Sonder Holdings Inc. Reports 3.2% Revenue Growth to $621.3 Million for 2024

Sonder Holdings Inc. reported a revenue increase to $621.3 million for the year ended December 31, 2024, compared to $602.1 million in 2023, representing a 3.2% growth. This increase was primarily driven by a 5.3% rise in Revenue per Available Room (RevPAR), which was partially offset by a 2.1% decrease in Bookable Nights. The company's net loss decreased from $295.7 million in 2023 to $224.1 million in 2024. The company's Adjusted Free Cash Flow (Adjusted FCF) improved to negative $89.5 million for 2024, compared to negative $119.6 million in 2023.

Key operational developments included a 19% decrease in Live Units, from 12,200 at the end of 2023 to approximately 9,900 at the end of 2024, due to the company's portfolio optimization program. As of December 31, 2024, the company had signed agreements to exit or reduce rent for approximately 110 buildings, or 4,500 units, as part of its portfolio optimization program. The company's five largest cities (New York City, Dubai, Montreal, Miami, and London) accounted for 37% of its Live Units, and its 10 largest cities accounted for 60% of its Live Units. Direct revenue accounted for 45.8% of total revenue in 2024, compared to 47.0% in 2023.

In August 2024, Sonder entered into a strategic licensing agreement with Marriott International, with full integration completed in the second quarter of 2025. As of June 2025, all Sonder properties are available for booking on Marriott's digital channels under the "Sonder by Marriott Bonvoy" collection. The company anticipates revenue opportunities and operating efficiencies through access to Marriott's global sales organization and third-party agreements. In April 2025, Sonder implemented cost reduction initiatives expected to deliver approximately $50 million of annualized cost savings.

The company has identified material weaknesses in its internal controls over financial reporting related to lease agreements, asset impairment, key metrics impacting preferred stock valuation, and deficiencies in control activities, the control environment, and information and communication. Management is implementing remediation plans to address these weaknesses. The company's delayed SEC filings have made it ineligible to use certain registration statements, potentially affecting its ability to raise capital and retain employees.

Sonder's management has expressed substantial doubt about the company's ability to continue as a going concern, citing a history of net losses and negative operating cash flows. Management's plans to mitigate this doubt include engaging a financial advisor, focusing on cost optimization, executing the portfolio optimization program, and improving financial performance through the Marriott integration. There is no assurance that these plans will be successful.