Vacation rental platform HomeToGo has upped its guidance for full-year 2024 following a solid third quarter.
The company reported group booking revenues of almost €63 million for the quarter, up 38% year over year and "an all time high," according to Steffen Schneider, HomeToGo's chief financial officer.
IFRS [International Financial Reporting Standard] revenues hit €87 million for Q3, up 18% year over year while adjusted EBITDA increased 28% to €36 million, a record quarterly high for the company.
HomeToGo's marketplace segment increased booking revenues by €11 million to €44.5 million for the quarter while onsite bookings increased to €27 million, up €11 million year over year.
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The HomeToGo Pro business unit, which includes B2B software and services, reported booking revenues of €20 million, a €6 million increase year over year. The subscription part of HomeToGo Pro reported revenue of €5.4 million, up slightly year over year. During a call with analysts, Schneider said that while the company was not happy with Q3 for that part of the business, it is happy with what it is seeing so far in Q4.
“In the first nine months of the year, HomeToGo has remained focused on sustained growth while further improving profitability,” said Patrick Andrae, co-founder and CEO of HomeToGo.
“This is exemplified in our third quarter results, which showcase record-breaking figures alongside strong advancements in adjusted EBITDA for both our business segments: the HomeToGo Marketplace and HomeToGo Pro. As we enter the final quarter of the year, our third quarter performance and solid cash position has set a healthy financial foundation for the remainder of 2024 and beyond.”
The company has adjusted its full-year 2024 booking revenues guidance to more than €255 million, up 34% year over year. The previous target was more than €250 million. It has also adjusted its IFRS revenue guidance downward because of lower than anticipated last-minute bookings in the North American advertising market and an increase in cancellation rates in Q3. The IFRS target is now between €215M - 220 million, down from the previous goal of more than €220 million.
Quizzed on whether the company would consider exiting North America to concentrate on other markets, Schneider described the company as "a global business with a network effect so all markets have a substantial contribution to the overall business."
He also said the company constantly reviews the market and sees the North American market as "opportunistic."
"If we can earn money we will go for it, if not we will do it differently. We won't exit a market that is running profitable with low maintenance," he said.
HomeToGo's did not provide an update on discussions to acquire Interhome Group. The vacation rental specialist said in October that while discussions and due diligence were ongoing, it might not lead to an acquisition.