Financial Data and Key Metrics Changes - Q1 2025 recorded the strongest adjusted EBITDA performance in the company's history at $5.6 million, indicating successful operational discipline [6][17] - Total revenue for Q1 was approximately $66 million, down 18% year over year, with subscription revenue at $21 million, down 26% [18] - Travel revenue decreased to $42 million, down 16%, attributed to a lower member count and timing impacts related to curated experiences [20] Business Line Data and Key Metrics Changes - The company had over 11,000 members at the end of Q1, with approximately 10,200 active club members and 1,300 active Pass members [18] - Pass subscriptions now represent about 10% to 15% of the total membership base, reflecting a strategic shift towards club growth and profitability [19] Market Data and Key Metrics Changes - The company maintained a strong occupancy level of 74% in controlled residence accommodations, with an 8% increase in Average Daily Rate (ADR) to over $2,100 [20] Company Strategy and Development Direction - The company is focused on operational efficiency, brand elevation, member experience, and building a robust technology and digital marketing platform [8][10][14] - The strategic decisions made over the past year are translating to stronger financial results, with a focus on balancing investment for future growth with operational efficiencies [22] Management's Comments on Operating Environment and Future Outlook - Management expects continued revenue headwinds throughout the year but is optimistic about future enhancements to the Pass product [19] - The company is reiterating its full-year 2025 guidance, expecting adjusted EBITDA between breakeven and $5 million, and revenue between $235 million and $255 million [21] Other Important Information - The company is building a digital marketing platform to connect with luxury travelers and expand its total addressable market [15] - A new Chief Transformation Officer has been appointed to focus on operational efficiency [36] Q&A Session Summary Question: Update on marketing efforts to drive and retain members - The company is growing its sales force to reach a curated target audience and is building a robust technology platform to scale access to luxury travelers [26] Question: When and where do you see club memberships bottoming out? - Management expects continued headwinds on member count through the first half of the year, with stabilization anticipated in the second half and into 2026 [29][30] Question: Is there much left to cut in expenses? - The company is now focused on fine-tuning expenses and improving service quality, with significant opportunities for operational efficiency still ahead [34][36] Question: Major milestones targeted for 2025 - Key goals include achieving sustained profitability, establishing operational efficiency as a core competency, and launching a digital marketing platform [38]