The short-term vacation rental platform reports a net loss of $56 million to start the year despite booming revenue.
Vacation rental platform Vacasa reported a doubling in the value of bookings, thanks in part to an increase in the price travelers paid to book a home on the site in the first three months of this year.
People spent $494 million to stay in Vacasa-managed homes in the first quarter, the company told investors on Wednesday. This generated $247 million for the company, nearly doubling from the same period last year.
The steep increases weren’t enough to make the company profitable to start the year, and Vacasa reported a net loss of $56 million.
The company, which went public in decemberremains in growth mode with CEO Matt Roberts saying he was hiring salespeople quickly after adding about 200 last year.
This team focuses on finding second home owners, who are willing to offer home stays through the platform. It is also working on buying independent vacation property management companies to bring those homes to the platform.
“The return on investment for a new seller is very high,” Roberts said on a call with investors.
The primary goal was to bring independent homes to market, rather than acquiring property management companies, Roberts said.
The company believes it will increase its offerings by about 30% this year and is on track for full-year 2023 profitability, she said. This is despite the instability of the housing market and the broader stock market, as well as the ongoing runaway inflation.
Vacasa also thinks he is in some ways isolated. of a recession, much like Airbnb executives said last week when discussing their revenue so far this year.
“The breadth of our options across all of our destinations, we really value the luxury selection,” Roberts said. “We have these homes in a variety of price points to meet a wider range of consumer preferences.”
Roberts declined to give an update on the status of the technology’s installation in what had been each of the 35,000 homes he managed in February. He said an update would be given in a few months.
The company said it took two steps for hosts and for itself.
First, bookings through the platform have earned owners $1 billion over the past year, Vacasa said. This came from the $2 billion gross value of bookings generated during the same period.
The company’s $247 million in revenue for the first quarter marked a 91% increase over last year.
“Our business model continues to prove its strength, generating more than $2 billion in gross booking value over the past 12 months,” Vacasa Chief Financial Officer Jamie Cohen said in a statement.
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