Inspirato Q2 Earnings & Revenues Lag Estimates, Down Y/Y

Inspirato Incorporated ISPO reported drab second-quarter 2024 results, with earnings and revenues missing the Zacks Consensus Estimate. Both metrics declined on a year-over-year basis.

Dismal Travel and Subscription revenues hampered ISPO's quarterly performance. However, operational efficiencies led to year-over-year improvements in the cost of revenues, gross margin, Adjusted EBITDA loss and negative free cash flow.

The company completed a comprehensive transaction with One Planet, securing a $10-million investment in exchange for approximately 2.9 million new shares of Inspirato Class A Common Stock and about 2.9 million warrants. This investment significantly improved liquidity and enhanced its ability to meet operational goals. ISPO expects that portfolio optimization and a reduced cost structure will help achieve future profitability goals.

Inside the Headlines

In the quarter under review, ISPO reported an adjusted loss per share of $2.25, wider than the Zacks Consensus Estimate of a loss of $2.05. In the prior-year quarter, it reported adjusted earnings per share of $1.80.

Total revenues of $67.4 million missed the Zacks Consensus Estimate of $69.9 million. The top line declined 19.9% on a year-over-year basis.

Operating Highlights

In the quarter under discussion, the gross margin was $16.2 million against a gross margin loss of $10.7 million in the year-ago quarter.

Adjusted EBITDA loss was $9.1 million compared with $11.6 million reported in the year-ago quarter. Net loss of $15.4 million was down from the year-ago quarter's level of $46.7 million.

Financials

As of Jun 30, 2024, the company had cash and cash equivalents of $18.8 million compared with $36.6 million as of Dec 31, 2023. Lease liabilities, noncurrent, as of Jun 30, 2024, was $185.2 million, down from $196.9 million at 2023-end.

Zacks Rank & Recent Consumer Discretionary Releases

Inspirato currently has a Zacks Rank #3 (Hold).

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The timing of Easter, renovations at major resort properties and the lingering impact of the 2023 Maui wildfires affected the company's performance. As of Jun 30, 2024, Hyatt had a pipeline of executed management or franchise contracts of approximately 670 hotels (or about 130,000 rooms). Management anticipates 2024 system-wide RevPAR to rise 3-4% from the 2023 level, down from the prior estimate of 3-5%.

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During the quarter, the company exhibited strong financial performance and growth, setting a record for MGM China Adjusted Property EBITDAR. Also, it stated the benefits of Las Vegas expansion and strategic partnership with Marriott. MGM's meetings and convention business witnessed improvement, supported by the remodel of Mandalay Bay. Given the strategic initiatives and significant progress, management is optimistic and anticipates the momentum to continue for the remainder of 2024.

JAKKS Pacific, Inc. JAKK reported second-quarter 2024 results, with earnings and revenues missing the Zacks Consensus Estimate. Both the bottom and top lines missed the consensus estimate for the third straight quarter.

Soft sales hindered the company's performance in the Toys/Consumer Products segment due to lower sales in North America, accompanied by a fall in Costumes sales. Furthermore, increased SG&A expenses, risks underlining the Costume business and depleting liquidity were additional headwinds.

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