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Sonder Holdings Inc. (SOND)·Q4 2024 Earnings Summary

Executive Summary

  • Q4 2024 revenue was $161.08M (-2% YoY); RevPAR rose 19% to $180 with occupancy at 85%, while Bookable Nights fell 18% due to portfolio optimization efforts .
  • Net income swung to $31.40M vs a $(111.99)M loss in Q4 2023, driven largely by a $(91.96)M favorable change in fair value of a forward contract tied to the August 2024 preferred stock transaction; Adjusted EBITDA improved to $(20.31)M from $(41.67)M YoY .
  • Operational KPIs improved (RevPAR, occupancy) as the company exited underperforming leases; full Marriott integration completed in Q2 2025, with properties live on Marriott channels under “Sonder by Marriott Bonvoy” .
  • Street estimates from S&P Global for Q4 2024 were unavailable; third-party trackers also showed N/A, limiting beat/miss analysis (S&P Global consensus unavailable).

What Went Well and What Went Wrong

What Went Well

  • RevPAR up 19% YoY to $180 and occupancy up 3 pts to 85%, reflecting improved mix/supply discipline and broader travel trends .
  • Adjusted EBITDAR up 20% YoY to $50.50M; Adjusted FCF improved YoY to $(25.57)M from $(36.78)M amid cost measures and exits .
  • Strategic Marriott licensing agreement: full integration completed in Q2 2025 with properties bookable across Marriott channels, enhancing demand access and sales reach .
    • “The Sonder by Marriott Bonvoy collection... available for booking on Marriott’s digital channels” .
    • Prior quarter tone on execution: “Our results demonstrate meaningful progress... generate increased revenue and cost efficiency” — Francis Davidson, CEO (Q3 commentary) .

What Went Wrong

  • Bookable Nights down 18% YoY to 897k as exits reduced available inventory and weighed on top-line (revenue down 2% YoY) .
  • Adjusted EBITDA remained negative at $(20.31)M; cash used in operating activities was $38.77M in Q4 2024 (roughly flat YoY) .
  • Persistent reporting delays and restatement-related overhang noted across 2024–2025; BTN highlighted delayed filings and portfolio reduction context .

Financial Results

MetricQ4 2023Q3 2024Q4 2024
Revenue ($USD Millions)$164.26 $162.00 $161.08
Net Income ($USD Millions)$(111.99) $(179.39) $31.40
EPS (Basic & Diluted, $USD)$(10.20) —$4.55
Adjusted EBITDA ($USD Millions)$(41.67) $(12.40) $(20.31)
Adjusted EBITDAR ($USD Millions)$41.93 $60.22 $50.50
Cash Used in Operating Activities ($USD Millions)$38.37 $(17.36) $38.77
Adjusted Free Cash Flow ($USD Millions)$(36.78) $(10.74) $(25.57)

KPIs

KPIQ4 2023Q3 2024Q4 2024
RevPAR ($USD)—$176 $180
Occupancy (%)—85% 85%
Bookable Nights (000s)—922 897
Live Units (000s)—10.1 9.9
Total Portfolio (000s)—11.2 10.7

Notes:

  • “—” indicates the company did not disclose the exact prior-period KPI value in these materials.

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueFY/Q1 2025+Not disclosedNot disclosedMaintained: no quantitative guidance in Q4 release
Adjusted EBITDAFY/Q1 2025+Not disclosedNot disclosedMaintained: no quantitative guidance in Q4 release
Adjusted FCF / Cash Flow Positive PlanFY/Q1 2025+Strategic intent onlyStrategic intent onlyMaintained strategic focus; no numeric targets in Q4 release
OI&E / Tax rateFY/Q1 2025+Not disclosedNot disclosedNo quantitative guidance
Dividends—NoneNoneNo dividends announced

Earnings Call Themes & Trends

Transcript for Q4 2024 was not available in the corpus or via public sources checked, limiting call-specific themes; trends below draw from company releases.

TopicPrevious Mentions (Q-2 and Q-1)Current Period (Q4 2024)Trend
Marriott integrationQ3 2024: First phase completed Oct 2024; Bonvoy members early access on Sonder.com . Q2 2024: Licensing agreement announced Aug 2024 (external context) .Full integration completed in Q2 2025; properties live on Marriott channels .Progressing to full distribution; potential demand uplift.
Portfolio optimizationQ3 2024: Accelerated exits (70 buildings exited by Sep 30) . Q2 2024: Ongoing downsizing (external) .110 buildings targeted; 85 finalized exits; 80 exited by year-end; all 85 exited by Jun 30, 2025 .Execution substantially complete; supply lower, mix improved.
KPIs (RevPAR/Occ/ADR)Q3 2024: RevPAR $176, occ 85% . Q2 2024: RevPAR/occ improvement YoY noted by external sources .RevPAR $180, occ 85%; Bookable Nights down 18% .Pricing/occupancy improvements; volume headwind from exits.
Liquidity/cashQ3 2024: Cash $76M incl. $49M restricted . Q2 2024: Liquidity actions noted (external) .YE 2024 cash+restricted $72.05M; operating cash use $(38.77)M in Q4 .Liquidity stable but constrained; continued cash use.
Regulatory/filingsQ3 2024: Filed delayed 10-Q; governance additions . Q2 2024: SEC/filing delays context (external) .Annual 10-K filed; continued forward-looking statement caution .Compliance improving; prior delays still an overhang.

Management Commentary

  • Strategic positioning: “Sonder entered into a long-term strategic licensing agreement with Marriott... completed the full Marriott integration in the second quarter of 2025,” underscoring channel reach and loyalty access .
  • Operational execution (prior quarter framing): “Our results demonstrate the meaningful progress we’re making to advance our core value drivers and generate increased revenue and cost efficiency,” said CEO Francis Davidson (Q3 release) .
  • Portfolio optimization explained: exits/renegotiations across ~110 buildings to mitigate losses and reset rent economics; 85 finalized exits by YE 2024, all exited by June 2025 .

Q&A Highlights

  • The Q4 2024 earnings call transcript could not be located across company IR, SEC-linked feeds, and third-party repositories checked (Seeking Alpha, Yahoo/Quartr, TradingView links referenced call scheduling but no transcript). As such, specific Q&A themes and guidance clarifications are unavailable .

Estimates Context

  • S&P Global consensus estimates for Q4 2024 revenue and EPS were unavailable through our data access at this time; MarketBeat shows “Consensus EPS: N/A; Expected Revenue: N/A” for Q4 2024, constraining beat/miss analysis .
  • Values retrieved from S&P Global were unavailable due to API limits for this period; therefore, we cannot assess performance vs Street for Q4 2024.

Key Takeaways for Investors

  • Mix-led KPI strength: RevPAR and occupancy gains offset volume declines from exits; margin and cash flow still negative but improving on a YoY basis .
  • Bold swing to profit: Net income of $31.40M vs a $(111.99)M loss in Q4 2023 was largely driven by non-operational fair value changes; adjust focus to Adjusted EBITDA/EBITDAR for operating trend assessment .
  • Distribution catalyst: Full Marriott integration expands demand funnels and corporate reach; monitor incremental bookings, ADR uplift, and Bonvoy-driven traffic over 2025 .
  • Supply discipline: Portfolio exits nearly complete; expect lower Bookable Nights but potential sustained RevPAR/occ benefits and lower property-level drag .
  • Liquidity watch: YE 2024 cash+restricted at $72.05M with continued operating cash outflows; assess runway vs restructuring and integration costs .
  • Estimate visibility: Lack of accessible consensus impeded beat/miss framing; near-term trading likely hinges on operational KPIs and Marriott traction rather than EPS prints .
  • Medium-term thesis: If RevPAR/occ uplift and Marriott distribution translate into sustained Adjusted EBITDA improvement and reduced cash burn, equity risk-reward improves; otherwise liquidity/lease liabilities remain key risks .

Additional Source Documents

  • Q4 2024 press release (Business Wire/IR) and furnished 8-K with full GAAP/non-GAAP reconciliations .
  • Q3 2024 8-K press release for prior-quarter trend data .
  • BTN context on delayed filings/portfolio reduction .