A MESSAGE FROM OUR CEO
Today I am happy to share some good news from Spotahome.
Our business, (mid-long term residential rentals), together with travel are two of the most hit industries by the Covid pandemic. Our revenues in April significantly decreased and despite gaining sizeable funding before Covid our cash burn became unsustainable. Therefore, in Q2, I made the hardest decision since we founded the company 6 years ago: reducing our workforce significantly across all our 8 markets. We recentralized back to Spain most of our central functions whilst retaining talented local teams working across 8 countries (now 9) to support our tenants, landlords, homecheckers and partners locally.
Making these decisions was extremely painful not only for myself but for everyone involved. However what was most important was to ensure that we consolidate our resources during this pandemic and come out stronger. Moving ahead in this direction has proven critical for the success of Spotahome.
I am extremely proud of what has been achieved by our amazing team. Despite a hard Q2 due to the pandemic and the tough changes, the team has shown incredible resilience and focus. In Q3, we achieved our highest margins ever making this quarter the first time our markets have reached profitability. This happened with just 14% less sales volume than Q1 and 120%+ more sales volume than in Q2.
These results are due to years of exceptional teamwork, hard work and growth.
I am incredibly thankful to our current teams and to those who have been with us at Spotahome over the last years (almost 1,000 people). For the ones who sadly left, we created a Talent Directory to showcase their talents, with many of these great individuals going on towards a new professional path. I am eternally grateful to everyone who has helped build Spotahome into what it has become today. Once a Spotter, always a Spotter.
This winter will be a tough one for many in our industry. I wish everyone good luck. Resilience and adaptability will be key. We need to keep optimistic about the future ahead and focus on building long lasting products and relationships. It is in our purpose to serve where we find a meaningful way to exist. Covid will pass and all that matters is how we transform ourselves during the journey.
At Spotahome, we are becoming a stronger company. We are building new products and have recently launched new markets starting with Porto, Florence and Vienna (bringing our total presence to 14 markets). We will be sharing some very exciting product developments soon, as we look to address some of the biggest pain points for tenants and landlords. Stay tuned.
2020 is a tough year. Pain is the beginning of a learning path. Resistance to reality causes pain and it takes you to suffering. Acceptance is the end to that and the first step to clarity. Clarity brings confidence. Confidence leads to action. Actions result in learnings which only come from exposing ourselves to undesired situations. That’s the journey I personally lived when facing Covid. In the long term, nature always balances.
Thank you to everyone at Spotahome, including those who are no longer with us but have left their legacy; to all our tenants, landlords, homecheckers and partners; to our board of directors; and to all of our shareholders for your continuous support to our long term vision.
Alejandro Artacho, CEO