NYSE$SHCO

Soho House & Co Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Soho House's second quarter results showed strong membership growth and revenue increase, with adjusted EBITDA more than doubling.

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.

Headline financials

Total Revenue

$289M

Previous: $244M+18.5%
EPS (adj)

-$0.01

Previous: -$0.41+97.6%
Total Members

248.1K

Previous: 193.4K+28.3%
Soho House Members

176.3K

Previous: 142.3K+23.9%
Active App Users

182.5K

Previous: 150.3K+21.5%
Adjusted EBITDA Margin

11.0%

No prior period
Capital Expenditures

$21.3M

Previous: $21.8M-2.2%
Free Cash Flow

-$534K

Previous: -$11.6M+95.4%
Net Income

-$2.64M

Previous: -$56M+95.3%
Operating Income

$19.6M

Previous: -$46.9M+141.8%
Gross Profit

$289M

Previous: $124M+132.9%
Cash & Equivalents

$129M

Previous: $49M+164.0%
Total Assets

$2.56B

Previous: $2.09B+22.1%
Stock-Based Comp

$5.66M

Previous: $2.55M+122.0%

Revenue & EPS history

Soho House · Revenue · Quarterly

$289M

Q2 2023+18.5%vs Q2 2022
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

Soho House · $180M total across 3 segments · Q3 2021

  • In-House revenue
    $67M
  • Other revenue
    $62M
  • Membership revenue
    $51M

Forward guidance

The company updated its fiscal year 2023 guidance, increasing expectations for total Soho House members, membership revenues, total revenues, and adjusted EBITDA.

Tailwinds

  • 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.

Headwinds

  • 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
  • Unspecified risks that could cause actual results to differ materially from forward-looking statements.
  • The forward-looking statements relate only to events or information as of the date on which the statements are made.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 8 quarterly earnings reports

Historical avg

+5.1%

Avg return

Earnings day

+10.4%

Avg return

5 days after

+13.8%

Avg return

30 days after

73%

11 / 15 earnings

Positive

+41.8%

Q3 2024

Best reaction

-27.8%

Q3 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2025
Q3 2025+0.1%-0.2%-0.9%
Q2 2025+12.5%+18.1%+36.8%
Q1 2025+5.1%-3.4%+3.9%
Q4 2024+2.2%-21.8%-10.6%
Q3 2024+41.8%+45.2%+49.9%
Q2 2024+1.7%+15.2%+21.8%
Q1 2024+10.8%+8.0%-1.0%
Q4 2023+23.7%+21.9%+10.7%
Q3 2023
Q2 2023
Q1 2023
Q4 2022+3.2%
Q3 2022-27.8%
Q2 2022-16.8%
Q1 2022-3.9%
Q4 2021+13.4%
Q3 2021+12.1%
Q2 2021-1.0%

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