Shares of Portland-based Vacasa Inc. (Nasdaq: VCSA) surged more than 30% in after-hours trading after the company reported a profitable second quarter and raised its full-year guidance.
Vacasa reported second-quarter revenue of $310 million, up 31% year-over-year. It swung to a profit on the quarter both compared to the first quarter and compared to the second quarter a year ago. Vacasa had net income of $9.9 million for the quarter, compared to a loss of $19.9 million in the second quarter a year ago.
The company manages and markets more than 35,000 vacation rental properties.
“We experienced strong guest demand during the second quarter and July that has continued into August, capping off another strong peak season for our homeowners,” said CEO Matt Roberts in a written statement. “We also welcomed thousands of new homeowners to Vacasa during the quarter, extending our industry-leading scale.”
The company raised full-year revenue guidance to between $1.17 billion to $1.19 billion. It previously expected full-year revenue between $1.13 billion and $1.18 billion.
It expects the full-year adjusted earnings before interest, taxes, depreciation and amortization to be between a loss of $7 million up to break even. Vacasa expects to be profitable on an adjusted EBITDA basis for the full year 2023.
“With July complete and high visibility into August, two of our seasonally strongest months, we are raising our full year 2022 revenue and adjusted EBITDA guidance,” said CFO Jamie Cohen in a written statement. “As we look ahead, we are confident we can strike an appropriate balance between growth and profitability and continue to expect to reach adjusted EBITDA profitability for the full year 2023."
The company had 1.6 million nights sold, up 17% year-over-year. It’s gross booking value, which includes the amount given to homeowners, was $676 million, up 32% year-over-year.
Vacasa differentiates itself from others in the vacation rental market by not only marketing rental homes and connecting customers with properties, but by also managing rentals for owners. 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 believe Vacasa’s technology-enabled local operations, our proprietary yield optimization, and commitment to hospitality creates a truly differentiated value proposition for homeowners, making us the vacation rental manager of choice in the destinations where we operate,” said Roberts.
