DENVER, March 5, 2024 (GLOBE NEWSWIRE) – Inspirato Incorporated (“Inspirato” or the “Company”) (NASDAQ: ISPO), the innovative luxury travel club, today announced its 2023 fourth quarter and full-year results and provided 2024 guidance aimed at improving its path to profitability.
Except as otherwise stated, all financial results discussed below are presented in accordance with generally accepted accounting principles in the United States of America, or GAAP. As supplemental information, we have provided certain additional non-GAAP financial measures in this press release’s supplemental tables, and such supplemental tables include a reconciliation of these non-GAAP measures to our GAAP results. The sum of individual metrics may not always equal total amounts indicated due to rounding.
2023 Fourth Quarter and Full-Year Highlights:
- Full-year total revenue was within the Company’s previously provided guidance range of $320 to $340 million. Total revenue of $70.7 million in the fourth quarter and $329.1 million for the full year, representing year-over-year decreases of 18% and 5%, respectively.
- Total Nights Delivered per member increased 2% in 2023 compared to 2022. Total Nights Delivered of 40,600 in the fourth quarter and 185,000 for the full-year 2023, representing year-over-year decreases of 14% and 1%, respectively.
- Residence occupancy in the fourth quarter and full year of 2023 of 65% and 72%, respectively, compared to 73% and 81% in the comparable 2022 periods. Residence average daily rates (“ADR”) were approximately $1,700 and $1,800 in the fourth quarter and full-year 2023 periods, respectively, compared to approximately $1,900 and $1,800 in the comparable 2022 periods.
- Total Active Subscriptions of approximately 13,800 as of December 31, 2023, were comprised of approximately 11,300 Inspirato Club subscriptions and approximately 2,500 Inspirato Pass subscriptions. More than 75% of new sales made in 2023 were for contract terms of two years or more.
- Launched Inspirato Rewards, the Company’s first ever loyalty program, in August 2023. As of December 31, 2023, approximately 47% of Inspirato members had earned Rewards status based on 2023 annual spend of at least $20,000.
- Inspirato for Good (“IFG”) and Inspirato for Business (“IFB”) had fourth quarter contracted sales of $2.1 million and $2.8 million, respectively. For the full year 2023, IFG and IFB had contracted sales of $9.6 million and $14.5 million, respectively. Additionally, IFG sold more than 3,000 travel and membership packages in its first full year of operations, which are not included in the Company’s subscription count.
- Net loss of $15.9 million in the fourth quarter of 2023, compared to a net loss of $14.6 million in the fourth quarter of 2022. Full-year 2023 net loss was $93.9 million compared to a net loss of approximately $51.1 million in 2022. The fourth quarter and full year 2023 net loss included asset impairments predominantly related to properties in one geographic location of $6.5 million and $40.8 million, respectively.
- Full-year 2023 Adjusted EBITDA loss, a non-GAAP financial measure defined below, was favorable compared to the Company’s previously provided guidance range of an Adjusted EBITDA loss between $30 million and $45 million. Adjusted EBITDA loss of $5.4 million in the fourth quarter of 2023 and $29.3 million for the full-year 2023 compared to Adjusted EBITDA losses of $9.5 million and $32.1 million in the comparable 2022 periods.
Management Commentary
“I’m excited about our positioning heading into 2024,” commented Chief Executive Officer, Eric Grosse. “While 2023 was largely characterized by our portfolio optimization efforts and cost control initiatives, I expect 2024 to be a year in which Inspirato returns to its roots by simplifying the business with a renewed focus on our value proposition, ultimately resulting in a reinvigorated member base. Our core remains strong and our value-proposition to members continues to improve, as evidenced by the early success of Inspirato Rewards and the recent modifications to Inspirato Pass.”
Chief Financial Officer, Robert Kaiden, added, “We have delivered results in-line or above our internal expectations for the past two quarters and look to continue building a track record of execution in 2024. Our top priority in 2024 is to reach breakeven, on an Adjusted EBITDA basis, by executing a plan that is grounded on achievable goals. Should we succeed, we not only expect to deliver periods of EBITDA profitability in 2024, but will have set the stage for profitable growth in the future with solid financial strength and adequate liquidity.”