Financial Data and Key Metrics Changes - The company reported total revenue of $280 million for the full year 2024, a decrease of 15% year-over-year, while Q4 revenue was $63 million, an 11% decrease year-over-year [16][30] - Adjusted EBITDA loss for the full year was $6.5 million, representing a 78% year-over-year improvement, with Q4 showing approximately $2 million of positive EBITDA, a $7 million year-over-year improvement [24][30] - The company generated $6.9 million in net cash from operating activities in Q4, marking a first for Inspirato as a public company [16][25] - Cash position increased by $11 million quarter-over-quarter, ending the year with $35 million [33] Business Line Data and Key Metrics Changes - The company had approximately 1,500 active pass subscriptions and 10,600 active club subscriptions at the end of Q4 [32][44] - The focus has shifted towards club members, with a strategic decision to reduce the emphasis on new pass sales in 2024 [30][31] Market Data and Key Metrics Changes - Total occupancy for the year was 72%, flat compared to 2023, but the mix of occupancy to paid delivered nights improved to 65% in 2024 from 56% in 2023 [32][33] Company Strategy and Development Direction - The company aims to achieve full-year profitability in 2025, with a revenue target between $235 million and $255 million [18][36] - A three-pronged approach for growth includes focusing on operational efficiencies, enhancing luxury service offerings, and revamping technology for scalable digital marketing [20][49] - The company is investing in refreshing home decor and standardizing concierge training to improve member experience [14][36] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the luxury travel market's growth potential and the company's ability to lead in this space [19][20] - The company is focused on attracting and retaining the right members to drive long-term success, emphasizing the importance of delivering a luxury experience [11][15] Other Important Information - The company has made significant progress in aligning expenses with current revenue levels, achieving a 20% reduction in cash operating expenses for the full year [29] - The company expects to continue improving operational efficiencies and driving further cost savings in 2025 [36][66] Q&A Session Summary Question: What investments or changes are needed to increase member count? - Management indicated that the member count has deliberately decreased, focusing on club members, and expects an inflection point in 2-3 quarters as the sales force is doubled [40][41] Question: What are the key focus areas for 2025? - Key focus areas include operational efficiencies, delivering luxury service, and revamping technology for better digital marketing capabilities [46][49][50] Question: Will there be seasonality in revenue and EBITDA in 2025? - Management confirmed that seasonality is expected to remain consistent with prior years, with Q1 and Q3 being significant quarters for revenue and EBITDA [53][55] Question: Update on cost savings from the cost reduction program? - Management confirmed that the goal of $40 million in annualized cost savings has been identified and actioned, with ongoing efforts to drive efficiencies [59][61]
Inspirato rporated(ISPO) - 2024 Q4 - Earnings Call Transcript