Inspirato Incorporated (“Inspirato” or the “Company”) (NASDAQ:
ISPO), the innovative luxury travel club, today announced its 2023
fourth quarter and full-year results and provided 2024 guidance
aimed at improving its path to profitability.
Except as otherwise stated, all financial results discussed
below are presented in accordance with generally accepted
accounting principles in the United States of America, or GAAP. As
supplemental information, we have provided certain additional
non-GAAP financial measures in this press release’s supplemental
tables, and such supplemental tables include a reconciliation of
these non-GAAP measures to our GAAP results. The sum of individual
metrics may not always equal total amounts indicated due to
rounding.
2023 Fourth Quarter and Full-Year
Highlights:
- Full-year total
revenue was within the Company’s previously provided guidance range
of $320 to $340 million. Total revenue of $70.7 million in the
fourth quarter and $329.1 million for the full year, representing
year-over-year decreases of 18% and 5%, respectively.
- Total Nights
Delivered per member increased 2% in 2023 compared to 2022. Total
Nights Delivered of 40,600 in the fourth quarter and 185,000 for
the full-year 2023, representing year-over-year decreases of 14%
and 1%, respectively.
- Residence
occupancy in the fourth quarter and full year of 2023 of 65% and
72%, respectively, compared to 73% and 81% in the comparable 2022
periods. Residence average daily rates (“ADR”) were approximately
$1,700 and $1,800 in the fourth quarter and full-year 2023 periods,
respectively, compared to approximately $1,900 and $1,800 in the
comparable 2022 periods.
- Total Active
Subscriptions of approximately 13,800 as of December 31, 2023, were
comprised of approximately 11,300 Inspirato Club subscriptions and
approximately 2,500 Inspirato Pass subscriptions. More than 75% of
new sales made in 2023 were for contract terms of two years or
more.
- Launched Inspirato
Rewards, the Company’s first ever loyalty program, in August 2023.
As of December 31, 2023, approximately 47% of Inspirato members had
earned Rewards status based on 2023 annual spend of at least
$20,000.
- Inspirato for Good
(“IFG”) and Inspirato for Business (“IFB”) had fourth quarter
contracted sales of $2.1 million and $2.8 million, respectively.
For the full year 2023, IFG and IFB had contracted sales of $9.6
million and $14.5 million, respectively. Additionally, IFG sold
more than 3,000 travel and membership packages in its first full
year of operations, which are not included in the Company’s
subscription count.
- Net loss of $15.9
million in the fourth quarter of 2023, compared to a net loss of
$14.6 million in the fourth quarter of 2022. Full-year 2023 net
loss was $93.9 million compared to a net loss of approximately
$51.1 million in 2022. The fourth quarter and full year 2023 net
loss included asset impairments predominantly related to properties
in one geographic location of $6.5 million and $40.8 million,
respectively.
- Full-year 2023
Adjusted EBITDA loss, a non-GAAP financial measure defined below,
was favorable compared to the Company’s previously provided
guidance range of an Adjusted EBITDA loss between $30 million and
$45 million. Adjusted EBITDA loss of $5.4 million in the fourth
quarter of 2023 and $29.3 million for the full-year 2023 compared
to Adjusted EBITDA losses of $9.5 million and $32.1 million in the
comparable 2022 periods.
Management Commentary
“I’m excited about our positioning heading into
2024,” commented Chief Executive Officer, Eric Grosse. “While 2023
was largely characterized by our portfolio optimization efforts and
cost control initiatives, I expect 2024 to be a year in which
Inspirato returns to its roots by simplifying the business with a
renewed focus on our value proposition, ultimately resulting in a
reinvigorated member base. Our core remains strong and our
value-proposition to members continues to improve, as evidenced by
the early success of Inspirato Rewards and the recent modifications
to Inspirato Pass.”
Chief Financial Officer, Robert Kaiden, added,
“We have delivered results in-line or above our internal
expectations for the past two quarters and look to continue
building a track record of execution in 2024. Our top priority in
2024 is to reach breakeven, on an Adjusted EBITDA basis, by
executing a plan that is grounded on achievable goals. Should we
succeed, we not only expect to deliver periods of EBITDA
profitability in 2024, but will have set the stage for profitable
growth in the future with solid financial strength and adequate
liquidity.”
2024 Guidance
For 2024, Inspirato anticipates total revenue between $275
million and $305 million and Adjusted EBITDA between a loss of $15
million and income of $5 million. The Company expects to benefit
from its recent portfolio optimization efforts and cost control
initiatives, resulting in periods of profitability on an Adjusted
EBITDA basis, including the first quarter of 2024. Total cash
operating expenses are expected to decline by approximately 5-12%
year-over-year to a range of $115 million to $125 million.
In 2024, the Company plans to focus on better aligning its
current offerings to its short- and long-term priorities of
profitable operations, improved member engagement and increased
travel revenue per member. As a result of this realignment, the
Company anticipates a reduction of its Pass member base by a
similar amount as 2023 and to exit the year with a similar amount
of Club members as year-end 2023.
In 2023, Inspirato reduced the asking ADR on new bookings in
both its residences and hotels, contributing to an expected
year-over-year decrease of 5-10% in 2024 residence and hotel ADRs.
The combination of Inspirato Rewards and reduced residence ADRs led
to a slight increase year-over-year in reservations and nights
booked per member to exit 2023 and begin 2024. In February 2024,
that trend reversed, resulting in the Company expecting a slight
decrease in residence revenue on a year-over-year basis. 2024 hotel
revenue is expected to decrease by 5-10% year-over-year due to
aforementioned decreases in anticipated hotel ADRs and fewer
expected hotel nights delivered.
The Company currently expects its strategic partnership with
Capital One Ventures to begin a multi-phased launch in the second
half of 2024. Accordingly, 2024 guidance contains minimal expected
revenue associated with the strategic partnership as future travel
revenue is expected to be recognized as travel is delivered,
predominantly beginning in 2025.
These statements are forward-looking and actual results may
differ materially. Refer to the Forward-Looking Statements section
below for information on the factors that could cause Inspirato’s
actual results to differ materially from these forward-looking
statements.
Forward-looking Adjusted EBITDA is a forward-looking non-GAAP
financial measure. The Company is unable to reconcile
forward-looking Adjusted EBITDA to net income, its most directly
comparable forward-looking GAAP financial measure, without
unreasonable effort, as a result of the uncertainty regarding, and
the potential variability of, reconciling items such as
equity-based compensation expense. However, it is important to note
that material changes to reconciling items could have a significant
effect on Inspirato’s future GAAP results.
2023 Financial Results and Operational
Metrics
The following table provides the components of gross margin for
the periods ended December 31, 2022 and 2023:
|
|
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|
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|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
Year Ended
December 31, |
(Unaudited, in millions) |
|
2022 |
|
2023 |
|
% Change |
|
2022 |
|
2023 |
|
% Change |
Travel revenue |
|
$ |
46.5 |
|
|
$ |
38.1 |
|
|
(18.1 |
)% |
|
$ |
198.9 |
|
|
$ |
190.3 |
|
|
(4.4 |
)% |
Subscription revenue |
|
39.3 |
|
|
31.7 |
|
|
(19.3 |
)% |
|
145.7 |
|
|
137.6 |
|
|
(5.5 |
)% |
Rewards and other revenue |
|
0.8 |
|
|
0.9 |
|
|
12.5 |
% |
|
1.0 |
|
|
1.2 |
|
|
28.2 |
% |
Total revenue |
|
86.6 |
|
|
70.7 |
|
|
(18.4 |
)% |
|
345.5 |
|
|
329.1 |
|
|
(4.8 |
)% |
Cost of revenue |
|
60.7 |
|
|
51.4 |
|
|
(15.3 |
)% |
|
228.4 |
|
|
233.9 |
|
|
2.4 |
% |
Asset impairments |
|
0.9 |
|
|
6.5 |
|
|
n/m |
|
|
0.9 |
|
|
40.8 |
|
|
n/m |
|
Gross margin |
|
$ |
25.0 |
|
|
$ |
12.8 |
|
|
(48.7 |
)% |
|
$ |
116.2 |
|
|
$ |
54.4 |
|
|
(53.2 |
)% |
Gross margin (%) |
|
29 |
% |
|
18 |
% |
|
N/A |
|
|
34 |
% |
|
17 |
% |
|
N/A |
|
n/m = not meaningful
The following table provides a breakdown of Nights Delivered,
Occupancy and ADR for the periods ended December 31, 2022
and 2023:
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended December 31, |
|
Year ended December 31, |
|
|
2021 |
|
2022 |
|
2023 |
|
2021 |
|
2022 |
|
2023 |
Residences |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Paid Nights Delivered |
|
16,000 |
|
|
14,500 |
|
|
14,100 |
|
|
61,100 |
|
|
67,800 |
|
|
61,400 |
|
Total Nights Delivered |
|
24,800 |
|
|
27,700 |
|
|
24,400 |
|
|
94,800 |
|
|
114,900 |
|
|
111,600 |
|
Occupancy |
|
84 |
% |
|
73 |
% |
|
65 |
% |
|
88 |
% |
|
81 |
% |
|
72 |
% |
ADR |
|
$ |
1,693 |
|
|
$ |
1,923 |
|
|
$ |
1,687 |
|
|
$ |
1,557 |
|
|
$ |
1,825 |
|
|
$ |
1,825 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hotels |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Paid Nights Delivered (1) |
|
8,600 |
|
|
10,400 |
|
|
9,600 |
|
|
29,300 |
|
|
38,900 |
|
|
41,900 |
|
Total Nights Delivered (1) |
|
14,300 |
|
|
19,500 |
|
|
16,200 |
|
|
48,200 |
|
|
72,700 |
|
|
73,400 |
|
Occupancy (2) |
|
77 |
% |
|
70 |
% |
|
70 |
% |
|
79 |
% |
|
79 |
% |
|
72 |
% |
ADR (2) |
|
$ |
956 |
|
|
$ |
970 |
|
|
$ |
925 |
|
|
$ |
962 |
|
|
$ |
970 |
|
|
$ |
935 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Paid Nights Delivered (1) |
|
24,600 |
|
|
24,900 |
|
|
23,700 |
|
|
90,500 |
|
|
106,600 |
|
|
103,300 |
|
Total Nights Delivered (1) |
|
39,100 |
|
|
47,200 |
|
|
40,600 |
|
|
143,000 |
|
|
187,600 |
|
|
185,000 |
|
Occupancy (2) |
|
82 |
% |
|
72 |
% |
|
67 |
% |
|
85 |
% |
|
80 |
% |
|
72 |
% |
ADR (2) |
|
$ |
1,364 |
|
|
$ |
1,513 |
|
|
$ |
1,464 |
|
|
$ |
1,364 |
|
|
$ |
1,513 |
|
|
$ |
1,464 |
|
(1) |
Includes net rate hotel nights. |
(2) |
Excludes net rate hotel nights as we purchase individual nights but
do not have a total number of nights obligation. |
|
|
Reconciliation of Non- GAAP Financial
Measures
In addition to Inspirato’s results determined in accordance with
GAAP, Inspirato uses Adjusted Net Loss, Adjusted EBITDA, Adjusted
EBITDA Margin and Free Cash Flow as part of its overall assessment
of performance, including the preparation of its annual operating
budget and quarterly forecasts, to evaluate the effectiveness of
its business strategies and to communicate with its Board
concerning our business and financial performance. Inspirato
believes that these non-GAAP financial measures provide useful
information to investors about its business and financial
performance, enhance their overall understanding of our past
performance and future prospects, and allow for greater
transparency with respect to metrics used by its management in
their financial and operational decision making. Inspirato is
presenting these non-GAAP financial measures to assist investors in
seeing its business and financial performance through the eyes of
management, and because we believe that these non-GAAP financial
measures provide an additional tool for investors to use in
comparing results of operations of our business over multiple
periods with other companies in our industry.
There are limitations related to the use of these non-GAAP
financial measures, including that they exclude significant
expenses that are required by GAAP to be recorded in Inspirato’s
financial measures. Other companies may calculate non-GAAP
financial measures differently or may use other measures to
calculate their financial performance, and therefore, our non-GAAP
financial measures may not be directly comparable to similarly
titled measures of other companies. Thus, these non-GAAP financial
measures should be considered in addition to, and not as a
substitute for or superior to, measures of financial performance
prepared in accordance with GAAP and should not be considered as an
alternative to any measures derived in accordance with GAAP.
Inspirato provides a reconciliation of Adjusted Net Loss,
Adjusted EBITDA, Adjusted EBTIDA Margin and Free Cash Flow to their
respective related GAAP financial measures. Inspirato encourages
investors and others to review our business, results of operations,
and financial information in its entirety, not to rely on any
single financial measure, and to view Adjusted Net Loss, Adjusted
EBITDA, Adjusted EBITDA Margin and Free Cash Flow in conjunction
with their respective related GAAP financial measures.
Adjusted Net Loss. Adjusted Net Loss is a non-GAAP financial
measure that Inspirato defines as net loss and comprehensive loss
less fair value gains and losses on financial instruments and asset
impairments.
The above items are excluded from Inspirato’s Adjusted Net Loss
measure because management believes that these costs and expenses
are not indicative of core operating performance and do not reflect
the underlying economics of Inspirato’s business.
Adjusted EBITDA. Adjusted EBITDA is a non-GAAP financial measure
that Inspirato defines as net loss less interest, income taxes,
depreciation and amortization, equity-based compensation expense,
fair value gains and losses on financial instruments, asset
impairments and public company readiness expenses.
The above items are excluded from Inspirato’s Adjusted EBITDA
measure because management believes that these costs and expenses
are not indicative of core operating performance and do not reflect
the underlying economics of Inspirato’s business.
Free Cash Flow. Inspirato defines Free Cash Flow as net cash
provided by (used in) operating activities less purchases of
property and equipment and development of internal-use software.
Inspirato believes that Free Cash Flow is a meaningful indicator of
liquidity that provides information to management and investors
about the amount of cash generated from operations, after purchases
of property and equipment and development of internal-use software,
that can be used for strategic initiatives.
See below for reconciliations of non-GAAP financial
measures.
Key Business and Other Operating Metrics
Inspirato uses a number of operating and financial metrics,
including the following key business metrics, to evaluate its
business, measure its performance, identify trends affecting its
business, formulate financial projections and business plans, and
make strategic decisions. Inspirato regularly reviews and may
adjust processes for calculating its internal metrics to improve
their accuracy.
Active Subscriptions. Inspirato uses Active Subscriptions to
assess the adoption of its subscription offerings, which is a key
factor in assessing penetration of the market in which it operates
and a key driver of revenue. Inspirato defines Active Subscriptions
as subscriptions as of the measurement date that are paid in full,
as well as those for which Inspirato expects payment for
renewal.
Total Nights Delivered. Total Nights Delivered includes all
Paid, Inspirato Pass, Inspirato for Good, Inspirato for Business,
employee and other complimentary nights in all residences or
hotels.
|
Inspirato IncorporatedConsolidated
Statements of Operations and Comprehensive Loss (in
thousands, except per share data)(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
Year
Ended
December 31, |
|
2022 |
|
2023 |
|
2022 |
|
2023 |
Revenue |
$ |
86,627 |
|
|
$ |
70,710 |
|
|
$ |
345,530 |
|
|
$ |
329,100 |
|
Cost of revenue (including
depreciation of $855 and $2,245 in 2022 and $2,036 and $6,090 in
2023, respectively) |
|
60,708 |
|
|
|
51,444 |
|
|
|
228,401 |
|
|
|
233,942 |
|
Asset impairments |
|
925 |
|
|
|
6,496 |
|
|
|
925 |
|
|
|
40,844 |
|
Gross margin |
|
24,994 |
|
|
|
12,770 |
|
|
|
116,204 |
|
|
|
54,314 |
|
General and administrative
(including depreciation of $0 and $0 in 2022 and $690 and $690 in
2023) |
|
16,518 |
|
|
|
15,879 |
|
|
|
65,807 |
|
|
|
72,117 |
|
Sales and marketing |
|
8,216 |
|
|
|
8,496 |
|
|
|
39,368 |
|
|
|
32,884 |
|
Operations |
|
10,484 |
|
|
|
3,518 |
|
|
|
42,372 |
|
|
|
28,125 |
|
Technology and
development |
|
4,385 |
|
|
|
1,965 |
|
|
|
14,219 |
|
|
|
11,330 |
|
Depreciation and
amortization |
|
1,026 |
|
|
|
781 |
|
|
|
3,191 |
|
|
|
3,773 |
|
Interest (income) expense,
net |
|
(19 |
) |
|
|
(71 |
) |
|
|
188 |
|
|
|
1,133 |
|
(Gain) loss on fair value
instruments |
|
(1,329 |
) |
|
|
(1,825 |
) |
|
|
1,696 |
|
|
|
(2,368 |
) |
Other (income) expense,
net |
|
92 |
|
|
|
76 |
|
|
|
(355 |
) |
|
|
457 |
|
Loss and comprehensive loss before income
taxes |
|
(14,379 |
) |
|
|
(16,049 |
) |
|
|
(50,282 |
) |
|
|
(93,138 |
) |
Income tax expense
(benefit) |
|
210 |
|
|
|
(188 |
) |
|
|
799 |
|
|
|
721 |
|
Net loss and comprehensive loss |
|
(14,589 |
) |
|
|
(15,861 |
) |
|
|
(51,081 |
) |
|
|
(93,859 |
) |
Net loss and comprehensive
loss attributable to noncontrolling interests |
|
8,007 |
|
|
|
7,076 |
|
|
|
27,024 |
|
|
|
42,104 |
|
Net loss and comprehensive loss attributable to Inspirato
Incorporated |
$ |
(6,582 |
) |
|
$ |
(8,785 |
) |
|
$ |
(24,057 |
) |
|
$ |
(51,755 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Loss Attributable to
Inspirato Incorporated per Class A Share |
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted weighted
average Class A shares outstanding |
|
2,956 |
|
|
|
3,500 |
|
|
|
2,616 |
|
|
|
3,380 |
|
Basic and diluted net loss
attributable to Inspirato Incorporated per Class A share |
$ |
(2.23 |
) |
|
$ |
(2.51 |
) |
|
$ |
(9.20 |
) |
|
$ |
(15.31 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inspirato IncorporatedConsolidated Balance
Sheets(in thousands, except par value)(unaudited) |
|
|
|
|
|
|
|
December 31, |
|
2022 |
|
2023 |
Assets |
|
|
|
|
|
Current assets |
|
|
|
|
|
Cash and cash equivalents |
$ |
80,278 |
|
|
$ |
36,566 |
|
Restricted cash |
|
1,661 |
|
|
|
5,700 |
|
Accounts receivable, net |
|
3,140 |
|
|
|
3,306 |
|
Accounts receivable, net – related parties |
|
663 |
|
|
|
842 |
|
Prepaid member travel |
|
19,915 |
|
|
|
20,547 |
|
Prepaid expenses |
|
10,922 |
|
|
|
6,135 |
|
Other current assets |
|
302 |
|
|
|
1,744 |
|
Total current assets |
|
116,881 |
|
|
|
74,840 |
|
Property and equipment, net |
|
18,298 |
|
|
|
19,504 |
|
Goodwill |
|
21,233 |
|
|
|
21,233 |
|
Right-of-use assets |
|
271,702 |
|
|
|
209,702 |
|
Other noncurrent assets |
|
2,253 |
|
|
|
5,448 |
|
Total assets |
$ |
430,367 |
|
|
$ |
330,727 |
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
Current liabilities |
|
|
|
|
|
Accounts payable and accrued liabilities |
$ |
36,086 |
|
|
$ |
22,748 |
|
Deferred revenue |
|
167,733 |
|
|
|
160,493 |
|
Lease liabilities |
|
74,299 |
|
|
|
61,953 |
|
Total current liabilities |
|
278,118 |
|
|
|
245,194 |
|
Deferred revenue, noncurrent |
|
18,321 |
|
|
|
17,026 |
|
Lease liabilities, noncurrent |
|
208,159 |
|
|
|
196,875 |
|
Convertible note |
|
— |
|
|
|
23,854 |
|
Warrants |
|
759 |
|
|
|
48 |
|
Other noncurrent liabilities |
|
— |
|
|
|
2,428 |
|
Total liabilities |
|
505,357 |
|
|
|
485,425 |
|
|
|
|
|
|
|
Commitments and
contingencies |
|
|
|
|
|
|
|
|
|
|
|
Equity
(Deficit) |
|
|
|
|
|
Class A common stock, par value $0.0001 per share, 50,000 shares
authorized, 3,136 and 3,537 shares issued and outstanding as of
December 31, 2022 and December 31, 2023,
respectively |
|
6 |
|
|
|
7 |
|
Class B common stock, par value $0.0001 per share, 5,000 shares
authorized, no shares issued or outstanding as of
December 31, 2023 |
|
|
|
|
— |
|
Class V common stock, $0.0001 par value, 25,000 shares authorized,
3,068 and 2,907 shares issued and outstanding as of
December 31, 2022 and December 31, 2023,
respectively |
|
6 |
|
|
|
6 |
|
Preferred stock, par value $0.0001 per share, 5,000 shares
authorized, no shares issued or outstanding as of
December 31, 2022 and December 31, 2023 |
|
— |
|
|
|
— |
|
Additional paid-in capital |
|
245,652 |
|
|
|
255,527 |
|
Accumulated deficit |
|
(233,931 |
) |
|
|
(285,782 |
) |
Total equity (deficit) excluding noncontrolling
interest |
|
11,733 |
|
|
|
(30,242 |
) |
Noncontrolling interests |
|
(86,723 |
) |
|
|
(124,456 |
) |
Total equity (deficit) |
|
(74,990 |
) |
|
|
(154,698 |
) |
Total liabilities and equity (deficit) |
$ |
430,367 |
|
|
$ |
330,727 |
|
|
|
|
|
|
|
|
|
Inspirato IncorporatedConsolidated
Statements of Cash Flows(in thousands)(unaudited) |
|
|
|
|
|
|
|
Year Ended December 31, |
|
2022 |
|
2023 |
Cash flows from operating
activities: |
|
|
|
|
|
Net loss |
$ |
(51,081 |
) |
|
$ |
(93,859 |
) |
Adjustments to reconcile net loss to net cash provided by (used in)
operating activities: |
|
|
|
|
|
Depreciation and amortization |
|
5,436 |
|
|
|
10,553 |
|
Note financing costs included in interest expense, net |
|
— |
|
|
|
1,859 |
|
Loss on disposal of fixed assets |
|
207 |
|
|
|
685 |
|
(Gain) loss on fair value instruments |
|
1,696 |
|
|
|
(2,368 |
) |
Asset impairments |
|
925 |
|
|
|
40,844 |
|
Equity-based compensation |
|
8,802 |
|
|
|
13,652 |
|
Amortization of right-of-use assets |
|
88,098 |
|
|
|
87,623 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
Accounts receivable, net |
|
(751 |
) |
|
|
(370 |
) |
Accounts receivable, net – related parties |
|
(277 |
) |
|
|
(179 |
) |
Prepaid member travel |
|
930 |
|
|
|
432 |
|
Prepaid expenses |
|
(4,577 |
) |
|
|
1,421 |
|
Other assets |
|
(725 |
) |
|
|
(1,955 |
) |
Accounts payable and accrued liabilities |
|
(4,078 |
) |
|
|
(6,123 |
) |
Deferred revenue |
|
(5,209 |
) |
|
|
(13,614 |
) |
Lease liabilities |
|
(85,085 |
) |
|
|
(89,775 |
) |
Deferred rent |
|
— |
|
|
|
— |
|
Other liabilities |
|
— |
|
|
|
(219 |
) |
Net cash used in operating activities |
|
(45,689 |
) |
|
|
(51,393 |
) |
|
|
|
|
|
|
Cash flows from investing
activities: |
|
|
|
|
|
Development of internal-use software |
|
(5,420 |
) |
|
|
(5,819 |
) |
Purchase of property and equipment |
|
(8,850 |
) |
|
|
(6,305 |
) |
Net cash used in investing activities |
|
(14,270 |
) |
|
|
(12,124 |
) |
|
|
|
|
|
|
Cash flows from financing
activities: |
|
|
|
|
|
Repayments of debt |
|
(27,267 |
) |
|
|
— |
|
Proceeds from debt |
|
14,000 |
|
|
|
25,000 |
|
Payments of financing costs for Note |
|
— |
|
|
|
(1,859 |
) |
Common unit redemptions |
|
— |
|
|
|
— |
|
Preferred unit redemptions |
|
— |
|
|
|
— |
|
Proceeds from reverse recapitalization |
|
90,070 |
|
|
|
— |
|
Payments of reverse recapitalization costs |
|
(23,899 |
) |
|
|
— |
|
Proceeds from issuance of Class A common stock |
|
5,000 |
|
|
|
105 |
|
Payments of employee taxes for share based awards |
|
(669 |
) |
|
|
(178 |
) |
Proceeds from option exercises |
|
1,894 |
|
|
|
776 |
|
Distributions |
|
(184 |
) |
|
|
— |
|
Net cash provided by financing activities |
|
58,945 |
|
|
|
23,844 |
|
|
|
|
|
|
|
Net decrease in cash,
cash equivalents and restricted cash |
|
(1,014 |
) |
|
|
(39,673 |
) |
Cash, cash equivalents and
restricted cash – beginning of year |
|
82,953 |
|
|
|
81,939 |
|
Cash, cash equivalents
and restricted cash – end of year |
$ |
81,939 |
|
|
$ |
42,266 |
|
|
|
|
|
|
|
|
|
Reconciliation of Net Loss to Adjusted EBITDA
(Unaudited) |
|
|
Three Months Ended December 31, |
|
Year
Ended December 31, |
(in
thousands) |
|
2022 |
|
2023 |
|
2022 |
|
2023 |
Net loss and comprehensive loss |
|
$ |
(14,589 |
) |
|
$ |
(15,861 |
) |
|
$ |
(51,081 |
) |
|
$ |
(93,859 |
) |
Interest (income) expense,
net |
|
(19 |
) |
|
(71 |
) |
|
188 |
|
|
1,133 |
|
Income tax expense (benefit) |
|
210 |
|
|
(188 |
) |
|
799 |
|
|
721 |
|
Depreciation and amortization |
|
1,881 |
|
|
3,507 |
|
|
5,436 |
|
|
10,553 |
|
Equity-based compensation |
|
3,373 |
|
|
2,578 |
|
|
8,802 |
|
|
13,652 |
|
(Gain) loss on fair value instruments |
|
(1,329 |
) |
|
(1,825 |
) |
|
1,696 |
|
|
(2,368 |
) |
Asset
impairments |
|
925 |
|
|
6,496 |
|
|
925 |
|
|
40,844 |
|
Public company readiness costs |
|
— |
|
|
— |
|
|
1,092 |
|
|
— |
|
Adjusted EBITDA |
|
$ |
(9,548 |
) |
|
$ |
(5,364 |
) |
|
$ |
(32,143 |
) |
|
$ |
(29,324 |
) |
Adjusted EBITDA Margin (1) |
|
(11.0 |
)% |
|
(7.6 |
)% |
|
(9.3 |
)% |
|
(8.9 |
)% |
(1) |
We define Adjusted EBITDA Margin as Adjusted EBITDA as a percentage
of total revenue for the same period. |
Reconciliation of Net Loss to Adjusted Net Loss
(Unaudited) |
|
|
Three Months Ended December 31, |
|
Year
Ended
December 31, |
(in
thousands) |
|
2022 |
|
2023 |
|
2022 |
|
2023 |
Net loss and comprehensive loss |
|
$ |
(14,589 |
) |
|
$ |
(15,861 |
) |
|
$ |
(51,081 |
) |
|
$ |
(93,859 |
) |
Asset impairments |
|
|
925 |
|
|
|
6,496 |
|
|
|
925 |
|
|
|
40,844 |
|
(Gain) loss on fair value
instruments |
|
|
(1,329 |
) |
|
|
(1,825 |
) |
|
|
1,696 |
|
|
|
(2,368 |
) |
Adjusted Net Loss |
|
$ |
(14,993 |
) |
|
$ |
(11,190 |
) |
|
$ |
(48,460 |
) |
|
$ |
(55,383 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Free Cash Flow (Unaudited) |
|
|
Three Months Ended December 31, |
|
Year
Ended
December 31, |
(in
thousands) |
|
2022 |
|
2023 |
|
2022 |
|
2023 |
Net cash provided by (used in) operating activities |
|
$ |
2,590 |
|
|
$ |
(5,988 |
) |
|
$ |
(45,689 |
) |
|
$ |
(51,393 |
) |
Development of internal-use
software |
|
|
(2,673 |
) |
|
|
105 |
|
|
|
(5,420 |
) |
|
|
(5,819 |
) |
Purchase of property and
equipment |
|
|
(1,732 |
) |
|
|
(1,498 |
) |
|
|
(8,850 |
) |
|
|
(6,305 |
) |
Free Cash
Flow |
|
$ |
(1,815 |
) |
|
$ |
(7,381 |
) |
|
$ |
(59,959 |
) |
|
$ |
(63,517 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023 Fourth Quarter and Year-End Earnings Call and
Webcast
The Company invites you to join Eric Grosse, Chief Executive
Officer, and Robert Kaiden, Chief Financial Officer, for a
conference call on Wednesday, March 6 to discuss its 2023 fourth
quarter and year-end operating and financial results.
To listen to the audio webcast and Q&A, please visit the
Inspirato Investor Relations website at
https://investor.inspirato.com. An audio replay of the webcast will
be available on the Inspirato Investor Relations website shortly
after the call.
Conference Call and Webcast:
Date/Time: Wednesday, March 6, 2024 at 11am ETWebcast:
https://edge.media-server.com/mmc/p/doed73p7
About Inspirato
Inspirato (NASDAQ: ISPO) is a luxury travel subscription company
that provides exclusive access to a managed and controlled
portfolio of curated vacation options, delivered through an
innovative model designed to ensure the service, certainty, and
value that discerning customers demand. The Inspirato portfolio
includes branded luxury vacation homes, accommodations at five-star
hotel and resort partners, and custom travel experiences. For more
information, visit www.inspirato.com and follow @inspirato on
Instagram, Facebook, X, and LinkedIn.
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended (the “Securities Act”) and Section 21E of the Securities
Exchange Act of 1934, as amended (the “Exchange Act”), which
statements involve substantial risks and uncertainties. Our
forward-looking statements include, but are not limited to,
statements regarding our and our management team’s hopes, beliefs,
intentions or strategies regarding the future or our future events
or our future financial or operating performance. The words
“anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,”
“intends,” “may,” “might,” “plan,” “possible,” “potential,”
“predict,” “project,” “should,” “will,” “would”, “guidance” and
similar expressions may identify forward-looking statements, but
the absence of these words does not mean that a statement is not
forward-looking. Forward-looking statements in this press release
may include, for example, statements about: future financial
performance (particularly in “2024 Guidance”), and future business,
strategic and operational initiatives and results. These
forward-looking statements are subject to numerous risks and
uncertainties and actual results may differ materially from those
expressed in or implied by the forward-looking statements. These
risks and uncertainties may relate to, among other things:
- Our partnership with Capital One
Services, LLC (“Capital One”);
- Our ability to service our
outstanding indebtedness and satisfy related covenants;
- The impact of changes to our
executive management team;
- Our ability to comply with the
continued listing standards of Nasdaq or the continued listing of
our securities on Nasdaq;
- Changes in our strategy, future
operations, financial position, estimated revenue and losses,
projected costs, prospects and plans;
- The implementation, market
acceptance and success of our business model;
- Our expectations and forecasts with
respect to the size and growth of the travel and hospitality
industry;
- The ability of our services to meet
members’ needs;
- Our ability to compete with others
in the luxury travel and hospitality industry;
- Our ability to attract and retain
qualified employees and management;
- Our ability to adapt to changes in
consumer preferences, perception and spending habits and develop
and expand our destination or other product offerings and gain
market acceptance of our services, including in new
geographies;
- Our ability to develop and maintain
our brand and reputation;
- Developments and projections
relating to our competitors and industry;
- The impact of natural disasters,
acts of war, terrorism, widespread global pandemics or illness,
including the COVID-19 pandemic, on our business and the actions we
may take in response thereto;
- Our future capital requirements and
sources and uses of cash;
- The impact of our reduction in
workforce on our expenses;
- The impact of market conditions on
our financial condition and operations, including fluctuations in
interest rates and inflation;
- Our ability to obtain funding for
our operations and future growth;
- Our business, expansion plans and
opportunities; and
- Other factors detailed under the
section Risk Factors in Part I, Item 1A of our Annual Report on
Form 10-K for the year ended December 31, 2023 (the “Form 10-K”)
that will be filed with the Securities and Exchange Commission
(“SEC”), those discussed in Management’s Discussion and Analysis of
Financial Condition and Results of Operations in Part II, Item 7 of
that Form 10-K and those discussed in other documents we file with
the SEC.
We caution you that the foregoing list does not contain all of
the forward-looking statements made in this press release.
Investors should consider the risks and uncertainties described
herein and should not place undue reliance on any forward-looking
statements. We do not undertake, and specifically disclaim, any
obligation to publicly release the results of any revisions that
may be made to any forward-looking statements, whether as a result
of new information, future events or otherwise, except as required
by law.
Although we believe that the expectations reflected in any
forward-looking statements are reasonable, we cannot guarantee
future results, events, levels of activity, performance or
achievements. We do not assume responsibility for the accuracy and
completeness of any forward-looking statements. We assume no
responsibility for updating forward-looking information contained
or incorporated by reference herein or in any documents we file
with the SEC, except as required by law.
Investors should consider the risks and uncertainties described
herein and should not place undue reliance on any forward-looking
statements.
In addition, statements that “we believe” and similar statements
reflect our beliefs and opinions on the relevant subject. These
statements are based upon information available to us as of the
date of this press release and while we believe such information
forms a reasonable basis for such statements, such information may
be limited or incomplete, and such statements should not be read to
indicate that we have conducted an exhaustive inquiry into, or
review of, all potentially available relevant information. These
statements are inherently uncertain, and investors are cautioned
not to unduly rely upon these statements.
Contacts:
Investor Relations:ir@inspirato.com
Media Relations:communications@inspirato.com
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