Earnings call transcript Q3 2022

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Operator

Good afternoon. My name is Abby, and I will be your conference operator today. At this time, I would like to welcome everyone to the Vacasa Third Quarter 2022 Earnings Conference Call. [Operator Instructions] Thank you. Mr. Investor may of your Head Domyancic, Relations, begin you conference. Ryan

Ryan Domyancic

joining everyone, call. for and afternoon, us thanks earnings Good XXXX for today quarter Vacasa’s third

pleased Greyber; CEO, today be CFO, Jamie Cohen. I’m Rob to joined and by

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

our of speakers. posted contain We referred made Shareholder be Letter our section website statements. Shareholder IR will our at as a to conference have referenced statements this the by Comments during in commonly call that investors.vacasa.com on forward-looking that and are may Letter

include to estimates, various anticipated. you projections, statements that Such conditions differ expectations, could We about strategies, objectives, actual cause from caution beliefs, factors targets, these results plans, and those future events, financial performance.

risk additional read please forward-looking Letter issued and earlier information today the the forward-looking in or risks concerning the Shareholder For section in we sections uncertainties, and SEC filings. these statements statements

this results. results Letter. call, GAAP results, be of in may Shareholder will reconciliation found measures. measures financial non-GAAP substitute to directly a including non-GAAP are non-GAAP our non-GAAP regarding for be certain our intended considered and to the GAAP Information in not financial financial most our comparable GAAP measures During should addition our These to discuss we results be a

to like I’d hand the call now, Rob. And to over Rob?

Rob Greyber

ton far September, new our with members in across us. from Executive industry, our Florida I’ve for the a our in United to during own I to Vacasa’s our met constant the of on a employees, to for stockholders supported Ian. homeowners, ahead and the with you afternoon, to guests, was to and a ones operations communication lie importantly, Since of in that homeowners I’d hundreds in opportunities joining both that time the guests field all and It’s communities questions thank spoken team stakeholders, and first loved Southeastern with time Vacasa too back listen directly in to and Most all taken take company asked homeowners, about the the members Vacasa. and understand along, communities, get like fully myself organizations. and in local experiences I we Officer our moment everyone, I’ve country and Hurricane their their with storm corporate Chief thank team in addition and business, the when the Good States for September. made landfall ground alike.Before you teams immersed pleasure of joined as guests speak

an When storm had feeling of was there I and the our all the gratitude overwhelming employees were relief passed, when safe. worst of heard

behalf back on We involved of the at the homes homeowners. those how work can’t all are process. hard I storm thankful affected online express by those am in colleagues to our I getting of

share for On my I ahead Then the the opportunity want tremendous offer Vacasa business. the and today, will I I call us. high-level joined to of priorities why

and results over technology. I passion will years to more XX our unrelenting discuss review joined and the industry than in quarter I for experience our turn it with Jamie third Vacasa travel Finally, an to outlook. of

Later, confluence before X-fold and more operations career Hotwire, Expedia hard I problem today, to with days learn team a moving strategy similar categories. the served many dynamic Expedia’s Egencia’s an the fundamentally see technology or so use Under I of travel, investors, competitors first, travel across workers now years. who Expedia Expedia business and out what travel Egencia played company. my million starting and a In to After best senior is myself, on led $XXX Egencia, and improve. don’t launched Group technology rentals XX I joined has on focusing annually. more EBITDA of business increased Group’s for early I than and my revenue solved and Expedia. of the division online saw and corporate scaled from breakeven leadership, leadership than air what to to over market, large vacation There can’t a in

second positions has Vacasa we single-digit are easier million out, to our X.X bring of sheet. the United I guests. It’s believe revenue it homeowner that model can rentals, share us more commission-based but second listed homes for United home, address The generate fees the on Currently, than for approach a There second rental with homes we incentives commission and the our we a than focus, our collecting on States the business directly States. rely deliver on the distribution by their commission-based channels with faster success. asset-light provides with homeowners those to payments from opportunity We doesn’t platform. Zooming future are combined a homes us X earning in to holding million homeowners can the income short-term major on model homes within an its business just ways operational there leasing to liabilities make whole in rent vacation and Vacasa’s on and technology-first and balance flexibility. the numerous aligns our more for

relatively that the members, adjusted Vacasa’s sales Vacasa the support foundation This sign component individual is attractive approach CAC up EBITDA and and believe range to unit business the remaining growing economics effectively has right EBITDA of manage through our the Xx, model individual direct prior to model, are homes we which rentals year to vacation to homeowners. quarters. per category. of We Xx scale and target a data, the adjusted Vacasa. with steady to at are or and the bound X of as long end above cost requires our to in a efficiently home massive range have dedicated we through platform. the the a which representatives term LTV for beyond. know the leader path generation medium remain We and software, CAC the we new strong where sales XXXX high of scale I approach, at all business dynamic profitability add team primarily the that is full economics unit insights to platform The of model the with over

maintain these position For we believe industry, time. a in our our reasons, over strong compound advantage and will I we

I’ve have we for the and a need a demonstrate, priorities reported I execution. will and to and initial guidance to in few continue my term the we every believe sharpen enough and to share but months, near space, our yet at confidence today been business our that in results level. can with this as focus only I’ve learned high win I

to these functions. First, we Banczak market improve I’ve improve need and approach Operating local in and our Chief as customer Officer. refine John appointed our areas, execution support in To

During local his new managing X in I’m market to tools. delivering serving technology John operations significant efficient, field years while customer role, effective and his experience experience experience. and CEO homeowner an support, and housekeeping, designing drive as confident that can associated the TurnKey, John operations of gained guest that, bring unmatched

we approach. to individual sales of the Second, full potential unlock need the

profitable industry Vacasa truly manner. to The approach enable and in and in to designed our sustainable a grow unique individual is is sales

individual as bulk system While our tactically, sales we and implementation on there for updated the about the portfolio longer the CRM approach. these team. business, planned, This benefits in aren’t a growth than the will the lasting the expected new was the and launch will to challenges gains. But excited program the a you we to home the realizing Vacasa be we always Back necessary are of need investment remain productivity realize. use long-term our and of expect from sales from come August, the for the representatives result,

team Officer, of his on the primary the to adding our focus sales CRM investment will role, step the process. realize from and Craig optimize benefits homes platform. response, will Commercial In In Craig where the asked Chief I’ve new our further Smith help individual his to into role be sales

understanding opportunities in Third, the be leading of way, success to forward. To Vacasa’s and my scale I do to decisions of team a future, market building priorities at key we’re want while the going recruit we in leader the in is to me as the the help am team product right with on today. Vacasa. product working focus close senior possible as right platform I the the and the new that the processes, product and ensure cornerstone right

Finally, I and continuously initiatives will we are sure allocating are to aim drive to always appropriately goals business make prioritizing and resources profitable growth. our our

workforce the decision difficult the Following a initiate in review to an we October. reduction initial business, made of

our In were members total, affected corporate functions. XXX about primarily team in

services. and We to one are offered grateful to contributions their placement impacted access our impacted colleagues to for of Vacasa employees severance and every career

as investments in forward, will including invest to Going will those resources, and we people size continue appropriate.

past We I’ve more vacation scale about considerable would capital and potential. have to already destinations Over time XXX energized take become excited over the weeks at a and Vacasa, with X immense that our replicate. footprint across only

While we to I the that to realize business One am the confident the last steps full initial have its all right are comment. taking allow answers, I don’t potential.

Jamie to as like Annual size to stockholder to as Board. We to our experience Rachel I’d the bring an Stockholders. observer. Independent travel expand over Gonzalez and seek Rachel elect Meeting third to Director and to retail Rachel comes the a perspective results financial like to will review of welcome technology to intend quarter service and leadership valued from our next industries to I’d Board across Vacasa our Board now a approval at call turn public with to the of outlook.

Jamie Cohen

Rob. Thanks,

in we during experienced of quarter to market finished quarter. our Rob support Our as ahead customer remarks, third higher-than-expected his the guidance. revenue alluded local But costs and

in below quarter and our adjusted third revenue to and operations EBITDA causing come guidance. support this see in You of expenses our cost

booking over exceed staffed the and prior high levels meet operations Given were for in of had demand, X environment. trying years, the our teams a strength service high-growth to we levels experienced

there during these over-resourced areas, way we exceed and that markets reduce costs to our optimization into Demand strong the number the operational working staff several of in forecast. the We costs operational initiatives believe efficiency a and heading quarter, but caused our would Furthermore, the through. around third in were largely third local that was quarter, were labor. team was we

with believe realize that our fixable, initiatives, which fixed customer led our revenue yet where forecast. to support As to are able local today, weren’t the operations. from largely cost take but will and versus and Based time processes fully fully these we deal benefits we expenses We managing support address. cost believe to higher quarter and operations sit and overruns and market the the these costs we of approach on progressed, not our to

$XXX value sold quarter, in night sold the million Remember, the to at focused and said, third Unless third up addition the be our quarter night I million To XXXX, review we what I’ll sold our sold quarter, in $X.X booking strong sold and value is either nights let’s to difficult line, that, be increase year-over-year. third value costs, With quarter our reached on the in booking outlined referencing Rob driven Letter. the night a combination results will year-over-year, of quarter of the there operations. third which compensation nights isolation. up are reached $XXX our booking Gross to in the the per can highly year-over-year. find and third of the were and otherwise, XX% business with the and per look third improving relationship excluding reiterate results. new XX% homes stock-based per impact you platform. execution expense gross and noted Gross combination Nights it’s of XX% comparing sold, operating which up primarily booking by between gross Shareholder in value, is quarter,

the optimizing management mix value revenue and evaluating trade-off sold between optimize homeowner with and night of algorithms price nights of and to gross per income. are Our the team sold the constantly occupancy booking goal

of quarter, $XXX rate. million the the of million we quarter, platform we which rents to at quarters, was range homes primarily the supply we the similar the a on growth. the outpaced commission consists third from our third homeowners up Revenue, our million. of for above in guidance generate During priced higher prior nights And XX% nights sold collect $XXX our year-over-year and fees and on to guests, $XXX those

same of quarter, to was expenses increased of by turning as XX% grew basis and last of third year-over-year. our expenses. year-over-year support period with revenue the Cost Operations Now year. the percentage revenue points a XXX and in consistent XX% revenue

decreased a up to to to requirements range our to million, of guidance. expenses our quarter, basis, XX% cost marketing for the hiring of administrative This with expenses scale due half. was revenue associated XX% grown year-over-year, gross the $XX X half is operations to Adjusted Sales teams. reasons EBITDA increasing by million to support for XX% relative adjusted the compliance ago infrastructure General higher cost and our were of consistent and was the a August and sales relative $X guidance a we shortfall were and as company. million our drivers leads and consideration we expected portfolios and due engineering drive as On compared product business to expectations spend general revenue the I advertising to a of up largely and ago and and larger were and with for portfolios marketing higher to the slightly. administrative year-over-year, operations were new partners, of to year Technology shortfall software expectations million. and, than $XX few XXXX, we our of Both largely the reporting the due and to and our turn, less growth total third value. more $XX relative expense EBITDA below the support to that our quarter, force to primary with first expectations. paid discussed sequential expenses a relative meet to minutes support with increased the higher greater expenses distribution larger and significantly increase the in the in revenue the fees development outlined of we’ve second expenses spend force. and also to homeowner-focused expenses, sales in onboarded third higher on were driven of In operations our due up Sales for booking year-over-year public

forward-looking a comments. Now few

latest to nearly XX% we XXXX. previously increase expect during we for in provide a now homes the Based a resulting count average on full expected pacing, fourth growth was be a is Difficulty] our onboarded per home platform Bringing paid revenue headwind per quarter about XX% our and the higher our outlined our fewer on second in revenue-generating a tended last quarter price multiple basis, on our quarter higher higher platform in the home We purchase valuation with that We on [Technical homes we’ll year targets. but by line on call. on home, earnings year-end but for be performing home we expectations increased home realize mentioned based XX% to growth to to the gains the to implementation Despite we headwind, approach, productivity yet the approximately that we CRM from expected internal target. on our materialized. portfolios the individual haven’t

to we be $XXX guidance, quarter fourth $XXX of expect million. the to in For revenue million range

than Our fourth in implied fourth quarter we revenue the quarter expectations August. lower guidance issued are

more was that softness some summer in in has began and We the guest are September strong after bookings become The experiencing season. weakness variability the quarter. pronounced in noticeable fourth in

$XX million to back range continuing to is than the We costs August of implied of but set initiatives. also lower fully negative lower function not quarter is to expectations it operational the a in million. Again, be this the higher the efficiencies the and EBITDA into from we the due operational realizing fourth negative fourth in quarter adjusted revenue, expect $XX

guidance next few Finally, while formal want on to year. XXXX at thoughts we aren’t a I high-level this share issuing point,

the new fourth occurring on and spends $XXX we’ve payments million purchases quarter. with additional deferred over cash portfolio the of Year-to-date, spent program between in

on our with a investment bit over the we’ve of expectations relative of the annually. it pull-forward million of past of portfolios thrilled but was year, We’re to quality brought $XXX board a

expect the program. think portfolio capital we meaningfully to are ahead, amount we to we the reduce As allocating of year the about

We the the individual market will deals evaluate but all new the LTV on and opportunities, portfolio to to on for given approach, we CAC are portfolio expectations raising entry. continue bar prioritize return will

in recent to Additionally, levels. XXXX variability with decline and environment, in the there home potential value record year-over-year gross in uncertain the is average per softness booking macroeconomic for from recent the bookings

we XXXX, profitability a in and profitability growth to a achieve On macroeconomic discretionary to side, against to closely EBITDA even aim investments balance strike range between of manage wide the and outcomes. adjusted expense our expect

your open and will questions. Rob please the take that, With line. up Operator, I

Operator

from [Operator Anmuth the Doug line Instructions] Your from first question JPMorgan. of comes

Dae Lee

This is X. for have Dae on I Doug.

driving on distribution bit all so channels? else variability be that And more, your could this is and the softness and it gross comments but XQ. that September that? something a began on into one, I’m assume bookings that seeing going First some little your is that of in of in across Hurricane Ian, to impact what you’re drivers because

Jamie Cohen

Yes, absolutely, thank you.

kind is previous the The particularly of in from the variability the the began weakness third forward-looking that the It some end So with quarter, seeing from forward-advanced you’re or relatively have I’m new. right. weakness, years. book deviated our trends towards of booking bookings,

booking So a path. quarter But volatility more seen we’ve prior those following fourth for to some over curves. the our X curves that, were really the pretty in weeks, last predictable

a despite for We’re for is. midst the November it us.In now, drivers of right in terms the booking it’s we of being have tough exactly identify of what period still to big November booking the of days ahead December the driver largest weakness, X,

to comes leisure-focused pinpoint, kind the are it To rental commentary in across consumer we to the we to second is of As travel markets, what around us vacation think that sector, question, point the macro have in this the but footprint time. believe, of about obviously, given this channels. overall exactly cause possibilities, seeing mind domestic and hard our at your or we demand to category all is environment leads primarily and related that

in seeing We’re not one deviating. that’s any particular

Operator

Needham from McTernan Bernie & of line the from comes Company. question next Your

Bernie McTernan

that rollout? quarter a that the Just sales the be force could fourth approach CRM maybe understand the Maybe even effective the lack how in to the not trying technology quarter, of just or start, the ‘XX? late more is to using or is in -- gains individual in just

Jamie Cohen

Yes.

down couple CRM, a the of pieces. CRM We transitioned second quarter. the kind to So during just there’s of the break to

we were all force these the trained on resolved the As second system. over pains, some we discussed the from new most systems sales as there our and system issues call into old over and our growing expected, getting the We data of of summer. quarter getting the new in processes,

back coming actually a the Everybody new up to only using levels, the the productivity but not be quarter, productivity into we system. actually new And ramp to, step higher given the is tools. expected third the pre-CRM to

about We point, productivity those levels in continue additional line those that in out to So, we that anticipated. to at this expected just the year, the we that believe with productivity is above still do we’re that’s Craig come. Rob boost and technology had to back doing. at originally had going work to are as transition pre-CRM said what we be systems that is haven’t productivity remarks, his levels seen the just for levels but There build

the XX% to think portfolio. our generally individual, we growth, XX% of we unit As adds about said through come come gross expect kind of we’ve to and from that

more we on did of some the portfolio and spend multiples pressure as per home the also would our home, year a on mentioned revenue were that expect. actually in put But We count. what downward and bit higher we of there first half the consistent

So, make up headwind. would expected I to gap. was able individual And that mentioned, a that that be as we

originally with in fully much where able we wasn’t so line gap. anticipated, pretty close that is had individual So, to

Xx LTV X target to that above CAC. to still we’re So,

is there. pleased the that with that. there we expect do upside believe against and the keep performance We’re But investing individual of continued to

Bernie McTernan

of the -- providing for year? from about we in there you’re but know any next Okay. is And I then investor ‘XX not addition to think original deck supply terms should deviation any guidance,

Jamie Cohen

Yes.

expect home that near mentioned we XX%. finish we So, XXXX growth with to

sales what program meaningfully EBITDA So, our how reach think for we there. we be had little could so said when since next spend forward grow we force. making impact profitability we’re portfolio about adjusted a on of we fast reducing that sure pull year, you we’ll that And the bit

overall How So, lower, the to given can recognize much economic our productivity growth believe performance, ‘XX how going the levels. and X we overall be those business home it’s CRM below that fast these dynamics, would environment. we gains on depend rate

Operator

Your of Justin next the from KeyBanc. question comes Patterson line from

Justin Patterson

little just fees, over pretty support accommodations to your service into wanted or some throughout improving bit point short on more industry I dive functions. market fees focus a customer cleaning past so. alternative I a the local Rob, the and have know year of been

then So, people just times I how would love containing turn to about in you’re thinking about, hear b, markets? and a, increasing there costs local for

Jamie Cohen

So, on, brand -- in, Justin, I’ll add a give but him and days new. jump let XX I he’s I’ll cover then the bit and give little him Rob air of given can

owner as overall In kind overall are we managing fees, income, making of of revenue. as the the terms we maximize revenue sure and the cost of well that ecosystem can our

with sure are that have sure can we the aim to cover at make service So, out we’re make our cleaning and but that not fees making sense market, line that we costs. we of time, same

So, talked that. in the and terms about market of cost, execution local we

process of of how we team members the or local a benefits and kind manifest and number address efficiencies the back for of recognize and those to labor are year that of that forward. in driving the our in markets, incrementally manage are optimizing number against tasks various plan initiatives to going really or hours in over half in needed of staff We back We half the units. reservations these implementing the

effort Taking to market local little you anything cost amount longer than and us Rob, want focus add? bit significant a on a efficiencies. there of but is operations, anticipated, else

Rob Greyber

No.

I think that’s great, Jamie.

Operator

comes of from Jed Kelly from the line Oppenheimer. Your question next

Jed Kelly

couple a could. Just I if

a rates? higher Rob, planning there opportunity. And like Vacasa? environment and to the anything are Jamie there me or and I adding new, rates but going know is this is higher higher forgive your managing competitive interest then, interest would fundamentally with I multiple one if like from you anything mentioned -- increase on you’re think changing seeing would was anything inventory Are Just of calls. you or back from

Jamie Cohen

Jed. take first then the take second. Thanks, half I’ll Rob and the let So,

that’s we’re So, side anything anything different, the not the material seeing in on of on competitive nothing competitive, causing unit terms growth.

homes it’s interest be hand, sale of I’d favorable. either too churn churn, is say, to way. tell terms -- you would for largest the our early In driver of could rates, think is On one which

the of fewer the vacation hands, change changing homes. on manager opportunity when other those are there’s hand, not also But homes the to

channel time we one than think out. need today, still on I and X homes forces direction given clear today. the significant how either share other. million very some in generally, impact to we how the million size don’t more share the -- given the But macro the believe U.S., X seen see So, those the net haven’t just that TAM that of we way or the have obvious have a is would X.X anything But really price small the big

Rob Greyber

And very Jed, thanks second much. question, on your

believe be multiples Board business have I up to about been on our the I’ve remarks, set our enormous great love weeks ahead now, just an continue that we’re Vacasa I’d we opportunity for to and mentioned peers. larger to X a Just has and than of it. scale, in closest

and or that opportunity players going compete We to or game. industry use an have don’t there’s the solve we’re technology technology problem in in hard the against a just can’t either to won’t

you can really time at just behind. but advantage I it on the look technology I allocate you’ve surface, businesses capital that compounds time results situations just great So, it seen of and time like outset, think again, isn’t over from this when apparent the and in the

seen the on and in And travel. time, as as in out travel play I’ve same in corporate have there’s of online other The I’ve team whole leadership out play a work it mentioned, I well. that it. clearly focused lot is seen At we that to do. sectors

of to our outlined some have perspective. execution organizational our changes from that the I’ve initial we’ve sharpening improve We means and an focus. made

execution. won’t putting And a will it about going of people be to have to time, really The -- and they still That’s of that’s be come down easy it’s in work. going take it strong team it’s to lot success. but and where roles histories knows

and ahead, into about forward excited quarter more the So, detailed looking I’m more sitting our what’s plans sharing here year. next to get fourth time business, after our today earnings with of spending we

Jed Kelly

X more, Great. next had know been it looking just I vacation And ahead compression. years, the -- like last then seems one years for mean, it’s into ADR unbelievable you guess, rental I X RevPAR. could have just I year, an

of between and revenue So, how about thinking RevPAR you just and ADRs can discussion your talk and RevPAR of you’re management and your managing occupancy between managing owners systems? how thinking with you’re with

Jamie Cohen

Yes, Jed, record it’s both gross and great question. per a levels seen value We’ve booking ADR. obviously or occupancy night of

said, it’s to As we tell. early

We -- books some on XXXX. for the insight have very little bookings

but manage to and and occupancy We’re our for trying But managing it’s are to get ecosystem. to overall say revenue early actively in, constantly the revenue algorithms looking bookings I’d broader that of trade-off too teams call ADR. kind management between and

I think you’ve obviously seen ADR take the years. front couple of seat in the last

occupancy homeowners’ to income the possibility for again, towards of on want optimize side. our But for revenue. our kind a more and we driving that is shipped there So, we overall

Operator

Your from question of next Sheridan comes line Goldman Eric the Sachs. from

Eric Sheridan

have some on click I maybe and the already on that just back wanted call. of double go to the been points made

on last Is execution weeks, terms X being needs extended is CRM cancellation what then the done of capture to in to coming you’re back little In it the of booking you over bit advanced Is of rates? sense a us variability be that to up popping the elements just forward better terms the bookings And side sort efficiency out? in gains. of And window seeing gains? X of months? next of this just give be it That’d that to a that elements be are gross is number those that you’re or the being stays should to in thinking we quarters? in XX process could And terms less that? Or play about of any is seeing overall? bookings type in out the of one. X next pronounced more X Can over particular, there variability that geographic

Jamie Cohen

for question, the Thanks Eric. absolutely. Yes,

So, more in cancellation I terms about it’s the the as think of rates. bookings variability, the opposed to

booking coming not new We’re any that just more rates in the meaningful cancellation It’s of are on. bookings patterns increased notable. changes seeing

there we at -- just we sit booking inherent as been where at into more And we I and sit in of -- window in in November look closer that kind today gets look as we think is sorry, and in -- variability that October, as look December. some there has of today we

of types kind volatility out. geo that I of Nothing note we’re just seeing regarding what jumps some or So, homes that really and there. would

doing this can bookings We’re revenue and our looking the value everything kind for of owners. stance drive across portfolio. management and optimize our Obviously, at to additional we

to the be of the CRM done, some means getting ported step what at and over. all that the data people had we’re mentioned getting In CRM first of we and needs is making parity what terms trained, is previously the that look, with sure as we it of

additional of then as And system. we that insights there a terms just allocation little functionality, to opportunities manage we campaigns manifest is longer lead bit for taking and how the and in marketing develop additional within

out it’s do I’d opportunity that that there that there. it’s but And believe as incrementally is of that material manifests believe so, quickly we say how we to look exactly is there kind something time, we say opportunity over difficult

Operator

of Your next JMP Jones the question line Nick Securities. from comes from

Nick Jones

into kind next I recession to guess, maybe taking heading of of year. a increase step back fears as continue

declines likely And income. could comments that I the their that there think year? out kind does been you that looking maybe of augment people ecosystem of a that supply into to Is to more there do outcome? next kind ADR then playing exacerbate has maybe that as are out? actually some add How see

Jamie Cohen

home of is I’d reduced think a a macro Yes, we days driver terms great it’s early how said the what is of the environment our One few is, actually in mentioned, in manifests. as greatest it’s largest from of -- aspects churn the there kind I still But selling that. is, of theory, platform. churn, we’ve what question. say,

benefit potentially a is that So, to us.

that is additional a see want there there haven’t they I to think that willingness where that possibility is of definitely those income. so we done that previously greater owners their home, maybe because rent a

has generally lot extremely demand. think, a constrained. has been I there supply that this has industry been an speaking, been consumer of And

have ADRs, So, have I some on and it’s going impact tough more supply. mean, to a that will you’re meaningful significant obviously, to say.

supply very a generally But constrained has been ecosystem. speaking, it

more to is we platform. forward on to that to bringing I additional our So, the look that more platform, think on our homes on welcomed across industry supply and owners and

Nick Jones

have Vacasa kind same go the -- mix And the Great. the to kind versus purchase And how home sense periodically? of guess, the kind at of along are dedicated of low rentals putting to fully I question that they’re share is that be the you kind play a are you a mean, willing asking market you’re kind prices vein managing are they as then, ADRs I’m of out I some do because homes willing prices vacation all? -- guess, why of are is properties some up someone’s able of here. owners short-term is the seeing homes of of revert, has around go like to see impacted of maybe at housing to they we dynamic the actually level these elevated that I

Jamie Cohen

say, second a I’d people they few mix a it’s a year, say there but be it. do some going and investors, that their the of primary of to not times Yes. might residence. majority a vacation are Got home who own we I’d have

we’re majority available So, nights still to get the sell. us of to going to

that some X themselves. I potential those tell see nights where preferring time But we owner know with people yet will occupying we’re from is in significant the occupying perhaps opposed how variable get from to home relates that I income So, anything they meaningful as seeing to upside to that frequently their are July weekend another own behavior or again, on it as don’t homes. think

Operator

line of question Bank. comes Horowitz the next Deutsche from Lee from Your

Lee Horowitz

the color would supply could may thinking helpful. and occupancy more softness go Is that level, a both are the they rates you’re be next thinking next some bit higher, may Anything year? how currently ADRs? given you the year. expectation high at even across a of next of potentially you’ve pressures But year Are that on this continue stable given you be some industry? you’re the the year-on-year, on where ADRs decline for seeing that on Thanks highlighting occupancy to that to given

Jamie Cohen

Yes.

we as in X these mentioned, another. I with think I’ve at one look variables concert

for not you versa, vice occupancy. You significantly occupancy, owners outcome and and high very or really, drive low right, have high but the drop the necessarily rate optimal could rates where your really that’s

to front, we have on bit starting obviously, are obviously, trying always of This pressure year, little talked on strike the we’re to that, towards So, those about been higher a ADR, and that balance. skewed and side. more we occupancy see the

one see that And down, because that benefit kind nets think you you’re job concert coming we are I in that it’s ADR our working X things revenue of from will again, our see that out, and maximizing that our ultimately to homeowner is if just and that. Where right do in of tough another But team keep and with to say. the occupancy think management algorithms pressure income. those I hearing

Lee Horowitz

maybe then one more And on cost. Great.

terms to where be particularly could of operations and an support your some costs. achieving you’re natural initiatives we next ADR these taking declines the goals, thinking deleverage the year to in How environment timeline field In should rightsize actually about create costs?

Jamie Cohen

Yes.

working issues. are on We these actively

just these As we are longer in are from as there. we have taking building into of that benefits a expect little we’ve initiatives some and they’re manifest, we but XXXX These go will mentioned, place, these do to fixable. bit

in local or example how the be units So, our members or and reservations. need of against kind local in we staffed really, then markets, optimizing efficiencies laundry, housekeeping were tasks, can the we to for manage drive how again, again, we that initiatives or team specific hours labor

a there’s a is that So, learned out that of this underway. technology that those putting takes we’re into things need to what get supporting little rolled changes technology do we a to lot it year we’re kind from and and initiatives bit work process about place, process doing of of number

Operator

further Mr. over this There call turn Rob questions Greyber, are no to time. you. at I back the

Rob Greyber

very much. you Thank

wanted to right Florida I which close, now. we before Tropical impacting Just Storm Nicole, add are we that is tracking

to thank the our the as wrapping business so it. CEO we’re Vacasa our chance the I’d teams Board industry-leading in like up, for the as are opportunity situation days. to still operations lead. support And of owners Southeast the our to We’ll an be coming and of I’m monitoring potential communities really has the have much ahead in honored guests, ready and closely. serve to that to Our

Gonzalez like again Board a Rachel welcome observer. as I’d to Next,

to lucky maybe thrilled don’t finally, us our homeowners, have employees. team. responsibility We’re importantly, trusting and we you take our a to thank with we lightly. our on appreciate It’s And want To I your homeowners her and most second home.

you an servicing forward during easy third million more you. more of I look to in task, quarter. the And come. It employees, to meeting sold to thank hard time the spending and work facilitating you you nights over X wasn’t and Thank the our for and with quarters

Operator

This concludes today’s conference call.

You may now disconnect.

Vacasa (VCSA) 9 Nov 222022 Q3 Earnings call transcript