Inspirato Financial Projections and Business Highlights slide image

Inspirato Financial Projections and Business Highlights

INSPIRATO 1. 2. 3. Risk Factors Summary The COVID-19 pandemic and the impact of actions to mitigate the COVID-19 pandemic have materially adversely impacted and will continue to materially adversely impact Inspirato's business, results of operations, and financial condition. Inspirato has a history of net losses and may not be able to achieve or sustain profitability. If Inspirato fails to retain existing subscribers or add new subscribers, its business, results of operations, and financial condition would be materially adversely affected. 4. Inspirato's revenue growth rate has slowed, and it may not increase at the rates Inspirato anticipates in the future or at all. 5. The hospitality market is highly competitive, and Inspirato may be unable to compete successfully with its current or future competitors. 6. Inspirato may be unable to effectively manage its growth. 7. Inspirato's subscriber support function is critical to the success of Inspirato's business, and any failure to provide high-quality service could affect its ability to retain its existing subscribers and attract new subscribers. 8. Inspirato may not be able to obtain sufficient new and recurring supply of luxury accommodations and experiences or to renew its existing supply of luxury accommodations and experiences. 9. 10. 11. 12. 12 13. 14. 15. Inspirato has limited experience with its pricing models, particularly for Inspirato Pass, and may not accurately predict the long-term rate of subscriber adoption or renewal or the impact these will have on its revenue or results of operations. Inspirato depends on its key personnel and other highly skilled personnel, and if Inspirato fails to attract, retain, motivate or integrate its personnel, its business, financial condition and results of operations could be adversely affected. Inspirato's business depends on its reputation and the strength of its brand, and any deterioration could adversely impact its business, financial condition, or results of operations. As a result of recognizing revenue in accordance with GAAP, Inspirato's financial statements may not immediately reflect changes in customer bookings, cancellations and other operating activities. The failure to successfully execute and integrate acquisitions could materially adversely affect Inspirato's business, results of operations, and financial condition. Inspirato relies on consumer discretionary spending and any decline or disruption in the travel or hospitality industries or economic downturn would materially adversely affect its business, results of operations, and financial condition. The subscription travel market and the market for Inspirato's subscription offerings is still relatively new, and if it does not continue to grow, grows more slowly than expected or fails to grow as large as expected, Inspirato's business, financial condition and results of operations could be adversely affected. If Inspirato is unable to manage the risks presented by its international business model, its business, results of operations, and financial condition would be materially adversely affected. 16. 17. 18. 19. Inspirato may experience significant fluctuations in its results of operations, which make it difficult to forecast its future results. The hospitality industry is subject to seasonal and cyclical volatility, which may contribute to fluctuations in Inspirato's results of operations and financial condition. Inspirato's management has identified material weaknesses in their internal control over financial reporting and may identify additional material weaknesses in the future or otherwise fail to maintain an effective system of internal controls, which may result in material misstatements of its financial statements or cause it to fail to meet its periodic reporting obligations. 20. Inspirato faces risks related to Inspirato's intellectual property. 21. Inspirato's processing, storage, use and disclosure of personal data exposes it to risks of internal or external security breaches and could give rise to liabilities and/or damage to reputation. 22. Unfavorable changes in government regulation or taxation of the evolving hospitality, internet and e-commerce industries could harm Inspirato's results. CONFIDENTIAL 51
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