Financial Data and Key Metrics Changes - Q1 2025 recorded adjusted EBITDA of $5.6 million, marking the strongest performance in the company's history, indicating successful operational discipline [19][20] - Total revenue for Q1 was approximately $66 million, down 18% year over year, with subscription revenue at $21 million, down 26% [20][21] - Travel revenue decreased to $42 million, down 16%, attributed to a lower member count and timing impacts related to curated experiences [22] 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, reflecting a strategic shift towards club growth [20][21] - Cost of revenue declined by $8 million year over year due to ongoing portfolio optimization efforts [20] - Operating expenses were reduced by approximately $8 million, benefiting from streamlined operations [20] Market Data and Key Metrics Changes - The company maintained a strong occupancy level of 74% in controlled residence accommodations, with an average daily rate (ADR) increase of 8% to over $2,100 [22] - The strategic partnerships with renowned hotels like Hondas and Fairmont were renewed, providing exclusive access to accommodations for members [15] Company Strategy and Development Direction - The company is focused on four key pillars: operational efficiency, brand elevation, member experience, and a robust technology and digital marketing platform [8][10] - A significant emphasis is placed on building a digital marketing platform to connect with luxury travelers and expand the total addressable market [17][44] - The company aims to achieve sustained profitability and operational efficiency as core competencies [42][43] Management's Comments on Operating Environment and Future Outlook - Management acknowledged expected near-term revenue headwinds but expressed confidence in the strategic decisions made over the past year translating to stronger financial results [25] - The outlook for 2025 includes adjusted EBITDA guidance between breakeven and $5 million, with total revenue expected between $235 million and $255 million [24] Other Important Information - Q1 free cash flow was negative $8 million, including one-time cash outflows related to underperforming lease terminations [22] - The company is committed to enhancing service quality and member experience through new initiatives and partnerships [14][15] 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, relying on direct connections rather than traditional marketing [29][30] Question: When and where do club memberships see stabilization? - Management expects continued headwinds on member count through the first half of the year, with stabilization anticipated in the second half of 2025 and into 2026 [32][33] Question: Status of expense cutting efforts - The company is now focused on fine-tuning expenses and improving service quality, with significant opportunities for operational efficiency still ahead [37][39] 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 [42][44]