Vacasa, Inc. (NASDAQ:VCSA) shares plummeted more than 24% on Wednesday after the company reported its Q4 results, with EPS of ($0.70) coming in worse than the Street estimate of ($0.37). Revenue was $218 million, compared to the Street estimate of $206.24 million.
According to the analysts at Deutsche Bank, the company’s disappointing forward guidance for Q1/23 and the full 2023-year, coupled with growing supply challenges, is likely to keep it in the penalty box for quite some time.
Additionally, elevated supply churn will stoke fears that the operational issues that the company has been facing over the last several quarters cannot be resolved without meaningfully impacting the top-line growth algorithm.