HomeToGo, the leading vacation rental marketplace, has announced strong financial results for the second quarter of 2023, highlighting positive growth momentum and achieving positive Adjusted EBITDA for the second quarter in a row. The company reported a first-time positive Adjusted EBITDA in Q2, reaching €1.4 million compared to a loss of €6.4 million in the same period last year. This represents a significant year-on-year improvement in profitability and demonstrates the company’s ability to drive sustainable growth.
The positive financial results were fueled by several key factors, including an all-time high Booking Revenues Backlog of €67.4 million at the end of Q2. This backlog provides high visibility on the company’s growth targets and reflects the overall recovery of travel demand in the vacation rental market. Despite ongoing macroeconomic uncertainties, HomeToGo’s vacation rentals have shown resilience and continue to attract a significant number of bookings.
HomeToGo’s operational strength was evident across its key strategic pillars. The company increased its cost-per-acquisition (CPA) Take Rate to an all-time high of 11% in Q2, reflecting its ability to attract a steady stream of high-quality customers. Additionally, HomeToGo’s Subscriptions & Services business delivered exceptional growth, reaching a record high of €9.1 million in IFRS Revenues in Q2. This business unit, which includes the popular all-in-one SaaS solution for hosts called Smoobu, has been a significant driver of organic growth for the company.
The company also achieved solid growth in its North American business, with a 65% year-on-year increase in IFRS Revenues in Q2. Overall, HomeToGo reported the highest Q2 figures ever, with IFRS Revenues reaching €42.8 million and Booking Revenues totaling €50.2 million.
HomeToGo’s focus on marketing efficiency and repeat business has resulted in a significant improvement in the marketing and sales cost ratio. The company achieved a 15-percentage-point year-on-year improvement in this metric, contributing to its positive Adjusted EBITDA in the second quarter.
Looking ahead, HomeToGo reaffirmed its guidance for the full year 2023, expecting IFRS Revenues to grow by 13-19% year-on-year to reach €165-175 million. The company also aims to achieve breakeven on Adjusted EBITDA as the guidance midpoint.
Dr. Patrick Andrae, Co-founder and CEO of HomeToGo, expressed his pride in the company’s performance in the first half of 2023. He highlighted their resilience in the face of significant macroeconomic challenges and emphasized their focus on marketing efficiency and repeat demand. Dr. Andrae also mentioned HomeToGo’s status as a pioneer in the travel industry, noting the successful launch of their AI product, the AI Mode.
With strong financial results and confidence in achieving their targets for 2023, HomeToGo is poised to make substantial strides as it looks ahead to further growth in 2024.
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