Soho House Q3 2024 Earnings Report
Key Takeaways
Soho House & Co Inc. announced third quarter 2024 results, featuring a 13.6% year-over-year revenue growth to $333.4 million. Membership revenues increased by 16.7% to $107.4 million, and the company achieved its highest ever quarterly Adjusted EBITDA of $48.3 million. Net income attributable to Soho House & Co Inc. was $0.2 million, or $0.00 per share.
Total Members grew to 267,494, a 4.8% increase year-over-year.
Soho House Members increased to 208,078, up 13% year-over-year.
Total revenues reached $333.4 million, representing a 13.6% year-over-year growth.
Adjusted EBITDA increased to $48.3 million, a $13.2 million increase from the previous year.
Soho House
Soho House
Forward Guidance
Soho House & Co updated its fiscal year 2024 guidance, expecting total Soho House Members to be greater than 212,000, membership revenues between $410 million and $420 million, total revenues of approximately $1,200 million, and Adjusted EBITDA of approximately $140 million.
Positive Outlook
- Membership continues to reach new highs benefiting from a record waitlist and continued high retention rates
- Soho House members grew to 208,078 from 204,028 in second quarter 2024, and 13% YoY
- Focused rollout of initiatives continue to improve member experience and service in our Houses, as illustrated by higher member satisfaction scores
- Opened Soho Mews House in the quarter, which has received great feedback from our members
- Like-for-like Food & Beverage margins at our Houses improved compared to the third quarter 2023, despite cost inflation
Challenges Ahead
- Assumes no material year-over-year FX impact, reflecting bank estimates
- Without adding back pre-opening costs, non-cash rent and deferred registration fees of ~$15-20m combined for fiscal 2024 as a whole
- Identified misstatements in its previously issued financial statements
- The company determined that the effect of recording the misstatements during the 13-week and 39-week periods ended as of September 29, 2024, would be material to the consolidated financial statements for the 52-week period ended December 29, 2024
- The Company believes the misstatements identified are related to manual processes and the existing material weaknesses in our control over financial reporting