Inspirato Incorporated

Greetings and welcome to Inspirato's first quarter 2025 earnings conference call. At this time, all participants are in listen-only mode. A question and answer session will follow management's prepared remarks. It is now my pleasure to introduce your host, Bita Melanian, Senior Vice President of Marketing. Bita, you may begin.

Thank you, Operator, and hello, everyone. Welcome to Inspirato's first quarter 2025 earnings conference call. I'm Bita Malanian, Senior Vice President of Marketing at Inspirato. Joining me today are Payam Zamani, our Chairman and Chief Executive Officer, and Michael Arthur, our Chief Financial Officer. Before we begin, please note that today's call is being webcast live and will also be archived on the investor relations section of our website at inspirato.com. You can also find our earnings press release and the supplemental materials currently available there for your reference. As a reminder, some of today's comments are forward-looking statements. These statements are based on assumptions, and actual results could differ materially. For discussion of these risks and uncertainties, please refer to our filings with the SEC, including our most recent annual report on Form 10-K and our subsequent first quarter report on Form 10-Q. In addition, during the call, management 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 Inspirato's Chairman and CEO, Tayam Zamani.

Thank you, Vita, and hello, everyone. Yesterday afternoon, we issued a press release announcing our financial and operational results for the first quarter. I encourage all listeners to review the press release, which has been posted to our investor relations website, as it contains information relevant to today's call. Before I give a recap of the quarter, I would like to briefly introduce Inspirato to those who may be new to our story. Insprava is a premier luxury vacation club and property technology company, offering access to a curated portfolio of high-end homes, hotels, and exclusive experiences around the world. With over 340 luxury homes and many high-end hotel partnerships in over 170 destinations, our mission is to deliver unmatched service, seamless travel planning, and one-of-a-kind luxury travel that creates lasting memories. We serve over 11,000 members in delivering that mission every day. And today, we're doing that while continuing to transform the business by fine-tuning our cost base and investing in a robust digital marketing and technology platform to build a more scalable, durable, and efficient growth model for the future. Now, let's get into the updates. Q1 was a foundational quarter for Inspirato. one that reflects the impact of our ongoing strategic focus and positions us for profitable growth as a leader in luxury travel. This is an exciting moment for Enstrado. In my view, the first quarter marks the most important period for our business since becoming a public company. And while the numbers matter, it is the transformation behind those numbers that will truly set the stage for what's ahead. In Q1, we delivered the strongest sales the strongest adjusted EBITDA performance in our history, which we believe signals that our strategic shift toward operational discipline is working. We've laid the groundwork for sustainable profitability by focusing on what we can control, while also strategically investing in the key areas that will define our future growth. This isn't about short-term wins. It's about building a smarter, more focused, and more powerful Inspirato, one that's ready to scale with efficiency, serve with unmatched quality, and over the years to come, expanding to a much larger opportunity. On our last call, I discussed several key pillars that will provide the foundation for our future business and why I believe they position us to define and lead the future of luxury travel and experiences. As a reminder, these pillars are One, operational efficiency. Two, brand elevation. Three, member experience. And four, a robust technology and digital marketing platform. First, we're focused on driving operational efficiency to strengthen our financial infrastructure and drive operating leverage as we grow. The most immediate proof point has been in our bottom line. Delivering record adjusted EBITDA in Q1 provides a good early indication that the steps we've taken to streamline operations, reduce fixed commitments, and improve cost discipline are working. We've done all that while we have also invested in elevating the quality of our services for our travelers. But we're far from done. We see a clear path to drive gross margin expansion, particularly by optimizing our non-lease cost of revenue expense line items. This is where discipline meets opportunity, and and we're approaching it with a long-term mindset. Every process, every cost center, every touch point is under review to make sure it supports our long-term goals and contributes the value we deliver our travelers. Occupational excellence is not a one-time project. It's a core competency we're building into the DNA of the company. Second, we're evolving Esprado into a truly aspirational luxury brand, one that not only delivers exceptional experiences, but inspires a level of desire, loyalty, and pride. In Q1, we laid the groundwork for a more elevated brand ethos, one rooted in luxury, consistency, and frequency of presence. We're reintroducing ourselves to the world with more dynamic and consistent marketing campaigns that tell the Inspirado story with clarity and confidence. It's not just about being known, it's about being synonymous with luxury travel and experiences, the kind of brand that turns heads, builds trust, and stays top of mind when travelers are ready to explore. Third, we're doubling down on member experience. We're focused on elevating our service and experiences to be more consistent, curated, and unique, all through the lens of providing truly one-of-a-kind luxury experiences. Everything we do starts with our members, how we surprise and delight them, how we earn loyalty, and how we become indispensable to the most important moments. We're working to ensure every interaction feels intentional, elevated, and deeply personal, from pre-trip planning to a dedicated care team who understands each family's unique preferences, and up to the moment that a member walks into one of our homes. We're building on an industry-leading net promoter score of over 70 in 2024, a testament to the trust and satisfaction we've already earned. And we're not stopping there. We've launched new initiatives to standardize service quality across all member touchpoints, including enhanced concierge training and a fresh set of service standards rolling out later this year. We're also curating our property and experiences portfolio with more rigor, ensuring that every home destination offering meets the elevated standards of quality, style, and ambiance, our members expect. At the same time, we're enhancing the unique value proposition of being a member, not just through aspirational travel, but with exclusive perks and benefits that deepen loyalty and reward long-term engagement with our brand. For instance, a recent partnership with Sixth Car Rental Company provides members with more than just premium car rentals. It offers elevated membership status while receiving preferred pricing ensuring seamless luxury from arrival to departure. Additionally, we've renewed strategic partnerships with renowned hotels like Ondot and Fairmont, granting our members exclusive access to select accommodations at these esteemed resorts. While we do not expect these partnerships to have a material impact on revenue or profitability in the near term, these collaborations underscore our commitment to delivering unparalleled service and exclusive benefits that resonate with our members and their discerning tastes. And lastly, we're building a robust technology and digital marketing platform that will unlock massive new potential for Inspirado. We started in Q1 with foundational tech investments, and before the end of the year, we'll begin to roll out what will ultimately become a world-class platform, one that allows us to reach, target, and convert high-value travelers at scale. This is where my background and passion comes into play. Over the course of my career, I have built multiple marketplaces that connect people through trust, value, and technology, all at the intersection of brand building, digital performance-based marketing, and platform design. I've seen firsthand how powerful a well-crafted digital engine can be when it connects supply and demand at scale and is fueled by compelling brand. By combining the strength of our luxury brand with a data-driven digital platform, we're not just going to market more efficiently. We're going to expand our total addressable market reaching qualified audiences that previously hadn't encountered Inspirado. This isn't just a growth tactic. It's a top-line energizer and a profitability driver that positions us to scale intelligently and sustainably for years to come. In closing, Q1 marks the beginning of the next chapter for Inspirado. We're not just improving, we're transforming. The discipline is in place, our vision is clear, and the energy across the team is evident. We're building a platform that is efficient at its core, aspirational in its brand, elevated in its service, and engineered to scale through digital reach and innovation. I want to thank our team for their relentless focus and our members for their trust and loyalty. I believe we're at the start of something extraordinary, and I can't wait to share more progress with you in the quarters ahead. With that, I'll turn it over to Michael to discuss our financial performance and outlook for the remainder of the year.