Portland-based Vacasa could be the region’s next publicly traded company by the end of the year.
The vacation rental management company is in the midst of a merger with TPG Pace Solutions, a special purpose acquisition company, that would see the company go public as a result of the transaction. TPG Pace Solutions (NYSE: TPGS) shareholders are scheduled to vote on deal on Nov. 30. The deal is expected to close at the end of the special meeting of shareholders.
Once completed, Vacasa will trade on the Nasdaq exchange under the symbol: “VCSA”
Vacasa released financials for the third quarter. The company recorded revenue of $329.9 million in the quarter ended Sept. 30. That is up 77% from the same quarter in 2020.
The company reported profit in the third quarter of $32.8 million, up from $9.4 million in the third quarter of 2020. For the first nine months of the year, the company narrowed its losses to $36.4 million, from $47 million in the first nine months of 2020.
Vacasa sold 1.8 million nights in the quarter, up from 1.1 million nights in the same quarter last year. For the first nine months of the year the company has sold 4 million nights.
Vacasa has more than 35,000 homes in its portfolio. The company differentiates itself from others in the vacation rental market by not only connecting consumers with homes to rent, but by also managing rental homes for the homeowners. Vacasa provides maintenance, booking and marketing 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.
“We generated record results in the third quarter, driven by a combination of consumers' continued desire to travel, the ongoing preference shift towards vacation rentals, and strong execution across our entire organization," said CEO Matt Roberts, in a written statement. “While guest demand is the leading driver of our outperformance, we’ve had solid supply additions through both our individual and portfolio approaches in 2021.”
Looking ahead, the company expects fourth-quarter revenue to be between $175 million to $180 million, which exceeds its target of $150 million. The company has raised its full-year revenue guidance to $872 million to $877 million.
The company noted it is investing in brand advertising and hiring. It is also confident that consumer shifts to home rentals versus hotel stays will continue.
“As we indicated in September, we are investing the outperformance from the second and third quarters back into the business during the fourth quarter through a brand advertising campaign and a pull forward of hiring to drive growth as we enter 2022," said Jamie Cohen, chief financial officer, in a written statement. "Even with the investments in the fourth quarter, we are still expecting to deliver full-year 2021 adjusted EBITDA about 10% to 20% better than our target.”
