Inspirato rporated(US:ISPO)2024-05-09 20:25Financial Performance - Revenue for Q1 2024 was $80,245,000, a decrease of 12.5% compared to $91,700,000 in Q1 2023[20] - Net income for Q1 2024 was $2,249,000, compared to a net loss of $5,903,000 in Q1 2023[20] - Total revenue for the three months ended March 31, 2024, was $80.245 million, a decrease of 12.4% from $91.700 million in the same period of 2023[39] - Travel revenue decreased to $49.674 million in Q1 2024 from $55.128 million in Q1 2023, representing a decline of 9.4%[39] - Subscription revenue fell to $28.065 million in Q1 2024, down 23.2% from $36.511 million in Q1 2023[39] - Net income attributable to Inspirato Incorporated for Q1 2024 was $1.263 million, a turnaround from a net loss of $2.896 million in Q1 2023[68] - Basic earnings per share (EPS) for Q1 2024 was $0.35, compared to a loss of $0.90 per share in Q1 2023[68] - Free Cash Flow for Q1 2024 was $(8.7) million, compared to $(20.8) million in Q1 2023, indicating improved cash generation from operations[157] Assets and Liabilities - Total current assets decreased to $61,514,000 as of March 31, 2024, down from $74,840,000 as of December 31, 2023[17] - Total liabilities decreased to $462,891,000 as of March 31, 2024, from $485,425,000 as of December 31, 2023[17] - Cash and cash equivalents at the end of Q1 2024 were $22,626,000, down from $36,566,000 at the end of Q4 2023[17] - The company’s total equity (deficit) as of March 31, 2024, was $(149,847,000), an improvement from $(154,698,000) as of December 31, 2023[17] - The outstanding amount of the 8% Senior Secured Convertible Note was $26.0 million as of March 31, 2024, up from $25.5 million as of December 31, 2023[50] Revenue Recognition and Deferred Revenue - Deferred revenue as of March 31, 2024, was $162.878 million, down from $177.519 million as of December 31, 2023[42] - The company recognized $71.4 million of revenue from deferred revenue during the three months ended March 31, 2024, compared to $63.0 million in the same period of 2023[42] - Deferred revenue as of March 31, 2024, totaled $75.9 million for travel, $57.9 million for subscriptions, $18.0 million for travel credits, and $11.0 million for rewards[136] Expenses - Cost of revenue decreased by $11.5 million, from $60.1 million in Q1 2023 to $48.5 million in Q1 2024, a reduction of 19%[123] - General and administrative expenses decreased by $3.3 million, from $17.9 million in Q1 2023 to $14.6 million in Q1 2024, a decrease of 18%[124] - Sales and marketing expenses increased by $2.0 million, from $6.7 million in Q1 2023 to $8.7 million in Q1 2024, an increase of 30%[125] - Technology and development expenses decreased by $1.4 million, or 40%, from $3.4 million in Q1 2023 to $2.1 million in Q1 2024, primarily due to workforce reductions in the technology and development department[127] Stock and Equity - The company executed a 1-for-20 reverse stock split effective October 16, 2023, reducing the authorized shares of Class A Common Stock from 1 billion to 50 million[29] - The total number of shares of Preferred Stock authorized was reduced from 100 million to 5 million following the reverse stock split[29] - The Company had approximately 141,000 shares of Class A Common Stock available for issuance under the Employee Stock Purchase Plan as of March 31, 2024[73] Legal and Compliance - A class action lawsuit was filed alleging violations related to prior public statements about financial results, seeking unspecified damages[169] - The company is not currently a party to any material litigation that is likely to have a material adverse effect on its business[168] - The management is committed to ongoing remediation activities to ensure the reliability of financial reporting[165] Operational Metrics - Active subscriptions decreased from 15,700 in March 2023 to 13,000 in March 2024, reflecting a decline in user adoption[104] - The average daily rate (ADR) for residences decreased from $2,152 in Q1 2023 to $1,965 in Q1 2024[109] - Occupancy rates improved from 75% in Q1 2023 to 78% in Q1 2024 across all properties[109] Strategic Initiatives - In August 2023, the company entered into a $25 million strategic investment agreement with Capital One, resulting in net proceeds of approximately $23.1 million after debt issuance costs[97][98] - The company launched the Inspirato Rewards loyalty program in August 2023 to incentivize repeat business among members with exclusive discounts and benefits[96]