Good morning from Skift. It’s Thursday, September 14. Here’s what you need to know about the business of travel today.
25.08.2023 - 14:03 / skift.com / Dennis Schaal / Francis Davidson
Property manager Sonder, which continued to tout itself as “a leading next-generation hospitality company that is redefining the guest experience through technology and design,” laid off 14 percent of its corporate workforce.
The company emphasized last year that it was committed to achieving positive free cash flow in 2023, but now seems to be backing away from that pledge and isn’t providing guidance beyond the first quarter, which ends March 31.
CEO Francis Davidson this week tied the firing of these 100 workers to “ongoing macro uncertainty.” The job cuts would lead to $10 million in savings annually, he said. Last June, Sonder laid off 21 percent of its corporate staff and 7 percent of workers in local roles.
Sonder announced its fourth quarter and full-year 2022 earnings Wednesday, and closed trading the next day with its stock trading at $0.87 per share, essentially at a penny stock level. Sonder made its Nasdaq debut as a public company on January 19, 2022 at $8.95 per share. Its market cap Thursday was a paltry $191 million.
In the fourth quarter of 2022, Sonder notched a net loss of $54.8 million compared with $77.3 million loss a year earlier. Sonder’s fourth quarter revenue increased 55 percent to $134.7 million.
In terms of guidance, Chief Accounting Officer Christopher Berry said during the company’s fourth quarter earnings call Wednesday, “For the first quarter of 2023, we expect revenue of better than $110 million representing 37 percent year-over-year growth. I want to remind everyone that Q1 has historically been our seasonally weakest quarter of the year, and we anticipate a similar pattern again this year. For Q1 2023, we expect free cash flow of better than negative $45 million before restructuring costs.”
He added that the company would not provide guidance for full-year 2023.
Last June, Davidson said the company was “fully committed to achieving positive quarterly free cash flow within 2023.”
But Wednesday he seemed to lower expectations, saying “our focus remains on reaching our first quarter of positive free cash flow in 2023.”
Berry said Sonder has seen a slowdown of new property signings over the last few months.
Good morning from Skift. It’s Thursday, September 14. Here’s what you need to know about the business of travel today.
Denver-based property manager Evolve is laying off 20% of its workforce, Skift has learned.
If you follow the short-term rental industry, you would have read or heard Sonder touting itself as “a leading next-generation hospitality company that is redefining the guest experience through technology and design” countless times.
In a second round of cuts since mid-year, property manager AvantStay laid off 144 staffers, about 22 percent of its workforce, according to a published report from Short Term Rentalz.
Good morning from Skift. It’s Thursday, November 10. Here’s what you need to know about the business of travel today.
Property manager Sonder is positioning itself long-term to take advantage of higher-spending business travelers, and added 200 corporate travel accounts — and a former CWT CEO to its board — during the third quarter.
Airbnb’s move to get more transparent and show up-front a stay’s total price before taxes in most of the world outside Europe will have a ripple effect across much of the short-term rental sector because of the company’s substantial influence.
Property manager Sonder did something that Airbnb can’t and most management companies have been loathe to do — the company eliminated cleaning fees for guests.
Vacation rental property manager Vacasa is eliminating 1,300 positions, which was 17 percent of its workforce, as the company determined it had to make deeper improvements to operations. The firings took place Tuesday, just three months after the company axed 280 staffers.
Tripadvisor is overturning the management structure of its operational teams to address a lack of execution and product deficiencies in its core business, which includes click-based hotel advertising, subscriptions and display ads, experiences and dining.
Tripadvisor filled in the blanks, naming two executive appointments to flesh out a reorganization of its core business that the company disclosed during its fourth quarter earnings call a week ago.
Five years ago, Airbnb toyed with the idea of launching a a “superguest” loyalty program, but CEO Brian Chesky seemed to shoot down the notion of a rewards program a couple of weeks ago.