Shares of Vacasa (NASDAQ:VCSA) stock are live today after the vacation-rental management platform previously entered into a merger agreement through a special purpose acquisition company (SPAC) with TPG Pace Solutions. The transaction is estimated to be valued at $4.5 billion. Vacasa is expected to receive $340 million in gross proceeds.
Vacasa manages over 35,000 vacation rentals. It has more than 400 locations located across the U.S. as well as in Belize and Costa Rica. The company also lists, cleans and maintains properties for companies like Airbnb (NASDAQ:ABNB) and Booking Holdings (NASDAQ:BKNG). Vacasa differentiates itself from competitors by not only connecting customers with rentals but also by managing and supplying an artificial intelligence (AI) model for properties and their owners.
Right now, shares of VCSA stock are lowering slightly on its debut, down 1%. Let’s dive into the details on the Nasdaq’s newest participant.
VCSA Stock: 11 Things to Know About Vacasa
- The TPG Pace Solutions SPAC raised $285 million in its debut, offering shares for $10 each.
- Private investors of Vacasa include Silver Lake, NewSpring and Riverwood Capital.
- Vacasa was founded in 2oo9 and is led by CEO Matt Roberts.
- The company boasts a proprietary AI model that helps Vacasa drive “intelligent supply acquisition” and maximize income for homeowners.
- The third quarter was a record period for the company. Revenue reached an all-time high of $330 million, up 77% year-over-year (YOY). That was 28% above the target of $258 million.
- Net income for Q3 was $33 million, up more than 266% YOY from $9 million.
- Gross booking value was $776 million, up 97% YOY.
- According to the most recent 8-K filing, Vacasa has increased its 2021 full-year guidance by more than $100 million since announcing its intention to go public earlier in July of this year.
- A study from Skift revealed that “nearly 20% of guests stayed in a vacation rental for the first time between March 2020 to March 2021.” Vacasa believes that the pandemic accelerated a shift toward vacation rentals.
- Looking forward, the company expects this move away from hotels to be “enduring rather than transitory.” Vacasa expects revenue of $1 billion in 2022 and $1.3 billion in 2023 based on factors like higher occupancy and gross bookings.
- CEO Matt Roberts had this to say about the company: “Vacasa is reimagining the vacation rental experience through our end-to-end technology platform. The integration of our purpose-built technology with our local, expert service teams brings exceptional care and greater returns to our homeowners, delivers a consistent and reliable experience to our guests, and helps us offer a large supply of professionally managed homes for our distribution partners.”
On the date of publication, Eddie Pan did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.