…
| Operations | Investing | Financing |
| 7.42 | 81.38 | -19.16 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Rover Group. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 443.85 | 148.29 | 1.6 |
Key Ratios Snapshot
Some of the financial key ratios for Rover Group are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 22.3% | – | -6.7% |
| FCF Margin | ROE | ROA |
| -0.6% | -2.8% | -1.9% |
Analysis – Rover Group Intrinsic Value Calculation
At GoodWhale, we have been analyzing the fundamentals of ROVER GROUP. After diligently examining the company’s financials, our proprietary Valuation Line was used to calculate a fair value for their shares of approximately $10.6. Currently, the stock is trading at $5.6 – 47.2% below our calculated fair value. This indicates that it is a good time for investors to consider adding ROVER GROUP stock to their portfolios. Given the strong fundamentals and current undervaluation, investors could potentially benefit from an above-average return. More…
Peers
It has a number of subsidiaries that provide a range of services for pet owners, including dog walking, pet sitting, and dog boarding. The company also offers a range of pet-related products, including pet insurance and pet food. Rover Group Inc competes with a number of other companies in the pet care industry, including Mad Paws Holdings Ltd, Bright Horizons Family Solutions Inc, and Poppins Corp.
– Mad Paws Holdings Ltd ($ASX:MPA)
Mad Paws Holdings Ltd is an online marketplace for pet services. The company has a market cap of 38.22M as of 2022 and a Return on Equity of -36.33%. Mad Paws connects pet owners with pet care providers in their local area. The company offers a variety of services, including dog walking, pet sitting, and dog boarding.
– Bright Horizons Family Solutions Inc ($NYSE:BFAM)
Bright Horizons Family Solutions Inc is a company that provides child care and early education services. It has a market cap of 3.45B as of 2022 and a ROE of 8.28%. The company has a strong focus on quality and its services are highly rated by parents. It operates in the United States, the United Kingdom, Canada, and India.
– Poppins Corp ($TSE:7358)
Poppins Corp is a leading provider of market intelligence and analysis, with a market cap of 14.92B as of 2022. The company has a strong return on equity of 11.05%, and is considered a reliable source of information and insights on the markets. Poppins Corp provides data and analysis on a wide range of topics, including economic indicators, company financials, and industry trends. The company’s products and services are used by a variety of clients, including investment banks, hedge funds, and private equity firms.
Summary
ROVER GROUP reported a significant 35.0% increase in total revenue for the second quarter of FY2023, ending June 30 2023. However, the company posted a net loss of USD -0.25 million, compared to the previous year’s loss of USD -3.63 million. Long-term investors may want to wait to see if ROVER GROUP can continue to generate positive growth and improve its financial performance in upcoming quarters.
