Vacasa, Inc.

Ladies and gentlemen, good afternoon. My name is Aaron and I will be your conference operator for today. At this time, I would like to welcome everyone to the VCASA Q1 2024 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. And 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, press the star followed by the number one again. We ask that you please limit yourself to one question when your line is selected. Thank you. I would now like to turn our call over to Ryan Demanstik, Investor Relations. Ryan, you may.

Good afternoon, everyone, and thank you for joining us for today's call. I'm pleased to be joined today by Picasa CEO Rob Graber and CFO Bruce Schumann. We have posted a shareholder letter on the investor relations section of our website at investors.picasa.com that will be referenced by our speakers. Comments made during this conference call and in our letter contain forward-looking statements. Such statements include those about our restructuring actions, including cost savings, future expectations, beliefs, plans, projections, targets, estimates, objectives, events, conditions, and financial performance, including guidance for future period results. We caution you that various risks and uncertainties could cause actual results to differ materially from those in our forward-looking statements. For additional information concerning these risks and uncertainties, please read the forward-looking statement section in our shareholder letter we issued earlier today in the forward-looking statements and risk factor sections in our filings with the SEC. During this call, we may refer to various non-GAAP financial measures, information regarding our non-GAAP financial results, including a reconciliation of our non-GAAP results to the most directly comparable GAAP financial measures may be found in our shareholder letter. These non-GAAP measures should be considered in addition to our GAAP results and are intended to supplement but not substitute for our performance measures calculated in accordance with GAAP. And now, I will turn the call over to Rob Grayhood. Rob?

Thanks, Ryan, and thank you, everyone, for joining us this afternoon. I'll begin with some opening remarks and commentary on the business. Bruce will follow with a review of first quarter financial results, and then we'll open on up for Q&A. For well over a year, we have been working to transform Vacasa into a more efficient, high-performing organization, one dedicated to exceptional service for our owners, our guests, and the people who serve them. We've actioned a variety of improvements across the business, and I'm proud of the team's progress to date. We remain on that transformation journey, and in the midst of an unexpectedly ongoing, challenging industry environment, we continue to evaluate opportunities to optimize our business model and shareholder value. I shared with you on our last call that 2024 got off to a difficult start. The short-term rental industry continues to adjust to softening economic demand for domestic non-urban vacation rentals, as well as increases in the supply of short-term rental units. The year began with bookings variability and started off slowly, then showed some signs of stabilization. However, over the last several weeks, which are some of the key weeks for summer bookings, it has become clear that the bookings weakness we saw at the start of the year is likely to persist through the remainder of 2024. These trends are putting real pressure on our revenue per home and profitability. With difficult industry dynamics continuing, we are accelerating the business transformation that is already underway to further empower and enable our local teams with the goal of strengthening our business model. Today, we are reorganizing the way we operate by further equipping our field teams to locally manage and be accountable for their markets, and we are significantly reducing our central corporate footprint. We believe that empowering our local teams will drive the strongest impact on the homeowner and guest experience, which in turn should result in better business outcomes. As an organization, we believe we must embrace a more local business model and double down in the way we manage our portfolio of vacations homes at the market level. Directing our resources to local teams and to the processes that bring the most value to our owners and guests will allow us to better support our focus on profitability and free cash flow. Our field teams will be organized and equipped to run their operations in their markets as we further localize functions, including sales, onboarding, revenue management, and marketing. For example, we are transitioning our individual sales approach to be directed by our local teams, leveraging their local expertise and giving them end-to-end ownership of the homeowner relationship. Homeowners trust our local teams with the care and maintenance of their vacation homes and the experiences their guests have in these homes. Furthermore, our local operations teams know their markets best and are therefore best positioned to identify homes and homeowners who are a good fit for our service models. The homeowner experience from onboarding to welcoming guests in their homes is most seamless when our local teams guide them through that journey. As we move to empower our local teams, we are also refining our corporate footprint, sharpening our focus on what is best needed to support those teams. This also allows us to significantly reduce our corporate overhead costs with the goal of becoming profitable in the future. We are also shifting our technology strategy to focus even more on ensuring that we have the tools that increase efficiency and improve the experience for our owners and guests and the team members who support them. This focus will guide what technology we invest in internally and externally and will allow us to take greater advantage of step function improvements in industry third-party applications. The actions we have announced today will result in a reduction of our overall headcount by about 800 people, or 13% of our workforce. While a difficult decision, we determined it was necessary to accelerate the transformation of our business given the current industry dynamics. Reductions were aligned with our strategy to prioritize resources for the local market teams in the field. On the corporate and central operations side, we eliminated approximately 40% of roles across all functions. In comparison, we reduce field team positions by approximately 6%. While we are making some adjustments in the field, they are relatively small compared to our overall field cost base and designed to maintain service levels to owners and guests even as we adjust to changing market conditions. We have significant work ahead of us to drive the success of this transformation. It will not be easy and will require precision in execution. but we believe we have the right team in place to implement these important steps in our transformation. The business will be much lighter from an expense perspective, and we believe better positioned. I'm confident we are making the right strategic decisions to allow the business to reach its full potential. I'd now like to pass it over to Bruce to discuss our first quarter results. Thanks, Rob.