Vacasa, Inc.

Thank you for standing by. At this time, I'd like to welcome everyone to the third quarter 2024 Vacasa earnings conference call. 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. Thank you. I'd like to turn the call over to Ryan Demancic, Investor Relations. Please go ahead.

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

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 third quarter financial results, and then we'll open it up for Q&A. Before we begin, I'd like to acknowledge our homeowners and employees impacted by the back-to-back hurricanes in Florida and North Carolina. We are incredibly thankful for our team members who go above and beyond for our homeowners and guests while managing their own difficult situations during these challenging events. Their resilience in the face of such adversity is tremendous, and I'm proud to have them as colleagues here at Picasa. This past quarter, our teams also wrapped up another successful summer peak season, with Picasa serving nearly 400,000 guest reservations and generating over $300 million of income for our homeowners. Importantly, quality metrics, including guest satisfaction and review scores on our channel partners' websites, increased year over year in the quarter. Peak season is demanding for our colleagues, with high occupancy, same-day turnovers, and long to-do lists. Yet for our guests, these vacations are some of the most meaningful weeks of their year, a chance to relax, recharge, and reconnect with family and friends. I couldn't be more grateful for the dedication of our local team members who delivered exceptional hospitality throughout the summer and embodied our mission to bring vacations home. Thank you. We believe that our operational success during the summer peak season offers an early proof point that the business transformation we are driving, To reorganize and decentralize our operations to provide more autonomy and accountability to our field teams is delivering early results. By empowering teams to make market-level decisions, we believe we're providing an improved hospitality experience for both homeowners and guests, as well as driving greater efficiency in our operations. Ahead of peak season, we implemented several changes designed to give local teams greater control over various access to their markets, including selecting the type of homes brought onto our platform, setting and managing expense targets, and moving more approval processes and accountability from headquarters to our local teams. We believe this kind of localization improves the experience of and outcomes for our homeowners. With peak season behind us, we continue to identify additional opportunities to localize decision-making and drive further transformation. We've refined our sales approach so our sales executives are aligned with regional teams as our model works best when salespeople bring on homes that local teams know how and want to manage. We are focusing our sales efforts on not just any home, but the right homes in terms of guest appeal, our ability to service them, and ultimately their revenue potential. For example, homes that include attractive features like a pool, hot tub, ski-in, ski-out access, or waterfront access, which we refer to as key amenities, tend to receive better guest reviews and command higher rates. On the product side, we continue to focus on tools designed to enhance the owner experience either directly in our owner tools or by further improving the tools for our teams that support them. This past quarter, we made initial progress in leveraging artificial intelligence to more efficiently provide information and context to our homeowner and guest-facing teams so they can resolve issues faster and improve service outcomes. Early gains from these applications in our guest experience department have been promising, and we're now piloting various tools to extend those benefits to our field teams. I'm pleased with the progress we've made this quarter as we continue localizing our operations to better serve our homeowners and guests. We've lightened our corporate footprint and driven efficiency across our local market operations while increasing guest satisfaction and review scores. We believe that is the formula for better results for our owners and guests, and we're committed to that path. We're adjusting the way we work across the business, and it's rewarding to see the positive impact of these changes. Not only is this progress evident in measurable areas, but we're also witnessing a meaningful cultural shift in our teams. Increasingly, our local field staff is adopting an owner mindset, taking accountability for outcomes in their local markets. While we are executing well against what we can control, we continue to face industry-wide headwinds affecting booking trends in the leisure markets we serve. The short-term rental industry continues to adapt to softer demand for domestic, non-urban vacation rentals and an increased supply of rental units, resulting in ongoing variability in bookings. These trends continue to put real pressure on gross booking value per home, which flows through to revenue and profitability. Nonetheless, based on our and industry data, we continue to believe that in the significant majority of our markets, the CASA listings are generating more gross bookings per home than the industry generally. So our unit economics are currently impacted by continuing declines in home-level gross booking value. We believe the industry will eventually normalize and that we are well-positioned to capture the benefits when it does. I'd like to thank our teams for their dedication and focus amidst the ongoing transformation, and we look forward to continuing this momentum in the quarters ahead. With that, I'll turn it over to Bruce to review our third quarter results.