Vacasa(US:VCSA)2024-11-08 21:57Financial Performance - Revenue for Q3 2024 was $314,048,000, a decrease of 17.2% compared to $379,077,000 in Q3 2023[20]. - Net income for Q3 2024 was $59,259,000, compared to a net loss of $402,458,000 in Q3 2023[21]. - Total operating costs and expenses decreased to $259,461,000 in Q3 2024 from $786,269,000 in Q3 2023, a reduction of 67.0%[20]. - Total comprehensive income for Q3 2024 was $59,128,000, compared to a loss of $403,060,000 in Q3 2023[21]. - The net loss for the period ending September 30, 2024, was $(53,086,000)[28]. - The company reported a net loss of $(255,105,000) for the year ending December 31, 2022[28]. - Revenue for the three months ended September 30, 2024, decreased by $65.0 million, or 17%, compared to the same period in 2023, primarily due to a $64.7 million decrease in revenue from the vacation rental platform[170]. - Revenue for the nine months ended September 30, 2024, decreased by $168.0 million, or 18%, compared to the same period in 2023, driven by a $162.9 million decrease in vacation rental platform revenue[177]. Assets and Liabilities - As of September 30, 2024, total assets decreased to $584.03 million from $663.55 million as of December 31, 2023, reflecting a decline of approximately 12%[17]. - Total current assets rose to $298.92 million, up from $265.85 million, indicating an increase of approximately 12%[17]. - Total equity decreased to $101.24 million from $131.05 million, a decline of approximately 23%[18]. - The accumulated deficit increased to $(1.29) billion from $(1.24) billion, showing a rise of about 4%[18]. - The total debt of the company was $105.46 million, a significant increase from $3.3 million as of December 31, 2023[81]. - The company had $81.0 million in borrowings outstanding under the Revolving Credit Facility as of September 30, 2024, compared to no borrowings as of December 31, 2023[90]. - The allowance for credit losses related to accounts receivable was $13.2 million as of September 30, 2024, up from $11.7 million as of December 31, 2023[57]. Cash Flow and Liquidity - Cash and cash equivalents increased to $124.36 million from $88.05 million, representing a growth of about 41%[17]. - Cash from operating activities for the nine months ended September 30, 2024, was a net loss of $94,755,000, an improvement from a loss of $451,712,000 in the same period of 2023[23]. - The company ended Q3 2024 with cash, cash equivalents, and restricted cash totaling $256,941,000, down from $313,618,000 at the end of Q3 2023[25]. - The company anticipates that existing sources of liquidity will be sufficient to fund operations for at least the next 12 months[42]. - The company is required to maintain a minimum liquidity of at least $15.0 million as of the last date of each fiscal quarter[89]. Operational Changes and Workforce - The company is undergoing a reorganization plan aimed at reducing fixed costs and improving efficiency, which involves significant structural changes and risks[39]. - The Company incurred severance and employee benefits costs of approximately $5.9 million during the nine months ended September 30, 2024, due to a workforce reduction affecting approximately 800 positions, or 13% of the workforce[140]. - The company implemented a workforce reduction plan in May 2024, eliminating approximately 800 positions, which is about 13% of its workforce[159]. - The company expects to align its cost base with strategic priorities through ongoing workforce reduction plans, including a 2024 plan that eliminated approximately 320 positions[161]. Impairment and Expenses - The company incurred impairment of long-lived assets totaling $84,000,000 for the nine months ended September 30, 2024[23]. - The company recorded long-lived asset impairment charges of $84.0 million for the nine months ended September 30, 2024, compared to $46.0 million for the same period in 2023[66]. - Amortization of intangible assets decreased by $13.3 million, or 87%, for the three months ended September 30, 2024, primarily due to the lower carrying value of homeowner contracts[201]. - Depreciation expense decreased by $3.2 million, or 20%, for the nine months ended September 30, 2024, due to decreased capital spending[202]. Market and Competitive Environment - The company is focused on enhancing its platform and services to attract and retain homeowners and guests amid competitive challenges[14]. - The company continues to face significant variability in guest booking patterns, which is expected to adversely impact its financial condition and results of operations[149]. - The company has wound down its real estate buy/sell brokerage services during 2023, impacting revenue from these services[174]. - The company continues to experience evolving guest booking patterns, which complicate forecasting and negatively affect homeowner retention[175]. Stock and Equity Compensation - The company had 1,090 thousand outstanding Restricted Stock Units (RSUs), with an unrecognized compensation expense of $11.5 million related to unvested RSUs[101]. - The Company reported 24 thousand Stock Appreciation Rights (SARs) outstanding as of September 30, 2024, with a weighted average exercise price of $64.03[104]. - Vacasa had 120 thousand stock options outstanding as of September 30, 2024, with a weighted average exercise price of $22.69[105]. - The total equity-based compensation expense for the three months ended September 30, 2024, was $2.463 million, compared to $3.974 million for the same period in 2023[112]. Tax and Legal Matters - The Company is currently under audit by various domestic tax authorities regarding hospitality and sales tax matters, which could affect its potential obligations[126]. - The Company believes it has meritorious defenses against ongoing litigation and does not expect these matters to have a material adverse effect on its financial statements[135].