Sonder Holdings Inc
NASDAQ:SOND
Sonder Holdings Inc
Sonder Holdings, Inc. provides hospitality services. The company is headquartered in San Francisco, California and currently employs 950 full-time employees. The company went IPO on 2021-01-20. The firm provides a variety of accommodation options from spacious rooms to fully-equipped suites and apartments. The firm serves over 35 markets spanning ten countries and three continents. The Company’s application gives guests control over their stay. Its application includes self-service features, check-in and 24/7 on-the-ground support, amenities and services. The firm focuses on serving solo travelers, families, remote workers, long-term renters, business travelers, friends, cultural enthusiasts and couples. The firm partners with institutional owners, hotel owners, private equity funds, real estate investment trusts (REITs)/ property companies, boutique and family office firms and entrepreneurial developers. The company signs multi-year fixed leases, mixed leases, or revenue shares as the anchor or sole tenant in properties and development projects.
Sonder Holdings, Inc. provides hospitality services. The company is headquartered in San Francisco, California and currently employs 950 full-time employees. The company went IPO on 2021-01-20. The firm provides a variety of accommodation options from spacious rooms to fully-equipped suites and apartments. The firm serves over 35 markets spanning ten countries and three continents. The Company’s application gives guests control over their stay. Its application includes self-service features, check-in and 24/7 on-the-ground support, amenities and services. The firm focuses on serving solo travelers, families, remote workers, long-term renters, business travelers, friends, cultural enthusiasts and couples. The firm partners with institutional owners, hotel owners, private equity funds, real estate investment trusts (REITs)/ property companies, boutique and family office firms and entrepreneurial developers. The company signs multi-year fixed leases, mixed leases, or revenue shares as the anchor or sole tenant in properties and development projects.
Revenue Growth: Revenue grew 29% year-over-year to $161 million, driven by a 33% increase in bookable nights and 31% growth in live units, despite a 2% decline in average daily rate (ADR) and a 1% decline in occupancy rate.
Cost Improvements: Total overhead costs improved by 14% and property level expenses per occupied night improved by 9%, contributing to a 60% year-over-year improvement in free cash flow.
Free Cash Flow Progress: Free cash flow for the quarter improved to negative $16 million from negative $39 million a year ago, and the margin improved from negative 31% to negative 10%.
Portfolio Optimization: Management is actively working to address underperforming assets through a portfolio optimization program, collaborating with landlords to revise commitments where needed.
Guidance Updated: Q4 2023 revenue expected between $165 million and $175 million, slightly below previous guidance, with free cash flow between negative $39 million and negative $29 million. Management expects sequential improvement in free cash flow into Q1 2024.
Margin Drivers: Gross margin was pressured due to slightly lower than expected RevPAR, but ongoing cost reduction and efficiency initiatives continue.
