Vacasa, Inc.

Good afternoon and thank you for standing by. My name is Emma and I will be your conference operator today. At this time, I would like to welcome everyone to the VCASA first quarter 2023 earnings conference 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, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, again, press the star one. Thank you. Ryan Demancic, Investor Relations. You may begin your conference.

Good afternoon, everyone, and thanks for joining us today for Vacasa's first quarter 2023 earnings call. I'm pleased to be joined today by CEO Rob Graber 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 on the IR section of our website at investors.placasa.com that will be referenced by our speakers. Comments made during this conference call and in our shareholder letter 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 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 shareholder letter we issued earlier today and the forward-looking statements 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 shareholder letter. Those 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 the call over to Rob Graber.

Rob? Good afternoon, everyone, and thank you for joining us. I'm pleased to be with you all today to discuss the latest progress we've made at MACASA and to discuss our first quarter financial results. Since we last spoke in March, our team has been focused on getting the business ready for our peak season, which kicks off in June. Across the organization, from local market operations to our central teams, we have been positioning Vacasa to deliver for homeowners and guests during our busiest summer months. Over the past several months, I and members of our leadership team have also taken several opportunities to visit local Vacasa markets, meeting with homeowners and colleagues. Spending time in these markets and speaking with the teams in the field helps us understand firsthand where we can improve and the opportunities ahead. We've done three of these in-market visits so far, and each time I am truly impressed with our local teams, inspired by their commitment to our owners and guests, and energized about what's ahead for Picasa. As I've previously shared with you, we are focused on four priorities in the year ahead, which include ruthlessly prioritizing our business needs to drive profitable growth, improving execution in local markets and customer support functions, unlocking the potential of the individual sales approach, and developing the right technology product and service offerings. We believe that executing against these priorities will position us for sustainable, long-term, profitable growth in future years. I am not satisfied yet, nor is our team, but we are on the right path, and I believe our focus is on the right things. During the first quarter, we made gains on improving the execution in our local markets and customer support functions. Recall, throughout 2022, we were staffing our local markets in anticipation of stronger demand and increasing homes under management. As the traveler demand environment changed in the third and fourth quarters, we did not adjust staffing levels as quickly as we would have liked. We took structural actions during the fourth quarter. beginning with splitting our local operations teams and national sales teams into separate groups, enabling us to have more dedicated senior leadership for each team. We also implemented new processes to better align field staffing with the number of reservations in each period and to share best practices across regions. From these learnings, we made further market level headcount adjustments in January. The combination of these actions resulted in Vacasa exiting the first quarter with staffing levels that better match demand, and that contributed to our adjusted EBITDA outperformance during the first quarter. I am cautiously optimistic that we can maintain these improvements and the resulting effects on our cost structure as we approach our seasonally stronger summer months. We continue to refine and optimize how we add homes to our platform to the individual sales approach. On the one hand, encouragingly, March represented our highest per rep productivity over the past year, and I believe there is more progress to be made. On the other hand, we continue to experience elevated levels of homeowner churn, which we believe is primarily due to concerns about levels of homeowner income as the industry comes off two record years. We are monitoring this closely, and the churn rate hasn't increased since we last spoke in March. As we look at the data points from third-party firms that cover our industry, It's very clear that others are also experiencing declines in bookings and that we are in a very different demand environment than we were a year ago. We are actively communicating to our homeowners what we and the broader industry are experiencing in an effort to address their concerns and manage their expectations for the balance of the year. Given our expectations for continued year-over-year declines in bookings, it's difficult to predict when we expect churn to return back to normalized levels. But we are focused on the issue and taking what we believe are the appropriate steps. The technology team is also executing well against both its near-term and long-term priorities. We recently launched the Home Care Dashboard, which provides homeowners more detailed insight into how Vacasa is caring for their home. With the tool, we are now conveying much of the behind the scenes work that goes into caring for a home, including when their home was last cleaned, the average clean score by guests, clean inspection checklists, and the status of maintenance tickets directly to the owner through the mobile app. We believe this tool will provide peace of mind and transparency into the work we do to maintain their properties. We also continue to release new and refine existing field tools to improve their functionality and ease of use, and increase the efficiency of local teams as they care for our homes. It's crucial that we leverage our scale to invest in these types of custom integrated product solutions to create enduring competitive advantage. Finally, we announced today that Bruce Shuman will join Vacasa as our Chief Financial Officer, effective June 1st, succeeding Jamie Cohen, who will be stepping down from that role to pursue new endeavors. Bruce joins Vacasa with nearly 30 years of financial leadership experience, including over 25 years at Intel, where his roles included serving as a divisional CFO with P&L responsibilities. I'm excited to welcome Bruce to Vacasa and the executive team next month. Over the past two years, Jamie has helped lead Vacasa through some of its more formative milestones, including integrating Turnkey's financial operations, and leading Vacasa's business combination with TPG Base Solutions Corporation, which resulted in Vacasa becoming a publicly traded company. I'm extremely grateful for Jamie's lasting contributions to Vacasa. Jamie will remain available to consult with Vacasa until October 1st, 2023, to ensure a smooth transition of her responsibilities to Bruce. With that, I'll turn the call over to Jamie to review our first quarter results and latest outlook. Jamie?