SOND - Sonder discloses cash flow positive plan reaffirms Q2 revenue guidance

Sonder (NASDAQ:SOND) announced that its Cash Flow Positive plan, which prioritizes reaching positive quarterly free cash flow within 2023 without additional fundraising and while preserving a robust cash cushion. The company plans to cut cash costs by ~$85M on an annualized basis, reduce planned signings pace and drive growth primarily by opening already contracted units. It intends to focus on RevPAR initiatives to improve near term free cash flow; improving growth quality by increasing our high threshold for incremental signings targeting 100% capital light. Reaffirming its Q2 and FY22 revenue guidance, the company sees Q2 2022 FCF of better than -$50M, more than $15M improvement from prior quarter. Total second half 2022 FCF of better than -$70M; it targets to reach positive quarterly FCF within 2023. Q2 revenue growth of better than 140% Y/Y (compared to $47M in Q2 2021) while Q2 RevPAR of better than $160; FY22 revenue growth

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Sonder discloses cash flow positive plan, reaffirms Q2 revenue guidance