VCSA - Earnings call transcript Q3 2024

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Operator

Thank you for standing by. At this time, I'd like to welcome everyone to the Third Quarter 2024 Vacasa Earnings Conference Call. [Operator Instructions] I'd like to turn the call over to Ryan Domyancic, Investor Relations. Please go ahead.

Ryan Domyancic

Good afternoon, everyone, and thank you for joining us for today's call. joined CEO, be CFO, Greyber; to Schuman. Bruce pleased by Rob Vacasa's and I'm

results. an on statements. be investor section posted investor this have We letter in and events, guidance future differ including include website beliefs, forward-looking plans, speakers. actual made period objectives, cost for our investors.vacacasa.com estimates, including those conference our performance, our savings, call of contain cause expectations, the at that caution statements statements. risks by conditions actions, from will various financial forward-looking restructuring targets, and referenced letter could Comments during Such our our that Relations and We Investor about future projections, those uncertainties in to results

uncertainties, in and statements Securities the with and For Risk and please statements read the filings Commission. letter today earlier additional sections section information the issued forward-looking Factors the Exchange we and forward-looking these our investor concerning in risks

and in Information non-GAAP not we call, intended results letter. most this our measures results During non-GAAP financial be to reconciliation in directly of comparable including measures to measures. may non-GAAP non-GAAP the GAAP to various financial results, be a may accordance financial found addition regarding refer measures GAAP our supplement These considered but calculated performance substitute to GAAP. for should in investor are with our

to over And call will Rob Greyber. Rob? now the turn I

Robert Greyber

up some begin quarter will we'll and joining remarks for it thank follow I'll third review this with commentary opening a and financial of Ryan, on Thanks, you, Q&A. then for business. with everyone, and open afternoon. results, the Bruce us

in and by acknowledge our North the like Carolina. I'd back-to-back and homeowners begin, to employees we impacted Florida hurricanes Before

these Vacasa. above for to tremendous, team such events. here I'm guests at thankful challenging as adversity of have members homeowners We during is Their own their who our and are difficult in resilience them face and situations colleagues for the beyond go while managing and our incredibly proud

teams $XXX wrapped guest summer peak our over with nearly our also quarter, Vacasa of up homeowners. successful million for season This past generating XXX,XXX serving income and another reservations

Importantly, in occupancy, scores season to-do the review and turnovers quality our high list. with and our increased Peak year-over-year websites is long metrics, including channel demanding colleagues guest same-day partners' for satisfaction quarter. on

to guests, Yet I of Thank their the grateful relax, year, weeks our you. more these and summer dedication vacations home. for most couldn't family recharge mission members our meaningful be hospitality friends. some of chance vacations the reconnect are who throughout a with and bring for exceptional of delivered local and team our the to embodied

summer we make to our believe decisions, believe operational an driving and our during transformation efficiency autonomy We teams and we results. business providing proof is success both experience By improved that guests reorganize are the in that empowering early to early teams operations driving provide to market-level more our operations. hospitality peak field point accountability we're well for greater as to decentralize season our and offers an homeowners delivering as the

to experience local expense our We our changes managing teams. of believe local this brought approval and to their headquarters implemented the Ahead for greater processes improves of homes designed over including peak access our localization and and homeowners. accountability moving from targets the kind and more of outcomes various selecting to onto markets, we control give setting several of type season, teams platform,

how regional our and teams manage. works season to localize transformation. peak as we to further and teams additional aligned so when that salespeople with executives want our identify drive sales refined our continue opportunities bring to model sales are us, decision-making With local best behind on We've approach, homes know

ultimately, not on their appeal, service in but our ability right of guest terms our sales any and to the focusing home, efforts are them We just revenue homes potential.

like command features amenities, a rates. reviews attractive access, and homes ski-out example, to guest as which tend to tub, pool, key better or include ski-in, higher we receive hot For waterfront refer access that

the promising, information in they outcomes. now either further side, various them. these piloting and and issues those homeowner tools intelligence the teams to On our and continue in have product improve provide to extend so tools past in designed guest experience from directly benefits initial efficiently resolve and leveraging to service This context experience owner we our by improving we teams or owner tools our for applications field gains to tools to guest-facing more our that progress Early made enhance the focus support can to quarter, department faster artificial been on our teams. we're

owners with our believe committed homeowners the satisfaction to we're and operations across that local path. serve and made our lightened quarter we better operations as driven pleased progress our and while We that this efficiency to our we've and for guest footprint localizing scores. results our and I'm We've for market guests, the corporate better increasing formula review guests. continue is

the taking in only in this adjusting staff cultural rewarding evident but adopting changes. across local business, our local witnessing We're areas, to markets. is of progress Increasingly, work Not measurable meaningful a is shift in accountability the our we teams. see way an owner also for impact these field and their the outcomes it's mindset, positive we're

markets supply demand industry headwinds what face affecting softer industry-wide we and continue the trends rentals we in to The increased an ongoing are to serve. well rental for resulting continues units can leisure domestic nonurban against in control, adapt vacation short-term to we of variability While executing in booking we rental bookings.

markets, per gross Nonetheless, through on we continue on industry These the data, and gross flows our our and based more to in value trends per industry that believe Vacasa generally. majority significant which of home, the profitability. put to home to revenue are generating than pressure continue real listings booking bookings

the capture I'd dedication momentum thank and well So ahead. amidst teams benefits are continuing gross believe to we look home the to in transformation, eventually for our and unit continuing it that quarters by value. the their impacted positioned We does. will focus economics the in and our level to booking declines ongoing currently when we industry normalize are forward like this

over that, to turn review our results. third With quarter it to I'll Bruce

Bruce Schuman

be impact the lines, Rob. Thanks, third to noted and be our otherwise, operating you expense in of XXXX, the costs, I'll can excluding I will stock-based compensation, quarter of third business comparing our the costs which find quarter Unless outlined letter. shareholder referencing combination results restructuring and

value was night in value, $XXX sold down Gross booking $XXX third the third XX% X% the quarter, up year-over-year. sold, quarter, sold quarter, were of gross in was combination third is For booking million, night the gross down booking Nights the year-over-year. and XX% million nights per $X.X year-over-year. sold value per which

to As at nights a sold, either gross booking isolation. sold reminder, value in strong is a there nights it's correlation difficult per and between look and

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

Over booking about value we out the the normalizes value average with play highs home gross declining per the industry off the saw quarter as in booking again the few record past several quarters, year-over-year we've this from gross of by per discussed and years, average third XX% year-over-year. dynamic in home past declines the

ongoing from to on The the We short-term increased been third and lower approximately value churn XX,XXX headwinds finished that at industry approximately continues XX,XXX various adjust down platform, seeing. average the such have of homes supply gross home. dynamic with rental our reflecting end second the to quarter we the as booking quarter, per

rents as commission of income of also churn a their the XX% our for and see the the homeowners, third the industry Revenue, owner to quarter, down $XXX factors. we directly primarily these year-over-year. on revenue guests provided resulting care in concerns fees continue leading we and home as which collect We to cause solutions with wrestles was million from homeowners, our with generate rates from consists

year the reflect of turning third and nights our of was year consistent quarter, with management homes revenue declined by expenses. Now and the with declined support the and The XX% lower of operations in Operations prior in sold was year-over-year. declines compared XX% the support year. the last in of XX% period and Cost year-over-year. revenue and and to expenses both prior quarter, same by cost to year-over-year under consistent third XX% revenue expense revenue

As distribution and partners third-party significantly Sales our expense, following year-over-year action Technology marketing in overall pay restructuring XX%. we administrative our saw XX%. and May. development decline our we and fees declined declined operating expense general expenses by which expected, XX% and includes the declined expenses

same progress which the affected million million the $XX in $XX expense Despite on EBITDA declined variability reductions, year. quarter value to ultimately year-over-year. be per $XX was adjusted home period million EBITDA booking Adjusted gross and impacting by last compared third bookings continues to revenue, by for our

impact combination ongoing the and on, EBITDA. and flows well touched nights during sold their industry bookings utilization on to sold per which variability as to range bookings gross Rob per of value for or nights continuing then as in we per booking and adjusted elevated through of wide fourth the creates are churn price dynamics outcomes a continued home weakness quarter. The average or experience bookings home revenue, gross As

also At this we expect point, results. it impact have our a don't guidance note for the financial from provide currently fourth quarter. hurricanes material that the to forward-looking on October remains I'd difficult to

very time year. what bookings currently look quarter booking the than coming the As better early while are about at are view still we XXXX, first in cautious volatile, and in extremely how we this are patterns for slightly our ahead, pacing saw we we

the will provide quarter earnings during comes our the call. ahead, months in together As fourth we update quarter an

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

Operator

I no remarks. time. have at will Greyber questions back we And for hand call Rob this closing the to

Robert Greyber

afternoon calendar week. very earnings this much. was election the We know to due earlier this the full Thanks

to thank you we join their moment next take for colleagues Thank all was all look live. everybody want thank successful and owners big you. quarter. another forward with importantly, at to also who Vacasa I a to homes thank So peak our a our to want us. able speaking for And season, entrusting I of to you to to us

Operator

concludes call. for Thank all Ladies you today's and joining. gentlemen, that

may You now disconnect.

Vacasa (VCSA) 7 Nov 242024 Q3 Earnings call transcript