Pacaso Reports Strong First Half 2024 Financial Results

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Nov 21, 2024, 07:00 ET

Co-ownership marketplace experiences double-digit growth year-over-year H1 2024 over H1 2023; earnings conference call scheduled for 11 a.m. PST

SAN FRANCISCO, Nov. 21, 2024 /PRNewswire/ -- Pacaso, the tech-enabled marketplace for co-owned luxury vacation homes, today released its first half of 2024 financial results, marking strong growth in key performance metrics. In conjunction with the release, the Company will host a conference call at 11:00 a.m. Pacific Time to discuss the business and financial results.

H1 2024 financial highlights:

Adjusted gross profit, excluding impact of whole home sales, of approx.$13.2 million which represents approx. 38% year-over-year growth (1)
Gross real estate transacted and associated service fees, excluding whole home sales, of approx. $87.9 million, resulting in approx. 36% year-over-year growth (2)
Adjusted EBITDA of approx. $(10.3) million down from approx.$(16.9) million (3)
Total real estate inventory and real estate investment assets of approx. $69.4 million down from approx. $85.2 million (4)

"Our strong performance in the first half of 2024 highlights the growing demand for flexible, luxury vacation home co-ownership," said Austin Allison, co-founder and CEO of Pacaso. "I'm proud of how our team executed and stayed focused on the customer through a challenging economic period in 2023, which set us up to start reinvesting in growth. Today, we're seeing the initial results of those efforts, with a 38% increase in adjusted gross profit and other strong metrics, reflecting our streamlined operations and rising profitability as families continue to embrace co-ownership to create lasting memories."

A live earnings conference call with Pacaso CEO Austin Allison and CFO Alvaro Cortes discussing these results with additional comments and details is scheduled for November 21, 2024 at 11 a.m. PST. Please register here.

"Our disciplined and focused operational approach has significantly reduced our cash burn. Additionally, we've decreased real estate inventory and real estate investment assets on the balance sheet by approximately 19% since year-end 2023," Pacaso Chief Financial Officer Alvaro Cortes added. "These efforts establish a strong foundation for sustainable growth, enabling us to scale efficiently while continuing to deliver value to our customers and shareholders."

The company recently opened a growth round inviting accredited and non-accredited investors to purchase stock and join Pacaso's cap table. Funds will support expanding Pacaso's home portfolio across more destinations and further investments in product, engineering, and home operations—key steps in enabling families to create lasting memories in luxury vacation homes.

To learn more about Pacaso, visit www.pacaso.com.

About Pacaso

Co-founded by Austin Allison and Spencer Rascoff in 2020, Pacaso® is a technology-enabled marketplace that modernizes real estate co-ownership, enabling families to effortlessly own a luxury vacation home and travel with confidence. Pacaso curates private residences in premier destinations across the U.S. and internationally, with exceptional amenities, luxury interiors and expert design. After purchase, Pacaso professionally manages the home, provides white-glove scheduling and personalized service, and ensures seamless resale.

(1)We calculate Adjusted Gross Profit as gross profit under GAAP adjusted for amortization of developed technology, inventory valuation adjustment in the current period, inventory valuation adjustment in prior periods and share-based compensation. Inventory valuation adjustment in the current period is calculated by adding back the inventory valuation adjustments recorded during the period on homes that remain in inventory at period end. Inventory valuation adjustment in prior periods is calculated by subtracting the inventory valuation adjustments recorded in prior periods on homes sold in the current period. Additionally, we calculate Adjusted Gross Profit Excluding Impact of Whole Homes, which is an indication of the performance of our core business offering of selling and managing co-owned real estate and is a useful measure of the volume of transactions that flow through our platform in a given period. We view this metric as an important measure of business performance, as it captures gross profit performance related to units transacted in a given period and provides comparability across reporting periods.

(2) We define Gross real estate transacted and associated service fees, excluding whole home sales, as the total dollar value, less any concessions, of co-ownership transacted during the period which includes co-ownership real estate sales, gain from real estate investments presented gross , real estate services, and the applicable margin on such transactions. We view this metric as an indication of the performance of our core business offering of selling co-owned real estate and is a useful measure of the volume of transactions that flow through our platform in a given period, which ultimately impacts gross profit. .

(3) We define Adjusted EBITDA as net income or loss adjusted for interest expense, income tax expense, depreciation and amortization, share-based compensation expense, non-recurring expense, unrealized gain or loss on foreign currency, non-recurring impairment and write-offs, derivative expense and restructuring expense . Adjusted EBITDA is also adjusted to align the timing of inventory valuation adjustments recorded under GAAP to the period in which the related revenue or net gain on real estate investment is recorded in order to improve the comparability of the measure to our non-GAAP financial measure of adjusted gross profit above. We believe Adjusted EBITDA provides useful information to investors and others in understanding and evaluating our results of operations, as well as providing a useful measure for period-to-period comparisons of our business performance adjusted for non-recurring or non-cash items. Moreover, we have included Adjusted EBITDA because it is a key measurement used by our management internally to make operating decisions, including those related to analyzing operating expenses, evaluating performance, and performing strategic planning and annual budgeting.

(4)Real estate inventory and real estate investments assets combined represent the total gross asset value, net of valuation adjustments and impairments, excluding the impact of associated debt, as real estate investments are presented net of associated debt on the GAAP Balance Sheet.

Certain statements in this release may constitute "forward-looking statements" within the meaning of the federal securities laws. Forward-looking statements include, but are not limited to, statements regarding Pacaso's expectations, hopes, beliefs, intentions or strategies regarding the future. In addition, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The words "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "might," "plan," "possible," "potential," "predict," "project," "should," "strive," "would" and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Readers are cautioned not to put undue reliance on forward-looking statements, and Pacaso assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. Pacaso does not give any assurance that Pacaso will achieve its expectations.

In addition to financial results presented in accordance with generally accepted accounting principles, this press release may contain financial measures that do not conform to U.S. GAAP if we believe they are useful to investors or if we believe they will help investors to better understand our performance or business trends. Reconciliations of these non-GAAP financial measures to the nearest comparable GAAP measures are included in our Offering Statement which may be obtained from: invest.pacaso.com

AN OFFERING STATEMENT REGARDING THIS OFFERING HAS BEEN FILED WITH THE SEC. THE SEC HAS QUALIFIED THAT OFFERING STATEMENT, WHICH ONLY MEANS THAT THE COMPANY MAY MAKE SALES OF THE SECURITIES DESCRIBED BY THE OFFERING STATEMENT. THE OFFERING CIRCULAR THAT IS PART OF THAT OFFERING STATEMENT IS AVAILABLE HERE.

SOURCE Pacaso