Hospitality company Sonder says he felt the effect of the omicron variant in the first quarter of 2022, noting in his income statement that “the financial results we published from March 2020 to March 2022 are not representative of strength and full potential. of our business. “

Founded in 2014, Sonder made its public debut through a special purpose vehicle (SPAC), created through a business combination with Gores Metropoulos II in January this year.

For the first quarter of 2022, Sonder’s revenue was $ 80.5 million, a 155% increase over the first quarter of 2021, fueled by annual RevPAR and real-time unit growth. However, the figure is lower than revenue of $ 87 million in the previous quarter. The company says revenue for the first quarter of 2022 was driven by RevPAR’s compression “over our typical seasonality patterns due to the advent of the omicron option.”

The impact on revenue also affected its profitability measures in the first quarter of 2022 – adjusted EBITDA for the period was negative $ 83.5 million – but the company “continued to demonstrate progress over the year in our profitability margins”, such as the margin of property-level profit improved by 3,300 bps and adjusted EBITA margin improved by 6,400 pbs on an annual basis.

RevPAR for the period is $ 117, 52% improvement over the first quarter of 2021.

Net income was $ 22.4 million, with the net profit margin improving to 28% in the first quarter of 2022 compared to a negative 249% in the first quarter of 2021. The adjusted EBITDA margin improved to a negative 104% in the first quarter of 2021. the first quarter of 2022 of the negative 167% in the first quarter of 2021

Operating cash flow margin improved to negative 66% in the second quarter of 2022 compared to negative 128% in the first quarter of 2021. Free cash flow margin improved to minus 81% for the quarter compared to negative 136% for the same period last year.

“Our path to cash flow positivity depends on: 1. Our capacity to increase operating cash flow margins as the travel market recovers and we improve our RevPAR and direct cost efficiency; 2. Our capacity to open our signed properties and continue to add more high quality signatures; and 3. Our disciplined growth in other operating and net capital expenditures, “said Sonder co-founder and CEO Francis Davidson in a letter to shareholders.

“With visibility to attractive operating cash flow margins as the market recovers and we build more opportunities, with a large portfolio of negotiated units and a series of future deals bigger than ever, and with our focus on careful cost growth, we are Strongly convinced of our ability to take advantage of this unique market opportunity in a financially disciplined way. ”

Sonder’s total portfolio of active and contracted units grew to around 19,300 units in the first quarter of 2022, an increase of 48% on an annual basis. Live units grew by 54% on an annual basis to more than 7,700 units in 39 live markets in 10 countries.

The company more than doubled its corporate travel accounts to nearly 250 in the first quarter of 2022, compared to 100 accounts in the fourth quarter of 2021. Driving factors include corporate transitional growth with travel management companies, as well as cohesion with group and corporate housing reservations, the company says.

Sales and marketing expenses for the quarter rose 277% year-over-year to $ 9.5 million due to higher channel transaction fees due to an increase in total bookings.

Looking ahead, the company says: “Given the latest growth we have seen in forward booking trends as we enter the second quarter, we continue to believe that the time is right to responsibly pursue our growth strategy.”

https://www.phocuswire.com/sonder-q1-2022

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