Sonder Holdings (SOND) AI Stock Analysis

• Market Cap: $24.56M
• Dividend Yield: N/A
• Average Volume (3M): 44.21K
• Price to Earnings (P/E): ―
• Beta (1Y): 4.57
• Revenue Growth: 15.74%
• EPS Growth: 33.63%
• Country: US
• Employees: 1,642
• Sector: Consumer Cyclical
• Sector Strength: 54
• Industry: Travel Lodging
• EPS (TTM): -29.05
• Shares Outstanding: 11,585,625
• 10 Day Avg. Volume: 16,666
• 30 Day Avg. Volume: 44,210
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.04
• Price to Cash Flow (P/CF): -0.40
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Sonder Holdings' overall stock score reflects its financial instability and negative valuation metrics, overshadowing its revenue growth. The bearish technical indicators further weigh down its score. Positive corporate events provide some optimism, but significant financial and operational challenges persist, necessitating careful strategic management to improve the company's outlook.

Sonder Holdings Business Overview & Revenue Model

Company Description

Sonder Holdings Inc. (SOND) is a technology-driven hospitality company that reimagines the guest experience through its network of short-term rental properties. Operating across various major cities globally, Sonder offers a diverse range of accommodations, from apartments to hotel-style rooms, designed to provide a unique and consistent experience through a blend of technology and modern design. The company focuses on delivering high-quality, reliable stays with the conveniences of a hotel and the flexibility of a home.

How the Company Makes Money

Sonder Holdings generates revenue primarily through the rental of its managed and leased properties. The company operates a marketplace model where it leases or manages properties owned by real estate partners and then offers these properties to guests on a short-term rental basis. Revenue is earned from the booking fees paid by guests, which are typically a combination of nightly rates plus any applicable service fees. Sonder enhances its revenue potential through strategic partnerships with property owners and developers to optimize property utilization and expand its portfolio in key markets. Additionally, the company leverages technology to streamline operations, reduce costs, and improve the guest experience, contributing to its overall profitability.

Sonder Holdings Financial Statement Overview

Summary

Sonder Holdings demonstrates strong revenue growth but suffers from significant profitability and leverage challenges. Despite revenue increasing by 30.56% to $602.07 million, the company is unprofitable with a negative net profit margin and negative equity, indicating financial instability. Cash flow improvements are insufficient to cover losses, posing long-term sustainability concerns and highlighting the need for strategic financial management.

Income Statement

Sonder Holdings shows a consistent growth in revenue, reaching $602.07 million in 2023, up from $461.08 million in 2022, indicating a revenue growth rate of 30.56%. However, the company remains unprofitable with a negative net profit margin, as evidenced by a net loss of $295.67 million in 2023. The gross profit margin improved to 34.74% in 2023 but is overshadowed by significant operating losses, with EBIT margin remaining deeply negative.

Balance Sheet

The balance sheet reflects financial instability, with a negative stockholders' equity of $376.70 million in 2023, indicating insolvency. The debt-to-equity ratio is not calculable due to negative equity, highlighting potential financial risk. Despite an increase in total assets to $1.52 billion, liabilities outweigh assets significantly, raising concerns about leverage and financial health.

Cash Flow

Cash flow analysis reveals ongoing challenges, with negative free cash flow of $123.27 million in 2023, although it improved from 2022. Operating cash flow remains negative, suggesting operational inefficiencies. The free cash flow to net income ratio is not favorable, reflecting cash burn and insufficient cash generation to cover losses.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
623.22M	602.07M	461.08M	232.94M	115.68M	142.91M
	Gross Profit
238.31M	209.17M	141.07M	31.50M	-21.32M	18.04M
	EBIT
-227.64M	-278.04M	-282.58M	-8.90M	-243.82M	-171.10M
	EBITDA
-64.25M	-64.33M	-56.60M	-232.34M	-226.85M	-165.95M
	Net Income Common Stockholders
-296.76M	-295.67M	-165.74M	-10.52M	-250.32M	-173.37M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
110.92M	95.76M	246.62M	263.94K	121.47M	110.92M
	Total Assets
0.00	1.52B	1.57B	451.34M	177.52M	179.26M
	Total Debt
0.00	1.76B	1.50B	1.50M	42.06M	24.03M
	Net Debt
110.92M	1.66B	1.25B	1.24M	-79.41M	-86.89M
	Total Liabilities
0.00	1.90B	1.59B	51.62M	678.38M	437.93M
	Stockholders Equity
101.50M	-376.70M	-19.95M	399.72M	-500.86M	-258.67M
Cash Flow		Free Cash Flow
-203.91M	-123.27M	-180.01M	-24.26M	-217.35M	-160.12M
	Operating Cash Flow
-199.69M	-110.90M	-149.01M	-2.67M	-202.50M	-135.86M
	Investing Cash Flow
-4.54M	-12.36M	-30.99M	-450.06M	-14.85M	-24.26M
	Financing Cash Flow
-2.70M	-32.23M	400.60M	452.84M	226.56M	218.72M

Sonder Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.15
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SOND, the sentiment is Negative. The current price of 2.15 is below the 20-day moving average (MA) of 2.42, below the 50-day MA of 2.83, and below the 200-day MA of 3.67, indicating a bearish trend. The MACD of -0.17 indicates Negative momentum. The RSI at 35.15 is Neutral, neither overbought nor oversold. The STOCH value of 34.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SOND.

Sonder Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ABNB	78 Outperform	$81.86B	31.40	31.95%	―	11.95%	-44.02%
EXPE	75 Outperform	$22.97B	19.71	79.84%	―	6.64%	69.85%
BKNG	75 Outperform	$151.52B	26.74	-146.32%	0.76%	11.11%	47.03%
HST	74 Outperform	$10.27B	14.84	10.53%	5.45%	7.02%	-4.78%
TRIP	61 Neutral	$2.09B	909.70	0.55%	―	2.63%	-58.77%
Sector *	59 Neutral	$12.76B	11.27	1.14%	3.69%	1.25%	-20.97%
SOND	39 Underperform	$24.56M	―	78.49%	―	15.74%	33.63%

Sonder Holdings Corporate Events

Sonder Holdings Appoints New CFO to Boost Growth

On January 14, 2025, Sonder Holdings appointed Michael Hughes as Chief Financial Officer, effective January 22, 2025. Hughes, previously CFO at Spirit Realty Capital, brings extensive experience in finance and operations within real estate and hospitality sectors. His expertise is expected to enhance Sonder’s integration efforts with Marriott International, strengthen its balance sheet, and drive revenue and cost efficiency.

Sonder Holdings Announces Board Changes and Leadership Focus

Sonder Holdings Inc. announced changes to its Board of Directors, with Nabeel Hyatt resigning and Erin Wallace being appointed, effective January 1, 2025. Additionally, Janice Sears has been named as the independent Chairperson, reflecting the company’s focus on enhancing corporate governance. Wallace’s extensive experience in hospitality and operations is expected to contribute significantly to Sonder’s ongoing transformation and growth initiatives, particularly its integration efforts with Marriott International.

Sonder Holdings Announces Key Corporate Developments

Sonder Holdings Inc. announced several key developments following its 2024 annual meeting. Stockholders approved an amendment to the 2021 Equity Incentive Plan, increasing the number of shares for award issuances, and authorized an increase in the company’s total capital stock. Additionally, Rahul Thumati was appointed as the interim Chief Accounting Officer, effective January 1, 2025.

Sonder Holdings Faces Nasdaq Compliance Challenges

Sonder Holdings Inc. has announced a delay in filing its Q3 Form 10-Q with the SEC, leading to a deficiency notice from Nasdaq due to non-compliance with listing rules. This notice does not impact the immediate trading of its stocks, but Sonder must submit a compliance plan within 60 days, with potential for an extension until May 2025. The company is actively working to address the issue, while investors remain cautious about future uncertainties.

Sonder Holdings Strengthens Position with Nasdaq Compliance and New Partnerships

Sonder Holdings Inc. has regained full Nasdaq compliance after filing overdue financial reports, boosting its liquidity by $146 million through a convertible preferred equity transaction. This move, alongside strategic partnerships like the one with Marriott International, is set to support Sonder’s long-term growth. Amid these developments, key executive transitions are underway, with Dominique Bourgault and Katherine Potter stepping down from their roles.