Apartment-style accommodations provider Sonder Holdings has updated several of the delinquent quarterly earnings reports that threatened its Nasdaq listing, while announcing Friday a new investment through the purchase of preferred equity and the upcoming departure of its chief financial officer.
Sonder said it would secure about $43 million from a consortium of investors who purchased convertible preferred equity, liquidity that would “support the company’s long-term profitable growth and the integration efforts” of its August deal to list its portfolio among Marriott International’s holdings, the company said in a statement.
CFO Dominique Bourgault will step down Dec. 2, according to Sonder, which said it had retained an executive search firm to find a replacement. Bourgault, a former Expedia executive, joined Sonder in March 2023.
Sonder this week filed with the U.S. Securities and Exchange Commission earnings reports for the first and second quarters of 2024, before a scheduled Nov. 14 hearing on the fate of its Nasdaq listing. The company said it had received confirmation from the SEC that it was now in full compliance.
Sonder’s revenue per available room in the first quarter of 2024 decreased 7.5 percent year over year to $123 while its average daily rate declined to $163 from $166 and occupancy declined 5.6 percent to 75.9 percent. Total revenue was nearly $133.5 million, down 11.7 percent.
In the second quarter, RevPAR declined 4.7 percent to $163, while ADR increased to $205 from $199 and occupancy declined 4.9 percent to 79.3 percent. Revenue increased 4.6 percent to $164.6 million. Net income was $32.7 million, compared with a $44.1 million loss one year prior.
One June 30, Sonder had 10,300 live units, down from 11,100 one year earlier.
