Vacation rental platform HomeToGo has delivered positive adjusted EBITDA for the first time in a second quarter.
Announcing second quarter earnings the company reported adjusted EBITDA of €1.4 million versus a loss of €6.4 million year-over-year. Booking revenues increased more than 8% in Q2 to €50 million compared with €46 million year-over-year.
Booking revenues onsite share dipped slightly in the quarter to 50% compared with 57% year-over-year attributed to growth in offsite business in the United States.
The company also hit its highest ever International Financial Reporting Standard (IFRS) revenue in Q2, revealing a 14% increase to €43 million versus Q2 2022. Gross booking value was 5% down in Q2 to €439 million.
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Patrick Andrae, co-founder and CEO of HomeToGo said: “The first half of 2023 has made us incredibly proud, with HomeToGo delivering a positive adjusted EBITDA for the first time in a second quarter following steep booking revenues growth in the first quarter. We’ve proven incredible resilience despite a year with significant macroeconomic challenges. This was achieved by remaining laser focused on marketing efficiency and building steady repeat demand, plus significantly growing our strategic levers such as our subscriptions and services business that drives solutions for our partners. We also notably defined HomeToGo again as a pioneer in the travel industry by being the first vacation rental-focused marketplace to test and launch an [artificial intelligence] product: Our AI Mode as the first HomeToGo Mode. Combining our deep expertise with machine learning and passion for creating an unparalleled experience for our travelers, we’ve further revolutionized the approach to finding the perfect vacation rental. With full confidence in achieving our targets in 2023, we’re now enabled to make substantial strides as we already look ahead to lifting the company to the next level in 2024.”
HomeToGo’s subscriptions and services business revenue came in at €9 million, representing an 85% increase year-over-year with the company attributing growth to its software-as-a-service solution Smoobu.
Further highlights of the quarter include a 10% increase in new partners on the site in the first half of 2023.
Overall, the company reported a net loss of €5.8 million in Q2, representing a 58% improvement year-over-year.