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Sonder Holdings Inc. (SOND-4.42%) has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing reports revenue of $162.1 million for the quarter, a slight increase from $160.9 million in the same period the previous year. This was driven by a 14.3% increase in RevPAR, offset by a 12.0% decrease in Bookable Nights due to the company's portfolio optimization program.
Total costs and operating expenses decreased to $196.0 million from $211.7 million in the previous year, primarily due to a reduction in rent expenses and other operational efficiencies.
Sonder reported a net loss of $179.4 million for the quarter, compared to a net loss of $57.6 million in the same quarter of the previous year. The increase in net loss was largely attributed to a $59.5 million loss on preferred stock issuance and an $86.6 million change in fair value of forward contracts.
Operating cash flow was negative $90.5 million for the nine months ended September 30, 2024, compared to negative $72.5 million in the same period the previous year. This increase was due to higher cash outflows related to lease terminations and restructuring costs.
The company continues to focus on its Cash Flow Positive Plan, which includes cost-cutting initiatives and a strategic licensing agreement with Marriott. The agreement is expected to integrate Sonder properties into Marriott's systems and platforms.
Sonder's management has expressed substantial doubt about the company's ability to continue as a going concern due to ongoing losses and cash flow challenges. The company is pursuing additional financing and strategic alternatives to address these concerns.
Sonder's portfolio optimization program has led to the exit or renegotiation of leases for approximately 105 buildings, which is expected to improve free cash flow by over $40 million annually.
The company has issued $43.3 million in Series A Preferred Stock to institutional investors as part of its financing efforts, with the first tranche of $14.7 million received in August 2024 and the second tranche of $28.6 million in November 2024.
Sonder's total liabilities as of September 30, 2024, were $1.75 billion, with a stockholders' deficit of $596.5 million, reflecting the company's ongoing financial challenges.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Sonder Holdings Inc. quarterly 10-Q report dated February 12, 2025. To report an error, please email earnings@qz.com.