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Jul 02, 2023
Soho House Q2 2023 Earnings Report
Soho House's second quarter results showed strong membership growth and revenue increase, with adjusted EBITDA more than doubling.
Key Takeaways
Soho House & Co Inc. reported strong second-quarter results with significant growth in membership and revenues. Total revenues increased by 18.5% year-over-year, driven by membership revenues growth of 35.4%. Adjusted EBITDA more than doubled compared to the second quarter of 2022. The company also increased its annual guidance for membership, total revenues, and Adjusted EBITDA.
Total Members grew to 248,071, a 28.3% increase year-over-year.
Soho House Members reached 176,305, up 23.9% year-over-year.
Membership revenues increased by 35.4% year-over-year, accounting for 30.9% of total revenues.
Adjusted EBITDA was $31.8 million, a significant increase from the second quarter of 2022.
Forward Guidance
The company updated its fiscal year 2023 guidance, increasing expectations for total Soho House members, membership revenues, total revenues, and adjusted EBITDA.
Positive Outlook
- Total Soho House Members are expected to be greater than 191,000.
- Membership revenues are projected to be between $360 million and $367 million.
- Total revenues are anticipated to range from $1.12 billion to $1.19 billion.
- Adjusted EBITDA is forecasted to be between $126 million and $134 million.
- Guidance reflects confidence in the outlook.
Challenges Ahead
- Guidance assumes ~$25 million YoY headwind from FX, reflecting EUR/USD at 1.06 and GBP/USD at 1.20 for fiscal 2023.
- Adjusted EBITDA guidance does not add back pre-opening costs, non-cash rent, and deferred registration fees of ~$25-30 million combined for fiscal 2023 as a whole.
- Manchester Soho House opening delayed until 2024
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