Inspirato Financial Projections and Business Highlights slide image

Inspirato Financial Projections and Business Highlights

INSPIRATO Financial projections (cont.) Optimizing for Growth ($ in thousands) 2021E 2022E 2023E 2024E 2025E Optimized Margin³ 2025E Stabilized Projection³ Maturity 1 Subscription Revenue 95,808 161,619 226,128 303,126 381,493 366,612 562,500 Usage Revenue 126,565 204,646 280,930 381,535 503,259 466,332 687,500 Total Revenue 222,373 366,265 507,058 684,661 884,752 1 822,945 1 1,250,000 Revenue Growth 35% 65% 38% 35% 29% 20% 10% Cost of Revenue 153,766 256,313 355,216 477,385 605,441 510,271 737,500 2 Gross Profit 68,607 109,953 151,842 207,277 279,311 2 312,673 2 512,500 Gross Margin 31% 30% 30% 30% 32% 38% 41% Sales & Marketing 36,069 52,983 64,669 74,508 83,483 75,135 110,000 % of Revenue 16% 14% 13% 11% 9% 9% 9% Technology & Development 16,757 19,617 19,925 22,603 25,679 25,679 30,000 % of Revenue 8% 5% 4% 3% 3% 3% 2% 3 General & Administrative 30,858 46,888 53,308 59,806 67,312 57,215 % of Revenue 14% 13% 11% 9% 8% 80,000 7% 6% Total Operating Expense 83,683 119,489 137,902 156,917 176,474 158,029 % of Revenue 38% 33% 27% 23% 20% 19% 220,000 18% Adjusted EBITDA¹ Adjusted EBITDA Margin² (15,077) (7%) (9,536) (3%) 13,940 50,359 102,837 3 154,645 3 3% 7% 12% 19% 292,500 23% Source: Company financial model as of 05/07/2021. Please refer to "Risk Factors Summary" in Appendix Notes: 1. 2. 3. Moderating sales growth in the long term is a lever to reduce growth-oriented portfolio acquisition and operating spend Revenue Growth 29% 10% Projected Gross Margin enhancement driven by optimizing composition of residence portfolio, economies of scale, and in-destination critical mass Gross Margin 32% ⇒ 41% Adjusted EBITDA margin of ~23% as a result of Gross Margin expansion and reduction in Operating Expense, leveraging investments in platform across substantial Active Subscriber and ARR base Adj. EBITDA Margin 12% → 23% Adjusted EBITDA is a non-GAAP financial measure that we define as net income (loss) before interest expense, interest income, taxes, depreciation and amortization, equity-based compensation expense, warrant fair value gains and losses, losses on sale of assets, pandemic related severance costs, public company readiness expenses, and gain on forgiveness of debt. Adjusted EBITDA Margin is defined as Adjusted EBITDA divided by revenue The information presented under "Optimizing for Margin" and "Stabilized Projection Maturity" are presented for illustrative purposes only. Inspirato may not choose to prioritize or optimize for margin during the projected years to target achievement of such projections CONFIDENTIAL 41
View entire presentation