San Francisco, March 15, 2024–(BUSINESS WIRE)–Sonder Holdings Inc. (NASDAQ:SOND, “Sonder” or the “Company”), a leading next-generation hospitality company redefining the guest experience through technology and design, today announced , postpones the release of its fourth quarter and full-year 2023 financial results.
The Company recently identified accounting errors related to the valuation and impairment of operating lease rights for assets in use and related items in 2022 and 2023. The Company requires additional time to restate its 2022 and 2023 financial statements (the “Affected Financial Statements”). Certain previously disclosed periods included in the Company's Current Report on Form 8-K filed on March 15, 2024 (the “Independent Periods”). Errors in operating lease rights for assets in use and related items described above are non-cash in nature and do not affect our cash balances or statements of cash flows reported in non-dependent periods. The Company expects the restatement to increase its overall net loss and loss per share in the affected periods.
The Company intends to file revised and affected financial statements as soon as practicable.
Today, Sonder also announced the following unaudited estimated fourth quarter and full year 2023 highlights.
-
revenue Approximately $164 million in the fourth quarter and approximately $603 million for full year 2023
-
RevPAR The fourth quarter was approximately $150 and the full year 2023 was approximately $151
-
occupancy rate 82% in Q4 and 82% in full year 2023
-
Number of nights bookable 1,092,000 people in the fourth quarter, 3,995,000 people in 2023
-
Operating cash flow1 The fourth quarter was approximately $34 million and the full year 2023 was approximately $108 million.
-
Free cash flow (excluding business restructuring costs and lease termination costs)2 Approximately $35 million in the fourth quarter and approximately $119 million for full year 2023
-
Total cash, cash equivalents and restricted cash Total proceeds are approximately $136.5 million, including approximately $40.7 million in restricted cash as of December 31, 2023
-
live unit 12,200 people as of December 31, 2023
-
Entire portfolio As of December 31, 2023, there were 16,000 people
Although the Company currently expects its ultimate results of operations and other data to be consistent with the expectations set forth above, such expectations are preliminary and actual results of operations and other data may vary depending on the completion of the financial reporting. Therefore, these forecasts may differ significantly. closing procedures, final adjustments, restatements and other developments that may occur between now and the time of issuance of the audited consolidated financial statements;
The Company plans to issue further press releases once the dates and times for its fourth quarter and full year 2023 financial results and investor conference call have been determined.
1 Operating cash flow includes the impact of other costs related to restructuring and headcount reductions, as well as the impact of costs related to lease terminations. Operating cash flow is cash used in operating activities.
2 This is a non-GAAP financial measure. For a reconciliation of our non-GAAP financial measures to the most directly comparable GAAP financial measures, please see the section titled “Reconciliation of Non-GAAP Financial Measures.”
About Sonder
Sonder (NASDAQ: SOND) is revolutionizing hospitality by combining innovative, technology-enabled services and inspiring, thoughtfully designed accommodations into one seamless experience. Founded in 2014, Sonder offers a variety of accommodation options, from spacious rooms to fully-equipped suites and apartments, in more than 40 markets across three continents and 10 countries. The Sonder app gives guests complete control over their stay. With self-service capabilities, easy check-in, and 24/7 on-site support, Sonder's amenities and services are just a tap away, opening up a world of better stays to everyone.
For more information, visit www.sonder.com or follow Sonder on Instagram, Linkedin, or on. X.
Download the Sonder app on Apple or Google Play.
Reconciliation of Non-GAAP Financial Measures: Reconciliation of cash used in operating activities and free cash flow (“FCF”)
|
(in thousands) |
quarter has ended |
year ended |
||||
|
Cash used in operating activities |
$ |
(33,610 |
) |
$ |
(107,648 |
) |
|
Cash used for investment activities |
(2,381 |
) |
(14,486 |
) |
||
|
FCF (including restructuring costs and lease termination costs) |
(35,991 |
) |
(122,134 |
) |
||
|
paid cash as restructuring costs |
– |
2,150 |
||||
|
Pay lease contract cancellation costs in cash |
1,026 |
1,026 |
||||
|
FCF (excluding restructuring costs and lease termination costs) |
$ |
(34,965 |
) |
$ |
(118,958 |
) |
definition
free cash flow
free cash flow (“FCF”) is defined as cash used in operating activities plus cash used in investing activities, adjusted for restructuring costs and lease termination costs. Free cash flow is a supplemental measure that does not conform to U.S. Generally Accepted Accounting Principles (“GAAP”). The most directly comparable GAAP financial measure is the combination of cash used in operating activities and cash used in investing activities. We believe that the proposed FCF, excluding restructuring and lease termination costs, is a key component of our internal focus to assess our progress toward achieving sustainable positive free cash flow. We believe it is meaningful to investors because it is a liquidity indicator. Sonder's FCF may differ from similarly titled metrics used by other companies due to different calculation methods. The presentation of these measures is not intended to be considered in isolation or as a substitute for or superior to financial information prepared and presented in accordance with GAAP. Additionally, this metric may not provide a complete picture of the Company's overall cash flow. Therefore, these metrics should be considered in conjunction with our GAAP cash flows.
RevPAR
Revenue per vacant room (“RevPAR”) represents the average revenue earned per available night and is calculated by dividing the revenue by the number of bookable nights or by multiplying the average daily rate by the occupancy rate. Average price per day (“ADR”) represents average revenue per night and is calculated as revenue divided by the number of occupied nights. occupancy rate It is defined as the number of occupied days divided by the number of available days and is expressed as a percentage. Number of nights bookable Represents the total number of nights available across all live units. This does not include nights lost due to a total property closure of more than 30 nights. occupied night Represents the total number of nights occupied across all live units.
Live unit and total portfolio
Entire portfolio Represents live units plus contract units. This includes units that have a signed real estate contract, regardless of whether that unit is available for guest reservation. This excludes units that are terminated (i.e., the lease has ended or has been allowed to expire). live unit Defined as units available for guest reservations on Sonder.com, the Sonder app, and other channels. Sonder can pay rent (or take advantage of pre-negotiated abatements) and earn revenue from these units. Number of contract units Sonder has a real estate contract for the unit, but guests are not yet able to book it. Sonder is not yet able to generate revenue from these divisions. Certain signed leases have contingencies or conditions that must be met before Sonder takes over the units, and we deduct these from the total contracted units based on our judgment as to the likelihood that the contingency or condition will occur. may exclude some parts of the lease. satisfaction.
Forward-looking statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are based on current expectations and beliefs and assumptions about future events. Forward-looking statements include all statements that are not historical facts and typically include words such as “may,” “estimate,” “expect,” “intend,” “may,” and ” “plan,” “potentially,” or “will” or similar expressions and their negatives. These statements include statements regarding our expectations related to the restatement of our financial statements, including the expected impact on our financial statements, anticipated material weaknesses, and the timing and nature of related filings with the SEC. Including, but not limited to: Preliminary financial and operating information contained herein. This may be adjusted in connection with the preparation and audit of our financial results and final fourth quarter and full year 2023 results. and our anticipated liquidity, cash flows and cash balances. These forward-looking statements are based on management's current expectations, estimates and beliefs, as well as numerous assumptions regarding future events. Actual results will be subject to a number of risks and uncertainties that are not expressed or implied by the forward-looking statements, including, but not limited to, the results of the review of the affected financial statements and uncertainties regarding the Company's controls and procedures. It may be very different from the actual one. , including the possibility that additional accounting errors or adjustments may be identified with respect to non-dependent periods or other periods. the possibility of further delays in our SEC filings; potential changes to the preliminary financial and operating data presented herein; uncertainties related to our liquidity, debt and capital resources; This includes the risk that our efforts to conserve cash will be unsuccessful and that additional capital or other sources of liquidity will not be available on acceptable terms or at all. the risk that we may not achieve positive free cash flow; risks and uncertainties related to our restructuring plans and portfolio optimization programs, including uncertainties related to the timing and extent of our lease modifications; and as set forth in the Company's SEC reports, including its most recent report on Form 8-K as of the date hereof, and its most recent annual report on Form 10-K and quarterly under the heading “Risk Factors.” Other risks and uncertainties. Report on Form 10-Q. The forward-looking statements contained herein speak only as of the date of this press release. Except as required by law, the Company undertakes no obligation to update or revise any forward-looking statements to reflect events or circumstances after the date of this press release.
View source version on businesswire.com. https://www.businesswire.com/news/home/20240315915416/ja/
contact address
media:
press@sonder.com
Investor:
ir@sonder.com
