Sonder – a publicly traded company since its SPAC merger
with Gores Metropoulos II that closed in January – finished 2021 with its full
year revenue up 101% compared to 2020, to nearly $233 million from $116 million
a year prior.
Revenue in the fourth quarter of 2021 showed even bigger improvement over a
year earlier, up 204% to nearly $87 million.
Adjusted EBITDA is negative for the quarter and full year.
In Q4 adjusted EBITDA loss came in at $58.5 million – slightly better than $59 million
in Q4 2020. For the full year, adjusted EBITDA loss was $217 million, an
increase of 3% over 2020, which the company attributes to investments made in
conjunction with the SPAC merger and costs associated with the rapid expansion
of its property portfolio.
RevPAR in Q4 came in up 92% year-over-year, to $142 – which is
also 112% of RevPAR in Q4 2019. For the full year, RevPAR was $115, up 55% compared
In a letter to shareholders, Sonder co-founder and CEO
Francis Davidson says, “RevPAR is perhaps the most important metric to watch to
gauge our long-term cash generation potential.”
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Davidson goes on to say, “Our ambition is nothing short of
revolutionizing hospitality. A better guest experience combined with superior
operating efficiency – both of which are possible through our proprietary
technology – give us the ammunition we need to upend this nearly $1 trillion
Along with the move to being a public company, Sonder says highlights
of 2021 include the launch of its corporate travel offering, which is live with
all major global distribution systems and has more than 100 new corporate
travel accounts. Sonder is working with travel management companies including TripActions,
Egencia, HotelEngine and ABC Global Services.
The company also grew its portfolio to nearly 18,100 units, up
51% year-over-year, and launched operations in six new markets: Amsterdam,
Barcelona, Glasgow, Los Angeles, Madrid and Paris. Sonder properties range from
hotel rooms and suites to studios and apartments with more than three bedrooms.
Davidson says cash flow margins improved from negative 136%
in Q1 2021 to negative 61% in Q4 and continuing to improve that metric is a
priority for 2022.
“Expect us to work tirelessly to uplevel our guest
experience, to add a large volume of high quality supply under increasingly
favorable terms, to bolster our demand channels and RevPARS and to improve our
operating efficiency while offering our employees a work environment where they
can be there best,” Davidson says.
Sales and marketing expenses nearly doubled year-over-year,
from $13 million in 2020 to $23.5 million in 2021.