Financial Performance - Total revenue for Q3 2024 was $69.1 million, a sequential increase of 3% from Q2 2024 but a year-over-year decrease of 16% compared to Q3 2023[3]. - Gross margin reached $49.4 million, or 71% of revenue, significantly up from $20.6 million, or 25% of revenue in Q3 2023, reflecting a 140% increase[4]. - Net income for Q3 2024 was $6.6 million, a turnaround from a net loss of $25.4 million in Q3 2023[4]. - Adjusted EBITDA loss improved by 63% year-over-year to $3.4 million in Q3 2024, compared to a loss of $9.2 million in Q3 2023[5]. - Revenue for the three months ended September 30, 2024, was $69,114,000, a decrease of 16.3% compared to $82,598,000 for the same period in 2023[25]. - Adjusted net loss for the three months ended September 30, 2024, was $14,302,000, compared to an adjusted net loss of $21,395,000 for the same period in 2023[31]. - Net income for the three months ended September 2024 was $(6,622) thousand, compared to $(25,422) thousand for the same period in 2023[32]. - Adjusted EBITDA for the three months ended September 2024 was $(3,354) thousand, with an Adjusted EBITDA margin of (4.9)%, compared to $(9,165) thousand and (11.1)% in the same period of 2023[32]. - Free cash flow for the three months ended September 2024 was $(15,051) thousand, compared to $(15,568) thousand for the same period in 2023[33]. - Net cash used in operating activities for the nine months ended September 2024 was $(22,713) thousand, compared to $(45,405) thousand for the same period in 2023[33]. Membership and Revenue Breakdown - The company ended Q3 2024 with approximately 11,700 members, including about 10,200 Inspirato Club members and 1,500 Inspirato Pass members[5]. - Travel revenue for Q3 2024 was $42.6 million, down 13.2% year-over-year, while subscription revenue was $23.0 million, down 31.0% year-over-year[8]. - Total nights delivered in Q3 2024 was 35,600, a decrease from 46,300 in Q3 2023, with occupancy at 73%[9]. - Average Daily Rate (ADR) for Q3 2024 was $1,449, compared to $1,311 in Q3 2023, reflecting an increase of 10.6%[9]. Assets and Liabilities - Total assets decreased to $273,325,000 as of September 30, 2024, down from $330,727,000 as of December 31, 2023[26]. - Total liabilities decreased to $407,902,000 as of September 30, 2024, compared to $485,425,000 as of December 31, 2023[27]. - Cash and cash equivalents decreased to $13,479,000 as of September 30, 2024, down from $36,566,000 as of December 31, 2023[26]. - The company’s total equity (deficit) excluding noncontrolling interest was $(134,577,000) as of September 30, 2024, compared to $(30,242,000) as of December 31, 2023[28]. Restructuring and Charges - The company incurred restructuring charges of $6,985,000 during the three months ended September 30, 2024[25]. - The company incurred restructuring charges of $6,985 thousand during the three months ended September 2024[32]. - The company reported asset impairments and gains on lease termination of $(29,895) thousand for the three months ended September 2024[32]. Future Outlook and Strategy - The company has removed 2024 financial guidance, consistent with the prior quarter[7]. - Management expects changes implemented will support profitability and positive free cash flow starting in 2025[6]. - The company emphasizes the importance of its partnership with Capital One Services, LLC in its future strategies[38]. - The company is focused on adapting to changes in consumer preferences and expanding its product offerings in new geographic areas[38]. - The company acknowledges various risks and uncertainties that may impact its future financial performance and operational initiatives[39]. Conference Call Announcement - The company plans to discuss its third quarter operating and financial results in a conference call on October 29, 2024[34].
Inspirato rporated(ISPO) - 2024 Q3 - Quarterly Results