Vacation rental management company Vacasa, on track to hit the public markets next quarter, this week released financial results for the second quarter of 2021, which ended June 30.
The company reported revenue in the quarter of $240 million, more than double compared to the second quarter last year and above an internal target of $220 million.
The company narrowed its losses in the quarter, reporting a net loss of $17 million compared to a net loss of $20 million in the same quarter last year. On an adjusted basis its earnings before interest, taxes, depreciation and amortization swung to a profit of $9 million, compared to a loss of $7 million in the year-ago quarter.
Vacasa experienced steep declines in demand in early 2020 as the Covid-19 pandemic upended the travel and hospitality industry. The Portland company's demand bounced back late in the year and carried into 2021.
In the second quarter, Vacasa sold 1.4 million nights, up dramatically from 449,000 in the second quarter of last year. The company had Gross Booking Value — the amount it collects from travelers and splits with homeowners — of $514 million for the second quarter, more than triple what is saw in the second quarter of 2020.
“What a difference a year makes. In the second quarter last year, we were at the height of the impact of Covid-19 on our business and transitioning from a period of extremely low demand to explosive demand. The team successfully navigated that difficult environment and we continued to establish our position as a market leader,” said Matt Roberts, CEO of Vacasa, in a letter to shareholders.
Earlier this summer, Vacasa announced its plans to go public through a merger with a special purpose acquisition company called TPG Pace Solutions (NYSE: TPGS). The SPAC was created by private equity firm TPG.
That deal values Vacasa at $4.5 billion and will result in $485 million in gross cash for the company.
The SPAC transaction is expected to close in the fourth quarter, according to Vacasa’s earnings release.
Looking ahead, Vacasa expects third quarter revenue between $300 million and $310 million. Roberts noted that the company’s performance is exceeding the targets set when the TPG Pace Solutions deal was announced.
Vacasa manages and markets vacation homes for homeowners. The company provides maintenance and guest services. It uses a proprietary technology to set the best price for a specific unit to ensure booking and, according to the company, to maximize profit for the homeowner.
The company has a portfolio of more than 30,000 homes in more than 400 destinations.
