Vacasa, Inc.

Ladies and gentlemen, thank you for standing by and welcome to Vacasa's second quarter 2022 earnings call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, please press star followed by the number one on your telephone keypad. If you would like to withdraw your question, again, press star one. Thank you. Ryan Demancic, Investor Relations. You may begin your conference.

Good afternoon, everyone, and thanks for joining us today for VCASA's second quarter 2022 earnings call. I'm pleased to be joined today 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 include those about future expectations, beliefs, plans, projections, targets, estimates, objectives, events, conditions, and financial performance. We caution you that various factors could cause actual results to differ from those anticipated. For additional information concerning these risks and uncertainties, please read the forward-looking statement section in the press release and shareholder letter we issued today and the forward-looking statement and risk factors section 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 to the most directly comparable GAAP financial measures, may 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 the hand to call over to Matt Roberts. Matt?

Good afternoon, everyone, and thank you for joining us. We are pleased with our record second quarter performance, as both revenue and adjusted EBITDA exceeded the high end of our guidance ranges. Also, the strong traveler demand we experienced in the first half of the year has continued to date. Like all of you, we've been paying close attention to the macroeconomic environment over the past few months to understand how any changes could impact our business. Our strong second quarter results and our future bookings to date demonstrate that consumers are still prioritizing our travel offerings. On the cost side, inflationary pressures had no discernible impact on our business during the second quarter. We believe one of the many benefits of our business model is it provides financial flexibility during periods of economic uncertainty. Our business model generates revenue by taking a commission on the rental income earned by our homeowners and collecting fees from guests. It doesn't rely on leasing the vacation homes. We gain our supply of vacation home availability by performing a valuable service to our homeowners. Our value proposition is focused on marketing vacation homes, striving to optimize rental income, and servicing reservations while our homeowners enjoy the benefits of owning a vacation home and earning rental income to help offset the cost of ownership. This asset-like business model allows us to flex our primary operating costs on a variable cost basis with demand. Our focus on vacation home rentals within the broader category of travel is also beneficial during an economic downturn. A recent industry survey found that nearly 40% of travelers that stayed in a short-term rental chose to because it offered a better value than other accommodation options. We also looked closely at several of our largest markets and found that vacation homes on our platform remain less expensive than hotels on a per-bedroom basis. Additionally, vacation home guests have the option of eating in versus dining out or even sharing homes with friends, both of which can significantly lower overall travel costs. Finally, we have a diversified national footprint, managing homes in more than 400 destinations, providing travelers drive-to and buy-to destinations. Within these markets, we offer a broad set of inventory, ranging from a one-bedroom condo to a six-bedroom home, helping meet more travelers' budgets and needs. To date, travel demand and our business have been resilient against an uncertain economic backdrop. We believe we are well positioned given our focus on the vacation home vertical, diverse selection of markets, asset life business model, variable cost structure, and positive operating cash flow over the last 12 months. Now let's review some of the progress we made during the past few months before I turn the call over to Jamie to review our financial results and guidance. We extended our position as North America's leading vacation rental management platform in the second quarter by welcoming thousands of new homeowners to Vacasa. We believe that our technology focus creates a truly differentiated value proposition for homeowners making us the vacation rental manager of choice in the markets we operate. We aim to generate homeowners more rental income than peers through our advanced yield optimization, which combines broad listing distribution with our proprietary dynamic pricing engine. The listing for every home we manage is distributed across Airbnb, Booking.com, and Vrbo, plus more than 100 other channels to maximize visibility and and in turn, guest demand. We also leverage internally developed dynamic pricing algorithms that analyze both internal and external data sets in real time to determine a customized price for each individual home for a given night. We made substantial progress on home additions during the second quarter and remain on track to increase our homes under management by about 30% during 2022. Our individual approach, which is a direct sales model where predominantly local sales representatives sign up individual homeowners, continues to account for the majority of our home additions. The economics of the individual approach remain strong, with the lifetime value to customer acquisition costs remaining above our target range of four times to five times on a trailing 12-month basis. Similar to prior quarters, Our CAC has remained stable, which, combined with stronger lifetime value, lands us above our target range. We continue to add sales executives throughout the quarter, reaching the targeted Salesforce size for 2022 that we set out at the beginning of the year. In the second half of 2022, we intend to maintain its current size, backfilling with additional hires as needed. On the portfolio approach, we were active in the second quarter, bringing on 16 portfolios. The portfolio program, by its nature, tends to fluctuate on a quarter-to-quarter basis. In the second quarter, while maintaining our disciplined approach to evaluating portfolios, we came across a number of opportunities that fit squarely into our framework. We looked for portfolios that either open new markets, add scale to thin markets to build density, or unlock differentiated high quality inventory. For example, there's a market in the Florida Panhandle with more than 1,000 vacation rental homes. The two leading vacation rental property management companies in the market are both locally owned and each have had a presence there for about 50 years. Being a relatively smaller market with a couple of large tenured operators, it is more difficult for Vacasa to establish a meaningful presence quickly through the individual approach. When one of the two leading portfolios in this Florida market became available as the owners approached retirement age, we were able to add that 250-plus unit portfolio and immediately establish a market-leading position. We also extended job offers to each and every one of their 50 employees that had deep local knowledge and that the homeowners have come to know and trust. From a growth perspective, this portfolio addition also unlocks a new market for the individual sales effort, which will be led by a local employee that we retain from the prior company and supported by the broader Vacasa platform. The situation I just described encapsulates the strategic nature of our portfolio program. We deploy it in a disciplined fashion with our targets and valuation framework informed by our prior experience executing this playbook more than 200 times. The portfolio program is a very powerful strategy that allows us to enter new markets profitably and importantly, unlock substantial opportunity for our individual approach. Finally, I want to spend some time covering recent updates to our technology platform, a linchpin of our business. which helps improve the vacation rental experience for guests and homeowners, drives efficiencies in our local market operations, and enables us to scale. In addition to the internally developed purpose-built products we've introduced, such as our pricing algorithms, the homeowner app, and the clean inspection tool, just to name a few, we've also implemented a number of enterprise-grade systems over the past six months, These systems complement and integrate with our internally built tools and are used for more general functions that many growing businesses require, like telephony and sales, as opposed to our proprietary tools that are specific to our industry and business. Importantly, these tools can support immense scale and our long-term ambitions of managing hundreds of thousands of vacations homes and facilitating tens of millions of nights sold on an annual basis. The individual approach of adding new homes to our platform is crucial to our long-term success. In addition to increasing the number of sales representatives over the past year, we also launched a new customer relationship management tool in the second quarter. The new CRM system allows us to collect more data at every point during the sales process, from how a lead enters our funnel, to signing the contract, and eventually will help streamline home onboarding. Our sales leadership team can now analyze this newly collected data to identify what is working and different pain points. From there, they can turn those insights into actions to further refine training and sales tactics, ultimately making our sales representatives more effective. While we don't expect an immediate step function change in productivity, Our sales leaders now have greater insight into the sales force, enabling those leaders to manage the team effectively as it scales in the years ahead. We've also implemented a new communication platform that improves our ability to interact with guests and owners while streamlining our operations. We've customized the platform to tie directly in with our vacation rental management system, which houses all the information about reservations and owners. This enables our owner and guest experience teams to work in a single environment with the right information displayed at the right time. It also allows us to funnel multiple communication sources, such as a phone call, SMS message, or a message received through a channel partner to one location. With the new system in place, we've been able to offer guests and homeowners more ways to communicate with our support teams and resolve their questions more quickly which has resulted in operational efficiencies. Our deep technology experience and overall scale allow us to invest in these leading technologies, which in turn supports our ability to provide superior customer service and continue to efficiently add homes to our platform. In closing, our business is well positioned from an industry, business model, and capital perspective. I'm confident the team can continue to execute across all facets of our business, positioning us well for continued growth against the market opportunity of more than 5 million vacation homes in the United States. Now I'll turn the call over to Jamie to review our second quarter results and guidance in detail. Jamie?