Guesty, a platform for short-term rental property managers, could go public as soon as next year, according to CEO Amiad Soto. Soto mentioned during a session at Skift’s Short-Term Rental Summit in New York City that the company will decide to go public when the market is more receptive to companies in their industry, which he believes will happen within the next 12 to 18 months. The platform provides property managers with tools to streamline various aspects of their business, including marketing, accounting, payments, bookings, and listings on third-party booking sites like Airbnb and Booking.com. Guesty recently raised $130 million in a series F round, indicating that an IPO could be next.
Despite some travel software companies struggling to reach profitability after going public, Soto is confident that Guesty will not face the same issue. He mentioned that the company is close to being profitable and expects to reach profitability by the end of the year. Additionally, Guesty has enough cushion for a lifetime. Soto believes that going public will provide the company with more capital to make acquisitions, as they are focused on consolidating the fragmented industry. The recent completion of Guesty’s seventh acquisition is part of their strategy to build better products for their customers by pooling resources from various companies.
While the possibility of an IPO may be a way to pay back early investors and employees, Soto emphasized that Guesty’s focus is on acquiring companies to improve their offerings rather than for liquidity reasons. The company is looking to expand its geographical reach and experiment in unfamiliar market segments through acquisitions. Guesty has a full suite of products in place, reducing the need to acquire companies for technology purposes. Soto mentioned that the recent fundraising was mainly to secure acquisition targets, indicating the company’s intention to continue growing through consolidating the industry.
Soto discussed the different types of companies that Guesty considers for acquisition deals. They may target companies with outdated technology to absorb their clients and shut down the old platform. Alternatively, Guesty may acquire companies to expand geographically or explore new market segments. The company is less focused on buying for technology purposes and more on enhancing their offerings through strategic acquisitions. Soto also indicated that the recent fundraising was not for their own benefit, but rather to have the financial resources needed for future acquisition targets.
In conclusion, Guesty is considering an initial public offering within the next year as a way to fund more acquisitions and continue consolidating the fragmented short-term rental industry. The company’s recent fundraising rounds have positioned them well for potential growth, with profitability expected by the end of the year. Soto emphasized the importance of acquiring companies to build better products for their customers and expand their geographical reach. Going public would provide Guesty with the necessary capital to execute their acquisition strategy and achieve their long-term goals in the short-term rental market.
