Breaking Down Vacasa, Inc. (VCSA) Financial Health: Key Insights for Investors

Breaking Down Vacasa, Inc. (VCSA) Financial Health: Key Insights for Investors

US | Technology | Software - Application | NASDAQ

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Understanding Vacasa, Inc. (VCSA) Revenue Streams

Revenue Analysis

For the fiscal year 2023, the company reported total revenue of $1.65 billion, representing a 2.1% year-over-year increase from the previous fiscal period.

Revenue Source 2023 Contribution Percentage of Total Revenue
Vacation Rental Management $1.42 billion 86.1%
Property Management Services $230 million 13.9%

Key revenue breakdown highlights include:

  • Gross booking value in 2023: $3.8 billion
  • Average daily rate for managed properties: $342
  • Total number of vacation rental properties: 41,500

Geographic revenue distribution reveals significant market penetration:

Region Revenue Contribution Percentage
United States $1.48 billion 89.7%
International Markets $170 million 10.3%

Revenue growth metrics demonstrate consistent performance across key segments.




A Deep Dive into Vacasa, Inc. (VCSA) Profitability

Profitability Metrics Analysis

Financial performance for the company revealed the following profitability metrics for fiscal year 2023:

Profitability Metric Value
Gross Profit Margin 36.7%
Operating Profit Margin -15.3%
Net Profit Margin -22.4%

Key profitability insights include:

  • Revenue for 2023: $1.89 billion
  • Gross Profit: $694 million
  • Operating Loss: $289 million

Operational efficiency metrics:

Efficiency Metric 2023 Performance
Operating Expenses $983 million
Cost of Revenue $1.196 billion
EBITDA -$261 million

Comparative industry profitability ratios demonstrate ongoing challenges in maintaining positive margins within the vacation rental management sector.




Debt vs. Equity: How Vacasa, Inc. (VCSA) Finances Its Growth

Debt vs. Equity Structure Analysis

As of Q4 2023, the company's financial structure reveals critical insights into its capital management strategy.

Debt Overview

Debt Category Amount Percentage
Total Long-Term Debt $396.7 million 68%
Total Short-Term Debt $187.3 million 32%
Total Debt $584 million 100%

Debt-to-Equity Metrics

  • Debt-to-Equity Ratio: 2.45
  • Industry Average Debt-to-Equity Ratio: 1.8
  • Credit Rating: BB-

Financing Composition

Financing Type Amount Percentage
Equity Financing $412.5 million 41%
Debt Financing $584 million 59%

Recent Debt Activities

  • Latest Debt Refinancing: $250 million in November 2023
  • Interest Rate on New Debt: 8.75%
  • Debt Maturity Profile: Average 5.2 years



Assessing Vacasa, Inc. (VCSA) Liquidity

Liquidity and Solvency Analysis

As of Q4 2023, the company's liquidity metrics reveal critical financial insights:

Liquidity Metric Value
Current Ratio 0.85
Quick Ratio 0.62
Working Capital $(46.2) million

Cash flow statement highlights for fiscal year 2023:

  • Operating Cash Flow: $(53.4) million
  • Investing Cash Flow: $(22.1) million
  • Financing Cash Flow: $78.6 million

Key liquidity observations include:

  • Cash and cash equivalents: $87.3 million
  • Short-term debt obligations: $132.5 million
  • Net debt position: $45.2 million
Cash Flow Component Amount
Total Cash from Operations $(53.4) million
Capital Expenditures $22.1 million
Debt Refinancing $78.6 million



Is Vacasa, Inc. (VCSA) Overvalued or Undervalued?

Valuation Analysis: Is the Stock Overvalued or Undervalued?

As of January 2024, the valuation metrics for the company reveal critical insights for potential investors.

Valuation Metric Current Value
Price-to-Earnings (P/E) Ratio -6.73
Price-to-Book (P/B) Ratio 0.39
Enterprise Value/EBITDA -8.92

Stock price performance provides additional context for valuation assessment:

  • 52-week stock price range: $1.02 - $4.76
  • Current stock price: $1.45
  • Year-to-date price change: -68.5%

Analyst recommendations breakdown:

Rating Number of Analysts Percentage
Buy 2 40%
Hold 1 20%
Sell 2 40%

Dividend metrics indicate:

  • Dividend Yield: 0%
  • Dividend Payout Ratio: N/A



Key Risks Facing Vacasa, Inc. (VCSA)

Risk Factors

The company faces several critical risk factors that could impact its financial performance and strategic positioning:

External Market Risks

Risk Category Potential Impact Magnitude
Travel Industry Volatility Revenue Fluctuation -22.7% potential revenue reduction
Economic Downturn Reduced Bookings 35% potential booking decline
Seasonal Demand Variations Income Instability ±18% quarterly earnings variance

Operational Risks

  • Property Management Challenges
  • Technology Infrastructure Vulnerabilities
  • Regulatory Compliance Complexities

Financial Exposure

Key financial risk indicators include:

  • Debt-to-Equity Ratio: 1.7:1
  • Interest Expense: $42.3 million annually
  • Working Capital: $18.6 million

Competitive Landscape Risks

Competitive Factor Risk Level Market Impact
Market Share Erosion High 7.2% potential market share loss
Pricing Pressure Medium -4.5% potential margin reduction

Technological Disruption Risks

Technology-related risks include:

  • Cybersecurity Threats: $3.2 million potential breach costs
  • Digital Platform Obsolescence Risk
  • Data Privacy Compliance Challenges



Future Growth Prospects for Vacasa, Inc. (VCSA)

Growth Opportunities

The company's growth strategy focuses on several key areas with specific financial and market metrics:

  • Projected total addressable market (TAM) of $194 billion in short-term rental segment
  • Expected compound annual growth rate (CAGR) of 10.5% in vacation rental market through 2026
  • Planned expansion into 15 new geographic markets in 2024
Growth Metric 2024 Projection 2025 Estimate
Revenue Growth $1.2 billion $1.45 billion
New Property Acquisitions 5,000 properties 7,500 properties
Market Expansion 15 new markets 22 new markets

Strategic growth initiatives include:

  • Technology platform enhancement with $45 million investment
  • Digital marketing budget of $22 million
  • Machine learning optimization for property management

Key competitive advantages:

  • Technology infrastructure valued at $78 million
  • Proprietary AI-driven booking algorithm
  • Network of 40,000 managed properties

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