Inspirato rporated(ISPO) - 2023 Q4 - Annual Results

Financial Performance - Full-year total revenue for 2023 was $329.1 million, within the guidance range of $320 to $340 million, representing a year-over-year decrease of 5%[3] - The net loss for Q4 2023 was $15.9 million, compared to a net loss of $14.6 million in Q4 2022, while the full-year net loss was $93.9 million, up from approximately $51.1 million in 2022[5] - Revenue for Q4 2023 was $70,710, a decrease of 18.4% compared to $86,627 in Q4 2022[31] - Total revenue for the year 2023 was $329,100, down from $345,530 in 2022, representing a decline of 4.8%[31] - Free Cash Flow for the year 2023 was $(63,517), a decline from $(59,959) in 2022[38] - The basic and diluted net loss attributable to Inspirato Incorporated per Class A share for 2023 was $(15.31), compared to $(9.20) in 2022, indicating a worsening loss per share[31] Adjusted EBITDA - Adjusted EBITDA loss for 2023 was $29.3 million, which was better than the previously guided range of $30 million to $45 million[5] - Adjusted EBITDA for Q4 2023 improved to $(5,364), a 43.1% reduction in losses compared to $(9,548) in Q4 2022[10] - Adjusted EBITDA margin for Q4 2023 was (7.6)%, an improvement from (11.0)% in Q4 2022[10] Subscriptions and Memberships - Total Active Subscriptions as of December 31, 2023, were approximately 13,800, with over 75% of new sales in 2023 for contract terms of two years or more[3] - Active Subscriptions are a key metric for assessing market penetration and revenue generation, with a focus on full paid subscriptions and expected renewals[27] Future Outlook - For 2024, the company anticipates total revenue between $275 million and $305 million and expects to reach breakeven on an Adjusted EBITDA basis[5] - The company expects a year-over-year decrease of 5-10% in residence and hotel ADRs for 2024 due to recent pricing adjustments[7] - The company plans to focus on profitable operations and improved member engagement in 2024, anticipating a reduction in its Pass member base[6] Asset and Liability Management - Total current assets decreased from $116,881 in 2022 to $74,840 in 2023, a reduction of 36%[34] - Cash and cash equivalents dropped significantly from $80,278 in 2022 to $36,566 in 2023, a decline of 54.5%[34] - Total liabilities decreased slightly from $505,357 in 2022 to $485,425 in 2023, a reduction of 3.7%[34] - The company reported asset impairments of $40,844 for the year 2023, compared to $925 in 2022, reflecting a significant increase in asset write-downs[31] - Total asset impairments increased significantly to $6,496 in Q4 2023 from $925 in Q4 2022[10] Operational Highlights - Inspirato launched its first loyalty program, Inspirato Rewards, in August 2023, with approximately 47% of members earning Rewards status by year-end 2023[3] - Inspirato for Good and Inspirato for Business had contracted sales of $9.6 million and $14.5 million for the full year 2023, respectively[5] - Inspirato is focused on expanding its luxury travel subscription services and enhancing its portfolio of vacation options[43] Market Conditions and Risks - The company is navigating various risks, including market conditions and competition in the luxury travel industry[44] - Future financial performance and strategic initiatives will be guided by ongoing assessments of market trends and consumer preferences[44] Miscellaneous - Interest expense increased to $71 in Q4 2023 from $19 in Q4 2022, reflecting a rise of 273.7%[10] - Equity-based compensation decreased to $2,578 in Q4 2023 from $3,373 in Q4 2022, a reduction of 23.6%[10] - The company plans to discuss its 2023 fourth quarter and year-end results on March 6, 2024[41]