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Revenue
 9 Months Ended
Sep. 30, 2024
Revenue  
Revenue

(3) Revenue

Revenues are as follows (in thousands):

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Three Months Ended September 30, 

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Nine Months Ended September 30, 

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2024

  

2023

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2024

    

2023

Travel

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$

42,571

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$

49,065

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​

$

131,091

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$

152,224

Subscription

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22,998

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33,344

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76,303

​

 

105,893

Rewards and other revenue

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​

3,545

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​

189

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​

​

9,347

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​

273

Total

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$

69,114

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$

82,598

​

​

$

216,741

​

$

258,390

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The Company recognizes assets and liabilities associated with its contracts with its members. Contract assets include commissions paid to the Company’s sales staff for contracts with initial terms greater than one year; these costs are capitalized and amortized over the life of the contract. As of September 30, 2024, the balance of capitalized commissions was $2.3 million, of which $1.2 million is included within other current assets and $1.1 million is included within other noncurrent assets on the Company’s Condensed Consolidated Balance Sheets. During the three months ended September 30, 2024 and 2023, the Company recognized $0.4 million and $0.1 million, respectively, of amortization expense in sales and marketing within the Company’s Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). During the nine months ended September 30, 2024 and 2023, the Company recognized $1.5 million and $0.1 million, respectively, of amortization expense in sales and marketing within the Company’s Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). Contract liabilities include deferred revenue as discussed below.

Assets and liabilities related to contracts with members are as follows (in thousands):

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September 30, 

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December 31, 

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2024

    

2023

Assets:

 

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​

Accounts receivable, net

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$

2,525

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$

3,306

Prepaid member travel

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$

14,485

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$

20,547

Other current assets

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​

​

​

​

​

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$

1,168

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$

1,053

Other noncurrent assets

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​

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​

​

​

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$

1,116

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$

845

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Liabilities:

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Deferred revenue, current

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$

135,791

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$

160,493

Deferred revenue, noncurrent

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$

28,267

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$

17,026

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Deferred revenue is comprised of the following (in thousands):

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September 30, 

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December 31, 

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​

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2024

   

2023

Travel

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​

​

​

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$

72,147

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$

81,613

Subscriptions

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​

​

​

​

​

​

​

​

63,171

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​

66,367

Travel credits

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​

​

​

​

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​

​

​

17,818

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​

18,852

Rewards

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​

​

​

​

​

​

​

​

10,922

​

​

10,687

Total

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164,058

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​

177,519

Less: Deferred revenue, noncurrent

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28,267

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​

17,026

Deferred revenue, current

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​

​

​

​

​

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$

135,791

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$

160,493

​

During the nine months ended September 30, 2024, $132.7 million of revenue was recognized that was included in the balance of deferred revenue as of December 31, 2023. Significant movements in the deferred revenue balance during the nine months ended September 30, 2024 consisted of increases due to payments received prior to transfer of control of the underlying performance obligations to the customer, which were offset by decreases as performance obligations were satisfied. During the nine months ended September 30, 2023, $138.4 million of revenue was recognized that was included in the balance of deferred revenue as of December 31, 2022.

Deferred revenue includes payments received in advance from members and is generally recognized to revenue within 2 years. Deferred revenue related to Inspirato Rewards (“Rewards”) represents multiple performance obligations associated with the Company’s member loyalty program. Revenues related to Rewards are recognized over time based upon historical travel patterns and members’ average life, which includes an estimate of Rewards benefits that will expire or will not be used during the benefit period of the Rewards material rights (up to 30 months). Deferred revenue related to Inspirato Invited (“Invited”) subscriptions is amortized over the ten-year contract period.