Record Q2 2021 Revenue of $47.3M, Up 151%
YoY
$100 Revenue per Available Room, Up 112% YoY
and 30% vs. Q1 2021
Raises Outlook for FY 2021 Total Revenue to
$180M - $190M vs. Initial Outlook of $173M
Sonder Holdings Inc. (“Sonder” or the “Company”), a leading
next-generation hospitality company that is redefining the guest
experience through technology and design, today announced financial
results for the three months ended June 30, 2021. Sonder delivered
its strongest quarterly revenue in the Company’s history, driven by
a robust recovery of leisure travel demand and the continued rapid
expansion of its Live Unit portfolio.
“Q2 was an outstanding quarter for Sonder. We delivered our
highest single quarter revenue in the Company’s history and more
than doubled RevPAR year-over-year,” said Francis Davidson,
Co-Founder and Chief Executive Officer of Sonder. “Our stellar
results are a testament to our ability to attract and delight
guests, as traveler preferences have evolved to seek out modern,
tech-enabled spaces that fit a variety of needs and lifestyles. The
inspired, tech-enabled design, consistent quality and compelling
value that are hallmarks of the Sonder brand also position us to
serve emerging travel trends such as long-term stays and digital
nomadism.”
Davidson continued, “We continue to outperform traditional hotel
RevPAR during the pandemic – by at least 40% in each of the past
two quarters. Our Total Portfolio continues to expand rapidly and
we’re on track to surpass 18,000 units by end of year, which gives
us confidence in our ability to hit the aggressive growth targets
we’ve set for 2022 and beyond.”
“Given the strong RevPAR outperformance through the first half
of the year, and the rapid addition of new units to our portfolio,
we are raising our outlook for 2021 Total Revenue,” said Sanjay
Banker, President and Chief Financial Officer of Sonder. “This
increase from our initial outlook reflects Sonder’s belief that the
recent surge in leisure travel recovery is sustainable and our
proven ability to capitalize on this demand for better stays at an
exceptional value.”
The rebound in travel demand was underscored in a recent Sonder
report, conducted in partnership with Ipsos, indicating that a
majority of U.S. adults have plans for personal travel in the
coming months. In the nationwide survey of U.S. adults 18 years or
older, roughly two-thirds (62%) of survey respondents indicated
they will travel for personal reasons before the end of 2021.
Another six-in-ten (59%) Americans were interested in being a
“digital nomad” – or working remotely on a long-term trip – with
interest higher among younger adults aged 18-34 (74%), followed
closely by those planning to travel with kids (69%).
Second Quarter 2021 Financial Results and Corporate
Highlights
- Total Revenue of $47.3 million, a 151% year-over-year increase
and a 50% increase over Q1 2021
- $100 Revenue per Available Room (“RevPAR”), a 112%
year-over-year increase and a 30% increase over Q1 2021
- 40% RevPAR outperformance versus traditional hotels (upper
upscale hotels in cities where Sonder operates), up from a 10%
discount to traditional hotels in Q2 2019 (normalized for
pre-pandemic)
- Strong Occupancy Rate of 68%, up from 57% in Q2 2020 and 66% in
Q1 2021
- Total Portfolio of approximately 5,500 Live Units and
approximately 15,000 total Live and Contracted Units as of June 30,
2021
- Expansion into Amsterdam, Sonder’s seventh city in Europe, with
the opening of a historic property built in 1860 overlooking the
famous Vondelpark in the center of the city
- Announced corporate travel offering with launch on the Global
Distribution System (GDS) and partnerships with a number of top
travel management companies and consortia. Companies can now use
Sonder for their business travel bookings, unlocking a significant
new market opportunity for Sonder
Financial Outlook
Sonder is updating its outlook for its full year ending December
31, 2021 as follows:
- Total Revenue between $180 and $190 million, increasing initial
outlook by 4% to 10%, and implying 2021 total annual revenue growth
of 56% to 64%
- Re-affirming outlook for Adjusted EBITDA loss of ($257)
million
Financial Summary and Operating Results
Metric
Q2 2021
Q2 2020
Δ YoY
Revenue (000s)
$47,269
$18,841
151%
GAAP Gross Profit (Loss) (000s)
$3,524
($9,546)
$13,070
GAAP Gross Margin
7%
(51%)
58%
Net Loss (000s)
($73,949)
($60,799)
($13,150)
Live Units
5,500
4,300
28%
Total Portfolio
14,800
11,400
30%
Bookable Nights
473,393
399,698
18%
Occupied Nights
320,631
227,839
41%
Occupancy Rate
68%
57%
19%
Average Daily Rate (ADR)
$147
$83
77%
Revenue per Available Room (RevPAR)
$100
$47
112%
Adj. Gross Profit (Loss) (000s)
$6,712
($5,781)
$12,494
Adj. Gross Margin
14%
(31%)
45%
Property Level Profit (Loss) (000s)
($9,648)
($13,170)
$3,522
Property Level Profit (Loss) Margin
(20%)
(70%)
49%
Adj. EBITDA (000s)
($54,610)
($41,045)
($13,565)
Combination with Gores Metropoulos II
As previously announced on April 30, 2021, Sonder entered into
an agreement to combine with Gores Metropoulos II, Inc. (“GMII”)
(Nasdaq: GMIIU, GMII and GMIIW), a special purpose acquisition
company sponsored by affiliates of The Gores Group, LLC and
Metropoulos & Co. As part of the transaction, Sonder and GMII
raised a $200 million fully committed PIPE, led by an affiliate of
The Gores Group, with participation from sophisticated
institutional investors, including Fidelity Management &
Research Company LLC, funds and accounts managed by BlackRock,
Atreides Management, LP, entities affiliated with Moore Capital
Management, Principal Global Investors, LLC, and Senator Investment
Group. The closing of the transaction and PIPE financing, which is
expected to occur in the second half of 2021, is subject to certain
customary closing conditions, including, among others, regulatory
review and approval by GMII’s stockholders.
About Sonder
Sonder is revolutionizing hospitality through innovative,
tech-powered service and inspiring, thoughtfully designed
accommodations combined into one seamlessly managed experience.
Officially launched in 2014 and headquartered in San Francisco,
Sonder is making a world of better stays open to all with a variety
of accommodation options — from rooms to suites and apartments —
with Live Units in 35+ markets spanning nine countries and three
continents. Sonder’s innovative app empowers guests by making
self-service features and 24/7 on-the-ground support just a tap
away. From simple self check-in to boutique bathroom amenities, we
bring the best of a hotel without any of the formality.
To learn more, visit www.sonder.com or follow Sonder on
Facebook, Twitter or Instagram. Download the Sonder app on Apple or
Google Play.
About Gores Metropoulos II, Inc.
Gores Metropoulos II, Inc. (“GMII”) (Nasdaq: GMIIU, GMII and
GMIIW) is a special purpose acquisition company sponsored by an
affiliate of The Gores Group, LLC, a global investment firm founded
in 1987 by Alec Gores, and by an affiliate of Metropoulos & Co.
whose Principals are Dean, Evan and Daren Metropoulos. GMII was
formed for the purpose of entering into a merger, capital stock
exchange, asset acquisition, stock purchase, reorganization or
similar business combination with one or more businesses. Mr. Gores
and Mr. Metropoulos together have more than 65 years of combined
experience as entrepreneurs, operators and investors across diverse
sectors including industrials, technology, media and entertainment,
business services, healthcare and consumer products and services.
Over the course of their careers, Mr. Gores and Mr. Metropoulos and
their respective teams have invested in more than 180 portfolio
companies through varying macroeconomic environments with a
consistent, operationally-oriented investment strategy. For more
information, please visit www.gores.com.
Sonder’s Use of Non-GAAP Financial Measures
Sonder supplements its consolidated financial statements
presented in accordance with generally accepted accounting
principles in the United States (“GAAP”), by providing additional
financial measures that are not prepared in accordance with GAAP,
including Adjusted Gross Profit (Loss), Property Level Costs,
Property Level Profit (Loss) and Adjusted EBITDA. Sonder believes
that the disclosure of these non-GAAP financial measures provides
investors with additional information that reflects the amounts and
financial basis upon which Sonder’s management assesses and
operates its business. Sonder’s definition may differ from the
definitions used by other companies and therefore comparability may
be limited. In addition, other companies may not publish these or
similar metrics. These non-GAAP financial measures should not be
viewed in isolation or as a substitute for, or superior to,
measures prepared in accordance with GAAP.
Key Terms
Sonder’s Total Portfolio represents Live Units plus
Contracted Units. This includes any unit that has a signed real
estate contract, regardless of whether or not the unit is available
for guests to book. This excludes any units that have been dropped
(i.e., the lease was terminated or allowed to expire). Live
Units are defined as units which are available for guest
bookings on Sonder.com, the Sonder app and other channels. Sonder
pays rent (or utilizes pre-negotiated abatement) and is able to
generate revenue from these units. Contracted Units are
units for which Sonder has signed real estate contracts, but are
not yet available for guests to book. Sonder is not yet able to
generate revenue from these units.
Sonder defines Occupancy Rate (“OR”) as Occupied Nights
divided by Bookable Nights, expressed as a percentage. Bookable
Nights represent the total number of nights available for stays
across all Live Units. This excludes nights lost to full building
closures of greater than 30 nights. Occupied Nights
represents the total number of nights occupied across all Live
Units.
Revenue Per Available Room (“RevPAR”) represents the
average revenue earned per available night, and is calculated
either by dividing revenue by Bookable Nights, or by multiplying
Average Daily Rate by Occupancy Rate. Average Daily Rate
(“ADR”) represents the average revenue earned per night occupied
and is calculated as revenue divided by Occupied Nights.
Adjusted Gross Profit (Loss) represents GAAP gross profit
(loss) impacted by the GAAP rent to Landlord Payment adjustment,
expressed in U.S. dollars. GAAP gross profit (loss) is
defined as revenue less cost of revenue (excluding depreciation and
amortization). Landlord Payments represent Non-GAAP payments
to real estate owners recognizing abatement at the time it is
utilized (often at the commencement of a real estate contract),
expressed in U.S. dollars. This recognizes the economic substance
of the payment to real estate owners as reflected in the real
estate contract.
Property Level Profit (Loss) (PLP or PLL) represents GAAP
gross profit (loss) (i) impacted by the GAAP rent to Landlord
Payment adjustment, and (ii) less Property Level Costs, expressed
in U.S. dollars. Property Level Costs (PLC) represent
variable costs directly associated with each of Sonder’s buildings,
expressed in U.S. dollars. These costs include (i) channel fees
paid to Online Travel Agencies (OTAs), (ii) customer service costs,
(iii) laundry/consumables costs, (iv) maintenance costs, and (v)
utilities & insurance costs.
Adjusted EBITDA represents GAAP profit (loss) from
operations (i) impacted by the GAAP rent to Landlord Payment
adjustment and (ii) excluding the impact of depreciation,
stock-based compensation, COVID-19 pandemic related
offboardings/other (costs associated with dropping units at the
beginning of the COVID-19 pandemic), and cash payments from real
estate owners received for capital expenditure financing, expressed
in U.S. dollars.
Additional Information and Where to Find It
Additional information about the proposed business combination,
including a copy of the Merger Agreement provided in a Current
Report on Form 8-K filed by GMII with the SEC on April 30, 2021,
and a copy of an updated investor presentation provided in a
Current Report on Form 8-K filed by GMII with the SEC on July 7,
2021, is available at www.sec.gov. In connection with the proposed
business combination, GMII has filed a registration statement on
Form S-4 (the “Registration Statement”) that includes a preliminary
proxy statement, prospectus and consent solicitation statement with
respect to GMII’s securities to be issued in connection with the
proposed business combination. The Registration Statement is not
yet effective. The Registration Statement, including the proxy
statement/prospectus/consent solicitation statement contained
therein, when it is declared effective by the SEC, will contain
important information about the proposed business combination and
the other matters to be voted upon at a meeting of GMII’s
stockholders to be held to approve the proposed business
combination and other matters (the “Special Meeting”) and is not
intended to provide the basis for any investment decision or any
other decision in respect of such matters. GMII may also file other
documents regarding the proposed business combination with the SEC.
GMII stockholders and other interested persons are advised to read,
when available, the Registration Statement and the proxy
statement/prospectus/consent solicitation statement, as well as any
amendments or supplements thereto, because they will contain
important information about the proposed business combination.
When available, the definitive proxy
statement/prospectus/consent solicitation statement will be mailed
to GMII stockholders as of a record date to be established for
voting on the proposed business combination and the other matters
to be voted upon at the Special Meeting. GMII investors and
securityholders will also be able to obtain copies of the
definitive proxy statement/prospectus/ consent solicitation
statement, without charge, once available, at the SEC’s website at
www.sec.gov or by directing a request to: 6260 Lookout Road,
Boulder, CO 80301, attention: Jennifer Kwon Chou, or by contacting
Morrow Sodali LLC, GMII’s proxy solicitor, for help, toll-free at
(800) 662-5200 (banks and brokers can call collect at (203)
658-9400).
Participants in Solicitation
GMII, Sonder and their respective directors and officers may be
deemed participants in the solicitation of proxies of GMII
stockholders in connection with the proposed business combination.
GMII stockholders and other interested persons may obtain, without
charge, more detailed information regarding the interests of those
persons and other persons who may be deemed participants in the
proposed business combination by reading GMII’s registration
statement on Form S-1 (File No. 333-251663), which was declared
effective by the SEC on January 19, 2021, and the proxy
statement/prospectus/consent solicitation statement regarding the
proposed business combination.
You may obtain free copies of these documents as described in
the preceding paragraph.
Forward-Looking Statements
This press release contains a number of “forward-looking
statements” as defined in the Private Securities Litigation Reform
Act of 1995. Forward-looking statements include, but are not
limited to, statements about Sonder’s forecasted revenue growth
(including Sonder’s outlook for Total Revenue and Adjusted EBITDA
for the year ended December 31, 2021), Sonder’s growth in total
unit portfolio (including Sonder’s forecast for growth in Total
Portfolio for the year ended December 31, 2021), information
concerning GMII’s or Sonder’s possible or assumed future financial
or operating results and metrics, business strategies, debt levels,
competitive position, industry environment, potential growth
opportunities, future operations, products and services, planned
openings, expected unit contractings and the effects of regulation,
including whether the proposed business combination will generate
returns for stockholders. These forward-looking statements are
based on GMII’s or Sonder’s management’s current expectations,
estimates, projections and beliefs, as well as a number of
assumptions concerning future events. When used in this press
release, the words “estimates,” “projected,” “expects,”
“anticipates,” “forecasts,” “plans,” “intends,” “believes,”
“seeks,” “may,” “will,” “should,” “future,” “propose” and
variations of these words or similar expressions (or the negative
versions of such words or expressions) are intended to identify
forward-looking statements. These forward-looking statements are
not guarantees of future performance, conditions or results, and
involve a number of known and unknown risks, uncertainties,
assumptions and other important factors, many of which are outside
GMII’s or Sonder’s management’s control, that could cause actual
results to differ materially from the results discussed in the
forward-looking statements. Sonder’s full year Total Revenue and
Adjusted EBITDA at year end may differ materially from the outlook
above, which is not a comprehensive statement of Sonder’s financial
results. These risks, uncertainties, assumptions and other
important factors include, but are not limited to: (a) the
occurrence of any event, change or other circumstances that could
give rise to the termination of the Merger Agreement and the
proposed business combination contemplated thereby; (b) the
inability to complete the proposed business combination due to the
failure to obtain approval of the stockholders of GMII or other
conditions to closing in the Merger Agreement; (c) the ability to
meet Nasdaq’s listing standards following the consummation of the
proposed business combination; (d) the inability to complete the
PIPE; (e) the risk that the proposed business combination disrupts
current plans and operations of Sonder or its subsidiaries as a
result of the announcement and consummation of the transactions
described herein; (f) the ability to recognize the anticipated
benefits of the proposed business combination, which may be
affected by, among other things, competition, the ability of the
combined company to grow and manage growth profitably, maintain
relationships with customers and suppliers and retain its
management and key employees; (g) costs related to the proposed
business combination; (h) changes in applicable laws or
regulations, including legal or regulatory developments (such as
the SEC’s statement on accounting and reporting considerations for
warrants in special purpose acquisition companies); (i) the
possibility that Sonder may be adversely affected by other
economic, business and/or competitive factors; (j) risks related to
the impact of the COVID-19 pandemic, including the Delta variant
and potential governmental and other restrictions (including travel
restrictions) resulting therefrom; and (k) other risks and
uncertainties described in the final proxy
statement/prospectus/consent solicitation statement, including
those under the heading “Risk Factors” therein, and other documents
filed by GMII from time to time with the SEC. You are cautioned not
to place undue reliance upon any forward-looking statements, which
speak only as of the date made. Except as required by law, neither
GMII nor Sonder undertakes any obligation to update or revise its
forward-looking statements to reflect events or circumstances after
the date of this release. Additional risks and uncertainties are
identified and discussed in GMII’s reports filed and to be filed
with the SEC and available at the SEC’s website at www.sec.gov.
No Offer or Solicitation
This communication relates to a proposed business combination
between GMII and Sonder. This document does not constitute an offer
to sell or exchange, or the solicitation of an offer to buy or
exchange, any securities, nor shall there be any sale of securities
in any jurisdiction in which such offer, sale or exchange would be
unlawful prior to registration or qualification under the
securities laws of any such jurisdiction.
SONDER HOLDINGS INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(In thousands, except number
of shares information)
(unaudited)
Three Months Ended June
30,
2021
2020
Revenue
$
47,269
$
18,841
Cost of revenue (excluding depreciation
and amortization)
43,745
28,387
Operations and support
34,889
22,641
General and administrative
24,615
15,156
Research and development
4,066
3,999
Sales and marketing
4,888
2,923
Total costs and expenses
112,203
73,106
Loss from operations
(64,934)
(54,265)
Interest expense, net and other expense
(income), net
Interest expense, net
12,522
1,669
Other expense (income), net
(3,577)
4,862
Total interest expense, net and other
expense (income), net
8,945
6,531
Loss before income taxes
(73,879)
(60,796)
Provision for income taxes
70
3
Net loss
$
(73,949)
$
(60,799)
Net loss per share, basic and diluted
$
(9.41)
$
(9.86)
Weighted average shares outstanding of
common stock, basic and diluted
7,857,000
6,167,073
Other comprehensive loss:
Net loss
$
(73,949)
$
(60,799)
Change in foreign currency translation
adjustment
1,689
4,990
Comprehensive loss
$
(72,260)
$
(55,809)
SONDER HOLDINGS INC. AND
SUBSIDIARIES
RECONCILIATION OF GAAP GROSS
PROFIT (LOSS) TO ADJUSTED GROSS PROFIT (LOSS) TO PROPERTY LEVEL
LOSS
(In thousands)
(unaudited)
Three Months Ended June
30,
2021
2020
GAAP Gross profit (loss)
$
3,524
$
(9,546)
GAAP rent to Landlord Payments
adjustment:
GAAP rent to landlords
38,268
26,416
Landlord Payments
(35,080)
(22,651)
GAAP rent to Landlord Payments
adjustment
3,188
3,765
Adjusted Gross Profit (Loss)
6,712
(5,781)
Gross margin
7.5
%
(50.7)
%
GAAP rent to Landlord Payments Margin
6.7
%
20.0
%
Adjusted Gross Margin
14.2
%
(30.7)
%
Property Level Costs
16,360
7,389
Property Level Loss
$
(9,648)
$
(13,170)
Property Level Loss Margin
(20.4)
%
(69.9)
%
SONDER HOLDINGS INC. AND
SUBSIDIARIES
RECONCILIATION OF NET LOSS TO
EBITDA AND ADJUSTED EBITDA
(In thousands)
(unaudited)
Three Months Ended June
30,
2021
2020
Net loss
$
(73,949)
$
(60,799)
Interest expense, net
12,522
1,669
Provision for income taxes
70
3
Depreciation and amortization
4,213
4,206
EBITDA
(57,144)
(54,921)
GAAP rent to Landlord Payments
adjustment
3,188
3,765
Stock-based compensation
2,448
1,742
Other expense (income), net
(3,577)
4,862
COVID-19 related offboardings
—
3,507
FF&E allowance realized1
475
—
Adjusted EBITDA
$
(54,610)
$
(41,045)
_______________________________ 1 Represents cash payments from
real estate owners received for capital expenditures financing
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210810005940/en/
For Sonder: Media Contacts press@sonder.com
Investor Contacts Chris Mammone, The Blueshirt Group
ir@sonder.com For The Gores Group and affiliates: Jennifer
Kwon Chou Managing Director The Gores Group 310-209-3010
jchou@gores.com OR John Christiansen/Cassandra
Bujarski/Danya Al-Qattan Sard Verbinnen & Co
GoresGroup-SVC@sardverb.com
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