Sonder Holdings Inc. Announces Third Quarter 2024 Financial Results
Sonder Holdings (NASDAQ: SOND) reported its Q3 2024 financial results, showing mixed performance. Revenue reached $162 million, up 1% year-over-year, with RevPAR increasing 14% to $176 and occupancy rate rising 2 percentage points to 85%. However, the company posted a net loss of $(179) million, a 211% increase year-over-year, including a $58 million loss on preferred stock issuance.
The company made substantial progress in its portfolio optimization program, exiting approximately 70 buildings (2,800 units) out of the planned 80 buildings. Sonder also announced a strategic licensing agreement with Marriott International, integrating with Marriott's digital channels and Bonvoy program. The company strengthened its balance sheet with approximately $146 million in enhanced liquidity and expanded its European presence with new properties in Madrid, Milan, and Paris.
Sonder Holdings (NASDAQ: SOND) ha riportato i risultati finanziari del terzo trimestre del 2024, mostrando performance miste. I ricavi hanno raggiunto 162 milioni di dollari, in aumento dell'1% rispetto all'anno precedente, con un aumento del RevPAR del 14% a 176 dollari e un tasso di occupazione che è salito di 2 punti percentuali all'85%. Tuttavia, l'azienda ha registrato una perdita netta di 179 milioni di dollari, un aumento del 211% rispetto all'anno precedente, inclusa una perdita di 58 milioni di dollari derivante dall'emissione di azioni privilegiate.
L'azienda ha fatto progressi sostanziali nel suo programma di ottimizzazione del portafoglio, uscendo da circa 70 edifici (2.800 unità) sui 80 previsti. Sonder ha anche annunciato un accordo di licenza strategico con Marriott International, integrandosi con i canali digitali e il programma Bonvoy di Marriott. L'azienda ha rafforzato il proprio bilancio con circa 146 milioni di dollari in liquidità migliorata e ha ampliato la propria presenza in Europa con nuove proprietà a Madrid, Milano e Parigi.
Sonder Holdings (NASDAQ: SOND) informó sus resultados financieros del tercer trimestre de 2024, mostrando un rendimiento mixto. Los ingresos alcanzaron 162 millones de dólares, un aumento del 1% interanual, con un aumento del RevPAR del 14% a 176 dólares y una tasa de ocupación que subió 2 puntos porcentuales al 85%. Sin embargo, la empresa reportó una pérdida neta de 179 millones de dólares, un aumento del 211% interanual, incluyendo una pérdida de 58 millones de dólares por la emisión de acciones preferentes.
La empresa logró avances sustanciales en su programa de optimización de cartera, saliendo de aproximadamente 70 edificios (2,800 unidades) de los 80 planificados. Sonder también anunció un acuerdo de licencia estratégica con Marriott International, integrándose con los canales digitales de Marriott y el programa Bonvoy. La empresa fortaleció su balance con aproximadamente 146 millones de dólares en liquidez mejorada y expandió su presencia en Europa con nuevas propiedades en Madrid, Milán y París.
손더 홀딩스 (NASDAQ: SOND)는 2024년 3분기 재무 결과를 발표하며 혼합된 성과를 보였습니다. 매출은 1억6200만 달러에 도달하여 전년 대비 1% 증가했으며, RevPAR은 14% 상승하여 176달러에 이르고, 점유율은 2%포인트 상승하여 85%에 도달했습니다. 그러나 회사는 1억7900만 달러의 순손실을 기록했으며, 이는 전년 대비 211% 증가한 수치로, 우선주 발행으로 인한 5800만 달러의 손실이 포함되어 있습니다.
회사는 포트폴리오 최적화 프로그램에서 실질적인 진전을 이루었으며, 계획된 80개 건물 중 약 70개 건물(2800개 유닛)을 정리했습니다. 손더는 또한 메리어트 인터내셔널과의 전략적 라이센스 계약을 발표하며, 메리어트의 디지털 채널 및 본보이 프로그램과 통합했습니다. 회사는 약 1억4600만 달러의 유동성 강화로 재무 구조를 강화하고, 마드리드, 밀라노, 파리의 새로운 부동산으로 유럽 내 존재감을 확대했습니다.
Sonder Holdings (NASDAQ: SOND) a publié ses résultats financiers du troisième trimestre 2024, montrant une performance mitigée. Les revenus ont atteint 162 millions de dollars, en hausse de 1% par rapport à l'année précédente, avec un RevPAR en hausse de 14% à 176 dollars et un taux d'occupation en hausse de 2 points de pourcentage à 85%. Cependant, l'entreprise a enregistré une perte nette de 179 millions de dollars, soit une augmentation de 211% par rapport à l'année précédente, y compris une perte de 58 millions de dollars liée à l'émission d'actions privilégiées.
L'entreprise a réalisé des progrès substantiels dans son programme d'optimisation de portefeuille, sortant d'environ 70 bâtiments (2 800 unités) sur les 80 prévus. Sonder a également annoncé un accord de licence stratégique avec Marriott International, s'intégrant aux canaux numériques de Marriott et au programme Bonvoy. L'entreprise a renforcé son bilan avec environ 146 millions de dollars de liquidités améliorées et a élargi sa présence en Europe avec de nouvelles propriétés à Madrid, Milan et Paris.
Sonder Holdings (NASDAQ: SOND) hat seine finanziellen Ergebnisse für das dritte Quartal 2024 veröffentlicht, die eine gemischte Leistung zeigen. Der Umsatz erreichte 162 Millionen Dollar, was einem Anstieg von 1% im Jahresvergleich entspricht, während der RevPAR um 14% auf 176 Dollar stieg und die Belegungsrate um 2 Prozentpunkte auf 85% anstieg. Das Unternehmen verzeichnete jedoch einen Nettoverlust von 179 Millionen Dollar, was einem Anstieg von 211% im Jahresvergleich entspricht, einschließlich eines Verlusts von 58 Millionen Dollar aus der Emission von Vorzugsaktien.
Das Unternehmen hat erhebliche Fortschritte bei seinem Portfolio-Optimierungsprogramm erzielt und etwa 70 Gebäude (2.800 Einheiten) von den geplanten 80 Gebäuden verkauft. Sonder kündigte auch eine strategische Lizenzvereinbarung mit Marriott International an, die eine Integration mit Marriotts digitalen Kanälen und dem Bonvoy-Programm umfasst. Das Unternehmen stärkte seine Bilanz mit etwa 146 Millionen Dollar an verbesserter Liquidität und erweiterte seine europäische Präsenz mit neuen Immobilien in Madrid, Mailand und Paris.
- RevPAR increased 14% year-over-year to $176
- Occupancy rate improved by 2 percentage points to 85%
- Adjusted EBITDA improved by 69% year-over-year
- Strategic partnership with Marriott International providing access to 228 million Bonvoy members
- Enhanced liquidity position by $146 million
- Net loss increased 211% year-over-year to $(179) million
- Bookable nights decreased 12% year-over-year to 922,000
- Cash used in operating activities increased 34% to $(17) million
- $58 million loss on preferred stock issuance
Insights
The Q3 2024 results reveal significant operational challenges despite some positive metrics. While RevPAR increased
The financial position raises several red flags. The net loss of
The portfolio optimization strategy shows progress with 70 building exits completed, but this defensive measure may impact future revenue generation capacity. The
The Marriott partnership represents a potential game-changer, offering access to 228 million Bonvoy members and sophisticated distribution channels. However, the integration costs and timeline extending into 2025 require significant capital investment during a period of substantial losses. The recent
The appointment of Michael Hughes as CFO, with his experience in business transformations and operational discipline, suggests a strategic pivot toward financial stabilization. However, the company's path to profitability remains challenging given the current burn rate and market conditions.
Substantial Progress Made Across All Operational and Financial Initiatives
Third Quarter 2024 Financial Highlights1
-
Revenue was
$162 million 1% increase year-over-year -
RevPAR was
$176 14% increase year-over-year -
Occupancy Rate was
85% , a 2 percentage point increase year-over-year -
Bookable Nights were 922,000, a
12% decrease year-over-year -
Net Loss was
$(179) million 211% increase year-over-year, including a$58 million $87 million $43 million -
Adjusted EBITDA2 was
$(12) million 69% increase year-over-year -
Adjusted EBITDAR2 was
$60 million 35% increase year-over-year -
Cash Used in Operating Activities was
$(17) million 34% increase year-over-year -
Adjusted Free Cash Flow2 was
$(11) million 33% increase year-over-year -
Total Cash, Cash Equivalents and Restricted Cash was
$76 million $49 million - Live Units were approximately 10,100 as of September 30, 2024
- Total Portfolio was approximately 11,200 as of September 30, 2024
“The third quarter was pivotal for Sonder. Our results demonstrate the meaningful progress we’re making to advance our core value drivers and generate increased revenue and cost efficiency. During the third quarter, our portfolio and cost optimization efforts drove year-over-year RevPAR growth of
Portfolio Optimization Program
As announced in November 2023, Sonder implemented a portfolio optimization program intended to mitigate losses related to certain underperforming properties and assess the Company’s portfolio of rents relative to current operations and the existing market rents. The Company made significant progress on the portfolio optimization program in the third quarter of 2024. Of the approximately 80 buildings, or 3,200 units, with finalized exit agreements as of June 10, 2024, the Company exited approximately 70 buildings, or 2,800 units, as of September 30, 2024. The Company expects to exit the remaining buildings throughout the remainder of 2024 and 2025.
Long-Term Strategic Licensing Agreement with Marriott International
As announced in August 2024, Sonder has entered into a long-term strategic licensing agreement with Marriott International, Inc. (NASDAQ: MAR) (“Marriott”). Through this strategic licensing agreement, Sonder’s properties are expected to be fully integrated with Marriott’s digital distribution channels, including Marriott.com and the Marriott Bonvoy mobile app, as a new collection called “Sonder by Marriott Bonvoy.” Sonder’s properties are also expected to participate in the highly regarded Marriott Bonvoy® travel platform with nearly 228 million members, and gain access to Marriott’s global sales organization. Sonder expects the strategic licensing agreement to deliver significant revenue opportunities and operating efficiencies for the Company.
The Sonder by Marriott Bonvoy collection is now featured on Marriott.com and Sonder completed the first phase of its integration with Marriott in October 2024. At that time, Marriott Bonvoy members received early access to earn and redeem Marriott Bonvoy points when booking directly on Sonder.com. Sonder anticipates the full integration with Marriott’s digital channels will occur in 2025.
1 $ figures represent metrics for the three months ended September 30, 2024, except where otherwise noted. % figures represent year-over-year growth for the three months ended September 30, 2024 compared to the three months ended September 30, 2023.
2 Adjusted EBITDA, Adjusted EBITDAR, and Adjusted Free Cash Flow are non-GAAP financial measures. See “Non-GAAP Financial Measures” for additional information on non-GAAP financial measures and a reconciliation to the most comparable GAAP measures
Strengthened Balance Sheet
In August 2024, Sonder announced that it had enhanced its liquidity profile by approximately
Property Expansion in
Sonder opened the following new properties in the third quarter of 2024:
-
The
Sofia , a 36-unit property, offering studios with kitchenettes and in-unit laundry in the historic Atocha neighborhood inMadrid , -
The Manzoni, a 38-unit property, offering studios and one-bedroom apartments with kitchens and in-unit laundry in the Porta Romana neighborhood in
Milan ; and -
The Yvette, a 61-key hotel in the Porte de
Versailles neighborhood ofParis , offers modern rooms near France’s largest exhibition center and only a short metro ride from centralParis .
Executive Leadership & Board of Directors Appointments
As announced in January 2025, Michael Hughes joined the Company as Chief Financial Officer, bringing with him a wealth of experience implementing business transformations and driving operational discipline at companies in real estate and hospitality. He was most recently the Chief Financial Officer of Spirit Realty Capital, Inc. Prior to that, Mr. Hughes served as Chief Financial Officer, at FelCor Lodging Trust Inc. and Vice President of Corporate Finance at Wyndham Hotels & Resorts, Inc.
Also announced in January 2025, Erin Wallace was appointed to the Sonder Board of Directors, with over three decades of operations expertise across the hospitality, entertainment and resort industries. She spent the majority of her career at The Walt Disney Company, where she held various senior executive roles. Ms. Wallace also served as Chief Operating Officer of Great Wolf Resorts, Inc., and as Chief Operating Officer of The Learning Care Group, Inc.
Additionally, Sonder announced it has transitioned to a structure with an independent director serving as the Board Chairperson, which is consistent with the Board’s focus on enhancing corporate governance. Janice Sears, who previously served as Lead Independent Director of the Board, has been appointed as Chairperson of the Board.
About Sonder
Sonder (NASDAQ: SOND) is a leading global brand of premium, design-forward apartments and intimate boutique hotels serving the modern traveler. Launched in 2014, Sonder offers inspiring, thoughtfully designed accommodations and innovative, tech-enabled service combined into one seamless experience. Sonder properties are found in prime locations in over 40 markets, spanning nine countries and three continents. The Sonder app gives guests full control over their stay. Complete with self-service features, simple check-in and 24/7 on-the-ground support, amenities and services at Sonder are just a tap away, making a world of better stays open to all.
To learn more, visit http://www.sonder.com or follow Sonder on Instagram, LinkedIn or X.
Download the Sonder app on Apple or Google Play.
Reconciliation of Non-GAAP Financial Measure: Reconciliation of Cash Used in Operating Activities to Adjusted Free Cash Flow
|
Three months ended September 30, |
|||||
(in thousands) |
|
2024 |
|
|
2023 |
|
Cash used in operating activities |
$ |
(17,364 |
) |
$ |
(12,988 |
) |
Cash provided by (used in) investing activities |
|
114 |
|
|
(3,086 |
) |
FCF, including cash paid for lease terminations, restructuring, and professional fees |
$ |
(17,250 |
) |
$ |
(16,074 |
) |
Cash paid for lease termination costs |
|
1,566 |
|
|
- |
|
Cash paid for restructuring costs |
|
526 |
|
|
- |
|
Cash paid for non-recurring professional fees |
|
4,423 |
|
|
- |
|
Adjusted FCF |
$ |
(10,735 |
) |
$ |
(16,074 |
) |
Reconciliation of Non-GAAP Financial Measure: Reconciliation of Net Loss to Adjusted EBITDA
|
Three months ended September 30, |
|||||
(in thousands) |
|
2024 |
|
|
2023 |
|
Net loss |
$ |
(179,391 |
) |
$ |
(57,630 |
) |
Interest expense, net |
|
9,256 |
|
|
6,423 |
|
Provision for income taxes |
|
202 |
|
|
75 |
|
Depreciation and amortization expense |
|
3,385 |
|
|
5,882 |
|
EBITDA |
$ |
(166,548 |
) |
$ |
(45,250 |
) |
Stock-based compensation |
|
1,614 |
|
|
4,924 |
|
Lease adjustment gains, net |
|
(555 |
) |
|
(139 |
) |
Impairment loss |
|
- |
|
|
1,087 |
|
Loss on preferred stock issuance1 |
|
59,490 |
|
|
- |
|
Change in fair value of forward contract |
|
86,570 |
|
|
- |
|
Restructuring and other related charges |
|
1,304 |
|
|
12 |
|
Non-recurring professional fees |
|
5,728 |
|
|
- |
|
Adjusted EBITDA |
$ |
(12,397 |
) |
$ |
(39,366 |
) |
1 Includes |
||||||
Reconciliation of Non-GAAP Financial Measure: Reconciliation of Adjusted EBITDA to Adjusted EBITDAR
|
Three months ended September 30, |
|||||
(in thousands) |
|
2024 |
|
|
2023 |
|
Adjusted EBITDA |
$ |
(12,397 |
) |
$ |
(39,366 |
) |
Operating lease related rent charges |
|
72,614 |
|
|
83,845 |
|
Adjusted EBITDAR |
$ |
60,217 |
|
$ |
44,479 |
|
Definitions
RevPAR
Revenue Per Available Room (“RevPAR”) represents the average revenue earned per available night and can be calculated either by dividing revenue by Bookable Nights, or by multiplying Average Daily Rate by Occupancy Rate. Average Daily Rate represents the average revenue earned per night occupied and is calculated as Revenue divided by Occupied Nights. Occupancy Rate is calculated as Occupied Nights divided by Bookable Nights. Bookable Nights represent the total number of nights available for stays across all Live Units. This excludes nights lost to full building closures of greater than 30 nights. Occupied Nights represent the total number of nights occupied across all Live Units.
Live Units & Total Portfolio
Total Portfolio consists of Live Units and Contracted Units. Live Units are defined as units which are available for guests to book. Contracted Units are units for which Sonder has signed real estate contracts, but are not yet available for guests to book.
Non-GAAP Financial Measures
Adjusted EBITDA
Adjusted EBITDA is defined as net income (loss) as adjusted to eliminate the impact of net interest expense, provision for income taxes, depreciation and amortization expense, and certain other items as indicated. The exclusion of these items should not be interpreted as implying that these items are non-recurring, infrequent or unusual. The Company believes Adjusted EBITDA is meaningful to investors as it is the primary operating performance measure that the Company focuses on internally to evaluate its core operating performance. Adjusted EBITDA provides a consistent basis for comparison across reporting periods by excluding interest, taxes, depreciation and amortization, and certain one-time, non-recurring or non-operational items, such as lease adjustment gains, net, restructuring and other related charges, and professional fees related to discrete projects such as fees associated with the integration in connection with the strategic licensing agreement with Marriott and restatement activities. It serves as a key measure for the Company to align financial performance with its internal financial planning and analysis.
Adjusted EBITDAR
Adjusted EBITDAR is defined as Adjusted EBITDA adjusted for operating lease related rent charges. The Company believes Adjusted EBITDAR is meaningful to investors as it is an operating performance measure that further enables the Company to assess its operating performance independent of operating leases, offering insights into cash flow and performance.
Adjusted Free Cash Flow
Adjusted Free Cash Flow (“Adj. FCF”) represents cash used in operating activities plus cash used in investing activities, excluding the impact of lease terminations, restructuring, and non-recurring professional fee charges related to non-operational activities. The most directly comparable GAAP financial measures are cash used in operating activities when combined with cash used in investing activities. The Company believes Adj. FCF is meaningful to investors as it is the primary liquidity measure that the Company focuses on internally to evaluate its progress towards delivering sustainable positive free cash flow. Sonder’s Adj. FCF may differ from similarly titled measures used by other companies due to different methods of calculation. Presentation of these measures is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. In addition, this measure may not provide a complete understanding of the Company’s cash flow as a whole. As such, these measures should be reviewed in conjunction with the Company’s GAAP cash flow.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are based upon current expectations or beliefs, as well as assumptions about future events. Forward-looking statements include all statements that are not historical facts and can generally be identified by terms such as “could,” "estimate," “expect,” “intend,” “may,” “plan,” "potentially," or “will” or similar expressions and the negatives of those terms. These statements include, but are not limited to, statements relating to the Company’s financial performance and initiatives, the numbers of units, the portfolio optimization program and cost optimization measures, operational and strategic initiatives, the Company’s integration efforts under its long-term strategic licensing agreement with Marriott, information concerning possible or assumed future financial or operating results and measures, and the experience of Sonder’s leadership team. These forward-looking statements are not guarantees of future performance, conditions or results. Actual results could differ materially from those expressed in or implied by the forward-looking statements due to a number of risks and uncertainties, including the risks and uncertainties described in the Company’s reports filed with the Securities and Exchange Commission, and under the heading “Risk Factors” in its most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, which are available at www.sec.gov. The forward-looking statements contained herein are only as of the date of this press release. Except as required by law, the Company does not undertake any obligation to update or revise its forward-looking statements to reflect events or circumstances after the date of this press release.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250212838976/en/
Media:
press@sonder.com
Investor:
ir@sonder.com
Source: Sonder Holdings Inc.
FAQ
What was Sonder's (SOND) revenue and RevPAR growth in Q3 2024?
How many units did Sonder (SOND) exit through its portfolio optimization program in Q3 2024?
What are the key benefits of Sonder's (SOND) partnership with Marriott International?
How much did Sonder's (SOND) net loss increase in Q3 2024?
