Sonder Holdings shares moved lower after Tuesday’s closing bell as the company reported revenue and earnings for the third quarter that missed Wall Street estimates.
Sonder shares were down 2% at US$8.50 following the release of its earnings report.
The alternative accommodation platform reported a 29% year-over-year increase in revenue to $160.9 million, short of estimates of $164.1 million.
It narrowed its loss from $6.83 per share to $5.86 per share, a greater loss than the forecast loss per share of $3.75.
Its revenue per available room (RevPAR) declined 3% over the year-ago quarter to $153.
Its average daily rate was down 2% year-over-year to $185 and its occupancy rate was 1% lower at 83%.
Sonder CEO and co-founder Francis Davidson wrote in a letter to shareholders that the company plans to undertake initiatives across pricing, sales, distribution, the performance of its newer cohorts and merchandising to address the company’s year-over-year decline in RevPAR.
“Another area of focus over the coming quarter will be to increasingly turn our attention towards the performance of our portfolio of products,” Davidson wrote in the letter.
“The majority are contributing positively to our cash flow, but many are dragging down profitability. Working with property owners to optimize our portfolio will be crucial to accelerate our timeline to sustainable cash flow positivity.”
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