Soho House & Co Reports Strong Growth

Soho House & Co Inc. has released its fourth quarter and fiscal year 2023 results, showcasing significant growth and improvements across various metrics.

In the fourth quarter of 2023, total members grew to 259,884 from 255,252 in the third quarter, marking a 14.6% year-over-year increase. Specifically, Soho House members increased to 193,865 from 184,542 in the third quarter, representing a 19.7% year-over-year growth. Moreover, the company's membership waitlist reached an all-time high of approximately 99,000.

Total revenues for the fourth quarter amounted to $290.8 million, reflecting a 7.5% year-over-year growth. Membership revenues saw a substantial increase, reaching $95.8 million, up by 24.2% year-over-year and accounting for 32.9% of total revenues. In-house revenues also grew to $125.2 million, marking a 3.8% year-over-year increase.

The company reported a net loss attributable to Soho House & Co Inc. of $57.0 million or $0.29 per share, including a $47 million impairment charge predominantly related to Soho Works North America. However, adjusted EBITDA showed significant improvement, reaching $36.6 million, up by $13.4 million from the fourth quarter of 2022.

For the fiscal year 2023, total revenues increased by 16.8% year-over-year to $1,135.9 million. Membership revenues amounted to $361.5 million, marking a substantial 32.5% year-over-year increase and accounting for 31.8% of total revenues. In-house revenues grew to $482.1 million, up by 13% year-over-year.

In terms of profitability, the company's adjusted EBITDA for fiscal year 2023 was $128.0 million, a significant increase from $60.7 million in fiscal year 2022.

The CEO, Andrew Carnie, attributed the strong results to the company's focus on driving a better member experience and significant progress in improving profitability. He highlighted the approximately 20% growth in Soho House membership and the more than doubled adjusted EBITDA, reflecting 11% margins, up from 6% in 2022.

Additionally, Soho House & Co Inc. successfully opened two new houses – Bangkok in February 2023 and Mexico City in September 2023. The company also expects to open Soho House Sao Paulo soon.

As a result of these announcements, the company's shares have moved -12.3% on the market, and are now trading at a price of $5.04. If you want to know more, read the company's complete 8-K report here.

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