Sonder Delays 2023 Earnings Report, Needs to Restate Financials for Past 2 Years

Key Points

• Sonder delays 2023 earnings report and will restate financials for 2022 and 2023 due to accounting errors.
• The restatements will increase the company's net loss and loss per share but won't impact cash balances or cash flows.
• Despite setbacks, Sonder reported a 21% increase in fourth-quarter revenue, though free cash flow remains negative.

Summary

Sonder has delayed its fourth-quarter earnings report and will restate its financials for 2022 and 2023 due to accounting errors related to the valuation and impairment of operating lease right-of-use assets. These restatements are expected to increase the company's net loss and loss per share for the affected periods. Despite the setbacks, which include a disappointing SPAC merger and multiple restructurings, Sonder reported a 21% increase in fourth-quarter revenue to $164 million, though its free cash flow remains negative.