Hospitality company Sonder says it felt the effects of the omicron variant in the first quarter of 2022, noting in its earnings report that “the financial results we posted from March 2020 until March 2022 are not representative of the power and full potential of our business.”
Founded in 2014, Sonder made its debut on the public markets via a special purpose acquisition company (SPAC) created through a business combination with Gores Metropoulos II in January of this year.
For Q1 2022, Sonder revenue was $80.5 million, a 155% increase compared to Q1 2021, fueled by year-over-year RevPAR and live unit growth. However, the figure is down from revenue of $87 million the previous quarter. The company says Q1 2022 revenue was impacted by RevPAR compression “in excess of our typical seasonality patterns due to the emergence of the omicron variant.”
The revenue impact also impacted its profitability measures in Q1 2022 – adjusted EBITDA for the period was negative $83.5 million – but the company “continued to demonstrate year-over-year progress in our profitability margins,” with property level profit margin improving by 3,300 bps and adjusted EBITA margin improving by 6,400 pbs year-over-year.
RevPAR for the period was $117, a 52% improvement over the first quarter of 2021.
Net income was $22.4 million, with net income margin improving to 28% in Q1 2022 compared to negative 249% in Q1 2021. Adjusted EBITDA margin improved to negative 104% in the first quarter of 2022 from negative 167% in Q1 2021.
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