$MCG reports strong Q4 and FY22 results with significant membership and revenue growth
Mar 8th 2023, 12:41 pm
Analyst Summary: Membership Collective Group Inc. reported strong financial results for the fourth quarter and fiscal year 2022, with total members growing to 226,830 from 211,351 in Q3 2022, and Soho House members growing to 161,975 from 152,165 in Q3 2022. Total revenues increased year-over-year, accounting for 28.4% of the total revenue up 95%. While the net loss attributable to Membership Collective Group Inc. decreased year-on-year, Adjusted EBITDA outperformed the guidance range. Andrew Carnie, CEO of MCG, attributed the growth to an increase in Soho House members and expressed confidence in the resilience and future profitability of the company. The opening of Miami Pool House and Soho House Stockholm contributed to the growth, along with successful initiatives to drive foot traffic across Houses. The company plans to return to its roots by changing its name to Soho House Group, reflecting the unique brand's founder created. Investors should note that the company provides earnings guidance using both GAAP and non-GAAP financial measures, and reconciliation of non-GAAP financial measures are an integral part of the information presented. Investors should also be aware of the company's definition of non-GAAP financial measures, including Adjusted EBITDA, House-Level Contribution, and Margin, and Other Contribution and Margin, Constant Currency, and Net Debt. The website link to Appendix provides more information on non-GAAP financial measures and reconciliation to the most directly comparable GAAP financial measures.