Despegar.com Announces 2Q24 Financial Results
Despegar.com (NYSE: DESP) reported strong Q2 2024 financial results, with Adjusted EBITDA up 22% YoY to $36.7 million and revenues increasing 12% YoY to $185.0 million. The company's focus on profitable growth is evident in its strong Take Rate of 13.8%. Gross Bookings increased 4% YoY to $1.3 billion, impacted by FX headwinds, but grew 37% YoY on an FX-neutral basis. Adjusted Net Income surged 397% YoY to $30.2 million.
Despegar raised its FY2024 Adjusted EBITDA guidance to at least $160 million, representing at least 39% YoY growth. However, due to FX volatility and the divestment of its DMC business, the company updated its annual revenue guidance from at least $820 million to at least $760 million.
Despegar.com (NYSE: DESP) ha riportato forti risultati finanziari del Q2 2024, con un Adjusted EBITDA in crescita del 22% anno su anno a 36,7 milioni di dollari e ricavi aumentati del 12% anno su anno a 185,0 milioni di dollari. Il focus dell'azienda sulla crescita redditizia è evidente nel suo forte Take Rate del 13,8%. Le prenotazioni lorde sono aumentate del 4% anno su anno a 1,3 miliardi di dollari, influenzate da venti contrari valutari, ma sono cresciute del 37% anno su anno su base neutrale rispetto ai cambi. L'utile netto rettificato è aumentato del 397% anno su anno a 30,2 milioni di dollari.
Despegar ha innalzato le sue previsioni di Adjusted EBITDA per l'intero anno 2024 ad almeno 160 milioni di dollari, che rappresenta una crescita di almeno il 39% anno su anno. Tuttavia, a causa della volatilità valutaria e della dismissione della sua attività DMC, l'azienda ha aggiornato la sua previsione di ricavi annuali da almeno 820 milioni a almeno 760 milioni di dollari.
Despegar.com (NYSE: DESP) reportó sólidos resultados financieros del Q2 2024, con un EBITDA ajustado que aumentó un 22% interanual a 36.7 millones de dólares y ingresos que crecieron un 12% interanual a 185.0 millones de dólares. El enfoque de la compañía en el crecimiento rentable es evidente en su sólido Take Rate del 13.8%. Las reservas brutas aumentaron un 4% interanual a 1.3 mil millones de dólares, afectadas por vientos en contra de divisas, pero crecieron un 37% interanual en términos neutros de divisas. El ingreso neto ajustado se disparó un 397% interanual a 30.2 millones de dólares.
Despegar elevó su guía de EBITDA ajustado para el FY2024 a al menos 160 millones de dólares, lo que representa un crecimiento de al menos el 39% interanual. Sin embargo, debido a la volatilidad cambiaria y la desinversión de su negocio DMC, la compañía actualizó su guía de ingresos anuales de al menos 820 millones a al menos 760 millones de dólares.
Despegar.com (NYSE: DESP)는 2024년 2분기 재무 결과를 발표하며, 조정 EBITDA가 전년 대비 22% 증가하여 3,670만 달러에 이르고 매출이 전년 대비 12% 증가하여 1억 8,500만 달러에 도달했다고 전했습니다. 회사의 수익성 장점이 13.8%의 테이크 레이트에 뚜렷이 나타납니다. 총 예약은 전년 대비 4% 증가하여 13억 달러에 도달했으나, 환율에 따른 어려움으로 영향을 받았으며, 환율 중립 기준으로는 연평균 37% 증가했습니다. 조정 순이익은 전년 대비 397% 증가하여 3,020만 달러에 이릅니다.
Despegar는 2024 회계연도 조정 EBITDA 가이던스를 최소 1억 6천만 달러로 상향 조정했으며, 이는 전년 대비 최소 39% 성장에 해당합니다. 그러나 환율의 변동성과 DMC 사업의 매각으로 인해 연간 매출 가이던스를 최소 8억 2천만 달러에서 최소 7억 6천만 달러로 하향 수정했습니다.
Despegar.com (NYSE: DESP) a annoncé de solides résultats financiers pour le T2 2024, avec un EBITDA ajusté en hausse de 22% par rapport à l'année précédente à 36,7 millions de dollars et des revenus en augmentation de 12% par rapport à l'année précédente à 185,0 millions de dollars. L'accent mis par l'entreprise sur une croissance rentable se reflète dans son solide Taux de Prise de 13,8%. Les réservations brutes ont augmenté de 4% d'une année sur l'autre, atteignant 1,3 milliard de dollars, impactées par des vents contraires liés aux devises, mais ont progressé de 37% d'une année sur l'autre sur une base neutre en devises. Le revenu net ajusté a bondi de 397% d'une année sur l'autre à 30,2 millions de dollars.
Despegar a relevé ses prévisions d'EBITDA ajusté pour l'exercice 2024 à au moins 160 millions de dollars, ce qui représente une croissance d'au moins 39% d'une année sur l'autre. Cependant, en raison de la volatilité des devises et de la désinvestissement de son activité DMC, l'entreprise a mis à jour ses prévisions de revenus annuels de 820 millions à au moins 760 millions de dollars.
Despegar.com (NYSE: DESP) berichtete über starke Q2 2024 Finanzdaten, mit einem Adjusted EBITDA-Anstieg von 22% im Jahresvergleich auf 36,7 Millionen Dollar und Umsätzen, die um 12% im Jahresvergleich zugenommen haben auf 185,0 Millionen Dollar. Der Fokus des Unternehmens auf profitables Wachstum zeigt sich in seiner starken Take Rate von 13,8%. Bruttobuchungen sind im Jahresvergleich um 4% auf 1,3 Milliarden Dollar gestiegen, beeinträchtigt durch Wechselkursrisiken, konnten jedoch auf einer FX-neutralen Basis um 37% im Jahresvergleich wachsen. Der bereinigte Nettogewinn schoss im Jahresvergleich um 397% auf 30,2 Millionen Dollar in die Höhe.
Despegar hob seine Prognose für das Adjusted EBITDA für das Geschäftsjahr 2024 auf mindestens 160 Millionen Dollar an, was einem Wachstum von mindestens 39% im Jahresvergleich entspricht. Aufgrund der Wechselkursvolatilität und der Abspaltung seines DMC-Geschäfts aktualisierte das Unternehmen jedoch seine jährliche Umsatzprognose von mindestens 820 Millionen auf mindestens 760 Millionen Dollar.
- Adjusted EBITDA increased 22% YoY to $36.7 million
- Revenues grew 12% YoY to $185.0 million
- Take Rate improved to 13.8%, up 96 basis points YoY
- Adjusted Net Income surged 397% YoY to $30.2 million
- B2B and White Label Gross Bookings increased 43% and 7% YoY, respectively
- Loyalty Program members increased 65% YoY to 27.9 million
- App transactions reached a record 49.1% of total transactions
- FY2024 Adjusted EBITDA guidance raised to at least $160 million
- Gross Bookings growth to 4% YoY due to significant FX headwinds
- Total Cash decreased by $39.5 million YoY
- Annual revenue guidance lowered from $820 million to $760 million due to FX volatility and DMC divestment
Insights
Despegar.com's Q2 2024 results show robust growth despite significant FX headwinds. The company's focus on profitable growth is evident in its 12% YoY revenue increase to
The company's strategic initiatives, including the emphasis on higher-margin Travel Package sales and the expansion of B2B and White Label operations, are yielding positive results. The Take Rate improvement to
However, investors should note the reduction in total Cash by
Despegar's Q2 results reveal strong market positioning in Latin America, particularly in Brazil and Mexico. The
The strategic alliance with World2Meet and the sale of BDexperience demonstrate a focus on core competencies and operational efficiency. New White Label partnerships, including with a global super-app and major financial institutions, suggest significant growth potential and validate Despegar's technology platform.
The company's inclusion in the Russell 2000 and 3000 equity indexes may increase visibility among investors. However, the ongoing FX volatility in Latin American markets remains a key challenge, impacting reported financial results and necessitating guidance adjustments.
Despegar's technology-driven approach is yielding impressive results. The record 49.1% of transactions through the app represents a substantial
The company's ability to secure White Label partnerships with major brands like Scotiabank and Elektra Mexico validates the strength and flexibility of its travel technology platform. These partnerships could drive significant growth by leveraging partners' large customer bases.
The strategic focus on B2B and White Label operations, which grew
Profitable Growth Continues with 2Q24 Adjusted EBITDA up
2Q24 Financial and Operating Highlights
(for definitions, see page 14)
-
Gross Bookings increased
4% YoY to , impacted by significant foreign exchange (FX) headwinds across the region. Underlying business trends remain robust, as on an FX neutral basis Gross Bookings increased$1.3 billion 37% YoY. -
Revenues increased
12% YoY to , driven by strong Take Rate of$185.0 million 13.8% as the Company maintains its focus on profitable growth. On an FX-neutral basis, Revenues grew46% YoY. -
Adjusted EBITDA increased
22% YoY (+82% YoY when excluding one-time tax benefit in 2Q23) to , mainly attributed to improving operational efficiencies and growing higher-margin Travel Package sales, which increased 190 bps YoY to$36.7 million 35.0% of Gross Bookings. Adjusted EBITDA margin increased 173 bps YoY to19.8% . -
Adjusted Net Income increased
397% YoY reaching in 2Q24, compared to$30.2 million in 2Q23.$6.1 million -
B2B and White Label Gross Bookings maintained strong performance levels, increasing
43% and7% YoY, respectively. Combined, these represented18% of total Gross Bookings, up 281 bps YoY. -
Operating Cash flow was positive
while the total Cash was$12.7 million , down$204 million YoY due to (i) temporary changes in working capital (ii) factoring expenses and (iii) dividend payments to Series A Preferred shareholders.$39.5 million -
Loyalty Program members increased
65% YoY to 27.9 million. -
App transactions reached a record
49.1% of total transactions in the quarter, up 1,258 bps from36.5% in 2Q23. - Despegar formed a strategic alliance with World2Meet, leading to the sale of the Despegar’s Destination Management Company, BDexperience. As part of the transaction nearly 600 employees have transitioned to World2Meet.
- Published Company’s ESG report, which is available at: https://investor.despegar.com/
- Included in Russell 2000 and 3000 equity indexes, on July 1, 2024
Damian Scokin, Despegar’s CEO, said: "Despegar’s strong performance in the second quarter was driven by our ongoing commercial efforts to improve our revenue mix through higher package sales, in addition to robust demand in our key markets,
To further streamline our business and concentrate our efforts on Despegar’s core operations, we formed a strategic alliance with World2Meet, the travel division of the Iberostar Group, a
Amit Singh, the Company’s CFO, added: “Our focus on growing non-air revenues continued yielding positive results, with our Take Rate increasing 96 basis points year-over-year to
Despite the significant FX translation impact across the majority of our markets as well as a transitory impact on reservations caused by the flooding in Rio Grande do Sul, reported top line growth accelerated sequentially due to robust underlying demand trends, while Adjusted EBITDA growth remained quite strong. Given the local currency volatility, we now expect FX to have a materially greater negative impact on our full-year results. Considering this FX trend and our divestment of DMC, despite solid underlying business trends, we are updating our annual revenue guidance from at least
2024 Financial Guidance
The Company updates its 2024 annual guidance as follows:
-
Revenue: at least
, representing at least$760 million 8% YoY growth, from prior guidance of at least .$820 million -
Adjusted EBITDA: at least
, representing at least$160 million 39% YoY growth, from prior guidance of at least$155 million
For more information see our Investor Relations website at investor.despegar.com.
Disclaimer: The 2024 financial guidance reflects management’s current assumptions regarding numerous evolving factors that are difficult to accurately predict, including those discussed in the Risk Factors set forth in the Company’s Annual Report on Form 20-F filed with the United States Securities and Exchange Commission (the “SEC”).
Reconciliations of forward-looking non-GAAP measures, specifically the 2024 Adjusted EBITDA guidance, to the relevant forward-looking GAAP measures are not being provided, as the Company does not currently have sufficient data to accurately estimate the variables and individual adjustments for such guidance and reconciliations. Due to this uncertainty, the Company cannot reconcile projected Adjusted EBITDA to projected net income without unreasonable effort.
The 2024 financial guidance constitutes forward-looking statements. For more information, see the “Forward-Looking Statements” section in this release.
Key Operating and Financial Metrics
(as reported in millions, except as noted)
The following table presents key operating metrics of Despegar’s travel and financial services businesses as well as key financial metrics on a consolidated basis, post-intersegment eliminations between these businesses.
|
|
2Q24 |
|
|
2Q23 |
|
Δ % |
Operating metrics |
|
|
|
||||
Number of transactions |
|
2.431 |
|
|
2.204 |
|
|
Gross bookings |
$ |
1,339.6 |
|
$ |
1,287.0 |
|
|
TPV Financial Services (1) |
$ |
18.3 |
|
$ |
16.7 |
|
|
Average selling price (ASP) (in $) |
$ |
552 |
|
$ |
585 |
|
(6)% |
Number of transactions by Segment & Total |
|
|
|
||||
Air |
|
1.2 |
|
|
1.0 |
|
|
Packages, Hotels & Other Travel Products |
|
1.2 |
|
|
1.2 |
|
|
Financial Services |
|
0.0 |
|
|
0.0 |
|
|
Total Number of Transactions |
|
2.4 |
|
|
2.2 |
|
|
Financial metrics |
|||||||
Revenue |
$ |
185.0 |
|
$ |
165.5 |
|
|
Total Adjusted EBITDA (2) |
$ |
36.7 |
|
$ |
30.0 |
|
|
Net Income (4) |
$ |
13.4 |
|
$ |
28.0 |
|
(52)% |
Net Income attributable to Despegar.com, Corp (4) |
$ |
13.4 |
|
$ |
28.0 |
|
(52)% |
Plus: Accretion of Series A Preferred Stock |
$ |
(3.7 |
) |
$ |
(3.3 |
) |
|
Plus: Accrual of dividends of Series A Preferred Stock |
$ |
(3.7 |
) |
$ |
(3.7 |
) |
—% |
Plus: Accrual of dividends of Series B Preferred Stock |
$ |
— |
|
$ |
(0.5 |
) |
n.m. |
Income attributable to common stockholders (3) (4) |
$ |
6.0 |
|
$ |
20.5 |
|
(71)% |
Average Shares Outstanding - Basic (5) |
|
83,004 |
|
|
77,109 |
|
|
Effect of Dilutive Participating Securities - Stock Based Compensation Plans (3) |
|
510 |
|
|
3 |
|
n.m. |
Average Shares Outstanding - Diluted (5) |
|
83,514 |
|
|
77,112 |
|
|
EPS Basic (5) |
$ |
0.07 |
|
$ |
0.25 |
|
(71)% |
EPS Diluted (5) |
$ |
0.07 |
|
$ |
0.25 |
|
(71)% |
(1) |
Presented on a pre intersegment elimination basis. Intersegment TPV amounted to |
|
(2) |
Financial services segment reported a Total Adjusted EBITDA of positive |
|
(3) |
Round numbers. For 2Q24, basic earnings (loss) per share is computed using the two-class method, which is an earnings allocation formula that determines earnings (loss) per share for common stock and any participating securities according to dividend and participating rights in undistributed earnings (losses). The Company's Class B Preferred Shares contained rights to dividends or dividend equivalents and are deemed to be participating securities. The Company’s Class B shares were converted to 5.4 million ordinary shares on April 1, 2024. Other instruments granted by the Company (such as restricted stock awards and stock options to employees, as well as Class A Preferred Shares) do not contain non-forfeitable rights to dividends and are not deemed to be participating securities. In periods of net loss, no amounts are allocated to participating securities as they do not have an obligation to absorb such loss. Under the two-class method, net income for the period, after subtracting dividends on and accretion of preferred stock, is allocated between common stockholders and the holders of the participating securities based on the weighted average number of common shares outstanding during the period and the weighted-average number of participating securities outstanding during the period, respectively. The allocated, undistributed income for the period is then divided by the weighted-average number of common shares outstanding during the period to arrive at basic earnings per common share for the period. Pursuant to |
|
(4) |
2Q23 Net Income includes |
|
(5) | In thousands |
|
Revenue Breakdown
(in millions, except as noted)
The following table reconciles the intersegment revenues of the Company’s three business segments for the quarters ended June 30, 2024 and 2023:
|
2Q24 |
2Q23 |
Δ % |
|||||||||
$ |
% of total |
$ |
% of total |
|||||||||
Revenue by business segment |
|
|
|
|
|
|||||||
Travel Business |
|
|
|
|
|
|||||||
Air Segment |
$ |
62.3 |
|
34 |
% |
$ |
60.7 |
|
37 |
% |
3 |
% |
Packages, Hotels & Other Travel Products Segment |
$ |
118.5 |
|
64 |
% |
$ |
102.0 |
|
62 |
% |
16 |
% |
Total Travel Business |
$ |
180.8 |
|
98 |
% |
$ |
162.7 |
|
98 |
% |
11 |
% |
Financial Business |
|
|
|
|
|
|||||||
Financial Services Segment |
$ |
12.4 |
|
7 |
% |
$ |
9.4 |
|
6 |
% |
31 |
% |
Total Financial Business |
$ |
12.4 |
|
7 |
% |
$ |
9.4 |
|
6 |
% |
31 |
% |
Intersegment Eliminations |
$ |
(8.1 |
) |
(4 |
)% |
$ |
(6.7 |
) |
(4 |
)% |
22 |
% |
Total Revenue |
$ |
185.0 |
|
100 |
% |
$ |
165.5 |
|
100 |
% |
12 |
% |
|
|
|
|
|
|
|||||||
Total Revenue margin |
|
13.8 |
% |
|
|
12.8 |
% |
|
+96 bps |
|||
-- Financial Tables Follow --
Unaudited Consolidated Statements of Operations for the three-month periods ended June 30, 2024 and 2023 (in thousands of
|
|
2Q24 |
|
|
2Q23 |
|
Δ % |
|
Revenue |
$ |
185,047 |
|
$ |
165,524 |
|
12 |
% |
Cost of revenue |
$ |
(51,952 |
) |
$ |
(60,000 |
) |
(13 |
)% |
Gross profit |
$ |
133,095 |
|
$ |
105,524 |
|
26 |
% |
Operating expenses |
|
|
|
|||||
Selling and marketing |
$ |
(62,933 |
) |
$ |
(51,695 |
) |
22 |
% |
General and administrative |
$ |
(16,802 |
) |
$ |
(8,396 |
) |
100 |
% |
Technology and product development |
$ |
(27,138 |
) |
$ |
(26,448 |
) |
3 |
% |
Total operating expenses |
$ |
(106,873 |
) |
$ |
(86,539 |
) |
23 |
% |
|
|
|
|
|||||
Loss from equity investments |
$ |
(80 |
) |
$ |
(285 |
) |
(72 |
)% |
Operating income |
$ |
26,142 |
|
$ |
18,700 |
|
40 |
% |
Financial results, net |
$ |
(14,464 |
) |
$ |
(3,948 |
) |
266 |
% |
Income before income taxes |
$ |
11,678 |
|
$ |
14,752 |
|
(21 |
)% |
Income tax benefit |
$ |
1,759 |
|
$ |
13,251 |
|
(87 |
)% |
Net Income (1) |
$ |
13,437 |
|
$ |
28,003 |
|
(52 |
)% |
Net Income attributable to Despegar.com, Corp (1) |
$ |
13,437 |
|
$ |
28,003 |
|
(52 |
)% |
(1) 2Q23 Net Income includes
n.m.: Not Meaningful
Unaudited Consolidated Balance Sheet as of June 30, 2024 and March 31, 2024 (in thousands of
|
As of June
|
|
As of March
|
||||
ASSETS |
|
||||||
Current assets |
|
|
|
||||
Cash and cash equivalents |
$ |
174,594 |
|
|
$ |
181,495 |
|
Restricted cash |
$ |
26,432 |
|
|
$ |
28,568 |
|
Trade accounts receivable, net of credit expected loss |
$ |
221,662 |
|
|
$ |
204,494 |
|
Loan receivables, net |
$ |
18,029 |
|
|
$ |
21,647 |
|
Related party receivable |
$ |
16,097 |
|
|
$ |
13,993 |
|
Other assets and prepaid expenses |
$ |
56,763 |
|
|
$ |
59,607 |
|
Assets held for sale |
$ |
16,468 |
|
|
$ |
16,701 |
|
Total current assets |
$ |
530,045 |
|
|
$ |
526,505 |
|
Non-current assets |
|
|
|
||||
Restricted cash |
$ |
881 |
|
|
$ |
910 |
|
Other assets and prepaid expenses |
$ |
67,219 |
|
|
$ |
79,519 |
|
Loan receivables, net |
$ |
1,069 |
|
|
$ |
1,478 |
|
Lease right-of-use assets |
$ |
20,651 |
|
|
$ |
20,075 |
|
Property and equipment, net |
$ |
16,358 |
|
|
$ |
15,956 |
|
Intangible assets, net |
$ |
87,552 |
|
|
$ |
89,590 |
|
Goodwill |
$ |
139,206 |
|
|
$ |
152,029 |
|
Total non-current assets |
$ |
332,936 |
|
|
$ |
359,557 |
|
TOTAL ASSETS |
$ |
862,981 |
|
|
$ |
886,062 |
|
LIABILITIES AND SHAREHOLDERS’ DEFICIT |
|
|
|
||||
Current liabilities |
|
|
|
||||
Accounts payable and accrued expenses |
$ |
57,206 |
|
|
$ |
56,305 |
|
Travel accounts payable |
$ |
326,787 |
|
|
$ |
348,753 |
|
Related party payable |
$ |
90,805 |
|
|
$ |
82,479 |
|
Short-term debt and other financial liabilities |
$ |
29,722 |
|
|
$ |
28,448 |
|
Deferred Revenue |
$ |
34,181 |
|
|
$ |
35,219 |
|
Other liabilities |
$ |
81,761 |
|
|
$ |
91,413 |
|
Contingent liabilities |
$ |
6,130 |
|
|
$ |
6,349 |
|
Lease Liabilities |
$ |
6,429 |
|
|
$ |
6,168 |
|
Liabilities held for sale |
$ |
2,079 |
|
|
$ |
2,620 |
|
Total current liabilities |
$ |
635,100 |
|
|
$ |
657,754 |
|
Non-current liabilities |
|
|
|
||||
Other liabilities |
$ |
8,113 |
|
|
$ |
12,188 |
|
Contingent liabilities |
$ |
12,435 |
|
|
$ |
14,572 |
|
Long-term debt and other financial liabilities |
$ |
1,508 |
|
|
$ |
1,944 |
|
Lease liabilities |
$ |
15,209 |
|
|
$ |
14,971 |
|
Related party liability |
$ |
125,000 |
|
|
$ |
125,000 |
|
Deferred Revenue |
$ |
5,600 |
|
|
$ |
5,600 |
|
Total non-current liabilities |
$ |
167,865 |
|
|
$ |
174,275 |
|
TOTAL LIABILITIES |
$ |
802,965 |
|
|
$ |
832,029 |
|
Series A non-convertible preferred shares |
$ |
134,257 |
|
|
$ |
126,848 |
|
Series B convertible preferred shares |
$ |
— |
|
|
$ |
46,700 |
|
Total Mezzanine Equity |
$ |
134,257 |
|
|
$ |
173,548 |
|
SHAREHOLDERS’ DEFICIT |
|
|
|
||||
Common stock |
$ |
292,556 |
|
|
$ |
292,279 |
|
Additional paid-in capital |
$ |
257,338 |
|
|
$ |
284,290 |
|
Other reserves |
$ |
(728 |
) |
|
$ |
(728 |
) |
Accumulated other comprehensive loss |
$ |
(21,027 |
) |
|
$ |
(12,060 |
) |
Accumulated losses |
$ |
(591,592 |
) |
|
$ |
(605,029 |
) |
Treasury Stock |
$ |
(10,788 |
) |
|
$ |
(78,267 |
) |
Total Shareholders’ Deficit |
$ |
(74,241 |
) |
|
$ |
(119,515 |
) |
TOTAL LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS’ DEFICIT |
$ |
862,981 |
|
|
$ |
886,062 |
|
Note: Cash & Cash Equivalents including restricted cash as of end of period Q2 2024 is
Unaudited Statements of Cash Flows for the three-month periods ended June 30, 2024 and 2023 (in thousands of
|
3 months ended June 30, |
||||||
|
|
2024 |
|
|
|
2023 |
|
Cash flows from operating activities: |
|
|
|
||||
Net income |
$ |
13,437 |
|
|
$ |
28,003 |
|
Adjustments to reconcile net income to net cash flows from operating activities: |
|
|
|
||||
Unrealized foreign currency (gain) / loss |
$ |
(499 |
) |
|
$ |
6,325 |
|
Changes in fair value of earnout liability |
$ |
1,282 |
|
|
$ |
323 |
|
Changes in seller indemnification |
$ |
(1,282 |
) |
|
$ |
(323 |
) |
Loss from equity investments |
$ |
80 |
|
|
$ |
285 |
|
Depreciation expense |
$ |
997 |
|
|
$ |
3,091 |
|
Amortization expense |
$ |
7,664 |
|
|
$ |
7,257 |
|
Stock based compensation expense |
$ |
1,457 |
|
|
$ |
910 |
|
Amortization of lease right-of-use assets |
$ |
1,946 |
|
|
$ |
2,036 |
|
Interest and penalties |
$ |
913 |
|
|
$ |
793 |
|
Income tax benefit |
$ |
(3,079 |
) |
|
$ |
(16,178 |
) |
Allowance for credit expected losses |
$ |
4,354 |
|
|
$ |
3,505 |
|
Provision for contingencies |
$ |
(5,182 |
) |
|
$ |
(7,393 |
) |
Changes in assets and liabilities net of non-cash transactions: |
|
|
|
||||
Increase in trade accounts receivable, net of credit expected loss |
$ |
(34,729 |
) |
|
$ |
(34,200 |
) |
Decrease in loans receivable, net of allowance |
$ |
682 |
|
|
$ |
4,058 |
|
Increase in related party receivable |
$ |
(2,153 |
) |
|
$ |
(2,705 |
) |
Decrease / (Increase) in other assets and prepaid expenses |
$ |
5,824 |
|
|
$ |
(5,883 |
) |
Increase / (Decrease) in accounts payable and accrued expenses |
$ |
3,068 |
|
|
$ |
(7,140 |
) |
Increase in travel accounts payable |
$ |
6,772 |
|
|
$ |
36,670 |
|
Decrease in other liabilities |
$ |
(7,765 |
) |
|
$ |
(4,175 |
) |
Increase / (Decrease) in contingent liabilities |
$ |
4,425 |
|
|
$ |
(6,940 |
) |
Increase in related party payable |
$ |
11,466 |
|
|
$ |
20,723 |
|
Decrease in lease liabilities |
$ |
(2,173 |
) |
|
$ |
(3,540 |
) |
Increase in deferred revenue |
$ |
5,241 |
|
|
$ |
3,371 |
|
Net cash flows provided by operating activities |
$ |
12,746 |
|
|
$ |
28,873 |
|
Cash flows from investing activities: |
|
|
|
||||
Origination of loans receivable |
$ |
(2,658 |
) |
|
$ |
(8,402 |
) |
Collection of loans receivable |
$ |
1,375 |
|
|
$ |
2,685 |
|
Acquisition of property and equipment |
$ |
(2,189 |
) |
|
$ |
(1,529 |
) |
Capital expenditures, including internal-use software and website development |
$ |
(8,026 |
) |
|
$ |
(9,414 |
) |
Net cash flows used in investing activities |
$ |
(11,498 |
) |
|
$ |
(16,660 |
) |
Cash flows from financing activities: |
|
|
|
||||
Net decrease of short term debt |
$ |
(115 |
) |
|
$ |
(5,624 |
) |
Proceeds from issuance of short-term debt |
$ |
13,070 |
|
|
$ |
12,384 |
|
Payment of short-term debt |
$ |
(9,847 |
) |
|
$ |
(9,123 |
) |
Payment of long-term debt |
$ |
(335 |
) |
|
$ |
(813 |
) |
Payments of debenture issuance by securitization program |
$ |
(266 |
) |
|
$ |
(1,268 |
) |
Collect on debenture issuance by securitization program |
$ |
— |
|
|
$ |
3,477 |
|
Exercise of stock-based awards |
$ |
67 |
|
|
$ |
— |
|
Payment of dividends to stockholders Series A and Series B convertible preferred shares |
$ |
— |
|
|
$ |
(646 |
) |
Net cash flows provided by / (used in) financing activities |
$ |
2,574 |
|
|
$ |
(1,613 |
) |
Effect of exchange rate changes on cash and cash equivalents |
$ |
(12,449 |
) |
|
$ |
5,312 |
|
Net (decrease) / increase in cash and cash equivalents |
$ |
(8,627 |
) |
|
$ |
15,912 |
|
Cash and cash equivalents and restricted cash as of beginning of the period |
$ |
213,111 |
|
|
$ |
228,022 |
|
Cash and cash equivalents and restricted cash as of end of period (1) |
$ |
204,484 |
|
|
$ |
243,934 |
|
(1) Cash & Cash Equivalents as of end of period Q2 2024 includes
Adjusted EBITDA Reconciliation
(in thousands, except as noted)
|
|
2Q24 |
|
|
2Q23 |
|
Δ % |
Net Income (1) |
$ |
13,437 |
|
$ |
28,003 |
|
(52)% |
Add (deduct): |
|
|
|
||||
Financial result, net |
$ |
14,464 |
|
$ |
3,948 |
|
|
Income tax benefit |
$ |
(1,759 |
) |
$ |
(13,251 |
) |
(87)% |
Depreciation expense |
$ |
997 |
|
$ |
3,091 |
|
(68)% |
Amortization expense |
$ |
7,664 |
|
$ |
7,257 |
|
|
Share-based compensation expense |
$ |
1,457 |
|
$ |
910 |
|
|
Restructuring charges and other exit charges |
$ |
427 |
|
$ |
— |
|
n.m. |
Total Adjusted EBITDA |
$ |
36,687 |
|
$ |
29,957 |
|
|
|
|
|
|
(1) 2Q23 Net Income includes
n.m.: Not Meaningful
Adjusted Net Income Reconciliation
(in thousands, except as noted)
|
|
2Q24 |
|
|
2Q23 |
|
Δ % |
Net income (1) |
$ |
13,437 |
|
$ |
28,003 |
|
(52)% |
Add (deduct): |
|
|
|
||||
(a) Foreign exchange impact |
$ |
8,894 |
|
$ |
(2,241 |
) |
n.m. |
(b) Acquisitions related expenses |
$ |
779 |
|
$ |
1,695 |
|
(54)% |
(c) Share-based compensation expense |
$ |
1,457 |
|
$ |
910 |
|
|
(d) Impairment of long-lived assets |
$ |
— |
|
$ |
— |
|
—% |
(e) Restructuring, reorganization and other exit activities charges |
$ |
427 |
|
$ |
— |
|
—% |
(f) Discontinued operations |
$ |
— |
|
$ |
— |
|
—% |
(g) Amortization expense of intangible assets |
$ |
6,676 |
|
$ |
5,725 |
|
|
(h) Items included in legal reserves related to transactional taxes |
$ |
(1,754 |
) |
$ |
(16 |
) |
n.m. |
(i) Other atypical impacts not related to the normal course of business |
$ |
— |
|
$ |
(14,260 |
) |
—% |
(j) Non-controlling interest impact of the aforementioned adjustments |
$ |
— |
|
$ |
— |
|
—% |
(k) Tax impact of the non-GAAP adjustments and changes in tax estimates |
$ |
307 |
|
$ |
(13,737 |
) |
n.m. |
Total Adjusted Net Income |
$ |
30,223 |
|
$ |
6,079 |
|
|
(1) 2Q23 Net Income includes
Note: Preferred Dividends are not included in adjusted Net Income calculation as they do not impact Net Income
n.m.: Not Meaningful
(a) Foreign exchange gains or losses.
(b) Acquisition costs, contingent consideration arrangements and amortization of intangible assets related to acquisitions
(c) Share-based compensation expense related to RSUs and SOPs granted on service-based awards.
(d) Impairment of long-lived assets
(e) Restructuring and related reorganization charges intended to simplify our businesses and improve operational efficiencies.
(f) Costs associated with an exit or disposal of a discontinued operation.
(g) Amortization expense of intangibles assets, excluding those related to acquisitions
(h) Items included in legal reserves, which includes reserves for potential settlement of issues related to transactional taxes (e.g., VAT, Revenue Tax and occupancy taxes), related court decisions and final settlements, and charges incurred, if any, for monies that may be required to be paid in advance of litigation in certain transactional tax proceedings, including part of equity method investments
(i) Reflects atypical impacts that are not related to the normal course of operations.
(j) Reflects the non-controlling interest impact of the aforementioned adjustment items; and
(k) The income tax impact of the non-GAAP adjustments and changes in tax estimates
Geographic Breakdown
(in millions, except as noted)
2Q24 vs. 2Q23 - As Reported |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rest of Latin
|
|
Total |
||||||||
|
2Q24 |
2Q23 |
Δ % |
|
2Q24 |
2Q23 |
Δ % |
|
2Q24 |
2Q23 |
Δ % |
|
2Q24 |
2Q23 |
Δ % |
Transactions ('000) |
1,247 |
989 |
26 % |
|
421 |
399 |
6 % |
|
762 |
816 |
-7 % |
|
2,431 |
2,204 |
10 % |
Gross Bookings |
586 |
508 |
15 % |
|
294 |
268 |
9 % |
|
460 |
511 |
-10 % |
|
1,340 |
1,287 |
4 % |
TPV Financial Services (1) |
18 |
17 |
8 % |
|
— |
— |
— % |
|
— |
— |
— % |
|
18 |
17 |
9 % |
ASP ($) |
472 |
515 |
-8 % |
|
697 |
673 |
4 % |
|
604 |
627 |
-4 % |
|
552 |
585 |
-6 % |
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
185 |
166 |
12 % |
Gross Profit |
|
|
|
|
|
|
|
|
|
|
|
|
133 |
106 |
26 % |
2Q24 vs. 2Q23 - FX Neutral |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rest of Latin
|
|
Total |
||||||||
|
2Q24 |
2Q23 |
Δ % |
|
2Q24 |
2Q23 |
Δ % |
|
2Q24 |
2Q23 |
Δ % |
|
2Q24 |
2Q23 |
Δ % |
Transactions ('000) |
1,247 |
989 |
26 % |
|
421 |
399 |
6 % |
|
762 |
816 |
-7 % |
|
2,431 |
2,204 |
10 % |
Gross Bookings |
618 |
508 |
22 % |
|
285 |
268 |
6 % |
|
855 |
511 |
67 % |
|
1,758 |
1,287 |
37 % |
TPV Financial Services (1) |
19 |
17 |
14 % |
|
— |
— |
— % |
|
— |
— |
— % |
|
19 |
17 |
15 % |
ASP ($) |
498 |
515 |
-3 % |
|
677 |
673 |
1 % |
|
1,121 |
627 |
79 % |
|
724 |
585 |
24 % |
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
241 |
166 |
46 % |
Gross Profit |
|
|
|
|
|
|
|
|
|
|
|
|
173 |
106 |
64 % |
(1) Presented on a pre intersegment elimination basis. Intersegment TPV amounted to
Key Financial Trended Metrics
(in thousands of
|
|
3Q22 |
|
|
4Q22 |
|
|
|
1Q23 |
|
|
2Q23 |
|
|
3Q23 |
|
|
4Q23 |
|
|
|
1Q24 |
|
|
2Q24 |
|
FINANCIAL RESULTS |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Revenue |
$ |
145,596 |
|
$ |
145,542 |
|
|
$ |
158,707 |
|
$ |
165,524 |
|
$ |
178,149 |
|
$ |
203,660 |
|
|
$ |
173,660 |
|
$ |
185,047 |
|
Cost of revenue |
$ |
(50,305 |
) |
$ |
(44,897 |
) |
|
$ |
(51,027 |
) |
$ |
(60,000 |
) |
$ |
(57,599 |
) |
$ |
(60,312 |
) |
|
$ |
(51,756 |
) |
$ |
(51,952 |
) |
Gross profit |
$ |
95,291 |
|
$ |
100,645 |
|
|
$ |
107,680 |
|
$ |
105,524 |
|
$ |
120,550 |
|
$ |
143,348 |
|
|
$ |
121,904 |
|
$ |
133,095 |
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Selling and marketing |
$ |
(46,174 |
) |
$ |
(46,245 |
) |
|
$ |
(51,892 |
) |
$ |
(51,695 |
) |
$ |
(56,529 |
) |
$ |
(60,245 |
) |
|
$ |
(53,357 |
) |
$ |
(62,933 |
) |
General and administrative |
$ |
(24,873 |
) |
$ |
(26,092 |
) |
|
$ |
(22,672 |
) |
$ |
(8,396 |
) |
$ |
(21,382 |
) |
$ |
(25,316 |
) |
|
$ |
(16,027 |
) |
$ |
(16,802 |
) |
Technology and product development |
$ |
(22,834 |
) |
$ |
(25,015 |
) |
|
$ |
(25,971 |
) |
$ |
(26,448 |
) |
$ |
(26,440 |
) |
$ |
(30,271 |
) |
|
$ |
(23,367 |
) |
$ |
(27,138 |
) |
Other operating expense, net |
|
— |
|
|
— |
|
— |
|
— |
|
|
— |
|
|
— |
|
$ |
(4,546 |
) |
|
|
— |
|
|
— |
|
Total operating expenses |
$ |
(93,881 |
) |
$ |
(97,352 |
) |
|
$ |
(100,535 |
) |
$ |
(86,539 |
) |
$ |
(104,351 |
) |
$ |
(120,378 |
) |
|
$ |
(92,751 |
) |
$ |
(106,873 |
) |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
(Loss) / Gain from equity investments |
$ |
(105 |
) |
$ |
(192 |
) |
|
$ |
113 |
|
$ |
(285 |
) |
$ |
(948 |
) |
$ |
60 |
|
|
$ |
(244 |
) |
$ |
(80 |
) |
Operating income |
$ |
1,305 |
|
$ |
3,101 |
|
|
$ |
7,258 |
|
$ |
18,700 |
|
$ |
15,251 |
|
$ |
23,030 |
|
|
$ |
28,909 |
|
$ |
26,142 |
|
Financial results, net |
$ |
(15,359 |
) |
$ |
(12,543 |
) |
|
$ |
(12,595 |
) |
$ |
(3,948 |
) |
$ |
(3,215 |
) |
$ |
(16,875 |
) |
|
$ |
(8,832 |
) |
$ |
(14,464 |
) |
(Loss) / Income before income taxes |
$ |
(14,054 |
) |
$ |
(9,442 |
) |
|
$ |
(5,337 |
) |
$ |
14,752 |
|
$ |
12,036 |
|
$ |
6,155 |
|
|
$ |
20,077 |
|
$ |
11,678 |
|
Income tax benefit / (expense) |
$ |
4,767 |
|
$ |
(5,717 |
) |
|
$ |
4,640 |
|
$ |
13,251 |
|
$ |
(12,351 |
) |
$ |
(8,656 |
) |
|
$ |
(6,274 |
) |
$ |
1,759 |
|
Net (loss) / income |
$ |
(9,287 |
) |
$ |
(15,159 |
) |
|
$ |
(697 |
) |
$ |
28,003 |
|
$ |
(315 |
) |
$ |
(2,501 |
) |
|
$ |
13,803 |
|
$ |
13,437 |
|
Net income attributable to non-controlling interest |
|
— |
|
|
— |
|
— |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
Net (loss) / income attributable to Despegar.com, Corp |
$ |
(9,287 |
) |
$ |
(15,159 |
) |
|
$ |
(697 |
) |
$ |
28,003 |
|
$ |
(315 |
) |
$ |
(2,501 |
) |
|
$ |
13,803 |
|
$ |
13,437 |
|
Total Adjusted EBITDA |
$ |
12,015 |
|
$ |
12,525 |
|
|
$ |
17,272 |
|
$ |
29,957 |
|
$ |
24,730 |
|
$ |
43,588 |
|
|
$ |
38,965 |
|
$ |
36,687 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Net (loss) / income |
$ |
(9,287 |
) |
$ |
(15,159 |
) |
|
$ |
(697 |
) |
$ |
28,003 |
|
$ |
(315 |
) |
$ |
(2,501 |
) |
|
$ |
13,803 |
|
$ |
13,437 |
|
Add (deduct): |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Financial result, net |
$ |
15,359 |
|
$ |
12,543 |
|
|
$ |
12,595 |
|
$ |
3,948 |
|
$ |
3,215 |
|
$ |
16,875 |
|
|
$ |
8,832 |
|
$ |
14,464 |
|
Income tax (benefit) / expense |
$ |
(4,767 |
) |
$ |
5,717 |
|
|
$ |
(4,640 |
) |
$ |
(13,251 |
) |
$ |
12,351 |
|
$ |
8,656 |
|
|
$ |
6,274 |
|
$ |
(1,759 |
) |
Depreciation expense |
$ |
2,144 |
|
$ |
1,504 |
|
|
$ |
1,716 |
|
$ |
3,091 |
|
$ |
1,535 |
|
$ |
2,193 |
|
|
$ |
1,644 |
|
$ |
997 |
|
Amortization expense |
$ |
6,871 |
|
$ |
8,593 |
|
|
$ |
6,813 |
|
$ |
7,257 |
|
$ |
6,902 |
|
$ |
7,004 |
|
|
$ |
7,948 |
|
$ |
7,664 |
|
Share-based compensation expense / (income) |
$ |
1,305 |
|
$ |
(673 |
) |
|
$ |
1,485 |
|
$ |
910 |
|
$ |
1,042 |
|
$ |
17 |
|
|
$ |
853 |
|
$ |
1,457 |
|
Restructuring charges and other exit charges |
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
$ |
11,344 |
|
|
$ |
(389 |
) |
$ |
427 |
|
Acquisition transaction costs |
$ |
390 |
|
|
— |
|
— |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
Total Adjusted EBITDA |
$ |
12,015 |
|
$ |
12,525 |
|
|
$ |
17,272 |
|
$ |
29,957 |
|
$ |
24,730 |
|
$ |
43,588 |
|
|
$ |
38,965 |
|
$ |
36,687 |
|
Note: The Company reclassified Financial Bad Debt from General and Administrative expenses to Cost of Revenue for the periods under analysis.
Quarterly Adjusted Net Income Reconciliation
(in millions, except as noted)
|
|
3Q22 |
|
|
4Q22 |
|
|
1Q23 |
|
|
2Q23 |
|
|
3Q23 |
|
|
4Q23 |
|
|
1Q24 |
|
|
2Q24 |
|
Net Income / (loss) |
$ |
(9.3 |
) |
$ |
(15.2 |
) |
$ |
(0.7 |
) |
$ |
28.0 |
|
$ |
(0.3 |
) |
$ |
(2.5 |
) |
$ |
13.8 |
|
$ |
13.4 |
|
Add (deduct): |
|
|
|
|
|
|
|
|
||||||||||||||||
Foreign exchange impact |
$ |
12.3 |
|
$ |
9.8 |
|
$ |
7.8 |
|
$ |
(2.2 |
) |
$ |
(4.4 |
) |
$ |
7.4 |
|
$ |
0.3 |
|
$ |
8.9 |
|
Acquisitions related expenses |
$ |
2.5 |
|
$ |
2.5 |
|
$ |
2.0 |
|
$ |
1.7 |
|
$ |
1.5 |
|
$ |
1.5 |
|
$ |
1.5 |
|
$ |
0.8 |
|
Share-based compensation expense /(income) |
$ |
1.3 |
|
$ |
(0.7 |
) |
$ |
1.5 |
|
$ |
0.9 |
|
$ |
1.0 |
|
$ |
— |
|
$ |
0.9 |
|
$ |
1.5 |
|
Impairment of long-lived assets |
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
Restructuring, reorganization and other exit activities charges |
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
6.8 |
|
$ |
(0.4 |
) |
$ |
0.4 |
|
Discontinued operations |
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
Amortization expense of intangible assets |
$ |
5.0 |
|
$ |
6.5 |
|
$ |
5.0 |
|
$ |
5.7 |
|
$ |
5.5 |
|
$ |
5.6 |
|
$ |
6.5 |
|
$ |
6.7 |
|
Items included in legal reserves related to transactional taxes |
$ |
0.4 |
|
$ |
0.7 |
|
$ |
— |
|
$ |
— |
|
$ |
(1.9 |
) |
$ |
1.0 |
|
$ |
0.2 |
|
$ |
(1.8 |
) |
Other atypical impacts not related to the normal course of business |
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
(14.3 |
) |
$ |
— |
|
$ |
(9.6 |
) |
$ |
— |
|
$ |
— |
|
Non-controlling interest impact of the aforementioned adjustments |
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
Tax impact of the non-GAAP adjustments and changes in tax estimates |
$ |
(4.0 |
) |
$ |
(0.9 |
) |
$ |
(2.3 |
) |
$ |
(13.7 |
) |
$ |
7.4 |
|
$ |
10.9 |
|
$ |
(0.4 |
) |
$ |
0.3 |
|
Total Adjusted Net Income |
$ |
8.2 |
|
$ |
2.7 |
|
$ |
13.3 |
|
$ |
6.1 |
|
$ |
8.8 |
|
$ |
21.1 |
|
$ |
22.4 |
|
$ |
30.2 |
|
2Q24 Earnings Conference Call
When: |
4:30 p.m. Eastern time, Aug 15, 2024 |
|
|
|
|
Who: |
Mr. Damián Scokin, Chief Executive Officer |
|
|
Mr. Amit Singh, Chief Financial Officer |
|
|
Mr. Luca Pfeifer, Investor Relations |
|
|
|
|
Dial-in: |
1 800 715 9871 ( |
Pre-Register: You may pre-register at any time: click here. To access Despegar’s financial results call via telephone, callers need to press # to be connected to an operator.
Webcast: CLICK HERE
Definitions and concepts
Average Selling Price (“ASP”): reflects Gross Bookings divided by the total number of Transactions.
Foreign Exchange (“FX”) Neutral: calculated by using the average monthly exchange rate of each month of the quarter and applying it to the corresponding months in the current year, so as to calculate what the results would have been had exchange rates remained constant. These calculations do not include any other macroeconomic effects such as local currency inflation effects.
Net Promoter Score (“NPS”): a customer loyalty and satisfaction metric that measures the willingness of customers to recommend a company, product, or service to others.
Gross Booking, net (“GB”): Gross Bookings is an operating measure that represents the aggregate purchase price of all travel products booked by the Company’s travel customers through its platform during a given period related to our travel business. In its quarterly earnings releases, Despegar presents Gross Bookings net of withholding taxes on international trips in
Seasonality: Despegar’s financial results experience fluctuations due to seasonal variations in demand for travel services. Despegar’s most significant market,
Packages: refers to custom packages formed through the combination of two or more travel products, which may include airline tickets, hotels, car rentals, or a combination of these. By bundling these items together and securing them in a single transaction, we can present customers with a unified package at a single, quoted price. This approach not only enables us to provide travelers with more affordable options compared to purchasing individual products separately but also facilitates the cross-selling of multiple products within a single transaction.
Total Adjusted EBITDA: is calculated as net income/(loss) exclusive of financial result, net, income tax, depreciation and amortization, impairment charges, stock-based compensation expense, restructuring, reorganization and other exit activities charges and acquisition transaction costs.
Total Adjusted Net Income: is calculated by adjusting net income/(loss), excluding: (a) foreign exchange gains or losses, (b) acquisition-related costs and amortization of intangibles, (c) share-based compensation for RSUs and SOPs, (d) impairment of long-lived assets, (e) restructuring, reorganization and other exit activities charges, (f) disposal costs of discontinued operations, (g) amortization of intangible assets not related to acquisitions, (h) legal reserves for transactional tax issues, settlements, and litigation advances, (i) extraordinary items outside normal operations, (j) adjustments affecting non-controlling interests, and (k) tax effects of these adjustments, tax estimate changes, and non-recurring income tax charges.
Total Revenue: The Company reports its revenue on a net basis for the majority of its transactions, deducting cancellations and amounts collected as sales taxes. The Company presents its revenue on a gross basis for some transactions when it pre-purchases flight seats. These transactions have been limited to date. Despegar derives substantially all of its revenue from commissions and incentive fees paid by its travel suppliers and service fees paid by the travelers for transactions through its platform. To a lesser extent, Despegar also derives revenue from advertising, its installment loans and Buy Now, Pay Later offered through the company’s fintech platform Koin and other sources (i.e. destination services, loyalty and interest revenue). For more additional information regarding Despegar’s revenue recognition policy, please refer to “Summary of significant accounting policies” note of Despegar’s Financial Statements.
Total Revenue Margin (also “Take Rate”): calculated as revenue divided by the sum of Gross Bookings and Total Payment Volume.
Total Payment Volume (“TPV”): is an operating measure that represents the US dollar loan volume processed by "Buy Now, Pay Later" financing solution during a specific period of time.
Reporting Business Segments: The Company operates a Travel Business and a Financial Services Business which are structured as follows:
Our travel business is comprised of two reportable segments: “Air” and “Packages, Hotels and Other Travel Products. Our “Air” segment primarily consists of facilitation services for the sale of airline tickets on a stand-alone basis and excludes airline tickets that are packaged with other non-airline flight products. Our “Packages, Hotels and Other Travel Products” segment primarily consists of facilitation services for the sale of travel packages (which can include airline tickets and hotel rooms), as well as stand-alone sales of hotel rooms (including vacation rentals), car rentals, bus tickets, cruise tickets, travel insurance and destination services. Both segments also include the sale of advertisements and incentives earned from suppliers.
Our financial services business is comprised of one reportable segment: “Financial Services”. Our “Financial Services” segment primarily consists of loan origination to our travel business’ customers and to customers of other merchants in various industries. Our “Financial Services” segment also consists of processing, fraud identification, credit scoring and IT services to our travel business, and to third-party merchants.
Transactions: We define the number of transactions as the total number of travel customer orders completed on our platform or the financing merchant customers (excluding Decolar) of the “Buy Now, Pay Later” solution during a given period. The number of transactions is an important metric because it is an indicator of the level of engagement with the Company’s customers and the scale of our business from period to period. However, unlike Gross Bookings, the number of transactions is independent of the average selling price of each transaction, which can be influenced by fluctuations in currency exchange rates among other factors.
Forward-Looking Statements
This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. We base these forward-looking statements on our current beliefs, expectations and projections about future events and trends affecting our business and our market. Many important factors could cause our actual results to differ substantially from those anticipated in our forward-looking statements. Forward-looking statements are not guarantees of future performance. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update publicly or to revise any forward-looking statements. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this press release. The words “believe,” “may,” “should,” “aim,” “estimate,” “continue,” “anticipate,” “intend,” “will,” “expect” and similar words are intended to identify forward-looking statements. Forward-looking statements include information concerning our possible or assumed future results of operations, business strategies, capital expenditures, financing plans, competitive position, industry environment, potential growth opportunities, the effects of future regulation and the effects of competition. Considering these limitations, you should not make any investment decision in reliance on forward-looking statements contained in this press release.
About Despegar.com
Despegar is the leading travel technology company in
Despegar operates in 20 countries in the region, accompanying Latin Americans from the moment they dream of traveling until they share their memories. With the purpose of improving people's lives and transforming the shopping experience, Despegar has developed alternative payment and financing methods, democratizing the access to consumption and bringing Latin Americans closer to their next travel experience. Despegar’s common shares are traded on the New York Stock Exchange (NYSE: DESP). For more information, visit Despegar’s Investor Relations website https://investor.despegar.com/.
About This Press Release
This press release does not contain sufficient information to constitute a complete set of interim financial statements in accordance with
Use of Non-GAAP Financial Measures
This earnings release includes certain references to Total Adjusted EBITDA and Total Adjusted Net Income, which are non-GAAP financial measures. For the year ended December 31, 2020, Despegar changed the calculation of Total Adjusted EBITDA reported to the chief operating decision maker to exclude restructuring charges and acquisition costs. The Company defines:
Total Adjusted EBITDA as net income/(loss) exclusive of financial result, net, income taxes, depreciation and amortization, impairment charges, stock-based compensation expense, restructuring, reorganization and other exit activities charges and acquisition transaction costs.
Total Adjusted Net Income: is calculated by adjusting net income/loss, excluding: (a) foreign exchange gains or losses, (b) acquisition-related costs and amortization of intangibles, (c) share-based compensation for RSUs and SOPs, (d) impairment of long-lived assets, (e) restructuring, reorganization and other exit activities charges, (f) disposal costs of discontinued operations, (g) amortization of intangible assets not related to acquisitions, (h) legal reserves for transactional tax issues, settlements, and litigation advances, (i) extraordinary items outside normal operations, (j) adjustments affecting non-controlling interests, and (k) tax effects of these adjustments, tax estimate changes, and non-recurring income tax charges.
Neither Adjusted EBITDA nor Adjusted Net Income are a measure recognized under
To supplement its consolidated financial statements presented in accordance with
Non-GAAP measures should not be considered in isolation or as a substitute for measures of performance prepared in accordance with
On page 11 of this earnings release the company shows FX neutral measures to the most directly comparable GAAP measure. The Company believes that comparing FX neutral measures to the most directly comparable GAAP measure provides investors an overall understanding of our current financial performance and its prospects for the future. Specifically, we believe this non-GAAP measure provides useful information to both management and investors by excluding the foreign currency exchange rate impact that may not be indicative of our core operating results and business outlook.
The FX neutral measures were calculated by using the average monthly exchange rates for each month during 2023 and applying them to the corresponding months in 2024, so as to calculate what results would have been had exchange rates remained stable from one year to the next. The table below excludes intercompany allocation FX effects. Finally, this measure does not include any other macroeconomic effect such as local currency inflation effects, the impact on impairment calculations or any price adjustment to compensate for local currency inflation or devaluations.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240815068623/en/
IR Contact
Luca Pfeifer
Investor Relations
Phone: (+1) 305 481 1785
E-mail: luca.pfeifer@despegar.com
Source: Despegar.com, Corp.
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