Inspirato Incorporated

Good day, and thank you for standing by. Welcome to the InspirAuto fourth quarter 2024 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there'll be a question and answer session. To ask a question during the session, you'll need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To answer your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to turn the conference over to your speaker for today, Kyle Sork, Investor Relations. Please go ahead.

Good morning. On today's call, we have Chairman and CEO Payam Zamani, CFO Michael Arthur, and other members of management, including Chief Accounting Officer Jessica Chang and Chief Experience Officer Ashley Collins. Yesterday afternoon, we issued our press release announcing our fourth quarter and full year 2024 results, as well as our 2025 guidance. As a reminder, some of today's comments are forward-looking statements. These statements are based on assumptions, and actual results could differ materially. In addition, during the call, we will discuss non-GAAP measures, which are useful in evaluating the company's operating performance. These measures should not be considered in isolation or as a substitute for our financial results prepared in accordance with GAAP. Reconciliations of these measures to the most directly comparable GAAP measures are included in our earnings release. With that, I'd like to turn the call over to our chairman and CEO, Payam Zamani.

Thank you, Colin, and good morning, everyone. I'm really excited for today's call for a number of reasons. First, we get to share with you our results for Q4 and how our efforts over the past six months have been strengthening our foundation, evidenced by what may be the strongest Q4 results in its product history as a public company. And second, our refined long-term vision for the company, including key goals for 2025 that will set us up for lasting success. In a moment, you will hear about how we delivered profitability and positive free cash flow in Q4, along with our plans to achieve full-year profitability in 2025. These are important milestones that indicate our efforts of producing the desired results. But we're just getting started. We are at the beginning of a multi-year journey. And while we have made great progress, the real opportunity lies ahead, driving sustainable, profitable growth and elevating Inspirado into an even more sought-after brand. The great news is that we are in a good position to make this happen. We're operating in a large market with incredible potential, backed by a strong, well-recognized brand, a portfolio of world-class homes, and a loyal and engaged member base. We serve over 11,000 members, but the opportunity is far greater. By our estimate, there are millions of households around the globe that fit our potential member profile, including a substantial and untapped domestic market. And our mission is clear. Find them, engage them, and show them the undeniable value of Inspirado. It is not just about short-term growth. It is about attracting and retaining the right members who will drive long-term success. To make this happen, we're making bold investments. We're elevating our brand to be synonymous with true luxury. We're enhancing our platform to create a seamless, intelligent, and highly personalized experience. We've strengthened our leadership team with recent hires of an SVP marketing and chief technology officer. We have launched a sophisticated rebrand, modernizing our look and feel, and we are revamping our website and user interface to be more intuitive and predictive based on our members' travel habits. At the same time, we are focused on improving our operating efficiencies. We now have the right people in the right seats, and we're investing our time and dollars into initiatives that will have the biggest impact. As Michael will discuss shortly, this focus is expected to drive further improvements in gross margin, cost structure, and profitability. Of course, while many of our homes are iconic and much of our service is world-class, we know there's always room to improve. There's an opportunity we embrace. In 2025, we're investing in refreshing our homes in more than half of our portfolio and standardizing concierge training to ensure every member enjoys the same high-quality experience every time they travel with us. And that brings me to one of our greatest strengths and why I'm so optimistic about our future, and that's our members. At the end of the day, everything we do is about exceeding their expectations. When we consistently deliver, We are not only reinforcing their decision to stay within Sprado, but also deepen their connection to the incredible community we're building. That is what excites me the most about the future of this business. On that note, I want to highlight some of the 2024 financial results, which are the first signs that our strategy is working and will continue to play out over the next 12 to 24 months. We finished the year with total revenue of $280 million and adjusted EBITDA loss of $6.5 million, both within our original guidance ranges. While revenue was down nearly $50 million year over year, EBITDA improved by $20 million. And we ended 2024 with a profitable fourth quarter. Even more exciting, we generated $6.9 million in net cash from operating activities in Q4, a first for Xproda as a public company. Michael will dive deeper into these numbers in a moment. Looking ahead to 2025, our focus remains on achieving full-year profitability in a way that strengthens our ability to serve our members. We expect to be profitable in 2025 and deliver between $235 million and $255 million in revenue, which is consistent with our fourth quarter annualized revenue. But beyond the numbers, here's how I see the future. The luxury travel and experiences market is vast, and it is growing, and it's ripe for true leadership. No company has firmly established itself as a brand that defines this category, and there's no reason why that shouldn't be its product. We have the foundation, the vision, and the expertise to lead the way, setting the standard for what luxury hospitality should be, and the ability to reach a target audience as effectively as possible. That's what brought me to Esprado, and that's what drives me every day as we build something truly extraordinary. In my initial six months at Esprado, we did the necessary work to course correct. Now the multi-year effort to build a leading luxury travel and experiences company begins. To achieve our goals, we have a three-pronged approach. A, we will tirelessly focus on operational efficiencies. This will be a never-ending endeavor. we will double our focus on the luxury aspect of our services and experiences. C, we will turn Infrato into a luxury travel and experiences company built on scalable technology and a highly effective and world-class digital marketing platform, vastly reshaping our reach. This is what I know well. This is what I've done for decades as one of the pioneers in performance-based marketing on the internet. We're excited about the road ahead and believe we have the right talent and the right strategy to deliver what we have set out to achieve. I will be sharing more with you as we make progress in 2025. Before I turn it over to Michael, I want to thank our team for their incredible dedication and hard work, and our members for their continued trust and support. I'm thrilled about what is ahead, and I look forward to connecting again soon to share our first quarter results. Thank you.