Hopper: The Travel Tech Unicorn Poised for a Public Listing

Introduction

Hopper Inc., a leading travel data provider, is targeting a public offering that could elevate its valuation to $10 billion. Known for its innovative apps and business-to-business solutions, Hopper has established itself as a formidable force in the travel industry.

Unique Technology

Hopper's competitive advantage lies in its proprietary algorithms that analyze vast amounts of data to predict prices for flights, hotels, and car rentals. This enables customers to secure future travel costs at a locked-in rate. The company's apps are highly popular among millennials and Generation Z, making it one of the most downloaded travel apps in North America.

Business Model

Hopper generates revenue through commissions on travel bookings and fees for services like its price guarantee. However, a significant portion of its income now comes from partnerships with corporations utilizing its data and AI to optimize their booking platforms.

Potential Comparison to Shopify

Analysts have drawn parallels between Hopper and Shopify Inc., a Canadian tech success story that went public in 2015. Hopper has achieved a similar level of prominence in its industry, and investors are anticipating a comparable valuation trajectory.

Leadership and Growth

Frederic Lalonde, Hopper's CEO, guided the company through the COVID-19 pandemic by leveraging data analytics to manage risk and develop innovative products such as "cancel for any reason" travel insurance. Hopper's workforce of 650 employees operates remotely worldwide.

Public Listing Ambitions

Lalonde aims to list Hopper on both the Toronto Stock Exchange and Nasdaq, potentially valuing the company between $5 billion and $10 billion. He emphasizes the importance of reaching key financial milestones before going public, including achieving $1 billion in trailing sales or being on track to attain that within 18 months.

Competitive Landscape

Despite Hopper's technological edge, analysts acknowledge that incumbents like Expedia Group Inc. and Booking Holdings Inc. possess significant resources. However, Lalonde believes Hopper's barriers to entry are substantial and that competitors would struggle to replicate its capabilities in-house.

Funding and Liquidity

Hopper has secured over $740 million in funding from investors, including Goldman Sachs, Brookfield Asset Management, and Inovia Capital. Secondary transactions have also provided liquidity to investors and employees.

Conclusion

Hopper's unique technology, strong leadership, and ambitious public listing aspirations position it as a key player in the travel industry. As the company continues to grow and expand its business-to-business offerings, the upcoming public offering is expected to generate significant interest from investors seeking to capitalize on its potential for continued success.