Vacasa beats targets as it prepares to go public

Vacation rental management platform Vacasa is reporting financial results for the third quarter of 2021 that exceed targets outlined when it announced its planned SPAC merger with TPG Pace Solutions (TPGS) in July. 

Vacasa’s gross booking valued reached $776 million in the third quarter, up 97% year-over-year – resulting in revenue of $330 million in the quarter, $72 million above the target of $258 million.

Adjusted EBITDA in Q3 2021 was $57 million, compared to $25 million in the same period one year ago and above the target of $26 million outlined in the merger materials.

“We generated record results in the third quarter, driven by a combination of consumers' continued desire to travel, the ongoing preference shift towards vacation rentals, and strong execution across our entire organization,” says Matt Roberts, Vacasa CEO.

“While guest demand is the leading driver of our outperformance, we’ve had solid supply additions through both our individual and portfolio approaches in 2021. We now have more than 35,000 homes on our platform, in-line with the expectations we outlined when we announced our transaction with TPGS and are the largest vacation rental management platform in North America.” 

Net income in Q3 2021 was $33 million compared to $9 million in the same period a year earlier. 

Vacasa sold 1.8 million nights in the third quarter with gross booking value per night sold of $422, up 19% year-over-year. 

As a result of the strong financial report, Vacasa says it is raising its full-year 2021 revenue and adjusted EBITDA guidance. The company expects revenue to be in the range of $872 to $877 million for this year, which would be 16% above target, while adjusted EBITDA is expected to be in the range of negative $40 to $45 million.

TPGS shareholders will vote on the merger on November 30 and Vacasa is expected to enter the public market before the end of the year under the ticker symbol VCSA.