Q1 2022 Vacasa Inc Earnings Call
Matt Roberts: Thank you for joining us. We wrapped up another strong quarter at Vacasa, facilitating hundreds of thousands of reservations and generating our valued home owners hundreds of millions of dollars in rental income.
Speaker 1: You wrapped up another strong corner of picasa, facilitating hundreds of thousands of reservations and generating our valued homeowners hundreds of millions of dollars in rental income.
Matt Roberts: The team is executing against our goal of reinventing the vacation rental industry by leveraging proprietary purpose-built technology that improves all aspects of the vacation rental experience for guests, homeowners, our internal team, and our channel partners.
Matt Roberts: There has been an undeniable shift in traveler proferences towards alternative accommodations over the past decade, which has only accelerated in recent years.
Matt Roberts: The supply of available vacation rental nights is constrained relative to demand. As the only scaled vacation rental management platform in North America, we are strategically positioned to create and distribute the largest supply of available nights to travelers through our own channels and distribution partners.
Matt Roberts: We are providing critical incremental capacity to the alternative accommodations ecosystem by offering second homers a full-service end-to-end property management solution that makes it simple to turn their second home into a vacation rental home in as little as a week.
Matt Roberts: Our scale allows us to invest in creating truly differentiated technology solutions that are designed to provide an exceptional experience for homeowners and guests and drive efficiencies throughout our business.
Matt Roberts: Our business model continues to prove its strength, generating over $2 billion of gross bookings over the past 12 months, and we have an enormous opportunity ahead of us, managing less than 1% of the more than five million vacation homes in the United States.
Matt Roberts: As we approach our peak season, which is the summer months where we typically see the strongest occupancy, we remain confident in our outlook, and are reiterating our revenue and adjusted EBITDA expectations for full-year 2022.
Matt Roberts: Jamie will talk to our detailed financial results and outlook in a few minutes.
Matt Roberts: Adding homes to our platform serves as the foundation of our growth and powers our flywheel. Incremental homes in our platform drive revenue growth as more homes result in more available nights that we can sell. It also accelerates our profitability, as greater density in a particular market results in higher margins. And from those higher margins, we can then allocate more spend towards developing technology-enabled tools and products which help drive further efficiencies in our business or create a better experience for our homeowners and guests.
Speaker 1: Incremental homes in our platform drive revenue growth.
Speaker 1: As more homes result in more available nights that we can sell.
Speaker 1: It also accelerates our profitability, as greater density in a particular market results in higher margins.
Speaker 1: And from those higher margins we can then allocate more spend towards developing technology-enabled tools and products which help drive further efficiencies in our business or create a better experience for our homeowners and guests.
Matt Roberts: We can also invest further in sales and marketing, which helps us bring more homes to our platform. Over the long term, all our stakeholders will benefit from our increasing scale, including homeowners, guests, and shareholders. We used two complementary playbooks to add supply to our platform, an individual and portfolio approach.
Speaker 1: Over the long term. All our stakeholders will benefit from our increasing scale, including homeowners, guests and shareholders.
Speaker 2: We used two complementary playbooks to add supply to our platforman individual and portfolio approach.
Matt Roberts: The individual approach, which accounts for the vast majority of our [inaudible] is a direct sales model where predominantly local sales representatives sign-up individual homeowners, and the portfolio approach is where we buy local vacation rental managers, bringing on dozens of homes at once.
Speaker 2: And the portfolio approachesis where we buy. Local vacation rental managers bring on dozens of homes at once.
Matt Roberts: The individual approach performed extremely well during the first quarter. Gross home additions from the individual approach were over two and a half X higher compared to the first quarter of last year, as the hundreds of sales representatives we hired in 2021 follow a predictable 10-year-based productivity ramp.
Speaker 2: Gross home additions from the individual approach were over two and a half X higher compared to the first quarter of last year. As the hundreds of sales representatives we hired in 2021 , follow predictable 10 -ure-based productivity ramp.
Matt Roberts: In addition, new senior sales leadership brought on within the past year have refreshed crucial aspects of the sales process, including the training, incentive programs, performance tracking and reporting, and go-to-market approach.
Matt Roberts: As a result, we've seen productivity improvements across our 10-year classes and a steepening of the productivity curve, as sales representatives reach higher productivity levels faster.
Matt Roberts: With the individual approach growth engine humming, we are focused on hiring additional sales representatives throughout the rest of the year and are already pacing ahead of our aggressive hiring goals.
Matt Roberts: Complementing the individual approach is the portfolio approach, which we strategically use to enter new markets or accelerate density in existing markets.
Matt Roberts: During the first quarter, we welcomed seven new portfolios onto our platform. Since 2014, we have executed our portfolio edition playbook more than 200 X, significantly more than anyone else in the industry. We draw on that deep experience when evaluating and underwriting portfolios to determine their value.
Speaker 2: Since 2014, we have executed our portfolio edition playbook more than 200 X, significantly more than anyone else in the industry.
Speaker 1: We draw on that deep experience when evaluating an underwriting portfolios to determine their value.
Matt Roberts: We are committed to remaining disciplined in our approach to evaluating portfolios. If a certain portfolio makes strategic and financial sense, we will move forward, and if not, we will pass as we chose to in certain cases this quarter.
Speaker 1: If a certain portfolio mamakekes strategic and financial sense, we will move forward and if not, we will pass as we chose to in certain cases this quarter.
Matt Roberts: Overall, we are pleased with the pace and home additions throughout the first quarter and remain on track to increase our homes under management by about 30% during 2022. While adding new homes to our platform remains our largest growth opportunity, we are also driving growth by optimizing the existing inventory of homes on our platform.
Speaker 1: While adding new homes to our platform remains our largest growth opportunity, we are also driving growth by optimizing the existing inventory of homes on our platform.
Matt Roberts: For example, we are optimizing our base for extended day reservations. The recent shifts in the way people live, work, and vacation have potentially increased demand for reservations that exceed 30 days. While this trend may not be as pronounced in our vacation rental destination markets, we are hard at work enabling extended stay reservations throughout our portfolio.
Matt Roberts: There are important considerations to take into account to optimize for extended stay reservations, including state and local regulations, legal entity structure, trust accounting requirements, as well as the operational technology to support these reservations.
Matt Roberts: Our proprietary yield management system and pricing algorithms give us the opportunity to tactically apply this offering in a way that generates incremental income for homeowners.
Speaker 1: Give us the opportunity to tactically apply this offering in a way that generates incremental income for homeowners.
Matt Roberts: We have made great progress here over the last year, with more than half of our homes now enabled for an extended stay, with the goal of adding substantially more throughout the balance of 2022.
Matt Roberts: Now, I'll turn it over to Jamie to review our first quarter financial results and guidance in detail. Jamie?
Jamie Cohen: Thanks, Matt. As we review the first quarter, unless noted otherwise, I'll be comparing our first quarter results to the first quarter of 2021. I'll be referencing the operating expense lines, excluding the impact of stock-based compensation and business combination costs, which you can find outlined both our press release and shareholder letter.
Speaker 4: As we review the first quarter, unless noted otherwise, I'll be comparing our first quarter results to the first quarter of 2021. I'll be referencing the operating expense signines, excluding the impact of stock-based compensation and business combination costs, which you can find outlined both our press release and shareholder letter.
Jamie Cohen: Guest demand remained strong during the quarter and demonstrates the permanence of the consumer preference shift towards vacation rental.
Jamie Cohen: Nights sold reached 1.3 million in the first quarter, up 54% year-over-year, with the increase primarily driven by the addition of new properties for the platform.
Jamie Cohen: Gross smoking value per night sold reached $367 in the first quarter, up 23% year-over-year and marking our highest first quarter level ever.
Jamie Cohen: Remember there's a strong relationship between these two metrics and it's difficult to look at either in isolation.
Jamie Cohen: Our proprietary pricing algorithms are constantly evaluating the trade-off between price and occupancy to optimize the mix of nights sold and gross booking value per night sold with the goal of maximizing homeowner income.
Jamie Cohen: Gross booking value, which is the combination of night sold and gross booking value per night sold, reached $494 million in the first quarter, up 101% year-over-year.
Jamie Cohen: Revenue which consists primarily of our commission on the rents we generate for homeowners and the fees we collect from guests was $247 million in the first quarter, up 91% year-over-year and within our guidance range of $245 million to $255 million.
Jamie Cohen: Just a quick comment on our first quarter guidance. To set the first quarter guidance ranges we shared in March, we created a new inter-quarter flash revenue forecast using results through February and our best estimate of March.
Jamie Cohen: This forecast indicated we would likely end at the high end of our Q1 revenue guidance range, but it didn't accurately capture certain revenue items, overstating them by about $8 million. We refine this new forecast process and feel confident this is a onetime issue.
Speaker 3: We refine this new forecast process and feel confident this is a onetime issue.
Jamie Cohen: Our business performed exceptionally well in the first quarter and traveler demand was ahead of our underlying expectations.
Jamie Cohen: Further, as I will detail in a few minutes, our business has outstanding momentum and we believe that we will have a record peak season
Jamie Cohen: Now turning to our expenses. Cost of revenue was 49% of revenue in the first quarter with year-over-year operating leverage due to the strong growth in gross booking value per night sold.
Jamie Cohen: Operations and support expenses grew about 90% year-over-year, as we maintained slightly higher local market staffing headcount, supporting our higher reservation volume during shoulder season.
Jamie Cohen: Technology and development expenses were up about 100% year-over-year, as we continue to invest in our engineering and product teams. These teams build products and tools that create a differentiated experience for guests and homeowners, streamline the operations of our local market team, and enable our platforms at scale.
Speaker 3: These teams build products and tools that create a differentiated experience for guests and homeowners. Streamline the operations of our local market team.
Speaker 4: And enable our platforms at scale.
Jamie Cohen: Sales and marketing expenses were up 125% year-over-year, with the increase largely due to our significantly larger sales force compared to a year ago and, in turn, increased our homeowner-focused advertising spend to drive more leads for a larger sales force.
Jamie Cohen: On a sequential basis, sales and marketing expenses decreased by $9 million, consistent with our expectations outlined last quarter, as we didn't run another large-scale brand advertising campaign.
Speaker 3: Consistent with our expectations outlined last quarter, as we didn't run another large sale brand advertcy campaign.
Jamie Cohen: General and administrative risk expenses were up about 30% year-over-year, largely due to hiring for our growing and now publicly traded business. On a sequential basis, general and administrative expenses were relatively unchanged.
Speaker 3: On a sequential basis. General and administrative expenses were relatively unchanged.
Jamie Cohen: Adjusted EBITDA was -$22 million for the first quarter, within our guidance range of -$25 million to -$20 million.
Jamie Cohen: For the 12 months ending March 31st, 2022, our operating cash flow was $62 million and we have capital expenditures of $16 million.
Jamie Cohen: Our business continues to fund not only its day-to-day operations but our discretionary investments in technology and development in sales and marketing.
Jamie Cohen: We do draw cast from the balance sheet to fund our portfolio program, which we aim to deploy in a disciplined and high ROI [inaudible].
Jamie Cohen: We remain well capitalized, with $634 million of cash and cash equivalents in restricted cash as of the end of the first quarter. We also had $325 million in funds payable to homeowners. We continue to make high ROI growth investments into an enormous market opportunity. During the first quarter, we spent over $70 million on sales and marketing and technology and development, excluding stock-based compensation.
Jamie Cohen: The majority of the expenses [inaudible] are discretionary, focused on initiatives that drive growth, scalability, and efficiency within our business. We are continuing to invest aggressively behind our massive market opportunity, but remain focused on balancing growth with profitability, and are targeting positive adjusted EBITDA for full-year 2023, as we outlined last quarter. Turning to guidance, we expect revenue to be in the range of $280 million to $290 million dollars for the second quarter and continue to expect revenue to be in the range of $1.125 billion to $1.175 billion for the full year. For additional context, relative to our expectations, second quarter bookings are [inaudible] similar to last year. Our annual guidance continues to assume that the combination of growth booking value per night sold and occupancy takes a slight step back from the record levels reached in 2021, but remains above pre-pandemic levels with this trend being most pronounced in the second half of 2022.
Jamie Cohen: We expect adjusted EBITDA to be in the range of -$20 million to -$15 million for the second quarter, and continue to expect adjusted EBITDA to be in the range of -$21 million to -$14 million dollars for the full year.
Jamie Cohen: On the expense side, we will continue to invest behind the strong momentum that we are seeing in the individual approach and, as Matt alluded to, for tracking ahead of our hiring plans.
Jamie Cohen: With that, Matt and I will take your questions. Operator, please open up the call.
Operator: Thank you, Ms. Cohen. Ladies and gentlemen, at this time, if you have any questions, simply press star one on your telephone keypad. And again, if you would like to withdraw your question, press star one again. We go first this afternoon to Doug Anmuth at JP Morgan.
Doug Anmuth: Thanks for taking the question. Jaimie, I was just hoping you could give a little more color on the forecasting issue in one que. You were the within the range, but I was hoping you could just add a little bit more on what happened there and just how that's solved and what gives you confidence it won't show up again. And then secondly, just also on TVV per night maybe, Matt just hoping you can talk about sustainability, how you're thinking about that going forward, a lot of strong summer travel demand, of course, but macro concerns as well. So, thanks.
Speaker 5: Hope you can talk about sustainability, how you're thinking about that going forward. A lot of strong summer travel demand, of course, but macro concerns as well, SOS.
Jamie Cohen: Yeah, I can try a talk on both of them and Matt, feel free to jump in as well. So on your first question with regard to the forecast, although revenue was really strong driven by 64% increase in night sold and the 23% increase in GBV per night sold, so we're seeing great momentum in the business. We put this new inter-quarter forecast tool to give us more vision into the Q1 guide because we reported our earnings so late in the quarter, right? We only had about 14, 15 days left in the month which is pretty unusual. So unfortunately with this new process there was just a few issues that led to us overstating that revenue guidance by about $8 million but we have resolved those issues fully. We feel very confident in understanding the root cause of them and you can see that one the inter-quarter flash forecast was not used to set the full-year guidance. So you see that we're reiterating the full-year guidance and feel really confident about Q2 and full-year numbers. And as I mentioned earlier when we give the preamble, our Q2 bookings relative to that $280-$290 million guide, our pacing the same as where we were last year relative to where we ended up for Q2. So, feeling strong about the guidance that we're putting out. But ultimately really wanted to just call this out because the underlying momentum and strength of the business is very strong and we just want to make sure that point was understood and not confused by this unfortunate error. On your second question GBV per night sold sustainability, I'll point out that in our guidance we've mentioned that we're assuming that the combination of gross booking value per night sold and occupancy do take a step back from those record levels that we saw primarily in peak season, Q3, Q4 of last year. So that's how we're assuming, we'll obviously continue to monitor and see, but also just remember that there's always a trade-off between these two metrics, right? So our teams are constantly looking to optimize for overall revenue and homeowner income by balancing the GBV per night sold and occupancy overall. So there will always be some puts and takes for those metrics.
Speaker 7: Earlier what when our, when we give the preamble, our Q2 bookings, relative to that two hundred and eighty to two $9 million guide our pacing the same is. You know where we were last year relative to where we ended up for Q2. So, feeling strong about, about the guidance that we're putting outbut' ultimately really wanted to just call this out because the underlying momentum and strength of the business is very strong and we just want to make sure that that point was undererstood and not confused by this unfortunate error. On your seconding question G B, V per night sold sustainability, you know I'll point out that in our guidance we've mentioned that. You know we're assuming that the combination of gross booking value per ite sold and occupancy do take a step back from those recorcord levels that we saw primarily in peak season, you know Q3, Q4 of last year. So that know that that's how we're assuming will obviously continue to monitor and C but also just reminds you know that.
Speaker 3: There's always a trade-offs between these two metrics, right? So the our teams are constantly looking to optimize for overall revenue and homeowner income by balancing the gdv per ite sold and occupancy overall. So there, there will always be some some puts and takes for those metrics.
Multiple speakers: Got it. Thank you. Thank you. We go next now to Bernie McTernan at [inaudible] company.
Multiple speakers: Great, thanks for taking the questions. Maybe just to start, you guys mentioned in your shareholder letter that the industry remains somewhat supply-constrained, Verbal mentioned that on the Expedia calls as well too. But then just wanted to try to square that with some of the commentaries in your release in the guidance about how you expect I think gross bookings per home to take a step back a little bit, albeit off record levels, but just given the supply constraints in the industry, just wondering how those two fit together. Sure, I can [inaudible]. So I think that overall the industry is supply-constrained. I think last year we just saw an overwhelming amount of consumer demand that really filled in the calendar to its peak and we don't want to count on those record levels of demand in the peak season, but I will say we are continuing to see strong momentum, as you saw from our Q1 results and as you see from our Q2 guide. So I wouldn't say that we've seen a massive softening, but just given how record-high those levels were, we're guiding a bit more cautious there.
Speaker 3: In the peak season. But I will say we are continuing to see strong momentum, as you saw from our Q1 results and as you see from our Q2 guide. So I wouldn't say that we've seen a you, a massive softening, but just given how record high those levels were, we we RE guiding a bit more cautious there.
Multiple speakers: Understood. And since your last earnings call the housing market has become, I would say, a bit more uncertain in the face of rising interest rates. Do you still feel comfortable about bringing on the 30% supply but just any thoughts in terms of what the rising rate environment, consumer inflation environment, what all that means for you guys bringing on supply? Sure, I'll take that one. So we remain confident that we'll grow the supply of properties on a platform by that 30% that we mentioned. It's interesting that the number one cause of any kind of attrition for us is home sold or selling. So to the extent that that actually slows down that pace of play on that, that's actually more of a net feature than a bug for us. In general, we become even more important for people purchasing a second home or a vacation home because of the income that we generate, so overall we feel and remain very confident in that 30% growth year over year and, I think, on the margin interest rate increasing relative to the pace of play of homes sold in the vacation market is probably a feature as I mentioned.
Multiple speakers: Understood. Thanks for taking the questions. Sure. Thank you. We go next now to Mike Randall from [inaudible] Securities.
Mike Randall: Yes, thanks guys. Roughly, how many sales reps do you have today and how many more are you hiring? Kind of what's your ultimate goal at year-end?
Speaker 9: Kind of what's your ultimate goal at your endanyone? Take that oneor.
Multiple speakers: Jaimie, do you want to take that one or--? Sure, yeah, I can take that. So we've mentioned that we more than doubled our sales reps last year in 2021 and added about 200. So we're really pleased with our recent hiring. We're tracking ahead of our net new hire expectations for 2022. And this isn't just the absolute number of people hired but also just that we're continuing to see the people we hired in 2021 become more tenured and follow that really predictable curve. So we've also made some pretty amazing leadership additions that are really making a big impact on the ability for our new hires to ramp up their productivity through training and overall kind of re-hauling some parts of the program. So we'll be aggressive on hiring to the extent that it makes sense and we look at this granularly at the market level. I don't think we will be adding 200 like we did last year but we will continue to hire a lot.
Matt Roberts: Yeah, I mean, the only thing I'd add is that with a super high LTVD CAC- four to five times LTVD CAC on our individual channel- that the sales team pretty much hasn't open to hire any sales people. The ROI on any given new salesperson is super high. So that is really just being balanced with where it makes sense to add people. As Jamie mentioned, it's very much a market by market, city by city basis decision that the sales leadership team needs to make, but the economics are super compelling for it.
Mike Randall: Got it. And then maybe just quick, any markets that really overperformed and then maybe a couple markets that you've described as up and coming that maybe in a year or two they'll be much more critical for you?
Multiple speakers: Yes, the nice thing about being a national player and scale player is over 400 destinations is that we'll have a variety of performance levels, but some of the Parsis is really doing great well. I would say though, almost every market is just benefiting from this market shift or this preference shift from consumers to vacation rentals. There are a number of up-and-coming markets, for sure, but the overall picture is just underneath the umbrella of a consumer preference shift toward vacation rentals. Got it. Okay, thank you.
Speaker 1: thehome. Almost every market is just is benefiting from this market shift or this preference shift from consumers to vacation rentallds. There are a number of up incoming marketts, for sure, but the overall picture is just underneath the umbrella of a consumer preference shift toward vacation rentalldsgot it okaythank.
Multiple speakers: Thank you. We go next now to Andrew [inaudible] at [inaudible] Securities. Hi guys, thanks for taking my questions. Two please, just to start out with. Just given the overall macro concerns that are going around to the market right now, Matt, can you just talk about how the business would perform in a recession environment? I understood travel discretionary, but more strategically, how would you think about the business should there be a downtick in demand? And then secondly, you guys talked about the nice product update last quarter, I think, 40% of homeowners were using the homeowner app. There's also the smart home rollout. Can you guys just provide an update on those two things? Thanks so much.
Matt Roberts: Sure, well why don't we start with just the macro-economic environment and how our belief is that will impact vacation rentals. Obviously, we have inflation that's in the news all the time now and so, specifically on inflation there's talk about that because we often get asked about that. First, we are national players as I mentioned. So if a consumer on the East Coast decides not to fly down to Florida for summer vacation, no problem. They can trade down to take a house that's just a few hours away. Vacation homes in general are a lower-cost vacation option. So think about cooking in a vacation home rather than taking to family out to eat. And then also just to point out that the breadth of our options across all of our destinations, we really do have a value to a luxury selection. So we have these homes across a variety of price points to accommodate a wider range of consumer preferences.
Matt Roberts: And we're not seeing the current inflation environment impact on our bookings and the strength as we head into the summer season here. So we remain very confident that the consumer preference and coupled with the decision for consumers to spend more money on- maybe less on things versus experiences, is really supportive of our business.
Multiple speakers: And as far as the tech update, we purposely on this one just decided to give you a break one quarter and to refresh an overall view on our technology. Next quarter we'll bundle up a few different updates for you at that time, including we'll refresh you given the recent time that goes by on the two items that you mentioned. Every single day we roll out a ton of new features and enhancements to existing products, and then we're working on more larger projects behind the scenes too. So we'll update you on that in the next quarter. Thanks, much. Sure.
Multiple speakers: We're going to go next now to you Justin Patterson at Citi Bank. Thank you very much. I'll shift away from macro and back to product. So first Matt, you talked about just the one billion and trailing 12 month income for owners, given category awareness, given just the income you're generating toward property owners, how is the funnel of portfolio opportunities you're seeing today change versus say one, two years ago? And then also in the prepared remarks, you alluded to the extended stay opportunity. Could you talk about just the steps you needed to bring something like that to market and how you think about the incrementality? Thank you. Sure, on the portfolio side of the equation, remember that the portfolio is a minority of our additions, the vast majority is our individual and as I mentioned, that's really performing well.
Matt Roberts: On the portfolio it fills that strategic need to enter new markets or build density faster in any given market, which increases our contribution margin. As far as the industry being more attractive and having more people looking to be maybe competitive on that portfolio side, it's really actually not what we're experiencing of any significant amount. Of course, there's going to be some people that look to come in and purchase property managers as more discrete assets. We look at it more as a part of an overall strategy and how it can add to our overall platform, and that's the evaluation that we perform. And we're just really good at understanding what we should pay for something and if it's more than what we think we should pay, we just pass. Others might not be as disciplined in that regard or have different objectives, and that's actually been the case and continues to be the case for us.
Multiple speakers: But there are still thousands of property managers that meet our criteria, that fit strategically, that we've been building relationships with often for years, that we feel confident that will be good additions to our business. Great, and the second thing? I knew there was a second part, sorry about that that. So from an extended state perspective, we mentioned it because as a scale platform business, we really have this unique opportunity to grow the business by obviously adding properties. We talked about that, we talked about the strength in our sales that we're experiencing. But we also can optimize the existing base of homes on our platform to drive growth as well. And I pointed out in in the prepared remarks that the extended stay it's just an example of how we can optimize the base to take advantage in trends that may exist or emerge for our homeowners.
Matt Roberts: Our objective is to make homeowners the most amount of money possible, and in order to do that, you need to be able to take as much volume of demand for each homeowner as possible. Some of that demand is potentially going to be in the form of these extended stay reservations. So this is just about us doing our job, which is to optimize our base in order to accept those reservations in all markets where it's possible.
Multiple speakers: Perfect, thank you, Matt. I would just add the aspect about incrementality, and that's exactly part of the rollout right to figure out exactly how we price to drive incremental homeowner income through this program and not cannibalize the existing income. Thank you, Jamie.
Operator: Thank you. Ladies and gentlemen, just a quick reminder, star 1, please for any questions. We go next now to Jed Kelly at Oppenheimer. Jed with Oppenheimer your line is open.
Speaker 13: And the drop how your line is open.
Jed Kelly: Oh, thank you. Yeah, this is Jed. Just a couple of questions, I think in your shareholder letter you said you have 35,000 homes. I think in the fourth quarter shareholder letter it was 37,000. So can you talk about anything behind that? And then can you kind of provide us an update on how your fall bookings are are trending against tougher 21 comps? We've talked to some people in the industry, kind of the indication is with people back to work and sort of kids back in school, it seems that the shoulder season bookings are coming in a little bit lighter. Any update on that?
Matt Roberts: Yes, so the first one Jed, the boiler played on about [inaudible] at the bottom is just that and really just meant--it says more than 35,000 plus properties and the actual number at the end of the year was, as we discussed, 37,000. And we are saying that we're going to end at 30% higher than that at the end of this year as well. So that's just a boilerplate over 35 thousand versus the actual number at the end of the year was 37 thousand which is over 35,000. As far as--Jamie, do you want to do the other one?
Speaker 1: sayane and we're going to end at 30% higher than that at the end of this year as well. So that's just a boillet plate 30 -five over 35 thousand versus the actual number at the end of was 37 thousand which is.
Multiple speakers: Yes, I can take the bookings. So I'll point out, our peak season bookings are pacing extremely well. We're looking really strong on there. As we look into Q4, it's obviously much further out so we don't have as much line side there. But in terms of what we see right now continuing to see strength, we haven't seen a slow down there. Great. And then, just as a follow-up, I guess you could argue that the last two years have been federal [inaudible] and with your portfolio approach, how are valuations trending? Are you seeing some larger owners getting maybe like a little skittish and being like this might be the type of time to sell because it's peak and we have potentially a recession? Can you just talk about the valuations and how they're trending in your portfolio approach? Thank you.
Speaker 14: Getting maybe like a little skittish and being like this might be the type time to sell, because it's peak and you we have potentiial of recession. Can you just talk about the valuations of how they're trending in your portfolio approach? Thank you.
Matt Roberts: Sure. Well, everyone is a little bit different, as you can imagine, because each portfolio has its own unique characteristics and fit a specific strategic need for the company or desired fit for the company. The relationships that we build over time with property managers as part of our portfolio approach is really important and we get to understand what is their objective. What are they trying to accomplish? How much longer do they want to do it? A lot of these are family businesses or small businesses and the reasons for them to decide to sell or not sell: big variety of reasons there. Some folks may say, "Look, this is the perfect time." Some people say, "Well no, I want to hold on for a little bit longer." Some folks think that their daughter might take over the business and then that doesn't pan out. I'm trying to just paint a picture of, there's no one single answer for where the motivations are for these companies. But we are really good, given the fact that we've done it 200 times and that's probably 10X as much as anybody else in the industry of building those relationships, understanding the needs and desires of the owners, and how it fits with Vacasa. And we provide a great, great fit for many, many owners that are out there. So we remain very, very bullish on this as one of our two playbooks, but just a reminder the vast majority of our additions is through this individual approach.
Speaker 1: Of building those relationships, understanding the needs and desires of the owners and how it fits with theagasa, and we provide a great, great fit for many, many owners that are out there. So we remain very, very bullish on this as one of our two playbooks, but' just a reminder that vast majority of our ditions is through this individual approach.
Operator: And ladies and gentlemen, just a final reminder, star one for any further questions today. And Mr. Roberts, it appears we have no further questions. I'll turn the conference back over to you for any closing comments.
Matt Roberts: Okay, well, thank you everyone for joining us on today's call. And as you can see, we're off to a really great start to 2022 and as we prepare for our peak summer season, I just want to take a minute and thank all of our employees across the organization that serve our tens of thousands of homeowners and millions of guests day in and day out. I also would love to thank our homeowners for trusting us with their valuable asset and generating the most amount of income that we can for them, and we look forward to catching up with you again next quarter.
Operator: Thank you, Mr. Roberts. Ladies and gentlemen, that will conclude today's Vacasa first quarter 2022 earnings conference call. We'd like to thank you all so much for joining us and we wish you all a great evening.