SAN FRANCISCO - Sonder Holdings Inc. (NASDAQ: SOND), a company specializing in tech-enabled hospitality, has been notified of non-compliance with Nasdaq's Listing Rule due to the delayed filing of its financial reports, the company disclosed Thursday.
The Nasdaq deficiency notification, received on Monday, May 16, 2024, indicates that Sonder failed to file its Quarterly Report for Q1 2024 and its Annual Report for the fiscal year 2023 in a timely manner. These filings are mandatory under Nasdaq Listing Rule 5250(c)(1), which stipulates that listed companies must submit all required periodic reports to the SEC on schedule.
The delay in filing was previously addressed by Sonder in its Forms 12b-25, filed with the SEC on May 10, 2024, for the Q1 2024 report, and on March 15, 2024, for the 2023 annual report. The company also discussed the matter in its Current Report on Form 8-K, filed on March 15, 2024.
Sonder has until June 3, 2024, to present a plan to regain compliance. If Nasdaq accepts the plan, Sonder may be granted an extension of up to 180 calendar days from the original due date of the 2023 Form 10-K, which would extend the deadline to September 30, 2024.
The company has expressed its intention to submit a compliance plan promptly and to take the necessary steps to meet Nasdaq's listing requirements as soon as possible. However, Sonder has offered no assurances regarding the exact timing for completing and filing the overdue reports.
The reasons for the reporting delays were not specified in the press release. Sonder's current focus is on resolving the issues that led to the delay and ensuring future compliance with SEC filing requirements.
This situation is based on a press release statement and reflects the company's current status regarding Nasdaq's listing rules. Sonder, founded in 2014, operates in over 40 markets across ten countries and offers various accommodations through its tech-enabled platform.
InvestingPro Insights
Amidst the backdrop of Sonder Holdings Inc.'s (NASDAQ: SOND) recent non-compliance notice from Nasdaq due to delayed financial reporting, InvestingPro data and insights provide a deeper understanding of the company's financial health and stock performance. As of the last twelve months leading up to Q3 2023, Sonder reported a significant revenue growth of 38.94%, indicating an expanding business despite operational challenges. However, this growth comes with a caveat, as the company's gross profit margin stands at a negative 4.52%, reflecting costs that outstrip revenues.
The company's market capitalization has adjusted to 34.94 million USD, which may be reflective of the market's response to both the growth potential and the financial uncertainties surrounding the company. Sonder's stock has experienced substantial price volatility, with a one-week total return of -10.9% and a dramatic one-year price total return of -67.51%, underscoring the high risk associated with investing in the stock at this juncture.
InvestingPro Tips reveal that Sonder operates with a significant debt burden and may have trouble making interest payments on its debt, which is a critical factor for investors to consider. Additionally, analysts do not anticipate the company will be profitable this year, and the stock has fared poorly over the last month, with a price total return of -28.13%.
For readers seeking to delve deeper into Sonder's financial metrics and stock performance, InvestingPro offers a more comprehensive analysis, including 17 additional tips that can help investors make more informed decisions. Subscribers can benefit from these insights by visiting https://www.investing.com/pro/SOND and can take advantage of an additional 10% off a yearly or biyearly Pro and Pro+ subscription with the coupon code PRONEWS24.
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