Wed, Aug 14, 8:50 PM (153 days ago)
For the quarter ending June 30, 2024, Inspirato Incorporated reported a significant decline in revenue, totaling $67.4 million, down 20% from $84.1 million in the same period last year. This decrease was attributed to a 13% reduction in paid nights delivered and a 2% drop in average daily rates (ADR). Subscription revenue also fell by 30%, reflecting a decline in active subscriptions. The company's gross margin improved to 24% from a negative margin last year, primarily due to a reduction in cost of revenue, which decreased by 21% to $51.2 million. Operating cash flow showed a notable improvement, with a cash usage reduction from $29.3 million to $9.0 million year-over-year. As of June 30, 2024, cash and cash equivalents stood at $18.8 million, down from $36.6 million at year-end 2023. The company is actively pursuing capital initiatives, including a recent investment agreement to raise $10 million and has implemented operational changes, such as a 15% workforce reduction and lease terminations to enhance liquidity. However, uncertainties remain regarding future performance and compliance with Nasdaq listing standards.