Q2 2022 Inspirato Inc Earnings Call
Good day, ladies and gentlemen. Thank you for standing by.
And welcome to insert a second quarter 2020 tournings conference call. At this time, all participants on the list are in only mode. After this biggest presentation, there'll be a question and answer session. So as a question during this session, you will need to press star 1-1. Please be advised at the day conference may be recorded. Please be advised at the day conference may be recorded.
I would now like to hand the conference over to your speaker host today, Kyle Sorkoff, in Better Relations. Please go ahead. Kyle Sorkoff,
Thank you and good morning. On today's call, we have co-founder and CEO , Ron Hamler, and CFO Web Neighbor. Ron Hamler, and CFO Web Neighbor.
Earlier this morning, we issued our press release announcing our second quarter results and posted an updated investor presentation.
both of which are available on the investor relations page of our website at investor.inspirado.com.
Before we begin our form over Mars.
We remind everyone that some of today's comments are forward looking statements, including but not limited to our expectations of future operating results and financial position.
guidance and growth prospects.
our anticipated future expenses and investments.
business strategy and plans and market growth, market position, and potential market opportunities.
These statements are based on assumption and we assume no obligation to update them.
Actual results could differ materially.
We refer you to our FCC filings for a more detailed discussion of additional risks.
In addition, during the call, management will discuss non- GAAP measures , which are useful in evaluating the company's operating F Model 1,
These measures should not be considered in isolation or as a substitute for our financial resolve prepared in accordance with GAP.
Reconciliation of these measures to the most directly comparable gas measures are included in our earnings release. With that, I'll turn the call over to our CEO , Brent Handler.
Thank you Kyle and good morning everyone.
Before we begin, I want to thank our tremendous team at Inspirato. This period of rapid growth is incredibly exciting but can present many changes and challenges.
Your hard work is not going unnoticed and we are extremely grateful.
As we highlighted in our press release this morning, we're incredibly pleased with our second quarter results, which were strong from a top-line revenue standpoint and once again established several new company records.
While Imferado was not immune to macro headwind, we believe we are extremely well positioned to execute on both our short and long term plans.
As such, we are reiterating our full year revenue guidance of $350 to $360 million and our full year adjusted EBITDA loss guidance of $15 to $25 million.
The growth we are seeing in our total subscription count, coupled with our resilient model and high net worth customer base, lend confidence to our expectation of positive adjusted EBITDA for the full year 2023.
2023 would then match 2019 and 2020, as years in which in Toronto was both adjusted EBADOT and cashflow positives. Key performance markers that differentiate us from many of our peers.
In terms of the second quarter, we generated $84 million in total revenue, a 60% increase year over year. Our subscription revenue of $36 million for the quarter represents 50% growth from the same period in 2021, primarily driven by the continued adoption of our Inspirato Path subscription offering.
Pass subscriptions are up 75% year over year to approximately 3600. Meanwhile, total active subscriptions at quarter end came in at nearly 15,700, which is in line with our internal plan.
It is important to note that, generally speaking, we have a sticky subscriber base of wealthy travel enthusiasts that provide predictable revenue streams from both a subscription and travel standpoint.
Our subscribers enjoy the benefits of the high quality, high touch travel experience we deliver, and it shows in our industry leading NPS scores. A satisfaction metric we monitor closely as it engenders tremendous customer loyalty.
Approximately 6,000 subscribers have been with us for five years or more, and quite a few of those have a tenure with us of 10 years or more.
As we described on our last call, seasonality plays a large role in our business and we typically see that in second quarter results from both a revenue and cost standpoint, as much of the quarter is considered shoulder season for many of our core destinations.
Despite this, we set new company records for Total Nights Delivered and Total Nights Booked and a quarter end record for our 12 months forward booking backlog.
We'll provide more detail on each of these in a minute.
While we think the peak of the pandemic revenge travel may be behind us, we believe our customer segment in particular is living a new normal, where work and school calendars enable more flexible lifestyles and more frequent travel than before the pandemic. and more frequent travel than before the pandemic.
Our incredible residences, hotel, sleep and penthouses, and one of our kind travel experiences leave us well positioned to continue to serve this new travel demand among our subscriber base. This new travel demand among our subscriber base.
which brings me to supply growth.
We discussed last quarter that we added 37 residences in the Hamptons, a prime example of a strategic but hold in a Tier One market. We added and met new 49 control accommodations this quarter and exited the quarter with more than 700 and increase of 67% compared to a year ago. And increase of 67% compared to a year ago.
We will continue to pursue expansions in sought out death to destinations that offer value and utility to our subscriber base. Thank you. Thank you. Thank you. Thank you. Thank you.
Web will touch on this more, but it's extremely important to note that onboarding new properties can naturally lead to some short-term margin compression related to upfront home investments, initial staffing needs, and integration of the property onto our platform. found we're trying to increase an Pathc? costume for the life ofxy pains and vulnerability restrictions in that network. Source changes are subject into the plaque. ? will offer you the sake of certifications and immigration of the property onto our platform. you
That said, the relative impact of adding new control to accommodations is diluted over time as the portfolio continues to grow. As the portfolio continues to grow.
Finally, I want to touch on InSparada Select, which was introduced late in the second quarter and is our most flexible subscription offering to date, with a constantly updating list of hundreds of thousands of Select trips that are completely shareable. While this didn't impact our quarter given the timing of the launch, we've used Select and Select options.
as a way to significantly increase our TAM through two initiatives we are working on, both of which have been soft launched.
We've previously discussed the reverse inquiry for rewards travel from a global Fortune 500 software company in particular, and are now building a product and business unit around the massive corporate opportunity.
Inspirata for Business is a flexible platform that caters to corporate incentive programs.
Equally as exciting, Inspirata for Good is designed as a turnkey solution that amplifies non-process fundraising efforts.
Look for updates on each of these growth initiatives in the coming quarters.
In summary, our team is incredibly focused on executing our plan.
While there are obvious macroeconomic headwinds to navigate, we are confident that our resilient and predictable business model, combined with the exciting untapped opportunities around expansion, position us well to grow sensibly and profitably in the near and medium term. The
With that, I'll turn the call over to Web to discuss our results in more detail.
Thanks, Brent.
As we covered in our press release this morning, the second quarter was again record setting in multiple key aspects of our business, namely revenue, active subscriptions, total nights delivered, total nights booked, and controlled accommodations.
Total revenue for the quarter of $84 million was comprised of $36 million of subscription revenue and $48 million of travel revenue, representing an increase of 60% compared to the second quarter of 2021.
Total revenue is the highest level of any single quarter in the company's history, which is all the more impressive given the natural of the second quarter. Now to the third quarter.
With continued execution of our business plan, we are in line to meet our full year revenue guidance of $350 to $360 million.
Brent already touched on the high level attributes of our subscription growth, but I wanted to spend a moment on the components of our travel revenue as it plays a direct role in our gross margin, which came in at 24 million or 28% of revenue for the quarter compared to 17 million or 32% a year ago.
The decrease in margin compared to the first quarter of this year is to be expected as the second quarter is typically our lowest period for many of the seasonality reasons that we have outlined earlier.
Another factor is just very mechanical due to the growth of a resident's portfolio.
onboarding, out sitting, staffing, and building booking calendars around new properties does impact margins to some degree. So during periods of hypergrose, like we experienced in Q2, those new properties will naturally bring down overall gross margins.
Two of the broad leading travel indicators we measure.
Total Night's Book, and Forward Bookings.
are pointing in the right direction and indicative of healthy demand, which gives us confidence in our guidance and outlook. Thank you.
As we covered on the last call, we're not yet in the margin optimizing stage of the business and are instead focused on providing incredible value to our growing subscriber base. Thank you. Thank you. Thank you.
A value proposition and customer satisfaction are key to our measured growth strategy. A value proposition and customer satisfaction are key
From an operating expense standpoint, past several quarters have offered opportunities to invest in categories such as sales and marketing and operations.
If have positioned us for strong quarterly results.
Moving forward, we have an opportunity to continue to leverage our past investments and use these as levers to help dial in our timeline to achieve profitability.
in the second quarter.
We have net loss of 7 million and in the justice EBITDA loss of 14 million compared to losses of 600,000 and 8 million in second quarter of 2021 respectively.
Investments in key categories I just mentioned, such as sales and marketing and operations, being partially offset by the increased gross margin were the primary drivers of the differences between periods.
Shifting to the balance sheet.
We exited the quarter with approximately 125 million of cash on hand and net liquidity of approximately 110 million.
We feel that this is an appropriate level of liquidity to maintain as it offers tremendous flexibility to be opportunistic from a supply growth standpoint and is more than enough to cover our working capital needs for the first able future.
With that, I'll turn the call over to the moderator for Q&A.
Thank you, ladies and gentlemen. If you'd like to ask a question at this time, you will need to press star 11. Please send by. We will be compiled again, Air Waster.
If you would like to ask a question at this time, you will need to press star 1 1. Please stand by while we compile the Q&A roster.
13
Now, first question coming from Delana of Jed Kelly from Oppenheimer. Your line is open. Can you seem to like, give or Renew, individual examples of this online data source?
Hey guys, great, great for taking my questions. Um, just, can we go back to the supply ramp, obviously. Um, just, just, can we go back to the supply ramp, obviously.
you added a lot of properties to this quarter. Could you kind of give us an outlook for the back after the year, how many residents you're planning to?
to offer. And then I guess my second question would be, as you kind of expand your, your, your, um, property counter diversify, would you expect your quarterly revenue to sort of follow like a more,
like the OTAs or something that's kind of got, you know, their least amount of revenue in the first quarter. You know, their second, you know, their second least is in the second quarter actually ramped sequentially. So can you talk about that as well? Thank you.
the
Sure, good morning, Jett. This is Web. Great questions on supplies, because we've discussed in previous sessions, we've been really focused on taking advantage of the demand opportunity and filling it not only with more supply, but diverse supply across our acquisition channels and also targeted and strategic supply in certain locations that have been sought after a long period of time. We've been working for a long period of time. We've been working for a long period of time. We've been working for a long period of time.
Last quarter we talked about our residences in the Hamptons, which is a perfect example of that. And we've grown a lot, as you know, the second quarter, I think the net adds will be 49 total control accommodations. That number over time, while we haven't put out projections, it will bounce around a little bit. Some of the larger fields like the Hamptons, as an example, was 37 residences in one shot. Those will cloud that number to fluctuate, I think.
that take away I would have in terms of what we might do in the back half of the year is, we continue to take advantage of market opportunities as everyone has seen the interest rate environment and so our asset values actually create a huge opportunity for us we've had a number of owners and investors. And for us, we've had a number of owners and investors. And for us, we've had a number of owners and investors.
that will on the back burner that have come back to us in light of their alternatives. In light of their alternatives.
options no longer being as attractive. But the headline I'd like to leave you with is will continue to be strategic and surgical in terms of adding more supply in a way that aligns with the demand for customer base, both geographically and in terms of product type. Both geographically and in terms of product type.
The other question about will the continued additions of supply impact what we see in terms of seasonal travel demand and kind of in sort of the quarterly travel revenues. Wouldn't force me in the near future at least that we get to more of the OTA model you you highlighted the first quarter in a down quarter. The reality for us and the complex of our portfolio is the concentration of iconic world class ski locations and.
great sort of beach and more sunny weather locations. That's just naturally suits itself combined with school calendars to a really big first quarter. First quarter and the third quarter for us have been our largest travel quarters. I think historic is going back to the inception of the company. That's largely a function of those two dynamics I described, the geography and the impact of school calendars.
Got it and that been as a follow up.
Can you provide how we should be thinking of back half gross gross margins that's implied in your EBITDA guidance? Thanks.
Sure.
We noted, and as Brent and I both did in our outset here in the script, that our second quarter margins, number one, are naturally seasonally down, given the other side of the travel demands dynamic I just described in terms of second quarter demand. The other part of it is dramatic growth, that impacts margins. I would forecast that in the coming couple of quarters, our margins will accelerate and be enhanced.
fairly meaningfully. I wouldn't forecast where we're in the second quarter going forward based on number one, seasonality and number two, adding properties, but adding to a larger market base has less of a dilutive impact as we go forward.
And you, when you say accelerating, expand that's off the two Q base, that's on a sequential basis.
That's correct.
All right, thank you.
More.
Thank you. Our next question coming from the line up, Tom Champion with Piper Sandler, you're on us open.
Great. Good morning, guys. Some of your peers in travel talk to disruptions from flight cancellations in June , and maybe seeing a slower start to July relative to the end of the month. But just curious if you could talk a little bit about recent trends and what you're seeing. And.
you know that the uh... adr's work very strong in the second quarter uh... just just curious as you talk about
you know, the economy and the consumer. I'm curious if you're seeing any pushback, you know, on ADRs at this point. Thank you.
Thanks Tom, this is Brent. Great question. You know, it's interesting in the post pandemic, how quickly...
Things are shifting and I think we're all trying to get ourselves, you know, situated here for what the new normal is. But I would, you know.
I would think back to Q1 of this year, where we could not add properties fast enough. Availability was extremely tight.
And it seems like that was really the case across the landscape. And by the time we got to Q2 and into looking into Q3, I would say we're starting to understand, at least we believe we're understanding what the new normal is. And it's not the revenge travel will go anywhere at any cost and it just has to be a residence. And we need to do that.
predictably over the last couple of years, and we saw for the first time some of our destinations that would always still up far in advance and have sort of perfect consistency like a Kia, what's out Carolina available on shorter notice. And there's some good and bad to that. Naturally, it's better for us as a club to have some availability. Let's make sure we're using our terms.
correctly availability is a forward looking metric and occupancy is a backward looking metric. And for in Toronto, we have to have good availability but also high occupancy so that we can provide profitability. So some of what we're seeing happen this summer and into the fall is actually helpful for a subscription business to be able to have some of that outlet valve.
But what I think is happening is we're getting back into a new normal and I think the new normal is going to be better than 2019 in terms of overall demand, but definitely not the phonetic pace that we saw in 21, which was unsustainable really for everybody. You specifically brought up airlines. Part of the airline issue is canceled flights. Part of the airline issue is poor service.
and part of the airline issue is lack of availability. So the airlines, the fees that they, oh, I'm sorry, and the fees, the revenue management and the kind of priced out gene fees that we could speak. So that's been a challenge for sure, but I think they're gonna hit a new normal as well for leisure travel, and I think everything is gonna kind of settle out here into Q3, better than 2019, but not at the pace of 2000.
growth margins going forward. So you talked about some seasonal factors that pressure growth margins in addition to supply growth. But as you continue to have strong supply growth, how should we think about how it would impact growth margins going forward? And then the offset of growth margin expansion despite supply growth. Thank you.
Sure, thanks, this is where I'll take that. It's a great question. On the growth margin, let me back up and say, there's really three factors that are among the primary drivers. One is seasonality as we fit on. The second is with respect to onboarding new properties. And really the significant volume of that relative to the stabilized base, I'll hit on that in a moment, which is the throttling question.
The other one I want to get into some gap accounting and some of the legacy nuances just as a reminder for everyone we talked about this in some previous forums. Remember that our products we continue to be dynamic and changing over time. You saw that with INS Broad us to select and other iterations we've had it pass since the outset. The reason I highlight that is the legacy products before 2019 what we call legacy club in our discosers.
Those came with a significant initiation fee. The impact of that initiation fee is still actually recognized on the income statement as those revenues are advertised over an estimated five-year life.
As that burns off, because we have not offered and sold those products for three years now, that actually creates a suppression of revenue growth and of gross margin because of the continued recognition of those, that income being amortized and the reduction in the amortization. So over the next couple of years, that would go to zero, but it still is something we carry and it appears on the income statement in a way that appears to offset or otherwise suppress not only revenue growth but gross margin.
So I wanted to mention that as a third factor, but that is material moves the number that have perturbed I can. The scan would allow you to? the again.
To the heart of your question on supply growth and its impact on gross margins, look, it's no doubt and we're very conscious that onboarding new properties, staffing them, furnishing them, and getting them into our system and building a booking calendar, that does create a short-term drag on gross margins. That persists only for a relatively short period of time, as compared to many other fixed-access businesses.
but nonetheless, looking at quarterly periods like we've recently had, when we've added dozens and dozens of new properties on a
call it a 400 to 500 unit residence base, that has a material impact. I would anticipate, broadly speaking, over time, that'll attenuate and moderate. I wouldn't anticipate that we'll add hundreds of new properties in a quarter. Even if we did, the base, the stabilized base over which those are being added, will be larger and larger. Therefore, that impact will be less dilutable over time.
Okay, thanks, Leb. And then if I may, what are some of the dealings for gross margin expansion? What are the dealings for gross margin expansion?
I apologize, Swera. Can you repeat that? We broke up for a moment there.
Sure. Could you please talk about bail lands for gross margin expansion? So what would drive gross margin expansion, not on every quarter, but for a full year, you know, from 20 to 23, 23 to go for basis? Like what would be some of the bail land for margin gross margin expansion? Thank you.
Sure. There are a couple macro factors of play in terms of portfolio design and overall company strategy and then also some real fundamental just fix and directs, a lot of which are out in the field. There are a lot of which are out in the field. There are a lot of which are out in the field. There are a lot of which are out in the field.
On the macro, our margins vary significantly by region and by geographic location in which we operate. I think some of that makes sense upon reflection. It would be obvious even without knowing the details of the numbers. Markets with very high land costs, high labor costs.
very significantly by region and by geographic location in which we operate. I think some of that makes sense upon reflection would be obvious even without knowing the details of the numbers, markets with very high land costs, high labor costs, and...
and high construction costs combined with short seasons tend to be lower margin markets, right? Those would be markets like Aspen, like Nantucket, some of the really trophic and iconic locations. Other markets have very high markets. Those are markets with low land costs, low construction costs and relatively lower labor costs and that have more full calendars, more 12 month calendars on which to monetize that cost base.
Those are a lot of our Sun beltt markets Beach, Beach markets in Mexico and in the Southeast.
I go to that detail to say over time we are consciously and programmatically changing that mix and just changing the mix, particularly in a rapidly growing portfolio, is a great opportunity to add to a creative margin expansion over time. So that's sort of a big picture macro portfolio and operating strategy perspective.
And on the other side of the coin at the micro level, adding scales which were consciously doing in destinations can result in much more profitable individual locations and individual markets. They're staffing efficiencies, procurement efficiencies. They're staffing efficiencies, procurement efficiencies.
and just overall operational efficiencies, that today haven't been at the heart of our focus. We're really focused on customer experience and satisfaction and growth. That's where we're dedicating our time and energy.
This is Brent. One other kind of macro factor is I think it's well documented that they can't in homes particularly Tier 1 destinations and vacation homes over the past, you know, 10 quarters or so.
have been appreciating a value at unsustainable rates.
So you look at a market like you say Jackson Hole or you could take up to you without Carolina and you're talking about asset appreciation that you know obviously was not able to continue for many quarters to come.
And what happened during that time period is it was combined with kind of an insatiable demand from the consumer to be able to vacation in those types of properties.
And what you saw was the property managers, the local property managers and the actual buyers of these homes themselves.
Either convincing themselves or being told of unrealistic expectations.
And what that really caused was an increase in net supply, meaning the total number of homes that were now available where somebody bought it for the purpose of being able to monetize it at least partially because they were buying it, it was a good deal, it was going to appreciate, now they have this home in queue with Alton, Carolina. Their property manager told them that they would be able to earn X and it turns out they're only able to earn 40% of X or 50% of X. Especially the owner of our home in Air mush Deaf who wrote the then worked hard log that has already gotten to be a Out overarching sales windmill.
And that's why in Toronto now, it's fielding a lot more inbound activity. We're being able to be a lot more selective in what we're adding to the platform. And that will over time increase our gross margin because one will choose places that are just more profitable generally. And two, we'll be getting better deals. We'll just pay less than we would have had to have paid.
earlier. And then one last point on the evenality of certain destinations around the world. you know around the world?
I've been doing this now for 20 years. And the line that I always use is that God made the Northeast cold most of the time. And the reality of it is that we wanted to have ample inventory in the Northeast. So we added a lot of new locations in the Northeast and a lot of places where we will not be adding significant scale, but we wanted to have the, we wanted to have basically the dot on the map that we are in the finger lakes of New York.
But that's not some place we're gonna add 30 new residents to Stu, like in South Florida. So this was kind of an investment period of being able to round out our portfolio, but you'll start to see the real scale happen in the profitable, more long-term season destinations. Even destinations.
Okay, that's super. Thanks, Webb. Thanks, Brent.
And as the Rindelisa and gentlemen to ask a question, please press star 11. Our next question coming from the lineup, my contact with Nordland Capital Market, is here on this open.
Hey, thanks guys. Hey, Brent, could you talk a little bit about your thoughts on? Hey, Brent, could you talk a little bit about your thoughts on?
select and sort of how you're going to market that and get the word out. Will it be kind of incremental to pass in club or will you do something sort of?
of how you're going to market that and get the word out. Will it be kind of incremental to pass in club or will you do something sort of different if you will?
Yeah, great, great question Mike. As we had talked about we launched the lab.
in the quarter and select is really a platform that allows us to do all types of interesting things and really expand our overall market. So first just talking about select in general, select is really the easiest way for people to be able to share in Toronto trips. It uses the same backbone that we built for path.
and select currently offers, you know, give or take 500,000 options in over 100 destinations and all trips are priced the same.
So existing subscriber, for example, if they wanted to buy four select trips, it would cost $20,000 or $5,000 a trip. And they're able to gift those trips, share those trips, use those trips however they want, either for themselves or for others. And it's really been quite successful in terms of a third subscription auction. You have Club, which is really meant for, you pay as you go, you get exactly what you want.
valuable way to experience the world through travel. So let's kind of sit in the middle. So
great for sharing and it's really simple to comprehend and simple to market. Now, the reality is that select isn't really built just to be a retail product. It's what powers in Toronto for business. It's an incredible reward platform, whereby a large organization that wants to reward their employees, either their failed employees or for tenure or just as recruitment can say, I'm going to give...
my 200 best salespeople a trip. And the company can select that trip and they can say, I want a $3,000 trip or I want a $5,000 trip or I want a $7,000 trip. And that difference is just a list that provides more valuable inventory. The other part of Select and the infrastructure that we built and we're very excited about is a business called Inspirato for Good, which we have soft launched and we expect to fully launch this quarter.
And Inspirata for Good provides nonprofits an incredible opportunity for them to amplify their fundraising efforts. And this is done through either a live auction or a silent auction or some kind of an online giving campaign whereby the nonprofit is able to completely risk-free on a consignment basis, be able to offer to their donors an Inspirata essentially select trip, but we call it an Inspirata for Good trip.
combined with an in-spirato membership. And that product is available to the nonprofit for $4,000 on a pass-through basis and sold at a $6,000 to the user. And that market is shockingly big.
and really surprisingly beneficial for what we have to offer. And so we plan on really making some headway in that market as an incremental growth avenue, besides just consumer retail selling of subscriptions, which of course is what we do today. You add to that is for business, you add to that is for good. And we're talking about a considerably larger TAM, but using the same infrastructure that we.
Just following up the inspirational business.
Let's go to market. Like they're going to have to hire some quota pair and grab some kind of go out and win new business. So we're going to rely on word of mouth to try to work there.
I think the question essentially are kind of staffing plans for in-sprout of for business. I just want to make sure I got that right. Kind of break it up a little bit.
Yeah, essentially, I hear you have to go out and yourself, where's the kind of, you know, the customer new business in that or is that new product?
Great, thank you. The great part about our subscriber base is both for in Toronto for business and in Toronto for good, our base consists of these folks. So for the most part right now within Toronto for business as we're learning our way, it's fast with a very small number of failed people exclusively working with inbound leads from our 15 subscribers who are saying.
sustainable or substantial marketing costs associated with insprout of per business. It's really just kind of inbound inquiries that we're getting on a pretty consistent basis. And it's really the same with insprout of per good. There's a little bit more staffing there because the leaves are a lot more in terms of gross volume. But it's not something that has the same level of expense. It's just the retail business that we have today where we're obviously spending a lot of money with.
Sorry Brett, can you say that again?
Thanks for that. And then maybe just one last question on the next couple months paid and stayed usage backlog that declined 3% year over year. How should we think about that as a leading indicator?
Yeah, this is web.
On that one, the Payton Stage usage backlog, I think you're referring to, is actually just in residences. Our overall Payton Stage usage backlog is up and actually it's all time high. Look, that demonstrates part of what we've seen and Brent referred to this earlier, with this example in terms of Europe . We've also seen our real pent up desire or cruises and experiences. So remember, when we quote the overall 12 month backlog, we're really focused on the total number of.
in dollar terms of travel on the books for the forward 12 months. I think if I'm wrong, that the number you might have picked up that's down the tick is actually restricted just to residences, which we did provide that in the investor deck. We have seen a bit of a shift and mix there in a way that is.
very positive and just an expression of people using all the elements students brought out to offer. What people think of us as a beautiful eight bedroom, each front home on the front page of the catalog, but we do have a lot of other modes of travel. And we've seen a bit of a shift in myths, of people are a little more liberated in the emerging. And we've seen a lot of different kinds of people are, and we've seen a lot of different kinds of people are a little more liberated in the emerging.
of the COVID environment that we're in.
of the COVID environment that we're in. Perfect. Appreciate it. Thank you guys.
Now I'm showing you an offer to questions at this time. I would now like to send a call back over to Mr. Brent Handler for any closing remarks.
Great, thank you. Very much appreciate everybody taking time to listen. Obviously, Q2 was a great quarter for us, and as we continue to monitor the landscape and kind of get to this new normal that I was talking about, we really look forward to executing in Q3 and beyond and look forward to our next call.
Ladies and gentlemen, the Tuckenkock Conference for today. Thank you for your participation. You may now disconnect. Thank you for your participation.
The conference will begin shortly. To raise your hand during Q&A, you can dial star 11.
The.
you
The.