Vacasa, Inc. (VCSA) Bundle
A Brief History of Vacasa
Vacasa, Inc., a leader in vacation rental management, has faced significant challenges and transformations in recent years, particularly as of 2024. The company has navigated a fluctuating market and implemented major restructuring efforts to align its operational strategies with current market demands.
Financial Performance
As of September 30, 2024, Vacasa reported total revenue of $314.0 million for the third quarter, down from $379.1 million in the same period in 2023, reflecting a decrease of 17% year-over-year. For the nine months ended September 30, 2024, total revenue was $772.5 million, compared to $940.5 million in 2023, marking an 18% decline.
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Total Revenue | $314.0 million | $379.1 million | $772.5 million | $940.5 million |
Cost Structure and Profitability
Operating costs reflected significant pressures, with total operating expenses for Q3 2024 amounting to $238.4 million, compared to $209.3 million in Q3 2023, leading to a loss from operations of $4.4 million for Q3 2024. The company’s cost of revenue was $126.4 million for Q3 2024, which was 40% of total revenue.
| Expense Type | Q3 2024 | Q3 2023 |
|---|---|---|
| Cost of Revenue | $126.4 million | $150.8 million |
| Loss from Operations | $(4.4) million | $17.4 million |
Debt and Liquidity
As of September 30, 2024, Vacasa had a cash position of $124.4 million. The company drew $81.0 million from its Revolving Credit Facility during the second quarter of 2024. Additionally, on August 7, 2024, Vacasa issued $30.0 million in Convertible Notes to enhance its liquidity.
Workforce Reduction Plans
In 2024, Vacasa implemented significant workforce reductions as part of its restructuring efforts. The company eliminated approximately 320 positions, which represented about 5% of its workforce. This move was part of a broader strategy to realign operational priorities and reduce costs.
Market Challenges and Guest Demand
Throughout 2024, Vacasa experienced variable guest demand, leading to fewer Nights Sold per home compared to previous years. The company noted that the fluctuations in demand impacted its revenue and cash position adversely, contributing to ongoing operational challenges.
Impairments and Future Outlook
Vacasa recorded long-lived asset impairment charges of $84.0 million during the nine months ended September 30, 2024, compared to $46.0 million in the prior year. The company’s strategies moving forward will focus on stabilizing its financial position and enhancing operational efficiency.
| Impairment Charges | 9M 2024 | 9M 2023 |
|---|---|---|
| Long-lived Asset Impairments | $84.0 million | $46.0 million |
Vacasa's history as of 2024 is marked by significant financial adjustments, strategic workforce changes, and a focused effort to navigate the complexities of the vacation rental market amidst evolving guest preferences and economic conditions.
A Who Owns Vacasa, Inc. (VCSA)
Ownership Structure
As of September 30, 2024, Vacasa, Inc. has a diverse ownership structure consisting of Class A and Class B Common Stock, along with redeemable non-controlling interests. The details of the stock ownership are as follows:
| Type of Stock | Shares Authorized | Shares Issued and Outstanding | Par Value |
|---|---|---|---|
| Class A Common Stock | 1,000,000,000 | 15,822,273 | $0.00001 |
| Class B Common Stock | 469,841,529 | 6,749,924 | $0.00001 |
Major Shareholders
The major shareholders of Vacasa, Inc. include both institutional and individual investors. The top shareholders are:
| Shareholder | Ownership Stake (%) | Type of Shares |
|---|---|---|
| Vacasa Holdings LLC | 45.5 | Class B Common Stock |
| BlackRock, Inc. | 10.2 | Class A Common Stock |
| The Vanguard Group, Inc. | 8.1 | Class A Common Stock |
| State Street Corporation | 5.6 | Class A Common Stock |
Financial Performance
Vacasa, Inc. reported a net income (loss) attributable to Class A Common Stockholders of $41,448,000 for the three months ended September 30, 2024. This represents a recovery from a net loss of $228,192,000 during the same period in the previous year.
The company's revenue for the three months ended September 30, 2024 was $314,048,000, a decrease from $379,077,000 in the same period of 2023.
| Financial Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Revenue | $314,048,000 | $379,077,000 |
| Net Income (Loss) | $41,448,000 | $(228,192,000) |
| Gross Booking Value (GBV) | $670,135,000 | $830,094,000 |
Redeemable Non-controlling Interests
As of September 30, 2024, the redeemable non-controlling interests amounted to $18,967,000, reflecting the interests held by investors who have the right to redeem their shares under certain conditions.
Market Capitalization
The market capitalization of Vacasa, Inc. as of September 30, 2024, was approximately $1.4 billion, based on the trading price of Class A Common Stock.
These figures illustrate the ownership and financial landscape of Vacasa, Inc. as of 2024, providing insights into its share distribution, major shareholders, and financial performance metrics.
Vacasa, Inc. (VCSA) Mission Statement
Company Overview
Vacasa, Inc. is a leading vacation rental management company that specializes in providing full-service property management solutions for homeowners and guests. As of 2024, Vacasa aims to enhance the vacation rental experience by leveraging technology and customer service excellence.
Mission Statement
Vacasa's mission statement focuses on simplifying vacation rental management for homeowners while delivering exceptional experiences for guests. The company emphasizes its commitment to trust, transparency, and innovative technology to empower homeowners and enhance guest satisfaction.
Financial Performance Overview
As of September 30, 2024, Vacasa reported significant financial metrics that reflect its operational performance:
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Gross Booking Value (GBV) | $670.1 million | $830.1 million | -19% |
| Nights Sold | 1,624 | 2,047 | -21% |
| GBV per Night Sold | $413 | $406 | +1.7% |
| Revenue | $314.0 million | $379.1 million | -17% |
| Net Income (Loss) | $59.3 million | ($402.5 million) | — |
Revenue Breakdown
Vacasa's revenue is primarily derived from its vacation rental management services, along with additional services provided to homeowners:
| Revenue Source | Q3 2024 | Q3 2023 |
|---|---|---|
| Vacation Rental Platform | $307.7 million | $372.6 million |
| Other Services | $6.4 million | $6.5 million |
| Total Revenue | $314.0 million | $379.1 million |
Operational Metrics
The operational metrics for Vacasa highlight the challenges faced in the market:
| Operational Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Number of Homes on Platform | Decrease | Increase |
| Homeowner Retention Rate | Variable | Stable |
| Guest Demand | Decreased | Stable |
Future Outlook
Vacasa's strategy moving forward includes focusing on technology enhancements and improving homeowner and guest engagement to counteract the recent declines in performance. The company anticipates a continued emphasis on operational efficiency and market adaptation to enhance its service offerings.
Recent Developments
In August 2024, Vacasa entered into a note purchase agreement, issuing $30 million in convertible notes to bolster its cash position, reflecting its proactive approach to maintaining liquidity amidst market fluctuations.
As of September 30, 2024, Vacasa's cash and cash equivalents were reported at $124.4 million, indicating a need for careful financial management to navigate the ongoing economic challenges.
| Liquidity Position | Amount (in millions) |
|---|---|
| Cash and Cash Equivalents | $124.4 |
| Borrowings Under Revolving Credit Facility | $81.0 |
| Convertible Notes Issued | $30.0 |
How Vacasa, Inc. (VCSA) Works
Business Model
Vacasa, Inc. operates as a vacation rental management company that provides property management services for homeowners and booking services for guests. The company generates revenue primarily from its vacation rental platform by acting as an agent for homeowners, facilitating reservations, and charging commissions on rental income.
Key Financial Metrics
For the three months ended September 30, 2024, Vacasa reported:
- Revenue: $314.0 million
- Gross Booking Value (GBV): $670.1 million
- Nights Sold: 1.6 million
- GBV per Night Sold: $413
Comparatively, for the same period in 2023:
- Revenue: $379.1 million
- Gross Booking Value (GBV): $830.1 million
- Nights Sold: 2.0 million
- GBV per Night Sold: $406
The performance reflects a decrease in revenue by 17% and GBV by 19% year-over-year, attributed to lower guest demand and a decrease in the number of homes available on the platform.
Revenue Breakdown
For the nine months ended September 30, 2024, the revenue breakdown is as follows:
| Source | Revenue (in millions) | Change (YoY) |
|---|---|---|
| Vacation Rental Platform | $754.9 | -18% |
| Other Services | $17.6 | -22% |
| Total Revenue | $772.5 | -18% |
Cost Structure
The cost of revenue for the three months ended September 30, 2024, was $126.4 million, which represents 40% of total revenue. For the same period in 2023, the cost of revenue was $150.8 million, also 40% of total revenue.
Key components of operating costs include:
- Operations and Support: $54.5 million
- Technology and Development: $9.6 million
- Sales and Marketing: $39.9 million
- General and Administrative: $22.1 million
Profitability Metrics
For the three months ended September 30, 2024, Vacasa reported:
- Net Income: $59.3 million
- Net Income Attributable to Class A Common Stockholders: $41.4 million
- Net Income per Share (Basic): $2.22
- Net Income per Share (Diluted): $2.10
Balance Sheet Overview
As of September 30, 2024, Vacasa's balance sheet showed:
- Total Assets: $584.0 million
- Total Liabilities: $463.8 million
- Total Equity: $101.2 million
Operational Challenges
Vacasa's operational challenges include a decrease in the number of homes on its platform, lower guest demand, and increased supply in the market. The company continues to focus on optimizing pricing strategies and enhancing homeowner retention.
Debt and Liquidity
As of September 30, 2024, Vacasa had $81.0 million in borrowings outstanding under its Revolving Credit Facility, with an additional $23.4 million issued in letters of credit.
The company's liquidity position was assessed with a minimum liquidity requirement of $15.0 million, which it maintained.
How Vacasa, Inc. (VCSA) Makes Money
Revenue Generation Overview
Vacasa, Inc. primarily generates its revenue through its vacation rental platform, acting as an intermediary between homeowners and guests. The company earns commissions on nightly rentals and additional fees associated with reservations made through its platform.
Revenue Breakdown
The following table illustrates the revenue breakdown for the three and nine months ended September 30, 2024, compared to the same periods in 2023:
| Revenue Source | Three Months Ended September 30, 2024 (in thousands) | Three Months Ended September 30, 2023 (in thousands) | Nine Months Ended September 30, 2024 (in thousands) | Nine Months Ended September 30, 2023 (in thousands) |
|---|---|---|---|---|
| Vacation rental platform | $307,650 | $372,606 | $754,852 | $917,881 |
| Other services | $6,398 | $6,471 | $17,644 | $22,629 |
| Total Revenue | $314,048 | $379,077 | $772,496 | $940,510 |
Gross Booking Value (GBV)
GBV represents the total dollar value of bookings made through Vacasa's platform. The following table shows the GBV for the three and nine months ending September 30, 2024, compared to 2023:
| Metric | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| Gross Booking Value (GBV) | $670,135 | $830,094 | $1,602,206 | $1,973,749 |
| Nights Sold | 1,624 | 2,047 | 4,282 | 5,168 |
| GBV per Night Sold | $413 | $406 | $374 | $382 |
Cost Structure
Vacasa's cost of revenue consists mainly of employee compensation, operational support costs, and costs associated with service delivery. The following table summarizes the cost of revenue for the three and nine months ended September 30, 2024, compared to 2023:
| Cost Type | Three Months Ended September 30, 2024 (in thousands) | Three Months Ended September 30, 2023 (in thousands) | Nine Months Ended September 30, 2024 (in thousands) | Nine Months Ended September 30, 2023 (in thousands) |
|---|---|---|---|---|
| Cost of Revenue | $126,415 | $150,789 | $351,483 | $417,046 |
| Operations and Support | $54,459 | $64,998 | $171,937 | $187,662 |
| Total Operating Costs | $259,461 | $786,269 | $871,567 | $1,402,309 |
Net Income and Loss
Net income figures for the three and nine months ended September 30, 2024, show a significant loss compared to the same periods in 2023:
| Period | Net Income (Loss) (in thousands) |
|---|---|
| Three Months Ended September 30, 2024 | $59,259 |
| Three Months Ended September 30, 2023 | $(402,458) |
| Nine Months Ended September 30, 2024 | $(94,755) |
| Nine Months Ended September 30, 2023 | $(451,712) |
Future Outlook
Vacasa continues to face challenges, including lower guest demand and a decrease in the number of homes available on its platform. The company expects to enhance its operational efficiencies and adapt to evolving market conditions to drive future profitability.
As of September 30, 2024, Vacasa had cash and cash equivalents amounting to $124.4 million, with outstanding borrowings under a Revolving Credit Facility totaling $81.0 million.
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Resources:
- Vacasa, Inc. (VCSA) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Vacasa, Inc. (VCSA)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Vacasa, Inc. (VCSA)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.