Sonder Holdings Inc (SOND) 2023 Q1 法說會逐字稿

Good day, and thank you for standing by, and welcome to the Sonder's First Quarter 2023 Earnings Call. (Operator Instructions) And please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, John Charbonneau, VP Head of Investor Relations. Please go ahead.

美好的一天，感謝您的支持，歡迎來到 Sonder 的 2023 年第一季度收益電話會議。 （操作員說明）請注意，今天的會議正在錄製中。我現在想把會議交給今天的演講者，投資者關係副總裁 John Charbonneau。請繼續。

Thank you, operator. Good afternoon, ladies and gentlemen. Thank you for joining us to discuss Sonders First Quarter 2023 Financial Results. Joining me on the call today are Francis Davidson, Co-Founder and CEO; and Dom Bourgault, Chief Financial Officer. Full details of our results and additional management commentary are available in our first quarter 2023 shareholder letter, which can be found on the Investor Relations section of our website at investors.sonder.com.

謝謝你，運營商。女士們先生們，下午好。感謝您加入我們討論 Sonders 2023 年第一季度的財務業績。今天和我一起參加電話會議的是聯合創始人兼首席執行官弗朗西斯·戴維森 (Francis Davidson)；首席財務官 Dom Bourgault。我們在 2023 年第一季度的股東信函中提供了我們業績的全部詳情和其他管理層評論，該信函可在我們網站 investors.sonder.com 的投資者關係部分找到。

Before we start, I'd like to remind you that the following discussion and the Q&A session at the end of this call contain forward-looking statements, including, but not limited to, Sonders strategies, market opportunities and future financial and operating results that involve risks and uncertainties that may cause actual results to differ materially versus those discussed here. Additional information about the factors that could cause our actual results to differ from those expressed or implied in any forward-looking statements can be found in Sonders SEC filings.

在我們開始之前，我想提醒您，本次電話會議結束時的以下討論和問答環節包含前瞻性陳述，包括但不限於 Sonders 的戰略、市場機會以及未來的財務和運營結果涉及可能導致實際結果與此處討論的結果大不相同的風險和不確定性。有關可能導致我們的實際結果與任何前瞻性陳述中明示或暗示的結果不同的因素的更多信息，請參閱 Sonders SEC 文件。

The forward-looking statements and discussion of risks in this conference call, including responses to your questions, are based on current expectations as of today. Sonder assumes no obligation to update or revise them, whether as a result of new developments or otherwise, except as required by law. Also, the following discussion contains non-GAAP financial measures. For a reconciliation of these non-GAAP financial measures to the most directly comparable financial measure calculated and presented in accordance with GAAP, please see our shareholder letter posted to our Investor Relations website.

本次電話會議中的前瞻性陳述和風險討論，包括對您問題的回答，均基於截至今日的當前預期。除非法律要求，盛達澳不承擔更新或修改它們的義務，無論是由於新開發還是其他原因。此外，以下討論包含非 GAAP 財務措施。如需將這些非 GAAP 財務指標與根據 GAAP 計算和呈報的最直接可比財務指標進行核對，請參閱我們發佈在投資者關係網站上的股東信。

Now I'll turn the call over to Francis Davidson, Sonder's Co-Founder and CEO.

現在我將把電話轉給 Sonder 的聯合創始人兼首席執行官弗朗西斯戴維森。

Thanks, John. Good afternoon, everyone, and thank you for joining us today. First off, I'd like to welcome our new CFO, Dom Bourgault to his first Sonder earnings call. I'm very excited to have Dom on board who brings over 2 decades of financial leadership experience, the vast majority of which was spent working at Expedia, and he has already made a great impact in his short time here at Sonder.

謝謝，約翰。大家下午好，感謝您今天加入我們。首先，我想歡迎我們的新首席財務官 Dom Bourgault 參加他的第一次 Sonder 收益電話會議。我很高興 Dom 加入公司，他帶來了超過 20 年的財務領導經驗，其中絕大多數是在 Expedia 工作的，而且他在 Sonder 的短暫時間裡已經產生了巨大的影響。

Before I comment on Q1 results, I want to share a few thoughts about our share price. While we understand the broader macroeconomic environment that's currently affecting capital markets, we're obviously not thrilled about the value at which shares have been trading. In our conversations with some of our shareholders, it's clear that we have the same desire to achieve cash flow positivity on a sustainable basis as soon as possible. The progress we've made since announcing our cash flow positive plan in June last year has been enormous. To communicate our actual results and their drivers more clearly, we've updated our investor presentation to better illustrate Sonder's free cash flow equation.

在我評論第一季度業績之前，我想分享一些關於我們股價的想法。雖然我們了解目前正在影響資本市場的更廣泛的宏觀經濟環境，但我們顯然對股票的交易價值並不感到興奮。在我們與一些股東的談話中，很明顯，我們同樣希望在可持續的基礎上盡快實現正現金流。自去年 6 月宣布我們的現金流正計劃以來，我們取得的進展是巨大的。為了更清楚地傳達我們的實際結果及其驅動因素，我們更新了投資者介紹，以更好地說明 Sonder 的自由現金流方程式。

We believe this demonstrates the reasons why we have conviction that we're heading in the right direction and anticipate achieving sustainable free cash flow positivity without having to fund raise. The 4 drivers that have led to improvements to free cash flow are cash contribution margin improvement, live unit growth, overhead cost reductions and preopening cost reductions. We feel great about our capacity to keep pulling these levers to see free cash flow improve at a similar pace going forward.

我們相信這證明了為什麼我們堅信我們正朝著正確的方向前進，並期望在無需籌集資金的情況下實現可持續的自由現金流積極性。導致自由現金流改善的 4 個驅動因素是現金貢獻利潤率提高、現場單位增長、間接成本降低和開業前成本降低。我們對繼續拉動這些槓桿以看到自由現金流以類似的速度向前發展的能力感到非常滿意。

Now on to first quarter results. Revenue grew by 50% year-over-year to $121 million in what is our seasonally slowest quarter of the year. As expected, January was a slow month, but we saw a steady month-over-month increase in RevPAR in both February and March. Additionally, free cash flow improved to negative $41 million versus negative $62 million in the first quarter of 2022, a $21 million year-over-year improvement. The free cash flow margin improved to negative 34% in the first quarter of 2023 versus negative 77% in the first quarter of 2022. This has been partially driven by our continued focus on reducing costs, such as overhead costs, which were down 20% year-over-year.

現在來看第一季度的結果。收入同比增長 50% 至 1.21 億美元，這是我們一年中季節性最慢的季度。正如預期的那樣，1 月是一個緩慢的月份，但我們看到 2 月和 3 月的 RevPAR 逐月穩定增長。此外，自由現金流從 2022 年第一季度的負 6200 萬美元增至負 4100 萬美元，同比增長 2100 萬美元。自由現金流利潤率在 2023 年第一季度改善至負 34%，而 2022 年第一季度為負 77%。這在一定程度上是由於我們持續專注於降低成本，例如管理費用下降了 20%一年又一年。

In fact, overhead costs have improved on an absolute dollar basis in every quarter since the first quarter of 2022, while revenue grew nearly 80% over that same time period. On direct costs, we've seen a roughly 10% reduction in property level operations and support expenses per occupied night on a like-for-like basis over the past year, primarily driven by improvements in housekeeping and customer service. This has helped drive a significant improvement in trailing 12-month cash contribution margin to 19% in the first quarter versus 4% a year ago. Dom will provide additional detail on our first quarter financial performance a little later on in the call.

事實上，自 2022 年第一季度以來，每個季度的間接費用都以絕對美元計算有所改善，而同期收入增長了近 80%。在直接成本方面，我們發現在過去一年中，物業級運營和每入住晚的支持費用在同類基礎上減少了大約 10%，這主要是由於客房服務和客戶服務的改善。這有助於推動過去 12 個月的現金貢獻利潤率在第一季度顯著提高至 19%，而一年前為 4%。 Dom 將在稍後的電話會議中提供有關我們第一季度財務業績的更多詳細信息。

Now I'd like to provide an update on a number of our RevPAR initiatives, which drive cash contribution margins. During the first quarter, we continued to expand our corporate business, including deepening our presence in existing verticals such as entertainment, while also expanding into several new verticals, including education, government and finance. We also signed new GDS partnerships and are working with many of the industry's leading travel management companies. We're very excited about our momentum within our corporate business and still anticipate another year of solid growth, which will further bolster weekday RevPARs, an area with immense opportunity.

現在我想提供一些我們的 RevPAR 計劃的最新情況，這些計劃推動了現金貢獻利潤率。第一季度，我們繼續擴大企業業務，包括深化我們在娛樂等現有垂直領域的影響力，同時也擴展到幾個新的垂直領域，包括教育、政府和金融。我們還簽署了新的 GDS 合作夥伴關係，並與許多行業領先的差旅管理公司合作。我們對公司業務的發展勢頭感到非常興奮，並且仍然期待又一年的穩健增長，這將進一步提高工作日的 RevPARs，這是一個擁有巨大機會的領域。

Next, we're continually looking to improve our pricing optimization and have made considerable progress rolling out our improved pricing algorithms, allowing us to better capture demand throughout the booking window. More broadly, we believe that our revenue management technology is unique with a lot of innovative features, enabling us to maximize profit across the broad range of length of stays that Sonder attracts.

接下來，我們不斷尋求改進我們的定價優化，並在推出改進的定價算法方面取得了相當大的進展，使我們能夠更好地捕捉整個預訂窗口的需求。更廣泛地說，我們相信我們的收入管理技術是獨一無二的，具有許多創新功能，使我們能夠在 Sonder 吸引的廣泛住宿期限內實現利潤最大化。

During the first quarter, we rolled out our new Flex cancellation policy on VRBO, and I've already seen a positive incremental benefit to RevPAR. At the same time, we tested a new commission model, which produced a notable uptick in both search and page views and therefore, we decide to implement it across all of VRBO.

在第一季度，我們推出了關於 VRBO 的新 Flex 取消政策，我已經看到 RevPAR 的積極增量收益。同時，我們測試了一種新的佣金模式，該模式在搜索和頁面瀏覽量方面都有顯著提升，因此我們決定在整個 VRBO 中實施它。

Moving on, I believe our elevated merchandising strategy with the reimagined art direction and photography further showcases our design-led value proposition, one of our most important brand differentiators. This strategy has continued to result in an uplift in conversion of over 10% and was implemented in over 15% of total live units by the end of the first quarter. The FOUND in Santa Monica is a great example, and you can find it before and after within our shareholder letter. Throughout the second quarter, we anticipate upgrading our photography across an additional 15% of live units and expect over 50% live unit coverage by the end of the year.

繼續前進，我相信我們提升的營銷策略以及重新構想的藝術方向和攝影進一步展示了我們以設計為主導的價值主張，這是我們最重要的品牌差異化因素之一。這一策略繼續導致轉化率提高 10% 以上，到第一季度末已在超過 15% 的實時單元中實施。聖塔莫尼卡的 FOUND 就是一個很好的例子，您可以在我們的股東信中找到它的前後。在整個第二季度，我們預計將在另外 15% 的現場單元中升級我們的攝影，並預計到今年年底將超過 50% 的現場單元覆蓋率。

Shifting to our total portfolio. In the first quarter, Live units grew by 35% year-over-year, driven by strong conversion from our contracted units to live units. This resulted in us surpassing 10,000 live units, a big milestone for the company. New signed units also more than doubled sequentially, which is encouraging after a slower second half of 2022, although many landlords and developers are still dealing with difficulty getting financing. That said, we still have a notable backlog of contracted but not live units, which we're expecting will continue to be the primary driver of unit growth over the next few quarters. I'd also point out that 100% of deals signed in the first quarter were capital-light.

轉向我們的總投資組合。在第一季度，在從我們的合同單位到實際單位的強勁轉換的推動下，現場單位同比增長 35%。這使我們的直播單位超過了 10,000 個，這對公司來說是一個重要的里程碑。新簽約單位也環比翻了一番以上，這在經歷了 2022 年下半年的放緩之後令人鼓舞，儘管許多房東和開發商仍然難以獲得融資。也就是說，我們仍然有大量已簽約但未上線的單位積壓，我們預計這將繼續成為未來幾個季度單位增長的主要驅動力。我還要指出，第一季度簽署的 100% 交易都是輕資本的。

Before turning it over to Dom, I want to thank our employees, partners and guests across the globe for choosing Sonder and for their continued belief and support in our mission to revolutionize hospitality. With that, I'll turn over the call to our Chief Financial Officer, Dom Bourgault. Dom?

在將其交給 Dom 之前，我要感謝我們全球的員工、合作夥伴和客人選擇盛達澳，感謝他們一直以來對我們革新酒店業的使命的信任和支持。有了這個，我將把電話轉給我們的首席財務官 Dom Bourgault。主場？

Thank you, Francis, and hello, everyone. I'm excited to be here with the team and working for a company that is revolutionizing hospitality through design and technology. Since joining Sonder 2 months ago, I have taken an in-depth look at the business and has reaffirmed the confidence I have in our overall strategy when first deciding to join the company. I believe we are on the right track, but there is still more work to be done in order to reach our goal of achieving sustainable positive free cash flow as soon as possible while preserving the company's attractive growth profile.

謝謝你，弗朗西斯，大家好。我很高興能和團隊一起工作，為一家通過設計和技術革新酒店業的公司工作。自從 2 個月前加入 Sonder 以來，我深入了解了業務，並重申了我在最初決定加入公司時對我們整體戰略的信心。我相信我們走在正確的軌道上，但還有更多的工作要做，以實現我們的目標，即盡快實現可持續的正自由現金流，同時保持公司有吸引力的增長狀況。

With that said, I will provide a brief overview of our first quarter financial results and then take you through guidance. We'll then open the call to questions. In the first quarter, we generated $121 million of revenue, representing a 50% increase compared to Q1 of 2022. Our first quarter revenue growth year-over-year was driven by an increase in bookable nights of 30% and RevPAR growth of 15%. Again, this quarter, key top line performance metrics improved year-over-year, including live units, bookable nights, occupied nights and RevPAR.

話雖如此，我將簡要概述我們第一季度的財務業績，然後為您提供指導。然後我們將開始提問。第一季度，我們創造了 1.21 億美元的收入，與 2022 年第一季度相比增長了 50%。我們第一季度的收入同比增長是由可預訂晚數增加 30% 和 RevPAR 增長 15% 推動的.同樣，本季度，關鍵的頂線績效指標同比有所改善，包括現場單位、可預訂晚數、入住晚數和 RevPAR。

More specifically, we ended the quarter with approximately 10,400 live units, representing 35% growth driven by the conversion of contracted units into live units. In Q1, we had nearly 900,000 bookable nights, an increase of 30%, driven by this live unit growth.

更具體地說，我們在本季度結束時擁有大約 10,400 個活躍單位，在合同單位轉換為活躍單位的推動下增長了 35%。在第一季度，我們有近 900,000 個可預訂晚數，增長了 30%，這主要受住戶數增長的推動。

RevPAR in the first quarter was $134, up 15% year-over-year, with the ADR component growing 4% to $167. As Francis mentioned, the first quarter is our seasonally weakest quarter of the year, and RevPAR saw some incremental impact from new units going live during the quarter. As a reminder, new units take a period of time to ramp up to normalized ADRs. Occupancy rate was 80% in the first quarter, up 700 basis points year-over-year but down 300 basis points sequentially. Q1 last year saw some residual impact from Comic Con while we began experimenting with our higher occupancy strategy during the same period was a full benefit to occupancy rate initially seen in the second quarter.

第一季度的 RevPAR 為 134 美元，同比增長 15%，ADR 部分增長 4% 至 167 美元。正如 Francis 提到的，第一季度是我們一年中季節性最弱的季度，RevPAR 看到了本季度新單位上線的一些增量影響。提醒一下，新單位需要一段時間才能達到標準化的 ADR。第一季度入住率為 80%，同比上升 700 個基點，但環比下降 300 個基點。去年第一季度，Comic Con 產生了一些殘餘影響，而我們在同一時期開始嘗試更高的入住率策略，這對第二季度最初出現的入住率產生了全面的好處。

Total Q1 costs and operating expenses increased by 17% year-on-year to $205 million, inclusive of $12 million of stock-based compensation expense in the quarter, demonstrating strong operating leverage compared to our revenue increase of 50%. The increase in total costs and operating expenses were driven primarily by the overall growth in our live units. As it relates to the cost reduction actions we spoke about last quarter, we remain confident in achieving the $10 million in annualized cost savings related to headcount reductions, and we continue to look for additional savings across the rest of our cost structure on an ongoing basis.

第一季度總成本和運營費用同比增長 17% 至 2.05 億美元，其中包括本季度 1200 萬美元的股票補償費用，與我們 50% 的收入增長相比，顯示出強大的運營槓桿。總成本和運營費用的增加主要是由我們帶電單位的整體增長推動的。由於這與我們上個季度談到的成本削減行動有關，我們仍然有信心實現與裁員相關的 1000 萬美元的年度成本節約，並且我們將繼續在其他成本結構中持續尋求額外的節約.

In the first quarter, as Francis mentioned, free cash flow before onetime restructuring costs totaled negative $41 million compared to negative $30 million in the fourth quarter and negative $62 million in the first quarter of 2022. Free cash flow margin also improved year-over-year, reaching negative 34% compared to negative 7% in the first quarter of 2022. The free cash flow improvement year-over-year was due to ADR growth as well as an improvement in nonproperty level operating expenses. Given typical low ADR seasonality in Q1, we believe sequential performance is less relevant and would focus more on year-over-year comparisons.

正如 Francis 所提到的，在第一季度，一次性重組成本之前的自由現金流總計為負 4100 萬美元，而第四季度為負 3000 萬美元，2022 年第一季度為負 6200 萬美元。自由現金流利潤率也同比有所改善年，達到負 34%，而 2022 年第一季度為負 7%。自由現金流同比改善是由於 ADR 增長以及非財產層面運營費用的改善。鑑於第一季度典型的低 ADR 季節性，我們認為連續表現的相關性較低，將更多地關注同比比較。

Finally, cash contribution margin, which is a unit economic metric we use to provide visibility on property level performance was 12.5% versus 12.9% in Q1 of 2022. The slight decline primarily stems from the change in classification of certain costs starting in the first quarter of 2023, which was not adjusted for prior periods, impacting the metric by 200 basis points year-over-year.

最後，現金貢獻利潤率是 12.5%，而 2022 年第一季度為 12.9%，現金貢獻率是我們用來提供物業水平績效可見性的單位經濟指標。略有下降主要是由於從第一季度開始某些成本的分類發生了變化2023 年，未針對前期調整，對指標的影響同比增加 200 個基點。

Turning to the balance sheet. As of March 31, we had $246 million in cash, cash equivalents and restricted cash and $180 million in total debt. Note that while restricted cash declined sequentially in Q1, it is likely to increase in Q2 due to the dynamic spending from the failure of SVB, leading to us having to collateralize certain new lines of credit issuance under First Citizens ownership and due to certain amendments to our financial covenant requirements. We've been pleased with the partnership with First Citizens so far, and we'll be working with them to explore options to enhance our partnership going forward.

轉向資產負債表。截至 3 月 31 日，我們擁有 2.46 億美元的現金、現金等價物和受限制的現金以及 1.8 億美元的總債務。請注意，雖然受限現金在第一季度連續下降，但由於 SVB 倒閉導致的動態支出，第二季度可能會增加，導致我們不得不抵押 First Citizens 所有權下的某些新信貸額度，並且由於某些修訂我們的財務契約要求。到目前為止，我們對與 First Citizens 的合作夥伴關係感到滿意，我們將與他們合作探索加強我們未來合作夥伴關係的方案。

On the free cash flow front, since the beginning of 2022, Sonder has demonstrated a consistent improvement in free cash flow, and we expect to see this trajectory continue. Forward visibility into attractive growth in bookable nights, combined with strong operating leverage in our cost base, creates a clear path to a sustainable free cash flow formula, one that we aim to continue to strengthen as we scale, resulting in significant long-term value to our shareholders.

在自由現金流方面，自 2022 年初以來，Sonder 的自由現金流表現出持續改善，我們預計這一軌跡將繼續下去。對可預訂晚數有吸引力的增長的前瞻性可見性，加上我們成本基礎中強大的運營槓桿，為可持續的自由現金流公式開闢了一條清晰的道路，我們的目標是隨著規模的擴大繼續加強這一公式，從而產生顯著的長期價值給我們的股東。

For the balance of 2023, we are expecting that our free cash flow vertical continued to trend significantly lower compared to the same period in 2022 and as such exit 2023 with a liquidity profile that should provide the runway needed to execute on our plan without needing to raise additional capital.

對於 2023 年的餘額，我們預計我們的自由現金流垂直方向與 2022 年同期相比繼續呈顯著下降趨勢，因此 2023 年退出時的流動性狀況應提供執行我們計劃所需的跑道，而無需籌集額外資金。

Looking ahead, we felt it prudent to lower our RevPAR assumptions for the balance of this year due to lower projected ADRs, given the uncertain macro conditions we are facing. While achieving a positive quarter of free cash flow this year is still a goal, we believe it is unlikely under this lower RevPAR scenario. Our primary focus is to put the business on a solid path to achieving sustainable positive free cash flow as soon as possible while preserving the business's attractive self-line growth rates and, again, doing so without having to raise additional capital.

展望未來，鑑於我們面臨不確定的宏觀環境，由於預計 ADR 較低，我們認為降低今年剩餘時間的 RevPAR 假設是明智的。雖然今年實現四分之一的正自由現金流仍然是一個目標，但我們認為在這種較低的 RevPAR 情景下不太可能實現。我們的主要重點是使企業走上穩固的道路，盡快實現可持續的正自由現金流，同時保持企業有吸引力的自營增長率，而且無需籌集額外資金。

With regards to guidance itself, we are aiming to provide you with more visibility into the trajectory of our business and by changing our approach to now provide revenue and free cash flow guidance for not only the upcoming quarter, but also the second half of this year.

關於指導本身，我們的目標是讓您更清楚地了解我們的業務軌跡，並通過改變我們的方法現在不僅為即將到來的季度，而且為今年下半年提供收入和自由現金流指導.

For the second quarter of 2023, we expect revenue between $155 million and $165 million and free cash flow, excluding onetime restructuring costs between negative $30 million and negative $20 million, which at the midpoint is a $20 million improvement versus the second quarter of 2020. For the second half of 2023, we expect revenue between $345 million and $375 million, which at the midpoint of the guidance ranges provided, translates to approximately 40% year-over-year growth for the full year of 2023. For free cash flow, we expect between negative $5 million and negative $30 million in the second half of 2023. At the midpoint of the guidance ranges provided, this translates into a 40% year-on-year improvement for the full year of 2023 or a $70 million improvement.

對於 2023 年第二季度，我們預計收入在 1.55 億美元至 1.65 億美元之間，自由現金流不包括在負 3000 萬美元至負 2000 萬美元之間的一次性重組成本，與 2020 年第二季度相比，中間值增加了 2000 萬美元。對於 2023 年下半年，我們預計收入在 3.45 億美元至 3.75 億美元之間，處於所提供指導範圍的中點，相當於 2023 年全年同比增長約 40%。對於自由現金流，我們預計 2023 年下半年將在負 500 萬美元至負 3000 萬美元之間。在所提供指導範圍的中點，這意味著 2023 年全年同比增長 40% 或 7000 萬美元。

With that, we are now happy to take your questions. Operator?

有了這個，我們現在很樂意回答您的問題。操作員？

(Operator Instructions) Your first question comes from the line of Nick Jones of JMP Securities.

（操作員說明）你的第一個問題來自 JMP 證券公司的尼克瓊斯。

I guess just as we think about adding units to the portfolio and then live units, is -- should we kind of expect live units to outpace kind of net adds in the total portfolio through the rest of the year? And then could you maybe touch on how you feel about your cost structure as you try to reach free cash flow positivity in the face of kind of macro environment?

我想就像我們考慮將單元添加到投資組合中，然後是實時單元一樣，我們是否應該期望在今年剩餘時間裡，實時單元超過總投資組合中的淨增加？然後，您能否談談在面對某種宏觀環境時試圖達到自由現金流積極性時，您對成本結構的看法？

Yes. Thanks so much, Nick, Francis here. Thank you for kicking things off. I'm going to start with the first point on the live unit versus total portfolio growth. And so as we mentioned, we expect the majority of the live unit growth to come from our significant book of contracted units. And so you've seen in the last few quarters that while live units have grown quite a bit, the growth on total portfolio has been a little bit slower.

是的。非常感謝，尼克，這裡是弗朗西斯。謝謝你開始了。我將從實時單元與總投資組合增長的第一點開始。因此，正如我們所提到的，我們預計大部分直播單位增長將來自我們重要的簽約單位。所以你在過去幾個季度看到，雖然現場單位增長了很多，但總投資組合的增長有點慢。

There's a couple of reasons for that, one of which has been the fact that we've cleaned up a lot of the deals that were in our contracted book that we didn't feel high conviction would convert to live units. And the biggest reason for this adjustment has been the capital markets environment, specifically on commercial real estate financing conditions. Even though we have a contract with these developers, we thought it was more prudent to say, you know what, we think it's less likely if there's a financing contingency, we're going to remove that from our contracted book if we don't think that the financing would actually come through.

這有幾個原因，其中一個是我們已經清理了我們合同書中的很多交易，我們認為高信念不會轉化為實際單位。而這種調整的最大原因是資本市場環境，特別是商業地產融資條件。儘管我們與這些開發商簽訂了合同，但我們認為更謹慎的說法是，你知道嗎，我們認為如果有融資意外情況不太可能，如果我們不這樣做，我們將把它從我們的合同書中刪除認為融資實際上會通過。

So we've done a lot of that cleanup. We saw total portfolio actually increased in Q1 in addition to obviously live units. And so it's difficult to predict exactly how things will shape out. We haven't given specific guidance on that front. But really, the thing that we're most focused on internally is this continued live unit growth. This is really what's at the heart of the cash flow positive plan.

所以我們做了很多清理工作。除了明顯的活躍單位外，我們還看到第一季度的總投資組合實際上有所增加。因此很難準確預測事情將如何發展。我們還沒有在這方面給出具體的指導。但實際上，我們內部最關注的是持續的直播單位增長。這確實是現金流正計劃的核心。

It's opening new properties that have very strong unit economics that have very rapid payback periods that very quickly start adding to the cash contribution dollars that are really fueling this improvement in free cash flow. So live unit growth is really the core focus of the team. We have a large book of contracted units, and we're focusing on making sure that these signed deals actually deliver live units as a core priority.

它正在開設新的物業，這些物業具有非常強大的單位經濟效益，具有非常快的投資回收期，很快就會開始增加現金貢獻美元，這真正推動了自由現金流的改善。因此，直播單位的增長確實是團隊的核心重點。我們有大量合同單位，我們正專注於確保這些已簽署的交易實際交付實際單位作為核心優先事項。

And Nick, this is Dom. So I'll take the second question on the cost structure. So first, nice meeting you. I'm happy to be here on the call and start speaking with investors going forward. So in terms of the cost structure, you'll see us continue to improve our cash contribution margin going forward. That's a key part of getting to free cash flow positive. Francis just spoke about portfolio expansion. That's another key component for sure, driving top line going forward.

尼克，這是多姆。所以我會回答關於成本結構的第二個問題。首先，很高興認識你。我很高興能參加電話會議，並開始與未來的投資者交談。因此，就成本結構而言，您會看到我們在未來繼續提高現金貢獻率。這是獲得正自由現金流的關鍵部分。弗朗西斯剛剛談到了投資組合擴張。這肯定是另一個關鍵組成部分，推動頂線向前發展。

And in terms of cost themselves, you've seen our overhead cost decline. We're going to continue to leverage overhead cost significantly. There was very strong leverage in Q1, and that's a goal of ours to continue to operate with a very tight overhead cost going forward. Preopening costs have also come down, and that's another one we'll continue to control. And then the last thing is on a direct cost standpoint. We're turning every rock optimizing every direct cost spend trying to decouple that growth from the growth of the top line. So a lot of progress has been made. You can see it in the numbers. There's still a lot of opportunity for us going forward to continue to expand margins.

就成本本身而言，您已經看到我們的間接成本下降了。我們將繼續顯著利用管理費用。第一季度的槓桿率非常高，我們的目標是繼續以非常低的間接費用運營。開業前的成本也有所下降，這是我們將繼續控制的另一個成本。最後一件事是從直接成本的角度來看。我們正在努力優化每一筆直接成本支出，試圖將這種增長與收入增長脫鉤。所以已經取得了很大的進步。你可以在數字中看到它。我們仍有很多機會繼續擴大利潤率。

All right. And then our next question comes from the line of Jed Kelly of Oppenheimer.

好的。然後我們的下一個問題來自奧本海默的傑德凱利。

Could you maybe speak to how we should be thinking about your RevPAR throughout the rest of the year? And then on cash levels, could you give us a sense on how we should be thinking about trough cash level?

您能否談談在今年餘下的時間裡我們應該如何考慮您的 RevPAR？然後在現金水平上，你能告訴我們應該如何考慮現金水平嗎？

Yes. Maybe I'll start here for the question on RevPAR for the rest of the year. So like we mentioned earlier on the call, we've seen some nice momentum in the first quarter from month to month. And I'll just remind you that we've got really good visibility 30 to 45 days out on bookings just because of the booking curve or the percentage of bookings that are on the books gives us really high conviction about 1.5 months in advance. And so that really informed our Q2 guidance. But for the rest of 2023, we really take a look at macroeconomic analysis to try to understand what are the demand supply dynamics that are expected in each of the markets in which we're currently situated. And then we kind of roll those into our own forecast.

是的。也許我將從這裡開始回答今年餘下時間的 RevPAR 問題。因此，就像我們之前在電話會議上提到的那樣，我們在第一季度每個月都看到了一些不錯的勢頭。我只想提醒你，我們在 30 到 45 天的預訂中獲得了非常好的可見性，僅僅是因為預訂曲線或預訂的百分比讓我們提前 1.5 個月非常確信。因此，這確實為我們的第二季度指南提供了信息。但在 2023 年的剩餘時間裡，我們真的會著眼於宏觀經濟分析，以試圖了解我們目前所在的每個市場預期的供需動態是什麼。然後我們將這些納入我們自己的預測。

And like Dom mentioned earlier on in the call, we want to take a more balanced approach and cautious approach given the uncertainties that exist in the macro economy right now when it comes to how that particular very sensitive variable will evolve over time. And most importantly, we're planning the rest of the business, the cost structure and the decisions that we're making internally not assuming really ambitious heroic levels of RevPAR growth like we've seen in the last few years, given where we're at in the cycle.

就像 Dom 在電話會議中早些時候提到的那樣，考慮到目前宏觀經濟中存在的不確定性，即這個非常敏感的變量將如何隨時間演變，我們希望採取更加平衡和謹慎的方法。最重要的是，我們正在規劃其餘業務、成本結構和我們在內部做出的決策，而不是像我們在過去幾年看到的那樣假設真正雄心勃勃的 RevPAR 增長水平，鑑於我們的位置在循環中。

Jed, this is Dom, so I'll take the question on the cash trough. So we're not going to comment explicitly on the cash trough. I think I'll point you back to the guidance. I think you might have seen also the materials we've updated on our investor page. We're going to continue to reduce cash burn through this year. You see the range there we have for the forecast burn. We can easily translate that into a ending cash balance at the end of this year, which we believe is going to be a good cushion for us to finalize the execution of our free cash flow positive plan and not having to raise capital again to get there.

Jed，我是 Dom，所以我會在現金槽上回答這個問題。所以我們不會對現金槽明確發表評論。我想我會讓你回到指南。我想你可能也看到了我們在投資者頁面上更新的材料。今年我們將繼續減少現金消耗。您會看到我們預測燃燒的範圍。我們可以很容易地將其轉化為今年年底的期末現金餘額，我們認為這將成為我們完成自由現金流正計劃執行的良好緩衝，而不必再次籌集資金以實現目標.

And if you actually look at the trajectory of the burn and extrapolate that, you can get a sense of how close we're going to be and how much margin we'll have to maneuver. Again, we haven't done our '24 planning. It's too far out. We will update guidance later this year or very early next year once we have more data and we get closer to it. But again, I'll just point you to the trajectory of what business has delivered and what we forecast to be able to deliver for the rest of this year and that's kind of the construct there for how we think about our liquidity position.

而且，如果您實際觀察燃燒的軌跡並進行推斷，您可以了解我們將有多接近以及我們必須操縱多少餘地。同樣，我們還沒有完成 24 世紀的計劃。太遠了。我們將在今年晚些時候或明年初更新指南，一旦我們有更多數據並且我們更接近它。但同樣，我只會向您指出業務已經交付的軌跡以及我們預測今年剩餘時間能夠交付的東西，這就是我們如何考慮我們的流動性狀況的結構。

Thank you so much. And presenters, there are no further questions at this time. This concludes today's conference call. Thank you for participating, and you may now disconnect. Have a good day.

太感謝了。主持人，目前沒有其他問題。今天的電話會議到此結束。感謝您的參與，您現在可以斷開連接。祝你有美好的一天。