
Revenue
$2.30B
2023
Valuation
$3.75B
2023
Growth Rate (y/y)
35%
2023
Funding
$806.00M
2023
Revenue
EquipmentShare’s revenue grew more than 10x from $200M in 2019 to $2.3B in 2023, valued at $3.75B for a 1.6x revenue multiple, propelled by a steadily growing US market for nonresidential construction (94% of their revenue) and continuing post-COVID equipment shortages, with EquipmentShare spending 85% of all of their rental revenues on buying equipment.
Compare to construction equipment rental market leaders like United Rentals (NYSE: URI) at $14.3B in revenue in 2023 (up 23% YoY), valued at $47B or 3.3x revenue, that trade at 1-3.5x revenue, spend only ~50% of rental revenues on equipment, and generate cash flow & dividends in upcycle times, but have high debt and the downside risk of underutilization during a recession.
EquipmentShare is projecting continued strong growth, with a goal of reaching $3.2B in revenue by 2024. The company has demonstrated impressive profitability, with estimated EBITDA of $950M in 2023, representing a 45% EBITDA margin.
The company generates revenue through three primary channels: equipment rentals, software subscriptions, and equipment sales.
Revenue is primarily generated through equipment rentals. EquipmentShare's asset-light "OWN" program, where they rent third-party owned equipment, has been a key driver of growth.
Valuation
EquipmentShare was valued at $3.75B as of 2023, following a $440M funding round led by BDT & MSD Partners.
Based on 2023 revenue of $2.3B and valuation of $3.75B, the company trades at a 1.63x revenue multiple.
Key investors include RedBird Capital Partners, Tru Arrow Partners, and Sound Ventures. Their most recent fundraising included a $440M investment in 2022-2023 led by BDT & MSD Partners.
Product

EquipmentShare (YC W15) launched as an Airbnb for construction equipment, undercutting traditional rental companies like United Rentals (NYSE: URI) on price by ~30% by connecting SMBs and small contractors with underutilized forklifts, dozers, and lifts installed with telematics to help owners track how their equipment is being used.
The company's product offering has since evolved into a comprehensive suite of solutions for the construction industry:
1. Equipment Rental: EquipmentShare's core business remains equipment rental, offering a wide range of construction machinery and tools through over 240 locations across the United States. This service caters to contractors of all sizes, from small local businesses to large national firms.
2. T3 Technology Platform: The company's proprietary cloud-connected technology forms the backbone of its digital offerings. Key features include asset trackers (GPS-enabled devices for real-time equipment location and usage monitoring), cloud-Connected keypads for access control, dash cams for accident prevention, and Bluetooth tags for tracking smaller tools on the job site.
3. Digital Solutions: EquipmentShare offers a suite of software applications designed to streamline construction operations, from fleet management to time cards, e-logs, analytics, and work orders.
4. Equipment Sales and Service: EquipmentShare also facilitates the purchase of new and used equipment, supported by a comprehensive lifetime service offering.
EquipmentShare's product ecosystem aims to digitize and optimize the entire construction equipment lifecycle, from acquisition and utilization to maintenance and disposal.
Business Model
At launch, EquipmentShare offered a peer-to-peer marketplace for construction equipment rentals, allowing contractors to rent out underutilized equipment to other businesses.
To unlock the supply side, EquipmentShare expanded from a pure-play marketplace to a hybrid model, adding new lines of business.
In order of highest gross margin to lowest, those lines of business are: 1) buying and renting out their own equipment, 2) selling equipment to contractors but maintaining, storing, and renting it out for them (with revenue share) when not needed, and 3) outright equipment sales (with insurance and financing provided by EquipmentShare affiliates).
This marketplace model is supplemented by EquipmentShare's own fleet of rental equipment, providing a steady stream of rental income. The company's rental offerings span a wide range of construction equipment, from heavy machinery to smaller tools.
The company's business model is strengthened by its ability to cross-sell and upsell across its product lines. Customers who initially engage with EquipmentShare for equipment rentals can be introduced to the T3 platform, creating opportunities for increased revenue per customer. Similarly, T3 users may be more inclined to rent or purchase equipment through EquipmentShare, fostering a symbiotic relationship between the company's various offerings.