Inspirato rporated(ISPO) - 2024 Q1 - Quarterly Results

Financial Performance - Net income for Q1 2024 was $2.2 million, a significant improvement from a net loss of $5.9 million in Q1 2023[3] - Adjusted EBITDA for Q1 2024 was $4.1 million, compared to an adjusted EBITDA loss of $3.1 million in Q1 2023, marking a $7.2 million favorable swing[3] - Total revenue for Q1 2024 was $80.2 million, representing a 12% year-over-year decrease but a 13% increase compared to Q4 2023[3] - Adjusted EBITDA for Q1 2024 was $4,073 million, with an Adjusted EBITDA margin of 5.1%, compared to an Adjusted EBITDA of $(3,149) million in Q1 2023[33][34] - Free cash flow for the first quarter of 2024 was $(8,704) million, an improvement from $(20,796) million in Q1 2023[35] - The company reported a net cash used in operating activities of $(7,202) million for Q1 2024, compared to $(17,587) million in Q1 2023, indicating improved cash flow management[31] Operational Metrics - Gross margin expanded to 40% in Q1 2024 from 35% in Q1 2023, driven by a 19% year-over-year improvement in the cost of revenue[3] - Residence occupancy improved to 80% in Q1 2024, up from 77% in Q1 2023, aided by a 9% reduction in average daily rates (ADRs) to $1,965[3] - Total Active Subscriptions reached approximately 13,000 as of March 31, 2024, including about 10,900 Inspirato Club subscriptions and 2,100 Inspirato Pass subscriptions[3] Guidance and Future Outlook - The company reaffirms its 2024 guidance for total revenue between $275 million and $305 million, and adjusted EBITDA between a gain of $5 million and a loss of $15 million[5] - Management expressed confidence in achieving long-term growth and profitability goals, citing recent improvements in operational efficiency and occupancy rates[4] - The company aims to improve its free cash flow profile and liquidity through operational initiatives and potential financing options[5] Cash and Assets - Cash at the end of Q1 2024 was $33 million, down from $42 million at year-end 2023[5] - Total assets decreased from $330,727 million as of December 31, 2023, to $313,044 million as of March 31, 2024, representing a decline of approximately 5.4%[29] - Cash and cash equivalents decreased from $36,566 million at the end of 2023 to $22,626 million at the end of Q1 2024, a decline of approximately 38.2%[29] - Total current liabilities decreased from $245,194 million as of December 31, 2023, to $227,613 million as of March 31, 2024, a reduction of approximately 7.1%[29] - Deferred revenue decreased from $160,493 million as of December 31, 2023, to $142,821 million as of March 31, 2024, a decrease of approximately 11%[29] Upcoming Events - The company plans to discuss its 2024 first quarter operating and financial results in a conference call scheduled for May 8, 2024[37] Strategic Focus - Inspirato continues to focus on expanding its luxury travel subscription services and enhancing its portfolio of curated vacation options[38]