NYSE$SHCO

Soho House & Co Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Soho House & Co Inc. reported third quarter results with revenue growth and improved profitability.

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.

Headline financials

Total Revenue

$333M

Previous: $301M+10.8%
EPS (adj)

$0.00

Previous: -$0.22+100.0%
Total Members

267.5K

Previous: 255.3K+4.8%
Soho House Members

208.1K

Previous: 184.5K+12.8%
Frozen Members

10.0K

No prior period
Other Members

59.4K

No prior period
House-Level Contribution Margin

28.0%

Previous: 26.0%+7.7%
Active App Users

213.0K

No prior period
Adjusted EBITDA Margin

14.0%

No prior period
Capital Expenditures

-$12.3M

Previous: -$22.3M+44.8%
Net Income

$200K

Previous: -$42.4M+100.5%
Operating Income

$37.9M

Previous: -$20.4M+285.7%
Gross Profit

$61.9M

Previous: $56.3M+10.0%
Stock-Based Comp

$3.51M

Previous: $4.68M-25.0%

Revenue & EPS history

Soho House · Revenue · Quarterly

$333M

Q3 2024+10.8%vs Q3 2023
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

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.

Tailwinds

  • 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

Headwinds

  • 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

Historical earnings impact

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

Avg. return before/after earnings

Based on 8 quarterly earnings reports · overlaid with Q3 2024

Historical avgQ3 2024

+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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