Vacasa - Q4 2021

Transcript

Speaker 0

Good evening, and thank you for attending the Vacaaso 4th Quarter 2021 Earnings Call. My name is Selena, and I will be your moderator. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. I would now like to pass the conference over to our host, Brian Domaczek with Vacasa. Please go ahead.

Speaker 1

Good afternoon, everyone, and thanks for joining us today for Vacasa's Q4 2021 earnings call. I'm pleased to be joined by CEO, Matt Roberts and CFO, Jamie Cohen. Before we begin, let me cover a few administrative details. This call contains information that speaks only as of the date of today's live broadcast, and redistribution of this broadcast is prohibited. We have posted a shareholder letter and press release on the IR section of our website at investors.

Bacasa.com that will be referenced by our speakers. Comments made during this conference call and in our shareholder letter and press release may contain statements that are commonly referred to as forward looking statements. Such statements about future expectations, beliefs, plans, projections, strategy, targets, estimates, objectives, events, We caution you that various factors could cause actual results to differ from those we anticipated. For additional information concerning these risks and uncertainties, please read the forward looking statements section in the press release In our shareholder letter we issued earlier today in the forward looking statements and risk factors section outlined in our filings with the SEC. During this call, we will discuss certain non GAAP financial measures.

Information regarding our non GAAP financial results, including a reconciliation of non GAAP results The most directly comparable financial measures can be found in our press release and shareholder letter. These non GAAP measures should be considered in addition to our GAAP results and are not intended to be a substitute for our GAAP results. And now, I'd like to hand the call over to Matt Roberts.

Speaker 2

Matt? Good afternoon, everyone, and thank you for joining the Picasa's first earnings call as a publicly traded company. In early December, we started trading on the NASDAQ And added over $340,000,000 of gross cash proceeds to our balance sheet, leaving us well capitalized for the tremendous growth opportunity in front of us. I recognize that many of you on the call today are new to the Casa So I want to spend some time providing background on our company. Next, I'll touch on the substantial progress we made in 2021 before handing it over to Jamie Cohen, our CFO to cover our strong financial results and 2022 guidance.

Our business is performing extremely well. We are delivering solid financial performance, executing on our technology roadmap And expanding our growth engine, all of which extends our leadership position. While this is our first earnings As a publicly traded company, we have been sharing projections and reporting on our progress throughout most of 2021 And it's clear our business has incredible momentum. We've consistently beat and raised versus our initial projections. First, we beat Q2 and raised Q3, then we beat the high end of Q3 and raised Q4, then we beat the high end of Q4 and now we're raising our We also expect the business to reach adjusted EBITDA profitability for the full year 2023.

Okay. So a quick overview of our company. Pacasa is reinventing the vacation rental industry By leveraging proprietary purpose built technology to create a better experience for everyone involved, homeowners, guests and channel partners. Alternative accommodations is one of the fastest growing categories in travel with tremendous consumer demand. Our primary focus is on the supply side of the vacation rental ecosystem, which is highly constrained and ripe for innovation.

As the only scaled national vacation rental management platform, we play a critical role In fueling the alternative accommodations growth engine, we operate in a massive market with fantastic secular trends. There are more than 5,000,000 vacation homes in the United States alone and 20,000,000 globally. And from a guest perspective, the Preference shift towards alternative accommodations started over a decade ago, driven by both technology enablement and expanding appeal The vacation rental management industry is a local marketplace perfectly set up for disruption. Just think about the status quo of renting out a vacation home. Some people do it themselves, which is a ton of work To properly set up your home, effectively market and price availability and service all the guests' needs, Including answering the phone call at 2 o'clock in the morning because the heater is out at the ski lodge.

Or you can enlist a local vacation rental manager, But their fragmented nature and relatively unsophisticated technology leads to suboptimal homeowner income. This is where Bokassa comes in with technology to modernize and truly rethink the industry. It sounds ambitious, but it's not new. This is a proven playbook. Innovative tech enabled platforms have helped create, Disrupt and accelerate industries.

There's pattern recognition between what we're doing and what others have done in other categories. Just think about how real estate, mobility and on demand delivery have been redefined over the past decade. My experience at OpenTable taught me how meaningful and transformative these tech enabled platforms can be to local marketplace businesses. Our value proposition for homeowners is simple, yet powerful. Just hand us the keys, tell us which nights you want your home for personal use And start earning monthly income.

That's it. We handle all the hard work like setting up the home, establishing optimal monthly rates, Communicating with guests before, during and after a reservation and ensuring homes are properly cleaned and maintained. Our proprietary technology platform serves as the foundation of our business and has been crucial to our success. All key aspects of our platform were purpose built, addressing specific needs and pain points of the vacation rental management process, Resulting in a truly differentiated and elevated experience to homeowners, guests and channel partners. In the past year alone, we invested nearly $50,000,000 on technology, which we believe is greater than the spend of the combined total population of competitive local managers.

A core component of our technology platform is our dynamic pricing engine, which is designed to generate greater income for homeowners. We accomplished this by using a combination of technology products, artificial intelligence, human expertise And a significant volume of data to uniquely derive rates for each home on our platform. In fact, homeowners Who were previously using local professional managers gained an average of 20% increase in their rental income in the 1st year And then an incremental 10% increase in the 2nd year after switching to VICASA. In addition to our dynamic pricing capabilities, We are able to capture demand wherever it exists by listing all the homes under our management on the Casa's own website and consumer app And distributing our listings to more than 100 channel partners, including Airbnb, Booking.com and Vrbo. While our channel partners account for the majority of bookings, our direct channel is our single largest source Accounting for 30% of gross booking value in 2021.

For guests, the Casa provides a consistent and reliable That has many similarities to traditional accommodations. Guests can use the Vacasa app to check into the property and unlock the front door. We also offer 20 fourseven support by phone, online or through the Vaca Guest app. The top tier hospitality we deliver Insurance guests have a memorable experience, which leads to better reviews, which results in higher income for homeowners. Now turning to the tremendous progress we made in 2021, including adding homes to our platform, introducing new products And maximizing homeowner income.

Over the course of the year, we grew the number of homes on our platform by over 60% Through our growth engine playbook as well as through the strategic acquisition of Turnkey Vacation Rentals, we add homes to our platform with 2 complementary playbooks, An individual and portfolio approach. The individual approach is a direct sales model where we create leads, Then predominantly local sales representatives sign up individual homeowners. This approach is used in existing markets and it accounts Under the portfolio approach, we buy local vacation rental managers, bringing on dozens of homes at once. Through this approach, we are able to efficiently enter new markets and build density at a faster rate, allowing us to accelerate our margin expansion in those markets. We made great progress throughout the year, Ramping sales capacity under our individual approach as we successfully added hundreds of new sales representatives.

In the Q4 2021, our sales force added nearly 150% more homes than it did in the Q1 of the year. We also expect continued overall sales force productivity improvements going forward as our recently hired sales executives Follow a predictable tenure based productivity ramp. Our technology teams were hard at work releasing new products To improve the vacation experience for guests and homeowners and developing tools for our local market staff to drive efficiencies. We are particularly proud of the new homeowner app, which provides our owners with insights into the management care and performance of their vacation rental home. And we're seeing more than 60% of homeowners with the app log in weekly.

We launched the rollout of our smart home technology package Consisting of keyless locks, Wi Fi routers and noise monitoring technology, which is expected to be in place across our entire portfolio of homes By the end of 2022 at no additional cost to homeowners, we created a new clean inspection tool designed to improve guest And homeowner satisfaction by ensuring a standardized efficient cleaning process across the tens of thousands of homes on our platform. And our yield management system also took a big step forward as our data scientists introduced itinerary based pricing, Which uniquely prices each itinerary based on the start and end date and the home's availability. Now I'll turn the call over to Jamie to review our Q4 financial results and guidance in detail. Jamie?

Speaker 3

Thanks, Matt. We closed out 2021 on a strong note, delivering revenue and adjusted EBITDA well above our 4th quarter guidance ranges. Before getting into the details on the quarter, I want to provide some perspective on our outstanding financial performance in 2021. In July, we outlined ambitious financial targets for 2021. We finished the year with revenue of $889,000,000 $130,000,000 or over 15% ahead of our initial target and up 81% year over year.

Given our strong Q3 revenue outperformance and Q4 pacing, we made the decision in November to make incremental investments in the business across all of our operating expense lines, with the largest being in sales and marketing to position us well for future growth. Even with these sizable investments, adjusted EBITDA was negative $29,000,000 for full year 2021, dollars 20,000,000 ahead of our initial target. Over the past 2 years, our business has not only recovered from the pandemic, but we've significantly scaled With our gross booking value reaching $1,900,000,000 in full year 2021, up 105% year over year and tripling from 2019 levels. We also have a truly asset light business model in which our full service offering gains us exclusive control of a home calendar. We don't need to spend 100 of 1,000,000 of dollars to buy supplies or enter into long term lease agreements and advance deposits on future reservations Our underlying business has shown to be inherently profitable as we continue to make discrete Controlled investments in 2 areas, sales and marketing and technology and development.

We spent over $225,000,000 excluding equity based of these two line items in 2021. The size of this investment compared to our reported adjusted EBITDA loss of negative 29,000,000 Clearly shows that profitability is a choice for us. Our investments in sales and marketing are largely focused on standing the teams responsible for adding new homes to our platform. We have a massive market opportunity ahead of us and believe it is prudent to invest aggressively against that opportunity. We apply a lifetime value to the customer acquisition cost framework to evaluate the success of the individual approach, where we typically achieve a very healthy LTV to cap between 4 to 5 times, and we were at the high end of that range for 2021.

Within Technology and Development, we are aggressively hiring product managers and engineers and adding external software to further enhance our technology As Matt touched on in his remarks, our purpose built technology platform drives our business operations, Creates a differentiated experience for our homeowners and guests, allows us to scale more efficiently and supports our strong growth. These investments enable us to reach sales faster, which not only drives revenue growth, but improves profitability as our margins improve meaningfully with density. Our profit margins are greater in high density markets relative to low density markets, driven by fixed cost leverage, Shorter drive time and labor savings. Additionally, our operating leverage is also evident during our seasonally stronger quarter. Now I'd like to review the Q4.

Unless noted otherwise, I will be comparing our Q4 results to the Q4 of 2020, And I'll be referencing the operating expense line excluding the impact of stock based compensation and business combination costs, which you can find in both our press release and shareholder letter. Knights Gold reached $1,100,000 in the 4th quarter, up 55% year over year, with the increase primarily driven by the addition of new properties to the platform. Gross booking value per night sold, which includes the total rent, Fees and taxes the guest paid was $3.47 in the 4th quarter, up 27% year over year. Year over year growth in gross booking value per night sold accelerated each quarter throughout the year. While the overall vacation industry did experience strength, Our sophisticated machine learning algorithms ensure we appropriately capitalize on the strength, optimizing the mix of nights sold and gross booking value per nights sold in an attempt to maximize homeowner income.

Gross booking value, which is the combination of nights sold and gross booking value per night sold, Reached $379,000,000 in the 4th quarter, up 96% year over year. Revenue, which consists primarily of our commission on the rents we Rate for homeowners and the fees we collect from guests was $192,000,000 in the 4th quarter, up 70 6% year over year and ahead of our guidance range of $175,000,000 to $180,000,000 Cost of revenue was 56% of revenue in the 4th quarter. Year over year operating leverage due to the strong growth in gross booking value per night sold. Operations and support expenses grew about in line with revenue year over year. Technology and development expenses were up over 100% year over year as we successfully grew the size of our engineering and product teams and adding tools to strengthen our technology platform and in turn, our value proposition to homeowners and guests.

Sales and marketing expenses were $66,000,000 up $49,000,000 year over year with the increase primarily due to our brand advertising campaign, Sales Homeowner Direct Marketing and Hyre Salesforce Headcount. General and administrative expenses were $19,000,000 in the 4th quarter, with the year over year increase due to hiring to support our growing business. Adjusted EBITDA was negative $68,000,000 for the 4th quarter, ahead of our guidance range of negative $85,000,000 to negative $80,000,000 on stronger revenue and expenses coming in at the lower end of our internal expectations. Turning to 2022 guidance. We expect revenue to be in the range of $245,000,000 to 255,000,000 for the Q1 and $1,125,000,000 to $1,175,000,000 for the full year.

Our guidance assumes that the Combination of gross booking value per night school and occupancy takes a slight step back from the record levels achieved in 2021, but remains above pre pandemic levels. Specifically, we expect this to be most pronounced in the second half of twenty twenty two as we lap a period of strong consumer demand, which resulted in gross booking value per night sold growth of 19% year over year in the Q3 of 2021 and 27% year over year growth in the 4th quarter. We expect adjusted EBITDA to be in the range of negative 25,000,000 to negative $20,000,000 for the Q1 and negative $21,000,000 to negative $14,000,000 for the full year. On the expense side, We expect to continue to invest in sales and marketing and technology and development. I would note that we don't plan on running another large scale brand Advertising campaign in the Q1 of 2022 and as a result, expect sales and marketing expenses to decline sequentially from the Q4 of 2021.

Finally, given the strong execution by our teams and the success of our growth investments, we expect to reach adjusted EBITDA profitability for the full year 2023. One final comment on guidance. We expect to recognize about $13,000,000 of revenue in the Q1 Associated with the breakage of future state credits we issued to guests at the start of the pandemic. The revenue benefit will also flow through to adjusted EBITDA. While we will recognize revenue associated with the breakage of future state credit in future periods, we expect the amounts to be significantly lower in future periods.

So we wanted to call out given the size in the Q1. These impacts are included in our revenue and adjusted EBITDA guidance. With that, Matt and I will take your questions. Operator, please open up the line.

Speaker 0

Thank We will pause here briefly as questions are registered. The first question comes from Doug Anmuth with JPMorgan. Please proceed.

Speaker 4

I had a couple. I was just hoping you could talk about the sales force. I You said you added 200 heads last year. If you could give some color on where you think this could go over time? And then when you think about the 'twenty two Growth, how much of that is driven by new supply additions?

And I also just wanted to Your thoughts on the early thoughts on the summer travel season and do you expect VR to continue to take share In the face of greater reopening and potential return to more urban destinations. Thanks.

Speaker 2

Sure. Hi, it's Matt. I'll take the sales team. So we did add a lot of sales people during this year. We were down in 2020 though as you remember.

So part of it was sort of rebuilding and growing our sales team. We had a lot of Really positive momentum adding great new people. I would say we're probably going to get about add about half The amount that we added in 2021 in 2022 and then we'll also have further improvements in the productivity. The Tenured sales reps are about twice as productive as untenured. So we're going to get a nice lift as our new sales reps gain tenure.

And then Jamie, you want to talk through sort of growth?

Speaker 3

Yes, absolutely. So, as Matt said, there will be a lot of great Growth in terms of new sales coming from the reps that we added last year. If you recall, the reps with at least 12 months of tenure are about Twice as productive as those with less than 12 months. So we'll continue to see productivity gains over the course of 2022 from the reps that we added in 2021. And then general rules, we tend to see about 85 Percent of our revenue coming from units that are already on the platform prior to the year beginning.

So it's a pretty decent roll of thumb in terms of current supply versus new supply And then in terms of your question around bookings, we're seeing some really great strength as we enter our peak season in The second and third quarter, that's a big driver of the strong revenue guidance that we've issued both for the Q1 as well as the full year. So Taking that into account, on both a nominal and a per home basis, we are pacing ahead of 2019 bookings. So pleased with what we're seeing thus far, and we think that we'll continue to see strength in demand as

Speaker 5

Great. Thank you both.

Speaker 2

Thank you.

Speaker 0

Thank you, Doug. The next question comes from Eric Sheridan with Goldman Sachs. Please proceed.

Speaker 6

Thanks so much for taking the question. I'll try to ask 1 in 2 parts And see if I can thread the needle. In terms of following up on Doug, maybe just thinking about the demand trends you're seeing exiting 2021 and going Can you parse out for us how we should be thinking about price as a determinant of growth on a per unit basis or a per room night basis Looking out to 2022 and the second component would be, given the demand you're seeing, would you expect to see more than normal seasonality As we move through 2022 or should we think about the beginning of the year and think about normal seasonal trends going forward through 2022? Thanks so much.

Speaker 3

Yes. Eric, this is Jamie. I can take both of those. So in terms of price, we've had a great Q4. We've had a really strong Q1 thus far, and you saw our guide of the midpoint of 30% year over year growth for the full year.

For gross booking value per nights sold and occupancy, we said that the combination of those 2 will take a slight step back in the second half of As we're comping over record setting levels from 2021. We saw that gross booking value per night sold in In particular, it was up 19% in the 3rd quarter and up 27% in the 4th quarter. So, when we're putting out guidance, We're not setting it at these record high levels. We may very well end up there, but being a bit more conservative there. We will and We still expect these metrics to be above pre pandemic levels.

So, and then in terms of your question around seasonality, I think the kind of rule of thumb seasonality that we've talked about in the business before and what we've seen Historically, it's still accurate. I don't think that we're expecting more pronounced seasonality at this point. We continue to see strength coming out of peak into the 4th

Speaker 0

Thank you, Eric. The next question comes from Andrew Boone with JMP Securities. Please proceed.

Speaker 1

Hi guys. Thanks for taking my question. On gross margins, we saw 700 basis points of expansion on a year over year basis and understood You guys made investments in terms of supporting markets kind of during the shoulder season. Can you talk about that improvement and help break it down in terms of tech versus just

Speaker 3

Yes, Andrew. So the gross margin expansion, I'd say, Primary driver is the gross booking value per night sold increases that we saw throughout the year, particularly in the second half, which gives us nice Leverage as that flows through because there is an additional there is not additional cost to service our reservation. In terms of quantifying tech versus density, I'd say in the past year more on the density side. And as we continue to add homes to the platform, we continue to see that density. And you know that we see a big difference In profit margin for high density versus low density markets, so continuing to see that improvement.

From a tech perspective, I think we've announced Some really exciting things that we're rolling out right now, the clean inspection tool in particular, which we believe is 1, not only Showing to drive better CLEAP scores and then therefore guest satisfaction. But we also believe that this gives us the ability to not have to send out as much Human laborers do manual inspections in the home. So that is something that as we look forward into the future will help to create efficiencies along with the Smart Home rollout that we also talked about.

Speaker 1

Great. Thank you.

Speaker 0

Thank you, Andrew. The next question comes from Jed Kelly with Oppenheimer. Please proceed.

Speaker 1

Great. Thanks for taking our questions. You mentioned in the Q4, you added 2.5 times more homes In the Q4 versus 1Q, how much of that was based on the portfolio approach? And can you give us a sense on the portfolio pipeline for this year? And then you mentioned your brand marketing campaign in 4Q.

How did that perform for your direct traffic? And did it underperform? Did it overperform? And how should we view your direct traffic for 2022. Thank you.

Speaker 2

Sure. Hey, Jed, it's Matt. I'll take this. So as far as the 4th quarter, a lot of the strength in the 4th quarter was really driven by our individual side because we were adding sales people Throughout the year and also the productivity is improving throughout the year. So we had a really great strong quarter From an individual side, we don't split out the individual versus portfolio in any given quarter.

Suffice it to say that individual continues to have strong momentum and it still is a vast majority of our new additions is coming from individual. A general kind of commentary on portfolio, it still remains a really attractive opportunity for us to add Dozens of homes in any given new market. So it's a great new market entry. And as we talked about before, just building density in the market, which So nothing sort of specific about the pipeline on the portfolio other than There's 4,400 property managers that represent over 350,000 homes. So there's a huge amount of companies that are still available to talk to and that could be good fits for joining Vacaasa.

And we run Pretty much the same sort of sales funnel approach on the portfolio side. It's a different type of sale as we do on the individual And then the last thing, the question is sort of on our direct traffic?

Speaker 1

Yes, your direct traffic

Speaker 2

based on the brand campaign. And specifically the brand campaign. So the omnichannel campaign that we launched in the Q4 It was an opportunity for us to invest some of the over performance that we had done during 2021. Really the objective was just to learn. And I think from that perspective is a big success.

I mean there's some things that we learned About the campaign that we thought we can refine and do better on next time and there's some things that worked quite well that we'll look to continue going forward. But the main objective of that campaign was not to think that we would come out of that test With a new vehicle that was going to be like the centerpiece of how we add property, is that still a direct response Program, we still all of our forecast, all of our guidance is continuing to be based on that direct response marketing Campaigns that we've been running historically. But we learned a lot on the test and I think we'll look to refine And come up with some new programs probably in the back half of the year that take advantage of that learning.

Speaker 3

Hey, Seth, it's Jamie. Just to jump in quickly, the 2.5 times in Q4 versus Q1 is actually just the individual approach. So we just wanted to give you a stat that was on the individual side and how much we are able to scale the sales force, and show off some great results there. So just to clarify.

Speaker 1

All right. Thanks.

Speaker 2

Thank you.

Speaker 0

Thank you, Jed. The next question comes from Bernie MacTiernan with Needham and Company. Please proceed.

Speaker 1

Great. Thank you for taking the question. I just want to zoom in on the capture rate. Came in lower than we expected in the Q4, but I think it's driven by the higher ADRs. But anything else impacting that rate?

And then Is up still the best way to think about 2022?

Speaker 2

In capture rate, you're defining capture rate Is our revenue over gross booking value?

Speaker 1

Exactly, yes.

Speaker 2

Yes. So there's a few elements that go Into that calculation, I mean, one of it's not necessarily just the sort of commission rate, which should be one of the more dominant ones. But we do have some revenue That don't appear in GBV such as real estate, if they don't it doesn't grow that sort of other revenue line doesn't grow in concert with the homes and on our platform or GBV. And then there's a few things that will impact like the commission rates that we will charge. We set our commission rates at a local geography basis and also sort of by Potential income at a homeowner basis as well.

So there'll be some mix shifts that go along with that. Nothing new there. That's exactly how we've been doing it over time, but you'll have some mix shifts there as well. And then finally, we had a little bit of a mix Shift in where turnkey was at a slightly lower commission rate than historical VICASA as well. Those things are the ones that sort of contribute to a difference in the take rate on a year over year basis And then maybe a little bit of what you model, but there isn't anything new that we're doing relative to commission rates in particular That would influence our take rate either positively or negatively going forward.

Speaker 1

Got it. Thanks, Matt.

Speaker 2

Sure.

Speaker 0

Thank you, Bernie. The next question comes from Mike Grondahl with Northland

Speaker 1

of

Speaker 2

Yes. I think The position that we have established as being a leader and having all the advantages that go along with the scale that we have, Continue to just pay dividends, right? I mean, we're able to I think I mentioned that we spent $50,000,000 on our tech and dev and that's I really think that That's more than the entire local competitive landscape combined That would be able to spend towards technology and all that technology helps our homeowners make more money, which helps us sell the value proposition and then Add properties to our platform. So there is no, the short answer is no, we're not really seeing any increase in competitive pressure As we go out and sell in the market and our velocity of sales has accelerated as Jamie pointed out Even just in the Q4 and we're continuing to build that supply growth engine both in the individual side and the portfolio side.

Speaker 1

Thank you. Sure.

Speaker 0

Thank you, Mike. The next question comes from Justin Patterson with KeyBanc. Please proceed.

Speaker 5

Great. Thank you very much. Matt, how should we think about 2022 in terms of product innovation versus 2021? It looks like you had a lot of great rollouts over the course of the year. And then Jamie, you alluded to it a bit, I think, in Andrew's answer earlier, but would love to hear about how you think of those Investments benefiting KPIs throughout the year?

Thank you.

Speaker 2

Well, I'm really excited about the current year, Justin. I think from a product and innovation perspective, those are just the things that we highlighted to you in terms of 2021. There's a ton more that we just didn't make the top list to share with you. I'm really particularly excited about some of the things that we're able to do on the efficiency operations efficiency side That will be rolling out this year, some things that will be really supportive of our individual sales channel With for example, we're rolling out sales force across the business and then the proprietary part is all the tie ins that we have To our vacation rental management system, which is our proprietary system that should give us a ton of leverage there too. So and we're adding to the team, like we're growing the team.

That's what we said we would be doing. We're being really successful at doing that, Which is no easy feat in this competitive market for Tech Talent. So I feel really good about the pace of innovation that we're Operating at now, I mean, I'm a CEO, so I'm naturally impatient. But at the same time, I think the team is She's doing a fantastic job putting new stuff into our customers' hands.

Speaker 3

And then Justin, in terms of your question around KPIs, I mean, specifically, I think that all of these investments that we're making in technology will continue to Help us gradually get towards our longer term margin target, and these specifically over cost of revenue for the Clean inspection tool, and then also our operations and support line items. Kind of at a higher level, just thinking about margin leverage, There's kind of the 2 big factors are, 1, density. And as we continue to add units, We'll continue to see markets getting more dense, and you'll see markets increasing in contribution margin driven by our fixed cost leverage, reducing Driving distances and labor savings. And then you'll also just see sheer fixed cost leverage as well over the line items G and A. And then we're continuing to invest in sales and marketing and tech and dev in the short term, but longer term, that's where you'll see this come up.

And so I think on the tech side specifically though, you'll see those reflected largely over our local labor.

Speaker 5

Great. Thank you.

Speaker 2

Thanks, Justin.

Speaker 0

Thank you, Justin. That concludes the Q and A session. I would like to pass the conference back to Matt Roberts for closing remarks.

Speaker 2

Well, I just want to thank everybody for joining on our call today. As you can see, we're really proud of the progress that we made in 21 and very excited about what we're already starting to do in 2022 and what we have in the horizon here. I definitely want to thank Our team members across the country, because without all their dedication and hard work every day, none of it With work and in particular, I'd love to really thank our homeowners for trusting us with their asset and to making them the most income possible from their home. So look forward to keeping everybody up to date on our progress as we move

Speaker 0

quarter 2021 earnings call. Thank you for your participation. You may now disconnect your line.