Vacasa (VCSA) Q2 2024 earnings summary

Executive summary

• Business transformation underway, focusing on decentralizing operations and empowering local teams, with early improvements in guest satisfaction metrics year-over-year through July.

• Ongoing industry headwinds include softening demand for domestic non-urban vacation rentals and increased supply, leading to bookings variability and pressure on performance.

• Net loss for Q2 2024 was $13.1M, compared to $5.6M in Q2 2023; net loss for the first half was $154.0M, up from $49.3M.

• $30 million investment from Davidson Kempner announced, with potential for an additional $45 million, strengthening the balance sheet and adding two new board members.

• Significant workforce reductions and a major reorganization were implemented to reduce costs and realign the business.

Financial highlights

• Q2 2024 gross booking value was $505 million, down 19% year-over-year, with Nights Sold down 17% and GBV per Night Sold at $361, down 2% year-over-year.

• Revenue for Q2 2024 was $249 million, down 18% year-over-year.

• Adjusted EBITDA for Q2 2024 was $2 million (1% margin), down from $16 million (5% margin) in Q2 2023.

• Ended Q2 2024 with approximately 40,000 homes, down from 44,000 a year ago and 41,000 at the end of Q1.

• Net loss per share of Class A Common Stock for Q2 2024 was ($0.59), compared to ($0.26) in Q2 2023.

Outlook and guidance

• No signs of stabilization in bookings or revenue in the near term; continued elevated churn and bookings variability expected for the remainder of 2024.

• Wide range of potential outcomes for revenue and Adjusted EBITDA due to industry dynamics and elevated churn; not anticipating Adjusted EBITDA profitability in 2024.

• The company believes existing liquidity will be sufficient for at least the next 12 months but continues to evaluate additional financing needs.