VCSA - Earnings call transcript Q1 2022

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good afternoon, ladies and gentlemen, and welcome to the Vacasa First Quarter 2022 Earnings Conference Call. [Operator Instructions]. And now at this time, I'll turn things over to Mr. Ryan Domyancic, Investor Relations. Please go ahead.

Ryan Domyancic

thanks Earnings us Call. and First for everyone, XXXX Quarter afternoon, for today joining Vacasa's Good I'm CEO, CFO, Matt to Roberts; pleased be and Jamie joined Cohen. today by

call a Before today's of and broadcast administrative we me this broadcast, that cover of prohibited. begin, details. only let live This is contains redistribution as information speaks few

referred during and We have of and by website our forward-looking investors.vacasa.com at letter speakers. and cause our those may and to be our differ targets, on to press estimates, are referenced that performance. statements call anticipated. commonly strategies, expectations, release contain posted actual results conditions press events, a this Comments you letter shareholder statements made as could financial that in include shareholder future those section factors from the about conference objectives, projections, will release IR materially that We Such plans, beliefs, caution statements. various

concerning section in and read statements these with earlier please today Risk risks the uncertainties, press For SEC. the letter filings issued shareholder section Factors the additional and and in information we and statements our forward-looking forward-looking the release

of for be to substitute considered over to like GAAP our call Matt a measures certain results, this non-GAAP are in GAAP now addition found intended should in we Matt? letter. and to our measures. including release most financial comparable These non-GAAP to results During Information to measures, call, be the measures shareholder a regarding financial non-GAAP may be the discuss will results and reconciliation directly non-GAAP results. financial hand not Roberts. I'd and GAAP our our press And

Matthew Roberts

shift dollars of of rental joining quarter of Vacasa, at purpose-built facilitating is goal wrapped leveraging another of our industry hundreds in afternoon, vacation rental relative up in thousands accommodations our the experience technology our and constrained towards There the reinventing generating We team and aspects rental income. rental available recent is partners. to Good all the improves traveler accelerated team us. channel executing of past our by internal demand. has The undeniable and homeowners supply The nights years. proprietary millions homeowners, thank alternative for of against valued for only that in guests, preferences of an hundreds vacation everyone, you which reservations strong been decade, over vacation has

of rental the management America, platform own through North and are only to our travelers partners. create we and to vacation channels supply scaled strategically available in As distribute the positioned nights largest distribution

capacity management week. offering to accommodations full-service, into second makes end-to-end rental second by home little as vacation to it as a a turn We are alternative the critical their ecosystem a incremental in homeowners property providing solution home that simple

exceptional and scale to are an throughout guests allows us in efficiencies creating solutions that provide Our for truly and business. designed our drive homeowners technology to differentiated invest experience

United than Our opportunity business million months, gross billion managing of more us, bookings homes over less over of enormous model an ahead the the XX continues to prove vacation past States. we $X have its and X% X strength, in than the of generating

XXXX. see approach developing and revenue which reiterating occupancy, profitability in powers can technology-enabled in EBITDA allocate homes greater we a the we margins, spend as where And we Adding particular growth and more we result also to and in homes then It more results in available our market talk minutes. higher from nights season, sell. can Incremental flywheel. remain for margins. towards our higher that those our density business more foundation better through platform in revenue drive As or adjusted as we to our us tools the invest peak more bring in few experience and expectations our efficiencies in helps are our results and platform our We our outlook typically sales and detailed homeowners the for of our further full which financial products, months and a which summer will homes our is create homes confident as year strongest guests. also marketing, our help platform. a growth outlook Jamie our serves in further can accelerates drive

local portfolio sales And additions where once. for homeowners. home sign representatives from all first The majority extremely Over were hired a supply portfolio direct follow ramp. last the hundreds approach on at sales well X.Xx approach individual we shareholders. up performed our individual predictable long individual to complementary as model XXXX managers, increasing individual additions, the of vacation tenure-based dozens and to will platform: representatives the which first is sales bringing scale, our predominantly rental Gross use the term, to guests quarter. approach. buy our over of we individual benefit stakeholders approach, homeowners, approach our add compared X We the an higher and the of year from quarter is the accounts vast of productivity homes in a during where local including The playbooks

senior of including on incentive training, programs, the the sales refreshed past performance tracking the sales within go-to-market have leadership reporting process, In addition, new approach. and year brought crucial and aspects

representatives classes sales steepening curve faster. As productivity and higher result, we've productivity as levels across a of seen a improvements reached productivity XX-year our the

on markets. we of hiring individual rest approach Complementing the the focused goals. are and representatives year accelerate additional pacing portfolio we markets is the throughout individual use sales enter to approach the the our engine of ahead With which hiring approach, strategically in or aggressive are growth new humming, existing already density

on XXX X welcomed more executed addition than portfolio in have our During than draw our the experience first deep else times, and portfolios value. we onto the industry. that anyone more evaluating their We playbook we to significantly platform. XXXX, new determine portfolios when Since quarter, underwriting

we throughout will certain to to We and remain pleased quarter strategic makes in not, pace disciplined as home quarter. on certain cases we additions chose increase to first by about track management XXXX. and a Overall, homes committed under in sense, are forward. If this of our the during pass, with evaluating to approach move XX% portfolios. the if are we'll remaining And financial our portfolio we

While we optimizing platform inventory our existing by homes the also remains our growth our adding of new opportunity, are platform. largest to on driving homes growth

for XX stay has we our are in recent demand live, reservations. The vacation for example, the optimizing increased extended base exceed potentially and shifts For way reservations people that days. work

legal markets, rental stay the reservations. for reservations, extended as are While take technology requirements our as structure, reservations accounting trust enabling important support this trend including destination in work operational There may regulations, to state well and are at pronounced hard not our extended to be throughout portfolio. stay optimize as considerations vacation account to into we entity local these

this pricing yield system offering proprietary opportunity Our and incremental in management give a generates for to that way homeowners. tactically us apply income the algorithms

a our have half for with made progress over last substantially now the extended of We great more here stays, of homes more XXXX. balance throughout with enabled adding the than goal year of

to our I'll Jamie guidance to and review Now results quarter in Jamie? over financial turn detail. first it

Jamie Cohen

Matt. Thanks,

reached find preference Guest shift remained compensation relationship vacation outlined year-over-year and the between business first letter. both expense XX% impact and sold primarily As quarter, I'll during demand in of of marking of night rentals. we XX% Remember, comparing quarter, first driven properties in platform. strong quarter XXXX, stock-based noted release and up and look quarter either to the towards the per which Nights excluding sold first the can our demonstrates $XXX difficult the in with first by year-over-year, the X permanence the in referencing these isolation. value results review unless the metrics, addition ever. and X.X level first shareholder to costs, highest a first operating is reached you it's line the strong the to consumer otherwise, our be be our at quarter quarter up there million booking the press quarter, and the combination I'll of increase new Gross

proprietary of Our sold booking value, combination the and the value sold night Gross night value between constantly the booking sold trade-off of income. sold, to homeowner goal nights is of and mix which are reached per the and with algorithms nights gross price per optimize booking pricing occupancy maximizing first rents gross range guidance of from commission was and quarter, million. the our collect million guests, first up year-over-year. to our XXX% of which the we primarily the quarter, generate $XXX fees in the million homeowners consists $XXX within $XXX $XXX for on we and in up million evaluating Revenue, year-over-year XX%

this a our intra-quarter of new comment revenue by new didn't first items, our this Just we March. high created likely QX revenue is revenue about a on in guidance our February the we million. We results forecast ranges estimate This process $X set onetime at refined capture and the issue. would feel range guidance accurately shared first forecast and of them through a quarter using overstating we've certain confident end indicated forecast March, but quick it best end flash guidance. To quarter

performed business Further, a well has business will exceptionally ahead momentum, traveler detail we underlying quarter, record I in the peak season. believe that and expectations. demand minutes, as our first our a was we in outstanding of few Our will and have

leads and large-scale basis, first by to force our General advertising range general increase hiring force. basis, traded the run administrative a expectations within season. sales volume the and operations expenses guests gross booking and and leverage count, support teams to and experience higher as Sales XXX% year-over-year, of last Now maintained negative larger and expenses spend create with to year-over-year, million Technology million significantly for On in were to for million. XX% our brand market head slightly our growth build marketing advertising and largely during product decreased guidance development of our sequential campaign. administrative negative grew XXX% shoulder year-over-year due another due streamline turning increased engineering growing homeowner-focused due up scale. the and first of expenses we year-over-year staffing a in were teams. Cost about expenses to ago sold. in local of quarter invest to to as up sequential XX% about million, and $XX our our unchanged. $X and year-over-year as more the XX% revenue the tools with sales larger that largely didn't value about our market These business. $XX to team quarter quarter, year continue were negative On night reservation higher relatively drive expenses. the our revenue turn, sales operating was consistent expenses marketing outlined were in our a expenses our a homeowners, our now for compared enable EBITDA to and we was up supporting strong $XX Operations Adjusted we publicly platform and differentiated per local for with products

the months of and For $XX XXXX, flow million, operating was March we XX, XX cash capital ending had our million. expenditures $XX

capitalized do Our development its in our to our investments and in well fund high and of and which as portfolio we operations cash to ROI from manner. We restricted disciplined with only not the deploy equivalents the sales and day-to-day remain balance fund marketing. aim business draw sheet program, the $XXX continues We and quarter. cash million to first of but end discretionary and a of technology cash cash

had million in homeowners. funds payable also We $XXX to

make We enormous an investments continue high into market ROI to growth opportunity.

within growth, first the majority stock-based lines development, scalability focused and sales excluding are we business. million discretionary, efficiency on marketing $XX on and quarter, drive these expenses the of technology and in over and During initiatives The compensation. our that spent

We our year profitability outlined positive to and opportunity last balancing behind quarter. focused are aggressively EBITDA with are as adjusted on growth continuing targeting full remain XXXX massive we for market but invest

guidance. to Turning

the range expect for million and for the to to We expect range $XXX to be of year. million $X.XXX to $XXX continue of $X.XXX second in full revenue the revenue billion to in be the billion quarter

bookings to to quarter relative pacing are similar our For year. last additional context, expectations, second

the remains annual to levels occupancy the sold XXXX that this guidance gross from XXXX. levels, night half record Our second value reached combination booking but trend pre-pandemic above being takes in back continues and pronounced of in the assume most with a per of step slight

range negative negative to million the million to million continue year. We the $XX expect full to expect the for of for be $XX adjusted and range to in $XX million of negative EBITDA EBITDA adjusted the in to second negative $XX quarter be

hiring to individual continue ahead as the plans. the in side, are behind strong our we expense call. take and questions. up the we will are Matt momentum that, On to, your Matt seeing approach I alluded tracking and will Operator, open please With of the invest

Operator

Anmuth [Operator go Instructions]. afternoon JPMorgan. this to We first Doug at

Douglas Anmuth

a you forecasting you on issue range, add could hoping color I and you could on happened up as little thinking if gives there show course, bit A were night. concerns was strong more about Matt, on it I also XQ. how hoping you're secondly, demand, won't -- just solved. macro well. what the then I the you of Maybe in could And per summer just why you GBV hoping travel give within just that sustainability, just more but Jamie, how I lot what little confidence a but that's again? guess forward. was know going And talk of just about

Jamie Cohen

Yes. both as I'll try well. of Matt, to to in feel tackle and them, jump free

So a GBV to driven XX% sold increase night in -- increase revenue regard the was in per with on strong, by first your XX% although question sold. forecast, nights and really

our into new guide We only the reported tool vision the intra-quarter we're so XX great late in right? days give seeing more the had XX, So QX which in this We put left the we us is month, to earnings in unusual. about pretty because quarter, forecast momentum business.

root with was just guidance to see can them. year process, new us fully. forecast in this one, those unfortunately, set We by revenue led the that, guidance. So full you a resolved confident sorry, And not issues about the or intra-quarter very we this to $X issues guide cause the But understanding was have that of intra-quarter used -- feel million. flash there few overstating that

-- mentioned where are we that gave $XXX see ended and same relative million full we when numbers. our and preamble, guidance feel where relative for I that the as we're up to confident year year you really guide the about bookings to our when earlier the were QX QX reiterating And So last million QX. $XXX to full as year pacing we

I'll we're business make sure to this levels your out out. this So value of just the second that do sold guidance But and that, is momentum point primarily sustainability, that and QX combination we our feeling ultimately, that very peak and was to point strong, assuming that we're season, gross step call of putting the saw take question, by On GBV because back really per in booking sold night confused not we strong the underlying about in a per occupancy that from just mentioned error. record strength out of understood year. and wanted unfortunate want that we've night QX, guidance, the those last

these continue that's are revenue how and teams the overall. homeowner GBV monitor by to to our obviously metrics, So assuming. there's also, right? always see. to we're just and balancing income night constantly that occupancy But We'll per overall optimize remind X a sold trade-off looking for So between and

be and always puts So there metrics. will with some those takes

Operator

next to Company. at now We Bernie go & McTernan Needham

Bernard McTernan

I -- supply to on Expedia guys to letter, Great. well, Maybe I given some constraints you gross wanted to record mentioned about bookings industry in that the too. albeit remains home that just your a X try and the square of in you fit that in how just off call supply those But the guidance somewhat your then commentary wondering industry bit, start, the think, back the step Vrbo together. mentioned as how with expect, take the per to a the But just shareholder levels. little just industry, constrained. release

Jamie Cohen

can go ahead I and it. Yes, take Sure.

is industry the supply constrained. think I overall, that So

continuing I the will and QX in peak our we QX season. you really I from strong from to you've overwhelming to saw results our on in we of peak. as think are we an last see saw calendar guide. its want seen to demand year, demand as don't momentum, say just amount those count filled But consumer we levels that of just record -- And the

there. we've I So given seen softening. But were, guiding cautiously a a bit say record wouldn't just we're massive those levels that how high more

Bernard McTernan

on And you Understood. I bringing what interest for the housing of in environment, know the a on means would rising thoughts market consumer has supply? bit the terms all uncertain environment, I any guys that But what rates. earnings a rate bringing comfortable last more since rising supply. that you your in just feel become, about inflation say, of face still call, XX%

Matthew Roberts

one. that take I'll Sure.

platform So we #X that we any kind that or of XX% grow that the our mentioned. for attrition homes cause of supply by we'll sold confident the Interesting selling. remain properties us that on of is

So In because even become the general, to extent purchasing for that, the that people vacation slows that that, down, play us. that's important feature income more actually of bug for pace actually on or that more of a we a net home generate. a of than second home we a

XX% remain play growth increasing to market mentioned. interest vacation very think and in And the feature, the confident the on feel relative in we year-over-year. of margin, of as that sold rates overall, pace I is a So I probably homes

Operator

Securities. to Grondahl now next go at We Mike Northland

Michael Grondahl

Roughly, have hiring? many sales of Kind how you your goal what's at more do how ultimate many reps year-end? today? And are you

Matthew Roberts

Jamie, take you or... that want you one

Jamie Cohen

Yes, can take Sure. I that.

last mentioned -- that doubled our our than more and sales year reps XXXX XXX. doubled we about added in we So

we're So hired and of become hired of number more expectations in follow keeping continuing And we also We're tracking really recent people just with to see just that net XXXX ahead hiring. new -- the tenured but hire that pleased absolute we're we're our for really people this our predictable the curve. isn't XXXX.

training pretty some some additions the on program. new amazing our and parts their are kind the overall of rehauling really making up for made to ramp a through hires also we've So ability of impact leadership that big productivity

adding hire be a will to on last sense, at extent we continue but So makes think I look year, market to that we'll did granularly lot. this yes, we will -- at XXX it the aggressive like we'll we and the we be don't hiring level.

Matthew Roberts

that Xx to add sales given opened on X any high the channel, ROI our is with the to much -- LTV super any CAC, hasn't only salespeople. on thing to LTV super team individual high. I Yes. salesperson I a mean to CAC is pretty sales would The hire new

So people. that makes add is just with really being sense to where it balanced

leadership the mentioned, for market-by-market, As much compelling basis that it's make, the sales team a but it. very decision super Jamie are to city-by-city economics needs

Michael Grondahl

quick, coming more And or be then a as -- really much of markets then year to for a and that described you. that going you And up in maybe it. they're markets overperformed? maybe Got that X, critical maybe just couple they'll any

Matthew Roberts

XXX preference Yes. but is is The is player this consumers variety nice -- a Well, have performance rentals. parts thing just the sure, market benefiting from just number I sum to vacation though, are about in markets great. over rentals. up-and-coming of scaled we'll but a umbrella -- a the is that of say being towards player destinations a national picture and a or levels, for preference really the shift underneath the would almost this consumer of market every shift from overall is of vacation There shift doing

Operator

We Andrew Securities. go now next JMP to Boone at

Andrew Boone

Two please.

more to concerns would business now, demand? are talk quarter. then with, start about product some that Understood just macro the Just talked market in the last think nice in around should business travel downtick overall discretionary, right And recession in is going perform secondly, you just how but a be can you update how Matt, guys about environment? would you the the strategically, out given a there about

X smart things? also the using update guys home you on app. provide just those were the There's Can homeowners of XX% think I rollout. homeowner an

Matthew Roberts

start how rentals. time the news we just don't the and inflation environment with the vacation Obviously, all that's to why in belief Well, now. as have will our how impact that we -- that macroeconomic Sure.

inflation, asked specifically that often get about there's we about that. so And on talk because

as a I we player, mentioned. First, national -- are so

decides no take to consumer They on just Florida Vacation down a homes general for can are fly a to option. hours vacation down not summer trade to few vacation, Coast problem. house in cost that's a lower away. the So East

options to also a out selection. luxury point vacation we And really taking rather So our our just then eat. I'd of across to in a family destinations, cooking think value breadth out about do that have the than of the all home

points we And consumer of into not preferences. to accommodate inflation we seeing these a the -- have as impact the strength range here. across of current and bookings homes a the the wider our summer So price season head inflation variety we're environment

one X -- and bundle enhancements a supportive as new purposely So we roll quarter. that larger spend things the we're give that next Every is given consumers the few with you to out And technology that for view at the products, updates just tech of you, our update, and X to projects up experiences business. on refresh existing working really you a too. money ton an on overall very preference less the single We'll maybe we'll the versus time including quarter day, behind consumer recent break on for and features -- that our we remain far the coupled as to by, you decided confident this goes more on different time, the on more to decision and we a refresh then items mentioned. of scenes, on

in So that next you on quarter. we'll update the

Operator

we'll to Patterson KeyBanc. now next And go at Justin

Justin Patterson

to Great. away macro from I'll product. shift back

So for you income in the about owners. trailing first, Matt, XX-month $X rental just billion talked

opportunity. remarks, like talk has alluded years today changed extended think bring of the in just income Given about about how needed Could opportunities market X, X stay category something you seeing to the you're you that prepared toward say, just you the steps incrementality? awareness, property given to portfolio ago? how had versus, generating to you're then also, the the funnel owners, and And

Matthew Roberts

Sure.

-- vast portfolio equation of is remember, really is majority well. I On humming, individual. really And as The our performing the side portfolio the additions. of mentioned, our a that's minority the

to markets given margin. faster contribution increases our build density in strategic which that enter or market, fills any need On the portfolio, it new

amount. more not portfolio looking more As and people it's competitive on to attractive maybe being that actually really far be as the having any we're at significant side, what industry experiencing

of thousands, if discrete a it as overall and And and really assets. disciplined understanding more purchase our have objectives. there's going we pay, strategy to look actually that as something or And for different overall been some be we to evaluation property confident should good come our we been regard and as continue just thousands managers meet in pass. that still the I be add that's of the more be at building business. that strategically, an what we at think and can how just in We for that that it part be Others more case might platform, it we it's what that mean managers case for pay But property fit course, that's with, people and criteria, often relationships will to to good we're we've the look our feel years, us. there's than perform. that not will to Of we should additions

Justin Patterson

extended stay? And Great.

Matthew Roberts

knew I Great. a second was there part.

Sorry Thanks, about Justin. that.

properties. our our an drive business stay the We extended exist we advantage that. adding homeowners. for to also emerge a talked because an of can opportunity our of we take we're prepared extended the existing growth optimize as of We've really mentioned So scaled the example obviously perspective, in or base talked from about by stay we I can as out strength pointed But sales to And that homes remarks is in may optimize that just base the well. the it trends how about platform this to we platform unique grow that business, the have experiencing. on

to the of able need as order is much in you to owners be that, each possible. homeowner And make Our to money do possible. most volume of objective take for amount demand to as

be Some of potentially that these demand going form in the extended to is stay of reservations.

all which us to our in optimize base job, where just those order possible. is it's reservations accept in this So about our doing is markets

Jamie Cohen

may If add. just I

asked is about this not And drive existing program and the to incrementality. incremental You out exactly income. price rollout, right, we through homeowner cannibalize part exactly income of specifically the that's figure to how

Operator

next now Jed to We Kelly [Operator Instructions]. at go Oppenheimer.

Jed Kelly

is This Jed.

couple Just a questions. of

I you XX,XXX your letter, shareholder think you have homes. in said

was the think shareholder it XX,XXX. fourth letter, quarter I in

'XX people that? about then how anything us behind And people So kind can an a to against talk trending of can bookings how bit are the coming in comps? talked lighter. that the you seems update is you sort provide are your back some are with We've little tougher of in and kids indication the bookings fall shoulder back work industry. of on Kind school, in to season it

any on So that? update

Matthew Roberts

Yes.

Vacasa Jed, XX just the at says So bottom that, than to -- meant really just is -- the first and the properties. About XX,XXX-plus number on more actual or one, the it at boilerplate And we're at was, that XX,XXX. than as the we saying are the end of this end well. of discussed, the as year XX% at year to end And higher going that we

as So that's just year the far and And a -- Jamie, boilerplate, one? over number you -- is of to end the actual at XX,XXX. other as which over XX,XXX versus do XX,XXX, was want do the

Jamie Cohen

take the bookings. can Yes, I

We're well. strong our So bookings looking really are season there. extremely I'll peak point pacing out

we QX, look strength. we terms there. continuing sight as of see now, into obviously in of out to what much don't further it's we see As line right much so have But

We haven't seen a slowdown there.

Jed Kelly

how like a time been a how X Can robust. getting guess Are being as approach, and trending the recession. little And they're maybe portfolio sell you the be you larger are and your seeing this it's have follow-up, have portfolio Great. skittish And a your then -- just valuations the talk could we'd in like years you potentially last approach? just trending? argue some might with that owners valuations to about with I peak because and

Matthew Roberts

it. and important, do there. get how much property as is to not of reasons company. variety to family time businesses imagine, specific trying for do big The with sell has lot their want each small are to sell, managers reasons own are the really fits and portfolio little is you relationships approach that everyone portfolio we Well, can over or fit our is accomplish, build the bit characteristics or them understand objectives, And what a longer A desired strategic different, unique decide to its these of because the Sure. a businesses. need they or we as for company part for of they what to

good, folks Some one take Some Some I the their owners relationships, time." Vacasa. there's no, of in on owners really daughter a many, picture as trying for the just these as say, I'm else for perfect fact and provide no are times, out little how the are for that of And over that companies. business "Well, think with great industry, say, to that we the the answer probably it for those single But fits and "Look, to fit folks might where done XXx pan it that desires building we've will many want motivations much out. are people and the this bit XXX we paint there. longer." the hold is that's given a may and needs then doesn't anybody understanding a

remain very, majority vast on X through our we additions X playbooks. as very of So this the our is this of just individual reminder, bullish But approach. a

Operator

Roberts, closing [Operator we conference to it no Instructions]. sir, appears have I'll for you, Mr. questions. any back And further comments. turn the

Matthew Roberts

call. and season, prepare our amount tens thank a of joining you, the serve would see, can to next generating look love minute we organization all trusting of our Okay. with of peak valuable as start the we're in great And quarter. us with millions can really them. just take to a for also summer to for their to thousands up homeowners forward And to asset I homeowners for us employees that that our on and everyone, And income of thank day you across as Well, most again we we catching our today's guests want I of thank for off XXXX. you and out. day and

Operator

will you and Ladies for much conclude great evening. and Call. today's Quarter Earnings thank XXXX joining all a to We'd that like Roberts. all Conference you Mr. you, so wish Vacasa Thank us gentlemen, Goodbye. First

Vacasa (VCSA) 12 May 222022 Q1 Earnings call transcript