About Rover: Pet care company Rover is going public via SPAC merger with Nebula Caravel Acquisition NEBC. The company was founded in 2011.
“Rover is the answer to the question of ‘what do I do with my pet when I leave town on holiday or go into work?'” Easterly said.
The company is the largest dog walking business in the U.S. The segment is a minority of Rover's business, and the majority of the company's revenue comes from overnight care, he said.
“Think of it as airbnb for dogs and cats.”
Users of Rover can find an animal lover in their neighborhood who will keep the pet overnight and provide attention and care.
Easterly called this the preferred method for most pet owners.
The Pet Care Market: Rover has a built-in value proposition, with a Rover guarantee, liability, 24/7 emergency support, payment tools and calendar tools, Easterly said.
Rover also keeps track of care instructions from its users.
The company sees very strong repeat users. Rover is the largest player in its target market, with Easterly telling Benzinga the company is 10 times bigger than the next-largest competitor.
Rover is exploring offering in-home dog grooming with testing in four markets.
Pet owners view their pets as family members at an increasing rate, with 76% calling themselves a parent of their pets.
Easterly told Benzinga it's no longer enough for an animal just to be fed, as owners (parents) worry about the happiness and health of their pet. Rover offers services that are less stressful and more convenient to owners, he said.
“There's a lot of opportunities in the pet space.”
Growth Ahead For Rover: Only 10% of pet owners use commercial care for overnight stays, Easterly told Benzinga.
The growth is coming from the 90% of the market moving to the segment by using Rover, he said.
Rover will explore acquisitions to help with growth and diversification into other areas, the CEO said.
“We've done some small acquisitions over time,” Easterly said.
Rover expects its revenue to double year-over-year in each of the next two fiscal years. The company expects full-year profitability in 2022, the CEO said.
The economics of the business will improve as the business scales, he told Raznick.
“This is a tech business.”