Financial Data and Key Metrics - Q1 total revenue was 80million,a124.1 million, compared to a loss of 3.1millioninQ12023,markingthefirstprofitablequarterinoverthreeyears[37][47]−Grossmarginexpandedto409 million in Q1, down from over 20millioninQ12023[24]BusinessLinePerformance−Passnightsrepresented30275 million and 305million,adjustedEBITDAbetweenagainof5 million and a loss of 15million,andcashoperatingexpensesbetween115 million and 125million[18]−ThecompanyexpectsstrongerfreecashflowperformanceinQ2,withlowercashburndespitelowerrevenueandEBITDAcomparedtoQ1[24]−Managementhighlightedtheimportanceofseasonalityinrevenue,adjustedEBITDA,andfreecashflow,withQ1beingastrongquarterduetotraveldelivery[48]−Thecompanyisexploringfinancingoptionstobolsterliquidity,with33 million in cash at the end of Q1, down from 42millionatyear−end2023[49]OtherImportantInformation−Thecompanyachieved50 million in OpEx efficiencies over the past several quarters, which will help position it for profitable growth in 2024 and beyond [31] - Inspirato-only experiences, such as safaris and golf excursions, continue to be popular, with nearly all 2025 trips selling out within days [44] - The company is focused on improving member engagement and nights per member, with 50% of members already having some status in the rewards program launched last fall [70] Q&A Session Summary Question: What is the upper bound on residence occupancy rates? - Management believes there is room for a few more percentage points of improvement, balancing availability for members with optimization of occupancy rates [26][51] Question: How has the introduction of Flex Trips altered the economics of Pass? - Flex Trips have improved the profitability of Pass by catering to last-minute travelers and reducing excess inventory, with 25% of Pass trips booked being Flex Trips [29][73] Question: When can we expect subscriber churn to plateau and growth to return? - Management expects churn to stabilize as the company focuses on operational efficiency and long-term member retention, with growth expected to return in 2025 [31][76] Question: What are the top priorities for the rest of the year? - Priorities include improving occupancy levels, driving member engagement, and achieving breakeven for the year, while exploring financing options to strengthen the balance sheet [66][85] Question: What measures are being taken to drive better bookings? - Measures include lowering ADRs, leveraging the semi-annual sale, and enhancing the rewards program to encourage more frequent travel [88][89]