Vacasa, Inc.

Good evening and thank you for attending the BACASA fourth quarter 2021 earnings call. My name is Selena and I will be your moderator. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. If you'd like to ask a question, please press star one on your telephone keypad. I would now like to pass the conference over to our host, Ryan Demancic with BACASA. Please go ahead.

Good afternoon, everyone, and thanks for joining us today for Vacasa's fourth quarter 2021 earnings call. I'm pleased to be joined by CEO Matt Roberts and CFO Jamie Cohen. Before we begin, let me cover a few administrative details. This call contains information that speaks only as of the date of today's live broadcast, and redistribution of this broadcast is prohibited. We have posted a shareholder letter and press release on the IR section of our website at investors.vicasa.com that will be referenced by our speakers. Comments made during this conference call and in our shareholder letter and press release may contain statements that are commonly referred to as forward-looking statements. Such statements about future expectations, beliefs, plans, projections, strategies, targets, estimates, objectives, events, conditions, and financial performance. We caution you that various factors could cause actual results to differ from those we anticipated. For additional information concerning these risks and uncertainties, please read the forward-looking statement section in the press release and our shareholder letter we issued earlier today and the forward-looking statements and risk factors section outlined in our filings with the SEC. During this call, we will discuss certain non-GAAP financial measures. Information regarding our non-GAAP financial results, including a reconciliation of non-GAAP results, the most directly comparable financial measures can be found in our press release and shareholder letter. These non-GAAP measures should be considered in addition to our GAAP results and are not intended to be a substitute for our GAAP results. And now I'd like to hand a call over to Matt Roberts.

Matt? Good afternoon, everyone, and thank you for joining Vacasa's first earnings call as a publicly traded company. In early December, we started trading on the NASDAQ and added over $340 million of gross cash proceeds to our balance sheet, leaving us well capitalized with a tremendous growth opportunity in front of us. I recognize that many on the call today are new to the CASA story, so I want to spend some time providing background on our company. Next, I'll touch on the substantial progress we made in 2021 before handing it over to Jamie Cohen, our CFO, to cover our strong financial results and 2022 guidance. Our business is performing extremely well. We are delivering solid financial performance, executing on our technology roadmap, and expanding our growth engine, all of which extends our leadership position. While this is our first earnings call as a publicly traded company, we have been sharing projections and reporting on our progress throughout most of 2021. and it's clear our business has incredible momentum. We've consistently beat and raised versus our initial projections. First, we beat Q2 and raised Q3. Then we beat the high end of Q3 and raised Q4. Then we beat the high end of Q4, and now we're raising our 2022 outlook. We also expect the business to reach adjusted EBITDA profitability for the full year 2023. Okay, so a quick overview of our company. Picasa is reinventing the vacation rental industry by leveraging proprietary purpose-built technology to create a better experience for everyone involved, homeowners, guests, and channel partners. Alternative accommodations is one of the fastest-growing categories in travel with tremendous consumer demand. Our primary focus is on the supply side of the vacation rental ecosystem, which is highly constrained and ripe for innovation. As the only scaled national vacation rental management platform, we play a critical role in fueling the alternative accommodations growth engine. We operate in a massive market with fantastic secular trends. There are more than 5 million vacation homes in the United States alone and 20 million globally. And from a guest perspective, the preference shift towards alternative accommodations started over a decade ago. driven by both technology enablement and expanding appeal of the category across multiple use cases. The vacation rental management industry is a local marketplace perfectly set up for disruption. Just think about the status quo of renting out a vacation home. Some people do it themselves, which is a ton of work, to properly set up your home, effectively market and price availability, and service all the guests' needs. including answering the phone call at 2 o'clock in the morning because the heater's out at the ski lodge. Or you can enlist a local vacation rental manager, but their fragmented nature and relatively unsophisticated technology leads to suboptimal homeowner income. This is where Vacasa comes in with technology to modernize and truly rethink the industry. It sounds ambitious, but it's not new. This is a proven playbook. Innovative tech-enabled platforms have helped create, disrupt, and accelerate industries. There's pattern recognition between what we're doing and what others have done in other categories. Just think about how real estate, mobility, and on-demand delivery have been redefined over the past decade. My experience at OpenTable taught me how meaningful and transformative these tech-enabled platforms can be to local marketplace businesses. Our value proposition for homeowners is simple yet powerful. Just hand us the keys, tell us which nights you want your home for personal use, and start earning monthly income. That's it. We handle all the hard work like setting up the home, establishing optimal monthly rates, communicating with guests before, during, and after a reservation, and ensuring homes are properly cleaned and maintained. Our proprietary technology platform serves as the foundation of our business and has been crucial to our success. All key aspects of our platform were purpose-built, addressing specific needs and pain points of the vacation rental management process, resulting in a truly differentiated and elevated experience to homeowners, guests, and channel partners. In the past year alone, we invested nearly $50 million on technology, which we believe is greater than the spend of the combined total population of competitive local managers. A core component of our technology platform is our dynamic pricing engine, which is designed to generate greater income for homeowners. We accomplish this by using a combination of technology products, artificial intelligence, human expertise, and a significant volume of data to uniquely derive rates for each home on our platform. In fact, homeowners who were previously using local professional managers gained an average of 20% increase in their rental income in the first year and then an incremental 10% increase in the second year after switching to Vacasa. In addition to our dynamic pricing capabilities, we are able to capture demand wherever it exists by listing all the homes under our management on Vacasa's own website and consumer app. and distributing our listings to more than 100 channel partners, including Airbnb, Booking.com, and Vrbo. While our channel partners account for the majority of bookings, our direct channel is our single largest source, accounting for 30% of gross booking value in 2021. For guests, Vicasa provides a consistent and reliable experience that has many similarities to traditional accommodations. Guests can use the Vacasa app to check into the property and unlock the front door. We also offer 24-7 support by phone, online, or through the Vacasa Guest app. The top-tier hospitality we deliver ensures guests have a memorable experience, which leads to better reviews, which results in higher income for homeowners. Now turning to the tremendous progress we made in 2021, including adding homes to our platform, introducing new products, and maximizing homeowner income. Over the course of the year, we grew the number of homes on our platform by over 60% through our growth engine playbook, as well as through the strategic acquisition of turnkey vacation rentals. We add homes to our platform with two complementary playbooks, an individual and portfolio approach. The individual approach is a direct sales model where we create leads, then predominantly local sales representatives sign up individual homeowners. This approach is used in existing markets, and it accounts for the majority of our new additions. Under the portfolio approach, we buy local vacation rental managers, bringing on dozens of homes at once. Through this approach, we are able to efficiently enter new markets and build density at a faster rate, allowing us to accelerate our margin expansion in those markets. We made great progress throughout the year, ramping sales capacity under our individual approach as we successfully added hundreds of new sales representatives. In the fourth quarter 2021, our Salesforce added nearly 150% more homes than it did in the first quarter of the year. We also expect continued overall Salesforce productivity improvements going forward as our recently hired sales executives follow a predictable tenure-based productivity ramp. Our technology teams were hard at work releasing new products to improve the vacation experience for guests and homeowners and developing tools for our local market staff to drive efficiencies. We are particularly proud of the new homeowner app, which provides our owners with insights into the management, care, and performance of their vacation rental home. And we're seeing more than 60% of homeowners with the app log in weekly. We launched the rollout of our smart home technology package consisting of keyless locks, Wi-Fi routers, and noise monitoring technology, which is expected to be in place across our entire portfolio of homes by the end of 2022 at no additional cost to homeowners. We created a new clean inspection tool designed to improve guest and homeowner satisfaction by ensuring a standardized, efficient cleaning process across the tens of thousands of homes on our platform. And our yield management system also took a big step forward as our data scientists introduced itinerary-based pricing, which uniquely prices each itinerary based on the start and end date and a home's availability. Now I'll turn the call over to Jamie to review our fourth quarter financial results and guidance in detail. Jamie?