Vacasa, Inc. reported its financial results for the three and nine months ended September 30, 2024, revealing significant changes in revenue, profitability, and operational strategies compared to the previous fiscal period.

For the third quarter of 2024, Vacasa's total revenue was $314.0 million, a decrease of 17% from $379.1 million in the same period of 2023. The decline was primarily driven by a $64.7 million drop in revenue from the vacation rental platform, attributed to a 21% decrease in Nights Sold and lower guest demand. For the nine months ended September 30, 2024, total revenue was $772.5 million, down 18% from $940.5 million in 2023.

Despite the revenue decline, Vacasa reported a notable turnaround in profitability for the third quarter. The company achieved a net income of $59.3 million, compared to a loss of $402.5 million in the prior year. This improvement was supported by a significant reduction in total operating costs and expenses, which fell to $259.5 million from $786.3 million in the same quarter of 2023. The nine-month net loss narrowed to $94.8 million from $451.7 million in the previous year.

Vacasa's operational adjustments included a workforce reduction plan approved on May 7, 2024, which eliminated approximately 800 positions, or 13% of its workforce, to reduce fixed costs and enhance efficiency. This restructuring, along with a previous plan in early 2024 that cut 320 positions, resulted in severance costs of approximately $5.9 million and $2.0 million, respectively.

The company also took steps to bolster its liquidity, drawing $81.0 million from its revolving credit facility and issuing $30.0 million in convertible notes in August 2024. As of September 30, 2024, Vacasa had cash and cash equivalents of $124.4 million, an increase from $88.0 million at the end of 2023, although total assets decreased to $584.0 million from $663.5 million.

Impairment charges were a significant factor in the financial results, with long-lived asset impairments totaling $84.0 million for the nine months ended September 30, 2024, compared to $46.0 million in the same period of 2023. The company also recorded a decrease in amortization of intangible assets, reflecting a lower carrying value of homeowner contracts following these impairments.

Overall, Vacasa's financial performance for the third quarter of 2024 indicates a strategic shift towards cost management and operational efficiency, despite ongoing challenges in revenue generation and market demand.