Despegar.com Announces 4Q24 and FY24 Financial Results
4Q24 Revenue increased Rising
FY24 Revenue Grew
4Q24 Financial and Operating Highlights
(for definitions, see page 13)
-
On March 4, 2025, Despegar held a special meeting of shareholders where shareholders accounting for
73.7% of Despegar’s ordinary shares entitled to vote were present in person or by proxy, representing a quorum. Of the total votes cast, approximately94.7% were in favor of the proposal to adopt and approve the agreement and plan of merger under which Prosus, a leading global technology company, will acquire Despegar for$19.50 -
Gross Bookings decreased
1% YoY, on an as-reported basis mainly due to FX headwinds. On a Foreign Exchange (“FX”) neutral basis, Gross Bookings increased38% YoY to$1.5 billion -
On an as-reported basis, Revenues increased
8.7% YoY to$221.4 million 14.7% . Revenues on a FX neutral basis increased44% YoY. -
Adjusted EBITDA increased
18% YoY to$51.5 million 36.1% of Gross Bookings. As a result, Adjusted EBITDA margin expanded 187 bps YoY, to23.3% . -
Net Loss of
$(8.3) million $(0.19) $(0.08) -
Adjusted Net Income increased
45% YoY, reaching$30.6 million $21.1 million $0.27 $0.16 -
Loyalty Program members increased
41% YoY from 23.0 million to 32.5 million -
App transactions rose by 864 bps YoY, attaining a record-high share of
53.6% of total transactions during the quarter -
B2B and White Label Gross Bookings increased
28% and30% YoY, respectively, and together accounted for18% of total Gross Bookings, reflecting a YoY expansion of 418 basis points -
Total Cash, cash equivalents and restricted cash position of
$247 million $27.5 million $27.7 million $1 million - In January 2025, Despegar partnered with HBX Group to expand its travel inventory, offering customers more lodging options and enhanced travel packages
Full-Year 2024 Financial and Operating Highlights
-
Total Gross Bookings reached
$5.5 billion 2% YoY increase -
Total Revenue grew by
10% YoY to$774.1 million $706.0 million $760 million -
Adjusted EBITDA increased
52% YoY to$175.2 million $5 million $170 million 13.9% YoY from$24.5 million $27.9 million - Included in Russell 2000 and Russell 3000 equity indexes, on July 1, 2024
- In 3Q24, Despegar formed a strategic alliance with World2Meet, leading to the divestiture of its Destination Management Company, BDexperience. The transaction included the transfer of nearly 600 employees to World2Meet
- Renewed its lodging outsourcing agreement with Expedia, solidifying its strategic partnership with the company
-
In 3Q24, signed its first SaaS partnership with Karisma Hotels & Resorts, licensing
SOFIA , Despegar’s AI travel assistant to enhance guest experiences and unlock new revenue streams
Damian Scokin, Despegar’s CEO, said:
“We believe Despegar delivered strong results in 4Q24 and FY 2024, underscoring market leadership through key milestones. During the year we launched
In late 2024 we signed a definitive merger agreement for Prosus to acquire Despegar at a price of
Amit Singh, the Company’s CFO, added: “We are pleased to report that our fourth quarter revenue grew by
Key Operating and Financial Metrics
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.
(in millions, except as noted)
|
|
4Q24 |
|
|
4Q23 |
|
Δ % |
FY24 |
FY'23 |
Δ % |
||||||
Operating metrics |
|
|
|
|
|
|
||||||||||
Number of transactions |
|
2.621 |
|
|
2.409 |
|
9 |
% |
|
9.719 |
|
|
9.059 |
|
7 |
% |
Gross bookings |
$ |
1,500.7 |
|
$ |
1,514.3 |
|
(1 |
)% |
$ |
5,452.8 |
|
$ |
5,332.5 |
|
2 |
% |
TPV Financial Services (1) |
$ |
18.6 |
|
$ |
24.8 |
|
(25 |
)% |
$ |
75.7 |
|
$ |
78.0 |
|
(3 |
)% |
Average selling price (ASP) (in $) |
$ |
574 |
|
$ |
629 |
|
(9 |
)% |
$ |
562 |
|
$ |
590 |
|
(5 |
)% |
Number of transactions by Segment & Total |
||||||||||||||||
Air |
|
1.2 |
|
|
1.2 |
|
4 |
% |
|
4.6 |
|
|
4.4 |
|
6 |
% |
Packages, Hotels & Other Travel Products |
|
1.3 |
|
|
1.2 |
|
8 |
% |
|
5.0 |
|
|
4.7 |
|
6 |
% |
Financial Services |
|
0.1 |
|
|
0.0 |
|
729 |
% |
|
0.1 |
|
|
0.0 |
|
311 |
% |
Total Number of Transactions |
|
2.6 |
|
|
2.4 |
|
9 |
% |
|
9.7 |
|
|
9.1 |
|
7 |
% |
Financial metrics |
|
|
|
|
|
|
||||||||||
Total Revenue |
$ |
221.4 |
|
$ |
203.7 |
|
9 |
% |
$ |
774.1 |
|
$ |
706.0 |
|
10 |
% |
Total Adjusted EBITDA (2) |
$ |
51.5 |
|
$ |
43.6 |
|
18 |
% |
$ |
175.2 |
|
$ |
115.5 |
|
52 |
% |
Net (Loss) / Income |
$ |
(8.3 |
) |
$ |
(2.5 |
) |
230 |
% |
$ |
27.9 |
|
$ |
24.5 |
|
14 |
% |
Net (Loss) / Income attributable to Despegar.com, Corp |
$ |
(8.3 |
) |
$ |
(2.5 |
) |
230 |
% |
$ |
27.9 |
|
$ |
24.5 |
|
14 |
% |
Plus: Accretion of Series A Preferred Stock |
$ |
(3.9 |
) |
$ |
(3.5 |
) |
12 |
% |
$ |
(15.0 |
) |
$ |
(13.3 |
) |
12 |
% |
Plus: Accrual of dividends of Series A Preferred Stock |
$ |
(3.8 |
) |
$ |
(4.0 |
) |
(5 |
)% |
$ |
(15.2 |
) |
$ |
(15.7 |
) |
(3 |
)% |
Plus: Accrual of dividends of Series B Preferred Stock |
$ |
— |
|
$ |
(0.5 |
) |
(100 |
)% |
$ |
(0.5 |
) |
$ |
(2.0 |
) |
(75 |
)% |
(Loss) / Income attributable to common stockholders |
$ |
(16.0 |
) |
$ |
(5.9 |
) |
169 |
% |
$ |
(2.8 |
) |
$ |
(6.6 |
) |
(57 |
)% |
Total share count - Common Stock |
|
84,426 |
|
|
72,908 |
|
16 |
% |
|
84,426 |
|
|
72,908 |
|
16 |
% |
Average Shares Outstanding - Basic (3) |
|
83,234 |
|
|
77,325 |
|
8 |
% |
|
81,748 |
|
|
77,170 |
|
6 |
% |
Average Shares Outstanding - Diluted (3) |
|
83,234 |
|
|
77,325 |
|
8 |
% |
|
81,748 |
|
|
77,170 |
|
6 |
% |
EPS Basic (4) |
$ |
(0.19 |
) |
$ |
(0.08 |
) |
150 |
% |
$ |
(0.03 |
) |
$ |
(0.09 |
) |
(60 |
)% |
EPS Diluted (4) |
$ |
(0.19 |
) |
$ |
(0.08 |
) |
150 |
% |
$ |
(0.03 |
) |
$ |
(0.09 |
) |
(60 |
)% |
(1) |
Presented on a pre intersegment elimination basis. Intersegment TPV amounted to |
|
(2) |
Financial services segment reported a Total Adjusted EBITDA of positive |
|
(3) |
In thousands |
|
(4) |
Round numbers. |
Revenue Breakdown
(in millions, except as noted)
The following table reconciles the intersegment revenues of the Company’s three business segments for the quarters and full year ended December 31, 2024 and 2023:
|
4Q24 |
4Q23 |
Δ % |
FY'24 |
FY'23 |
Δ % |
||||||||||||||||||
$ |
% of total |
$ |
% of total |
$ |
% of total |
$ |
% of total |
|||||||||||||||||
Revenue by business segment |
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Travel Business |
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Air Segment |
$ |
73.8 |
|
34 |
% |
$ |
74.6 |
|
36 |
% |
-1 |
% |
$ |
262.5 |
|
34 |
% |
$ |
257.6 |
|
36 |
% |
2 |
% |
Packages, Hotels & Other Travel Products Segment |
$ |
142.3 |
|
64 |
% |
$ |
125.6 |
|
62 |
% |
13 |
% |
$ |
494.0 |
|
64 |
% |
$ |
437.0 |
|
62 |
% |
13 |
% |
Total Travel Business |
$ |
216.1 |
|
98 |
% |
$ |
200.2 |
|
98 |
% |
8 |
% |
$ |
756.5 |
|
98 |
% |
$ |
694.6 |
|
98 |
% |
9 |
% |
Financial Business |
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Financial Services Segment |
$ |
14.1 |
|
6 |
% |
$ |
13.5 |
|
7 |
% |
4 |
% |
$ |
51.1 |
|
6 |
% |
$ |
40.9 |
|
6 |
% |
25 |
% |
Total Financial Business |
$ |
14.1 |
|
6 |
% |
$ |
13.5 |
|
7 |
% |
4 |
% |
$ |
51.1 |
|
6 |
% |
$ |
40.9 |
|
6 |
% |
25 |
% |
Intersegment Eliminations |
$ |
(8.8 |
) |
(4 |
)% |
$ |
(10.1 |
) |
(5 |
)% |
(13 |
)% |
$ |
(33.5 |
) |
(4 |
)% |
$ |
(29.5 |
) |
(4 |
)% |
13 |
% |
Total Revenue |
$ |
221.4 |
|
100 |
% |
$ |
203.7 |
|
100 |
% |
9 |
% |
$ |
774.1 |
|
100 |
% |
$ |
706.0 |
|
100 |
% |
10 |
% |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total Revenue Margin (Take Rate) |
|
14.7 |
% |
|
|
13.4 |
% |
|
126 bps |
|
14.2 |
% |
|
|
13.2 |
% |
|
95 bps |
||||||
-- Financial Tables Follow --
Unaudited Consolidated Statements of Operations for the three-month periods and full year ended December 31, 2024 and 2023 (in thousands of |
||||||||||||||||
|
||||||||||||||||
|
|
4Q24 |
|
|
4Q23 |
|
Δ % |
FY'24 |
FY'23 |
Δ % |
||||||
Revenue |
$ |
221,425 |
|
$ |
203,660 |
|
9 |
% |
$ |
774,061 |
|
$ |
706,040 |
|
10 |
% |
Cost of revenue |
$ |
(53,644 |
) |
$ |
(60,312 |
) |
(11 |
)% |
$ |
(208,142 |
) |
$ |
(228,938 |
) |
(9 |
)% |
Gross profit |
$ |
167,781 |
|
$ |
143,348 |
|
17 |
% |
$ |
565,919 |
|
$ |
477,102 |
|
19 |
% |
Operating expenses |
|
|
|
|
|
|
||||||||||
Selling and marketing |
$ |
(74,078 |
) |
$ |
(60,245 |
) |
23 |
% |
$ |
(250,741 |
) |
$ |
(220,361 |
) |
14 |
% |
General and administrative |
$ |
(29,019 |
) |
$ |
(25,316 |
) |
15 |
% |
$ |
(80,309 |
) |
$ |
(77,766 |
) |
3 |
% |
Technology and product development |
$ |
(30,707 |
) |
$ |
(30,271 |
) |
1 |
% |
$ |
(107,958 |
) |
$ |
(109,130 |
) |
(1 |
)% |
Other operating expense, net |
$ |
(2,598 |
) |
$ |
(4,546 |
) |
(43 |
)% |
$ |
(2,940 |
) |
$ |
(4,546 |
) |
(35 |
)% |
Total operating expenses |
$ |
(136,402 |
) |
$ |
(120,378 |
) |
13 |
% |
$ |
(441,948 |
) |
$ |
(411,803 |
) |
7 |
% |
|
|
|
|
|
|
|
||||||||||
Income / (Loss) from equity investments |
$ |
64 |
|
$ |
60 |
|
7 |
% |
$ |
(842 |
) |
$ |
(1,060 |
) |
(21 |
)% |
Operating income |
$ |
31,443 |
|
$ |
23,030 |
|
37 |
% |
$ |
123,129 |
|
$ |
64,239 |
|
92 |
% |
Financial result, net |
$ |
(36,430 |
) |
$ |
(16,875 |
) |
116 |
% |
$ |
(89,072 |
) |
$ |
(36,633 |
) |
143 |
% |
Net (Loss) / Income before income taxes |
$ |
(4,987 |
) |
$ |
6,155 |
|
n.m. |
$ |
34,057 |
|
$ |
27,606 |
|
23 |
% |
|
Income tax expense |
$ |
(3,276 |
) |
$ |
(8,656 |
) |
(62 |
)% |
$ |
(6,152 |
) |
$ |
(3,116 |
) |
97 |
% |
Net (Loss) / Income |
$ |
(8,263 |
) |
$ |
(2,501 |
) |
230 |
% |
$ |
27,905 |
|
$ |
24,490 |
|
14 |
% |
Net (Loss) / Income attributable to Despegar.com, Corp |
$ |
(8,263 |
) |
$ |
(2,501 |
) |
230 |
% |
$ |
27,905 |
|
$ |
24,490 |
|
14 |
% |
n.m.: Not Meaningful |
||||||||||||||||
Unaudited Consolidated Balance Sheet as of December 31, 2024 and September 30, 2024 (in thousands of |
|||||||
|
|||||||
|
As of December 31, 2024 |
|
As of September 30, 2024 |
||||
ASSETS |
|
||||||
Current assets |
|
|
|
||||
Cash and cash equivalents |
$ |
222,793 |
|
|
$ |
176,054 |
|
Restricted cash |
$ |
23,681 |
|
|
$ |
42,757 |
|
Trade accounts receivable, net of credit expected loss |
$ |
251,948 |
|
|
$ |
250,627 |
|
Loan receivables, net |
$ |
16,567 |
|
|
$ |
17,124 |
|
Related party receivable |
$ |
18,595 |
|
|
$ |
16,588 |
|
Other assets and prepaid expenses |
$ |
57,264 |
|
|
$ |
49,677 |
|
Total current assets |
$ |
590,848 |
|
|
$ |
552,827 |
|
Non-current assets |
|
|
|
||||
Restricted Cash |
$ |
742 |
|
|
$ |
866 |
|
Other assets and prepaid expenses |
$ |
74,161 |
|
|
$ |
75,986 |
|
Loan receivables, net |
$ |
374 |
|
|
$ |
660 |
|
Lease right-of-use assets |
$ |
15,590 |
|
|
$ |
17,025 |
|
Property and equipment, net |
$ |
14,190 |
|
|
$ |
16,782 |
|
Intangible assets, net |
$ |
83,050 |
|
|
$ |
85,396 |
|
Goodwill |
$ |
125,832 |
|
|
$ |
129,980 |
|
Total non-current assets |
$ |
313,939 |
|
|
$ |
326,695 |
|
TOTAL ASSETS |
$ |
904,787 |
|
|
$ |
879,522 |
|
LIABILITIES AND SHAREHOLDERS’ DEFICIT |
|
|
|
||||
Current liabilities |
|
|
|
||||
Accounts payable and accrued expenses |
$ |
58,460 |
|
|
$ |
73,588 |
|
Travel accounts payable |
$ |
357,817 |
|
|
$ |
346,794 |
|
Related party payable |
$ |
101,365 |
|
|
$ |
92,017 |
|
Short-term debt and other financial liabilities |
$ |
49,625 |
|
|
$ |
34,623 |
|
Deferred Revenue |
$ |
35,492 |
|
|
$ |
37,205 |
|
Other liabilities |
$ |
83,657 |
|
|
$ |
65,512 |
|
Contingent liabilities |
$ |
7,416 |
|
|
$ |
7,162 |
|
Lease Liabilities |
$ |
5,205 |
|
|
$ |
5,504 |
|
Total current liabilities |
$ |
699,037 |
|
|
$ |
662,405 |
|
Non-current liabilities |
|
|
|
||||
Other liabilities |
$ |
7,313 |
|
|
$ |
7,801 |
|
Contingent liabilities |
$ |
10,335 |
|
|
$ |
12,767 |
|
Long term debt and other financial liabilities |
$ |
904 |
|
|
$ |
1,294 |
|
Lease liabilities |
$ |
11,062 |
|
|
$ |
12,798 |
|
Related party liability |
$ |
125,000 |
|
|
$ |
125,000 |
|
Deferred Revenue |
$ |
3,500 |
|
|
$ |
4,097 |
|
Total non-current liabilities |
$ |
158,114 |
|
|
$ |
163,757 |
|
TOTAL LIABILITIES |
$ |
857,151 |
|
|
$ |
826,162 |
|
Series A non-convertible preferred shares |
$ |
142,044 |
|
|
$ |
134,335 |
|
Mezzanine Equity |
$ |
142,044 |
|
|
$ |
134,335 |
|
SHAREHOLDERS’ DEFICIT |
|
|
|
||||
Common stock |
$ |
302,270 |
|
|
$ |
292,556 |
|
Additional paid-in capital |
$ |
239,915 |
|
|
$ |
251,025 |
|
Other reserves |
$ |
(728 |
) |
|
$ |
(728 |
) |
Accumulated other comprehensive loss |
$ |
(34,150 |
) |
|
$ |
(30,377 |
) |
Accumulated losses |
$ |
(590,927 |
) |
|
$ |
(582,664 |
) |
Treasury Stock |
$ |
(10,788 |
) |
|
$ |
(10,787 |
) |
Total Shareholders' Deficit |
$ |
(94,408 |
) |
|
$ |
(80,975 |
) |
TOTAL LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS’ DEFICIT |
$ |
904,787 |
|
|
$ |
879,522 |
|
Unaudited Statements of Cash Flows for the three-month periods ended December 31, 2024 and 2023 (in thousands of |
|||||||
|
|||||||
|
3 months ended December 31, |
||||||
|
|
2024 |
|
|
|
2023 |
|
Cash flows from operating activities |
|
|
|
||||
Net Loss |
$ |
(8,263 |
) |
|
$ |
(2,501 |
) |
Adjustments to reconcile net income / (loss) to net cash flows from operating activities: |
|
|
|
||||
Unrealized foreign currency loss |
$ |
736 |
|
|
$ |
17,645 |
|
Depreciation expense |
$ |
3,093 |
|
|
$ |
2,193 |
|
Amortization expense |
$ |
8,068 |
|
|
$ |
7,004 |
|
Other operating expenses, net (including loss from sale of non-air segment line of business) |
$ |
306 |
|
|
$ |
4,546 |
|
Changes in fair value of earnout liability |
$ |
— |
|
|
$ |
1,211 |
|
Changes in seller indemnification |
$ |
— |
|
|
$ |
(1,211 |
) |
Gain from equity investments |
$ |
(64 |
) |
|
$ |
(60 |
) |
Stock based compensation expense |
$ |
6,305 |
|
|
$ |
17 |
|
Amortization of lease right-of-use assets |
$ |
1,669 |
|
|
$ |
3,961 |
|
Interest and penalties |
$ |
1,056 |
|
|
$ |
1,074 |
|
Income tax expense |
$ |
842 |
|
|
$ |
1,177 |
|
Allowance for credit expected losses |
$ |
2,859 |
|
|
$ |
2,674 |
|
Provision for contingencies |
$ |
569 |
|
|
$ |
4,049 |
|
Changes in assets and liabilities net of non-cash transactions: |
|
|
|
||||
Increase in trade accounts receivable, net of credit expected loss |
$ |
(28,249 |
) |
|
$ |
(5,190 |
) |
Increase in loans receivable, net of allowance |
$ |
(5,710 |
) |
|
$ |
(6,849 |
) |
Increase in related party receivables |
$ |
(2,021 |
) |
|
$ |
(5,471 |
) |
Increase in other assets and prepaid expenses |
$ |
(18,039 |
) |
|
$ |
(34,001 |
) |
Decrease in accounts payable and accrued expenses |
$ |
(11,692 |
) |
|
$ |
(9,573 |
) |
Increase in travel accounts payable |
$ |
43,667 |
|
|
$ |
9,654 |
|
Increase in other liabilities, net |
$ |
22,339 |
|
|
$ |
24,480 |
|
Decrease in contingent liabilities |
$ |
(938 |
) |
|
$ |
(5,846 |
) |
Increase in related party payable |
$ |
14,718 |
|
|
$ |
17,032 |
|
Decrease in lease liabilities |
$ |
(3,504 |
) |
|
$ |
(4,067 |
) |
(Decrease) / Increase in deferred revenue |
$ |
(68 |
) |
|
$ |
4,186 |
|
Net cash flows provided by operating activities |
$ |
27,679 |
|
|
$ |
26,134 |
|
Cash flows from investing activities: |
|
|
|
||||
Origination of loans receivable, net of allowance |
$ |
(1,675 |
) |
|
$ |
(3,166 |
) |
Loans receivables |
$ |
2,715 |
|
|
$ |
1,388 |
|
Acquisition of property and equipment |
$ |
(1,298 |
) |
|
$ |
(3,723 |
) |
Capital expenditures, including internal-use software and website development |
$ |
(7,417 |
) |
|
$ |
(7,451 |
) |
Net cash flows used in investing activities |
$ |
(7,675 |
) |
|
$ |
(12,952 |
) |
Cash flows from financing activities: |
|
|
|
||||
Net decrease of short-term debt |
$ |
(4,957 |
) |
|
$ |
(54 |
) |
Proceeds from issuance of short-term debt |
$ |
36,311 |
|
|
$ |
11,030 |
|
Payment of short-term debt |
$ |
(13,546 |
) |
|
$ |
(5,836 |
) |
Payment of long-term debt |
$ |
(310 |
) |
|
$ |
(339 |
) |
Payment of dividends to stockholders |
$ |
— |
|
|
$ |
(504 |
) |
Payment of promissory notes of Best Day acquisition |
$ |
— |
|
|
$ |
(16,648 |
) |
Exercise of stock-based awards |
$ |
13 |
|
|
$ |
4 |
|
Collected from debenture issuance by securitization program |
$ |
— |
|
|
$ |
256 |
|
Payments of debenture issuance by securitization program |
$ |
(240 |
) |
|
$ |
(383 |
) |
Net cash flow provided by / (used in) financing activities |
$ |
17,271 |
|
|
$ |
(12,474 |
) |
Effect of exchange rate changes on cash and cash equivalents |
$ |
(9,736 |
) |
|
$ |
(5,626 |
) |
Net increase / (decrease) in cash and cash equivalents |
$ |
27,539 |
|
|
$ |
(4,918 |
) |
Cash and cash equivalents and restricted cash as of beginning of the period |
$ |
219,677 |
|
|
$ |
255,707 |
|
Cash and cash equivalents and restricted cash as of end of period |
$ |
247,216 |
|
|
$ |
250,789 |
|
Adjusted EBITDA Reconciliation |
||||||||
(in Thousands, except as noted) |
||||||||
|
||||||||
|
|
4Q24 |
|
|
4Q23 |
|
Δ % |
|
Net Loss |
$ |
(8,263 |
) |
$ |
(2,501 |
) |
230 |
% |
Add (deduct): |
|
|
|
|||||
Financial result, net |
$ |
36,430 |
|
$ |
16,875 |
|
116 |
% |
Income tax expense |
$ |
3,276 |
|
$ |
8,656 |
|
(62 |
)% |
Depreciation expense |
$ |
3,093 |
|
$ |
2,193 |
|
41 |
% |
Amortization expense |
$ |
8,068 |
|
$ |
7,004 |
|
15 |
% |
Share-based compensation expense |
$ |
6,305 |
|
$ |
17 |
|
36988 |
% |
Restructuring, reorganization and other exit activities charges |
$ |
2,598 |
|
$ |
11,344.0 |
|
(77 |
)% |
Total Adjusted EBITDA |
$ |
51,507 |
|
$ |
43,588 |
|
18 |
% |
n.m.: Not Meaningful |
||||||||
Adjusted Net Income Reconciliation (in Thousands, except as noted) |
||||||||
|
|
4Q24 |
|
|
4Q23 |
|
Δ % |
|
Net Loss |
$ |
(8,263 |
) |
$ |
(2,501 |
) |
230 |
% |
Add (deduct): |
|
|
|
|||||
(a) Foreign Exchange (FX) and Blue Chip Swap impact |
$ |
29,542 |
|
$ |
7,362 |
|
301 |
% |
(b) Acquisitions related expenses |
$ |
948 |
|
$ |
1,467 |
|
(35 |
)% |
(c) Share-based compensation expense |
$ |
6,305 |
|
$ |
17 |
|
37791 |
% |
(d) Impairment of long-lived assets |
$ |
— |
|
$ |
— |
|
— |
% |
(e) Restructuring, reorganization and other exit activities charges |
$ |
2,154 |
|
$ |
6,798 |
|
(68 |
)% |
(f) Discontinued operations |
$ |
— |
|
$ |
— |
|
— |
% |
(g) Amortization expense of intangible assets |
$ |
7,144 |
|
$ |
5,626 |
|
27 |
% |
(h) Items included in legal reserves related to transactional taxes |
$ |
74 |
|
$ |
979 |
|
(92 |
)% |
(i) Other atypical impacts not related to the normal course of business |
$ |
— |
|
$ |
(9,573 |
) |
(100 |
)% |
(j) Non-controlling interest impact of the aforementioned adjustments |
$ |
— |
|
$ |
— |
|
— |
% |
(k) Tax impact of the non-GAAP adjustments and changes in tax estimates |
$ |
(7,317 |
) |
$ |
10,900 |
|
n.m. |
|
Total Adjusted Net Income |
$ |
30,587 |
|
$ |
21,075 |
|
45 |
% |
Adjusted EPS basic (1) |
$ |
0.27 |
|
$ |
0.16 |
|
74 |
% |
Adjusted EPS diluted (1) |
$ |
0.27 |
|
$ |
0.16 |
|
72 |
% |
(1) In |
||||||||
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 (FX) and Blue Chip Swap impact |
(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) Reflects the tax impact of Non-GAAP adjustments above as applicable, and changes in tax estimates. |
Geographic Breakdown |
|||||||||||||||||||
(in millions, except as noted) |
|||||||||||||||||||
|
|||||||||||||||||||
4Q24 vs. 4Q23 - As Reported |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
Rest of |
|
Total |
||||||||||||
|
4Q24 |
4Q23 |
Δ % |
|
4Q24 |
4Q23 |
Δ % |
|
4Q24 |
4Q23 |
Δ % |
|
4Q24 |
4Q23 |
Δ % |
||||
Transactions ('000) |
1,224 |
1,084 |
13 |
% |
|
337 |
419 |
-20 |
% |
|
1,060 |
906 |
17 |
% |
|
2,621 |
2,409 |
9 |
% |
Gross Bookings |
566 |
617 |
-8 |
% |
|
214 |
253 |
-15 |
% |
|
721 |
645 |
12 |
% |
|
1,501 |
1,514 |
-1 |
% |
TPV Financial Services (1) |
18 |
25 |
-26 |
% |
|
— |
— |
— |
% |
|
— |
— |
— |
% |
|
19 |
25 |
-25 |
% |
ASP ($) |
470 |
570 |
-18 |
% |
|
636 |
604 |
5 |
% |
|
680 |
712 |
-5 |
% |
|
574 |
629 |
-9 |
% |
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
221 |
204 |
9 |
% |
|||
Gross Profit |
|
|
|
|
|
|
|
|
|
|
|
|
168 |
143 |
17 |
% |
|||
4Q24 vs. 4Q23 - FX Neutral |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
Rest of |
|
Total |
||||||||||||
|
4Q24 |
4Q23 |
Δ % |
|
4Q24 |
4Q23 |
Δ % |
|
4Q24 |
4Q23 |
Δ % |
|
4Q24 |
4Q23 |
Δ % |
||||
Transactions ('000) |
1,224 |
1,084 |
13 |
% |
|
337 |
419 |
-20 |
% |
|
1,060 |
906 |
17 |
% |
|
2,621 |
2,409 |
9 |
% |
Gross Bookings |
665 |
617 |
8 |
% |
|
246 |
253 |
-3 |
% |
|
1,178 |
645 |
83 |
% |
|
2,089 |
1,514 |
38 |
% |
TPV Financial Services (1) |
22 |
25 |
-13 |
% |
|
— |
— |
— |
% |
|
|
— |
— |
% |
|
22 |
25 |
-12 |
% |
ASP ($) |
553 |
570 |
-3 |
% |
|
729 |
604 |
21 |
% |
|
1,111 |
712 |
56 |
% |
|
801 |
629 |
27 |
% |
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
294 |
204 |
44 |
% |
|||
Gross Profit |
|
|
|
|
|
|
|
|
|
|
|
|
215 |
143 |
50 |
% |
|||
(1) Presented on a pre intersegment elimination basis. Intersegment TPV amounted to |
|||||||||||||||||||
Key Financial Trended Metrics |
|||||||||||||||||||||||||
(in thousands of |
|||||||||||||||||||||||||
|
|||||||||||||||||||||||||
|
|
1Q23 |
|
|
2Q23 |
|
|
3Q23 |
|
|
4Q23 |
|
|
|
1Q24 |
|
|
2Q24 |
|
|
3Q24 |
|
|
4Q24 |
|
FINANCIAL RESULTS |
|
|
|
|
|
|
|
|
|
||||||||||||||||
Revenue |
$ |
158,707 |
|
$ |
165,524 |
|
$ |
178,149 |
|
$ |
203,660 |
|
|
$ |
173,660 |
|
$ |
185,047 |
|
$ |
193,929 |
|
$ |
221,425 |
|
Cost of revenue |
$ |
(51,027 |
) |
$ |
(60,000 |
) |
$ |
(57,599 |
) |
$ |
(60,312 |
) |
|
$ |
(51,756 |
) |
$ |
(51,952 |
) |
$ |
(50,790 |
) |
$ |
(53,644 |
) |
Gross profit |
$ |
107,680 |
|
$ |
105,524 |
|
$ |
120,550 |
|
$ |
143,348 |
|
|
$ |
121,904 |
|
$ |
133,095 |
|
$ |
143,139 |
|
$ |
167,781 |
|
Operating expenses |
|
|
|
|
|
|
|
|
|
||||||||||||||||
Selling and marketing |
$ |
(51,892 |
) |
$ |
(51,695 |
) |
$ |
(56,529 |
) |
$ |
(60,245 |
) |
|
$ |
(53,357 |
) |
$ |
(62,933 |
) |
$ |
(60,373 |
) |
$ |
(74,078 |
) |
General and administrative |
$ |
(22,672 |
) |
$ |
(8,396 |
) |
$ |
(21,382 |
) |
$ |
(25,316 |
) |
|
$ |
(16,027 |
) |
$ |
(16,802 |
) |
$ |
(18,461 |
) |
$ |
(29,019 |
) |
Technology and product development |
$ |
(25,971 |
) |
$ |
(26,448 |
) |
$ |
(26,440 |
) |
$ |
(30,271 |
) |
|
$ |
(23,367 |
) |
$ |
(27,138 |
) |
$ |
(26,746 |
) |
$ |
(30,707 |
) |
Other operating expense, net |
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
(4,546 |
) |
|
$ |
— |
|
$ |
— |
|
|
(342 |
) |
$ |
(2,598 |
) |
Total operating expenses |
$ |
(100,535 |
) |
$ |
(86,539 |
) |
$ |
(104,351 |
) |
$ |
(120,378 |
) |
|
$ |
(92,751 |
) |
$ |
(106,873 |
) |
$ |
(105,922 |
) |
$ |
(136,402 |
) |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Gain / (loss) from equity investments |
$ |
113 |
|
$ |
(285 |
) |
$ |
(948 |
) |
$ |
60 |
|
|
$ |
(244 |
) |
$ |
(80 |
) |
$ |
(582 |
) |
$ |
64 |
|
Operating income |
$ |
7,258 |
|
$ |
18,700 |
|
$ |
15,251 |
|
$ |
23,030 |
|
|
$ |
28,909 |
|
$ |
26,142 |
|
$ |
36,635 |
|
$ |
31,443 |
|
Financial results, net |
$ |
(12,595 |
) |
$ |
(3,948 |
) |
$ |
(3,215 |
) |
$ |
(16,875 |
) |
|
$ |
(8,832 |
) |
$ |
(14,464 |
) |
$ |
(29,346 |
) |
$ |
(36,430 |
) |
Net (Loss) / Income before income taxes |
$ |
(5,337 |
) |
$ |
14,752 |
|
$ |
12,036 |
|
$ |
6,155 |
|
|
$ |
20,077 |
|
$ |
11,678 |
|
$ |
7,289 |
|
$ |
(4,987 |
) |
Income tax benefit / (expense) |
$ |
4,640 |
|
$ |
13,251 |
|
$ |
(12,351 |
) |
$ |
(8,656 |
) |
|
$ |
(6,274 |
) |
$ |
1,759 |
|
$ |
1,639 |
|
$ |
(3,276 |
) |
Net (Loss) / Income |
$ |
(697 |
) |
$ |
28,003 |
|
$ |
(315 |
) |
$ |
(2,501 |
) |
|
$ |
13,803 |
|
$ |
13,437 |
|
$ |
8,928 |
|
$ |
(8,263 |
) |
Net (Loss) / Income attributable to non-controlling interest |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
— |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Net (Loss) / Income attributable to Despegar.com, Corp |
$ |
(697 |
) |
$ |
28,003 |
|
$ |
(315 |
) |
$ |
(2,501 |
) |
|
$ |
13,803 |
|
$ |
13,437 |
|
$ |
8,928 |
|
$ |
(8,263 |
) |
Adjusted EBITDA |
$ |
17,272 |
|
$ |
29,957 |
|
$ |
24,730 |
|
$ |
43,588 |
|
|
$ |
38,965 |
|
$ |
36,687 |
|
$ |
48,034 |
|
$ |
51,507 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Net (Loss) / Income |
$ |
(697 |
) |
$ |
28,003 |
|
$ |
(315 |
) |
$ |
(2,501 |
) |
|
$ |
13,803 |
|
$ |
13,437 |
|
$ |
8,928 |
|
$ |
(8,263 |
) |
Add (deduct): |
|
|
|
|
|
|
|
|
|
||||||||||||||||
Financial results, net |
$ |
12,595 |
|
$ |
3,948 |
|
$ |
3,215 |
|
$ |
16,875 |
|
|
$ |
8,832 |
|
$ |
14,464 |
|
$ |
29,346 |
|
$ |
36,430 |
|
Income tax (benefit) / expense |
$ |
(4,640 |
) |
$ |
(13,251 |
) |
$ |
12,351 |
|
$ |
8,656 |
|
|
$ |
6,274 |
|
$ |
(1,759 |
) |
$ |
(1,639 |
) |
$ |
3,276 |
|
Depreciation expense |
$ |
1,716 |
|
$ |
3,091 |
|
$ |
1,535 |
|
$ |
2,193 |
|
|
$ |
1,644 |
|
$ |
997 |
|
$ |
1,476 |
|
$ |
3,093 |
|
Amortization expense |
$ |
6,813 |
|
$ |
7,257 |
|
$ |
6,902 |
|
$ |
7,004 |
|
|
$ |
7,948 |
|
$ |
7,664 |
|
$ |
7,905 |
|
$ |
8,068 |
|
Share-based compensation expense |
$ |
1,485 |
|
$ |
910 |
|
$ |
1,042 |
|
$ |
17 |
|
|
$ |
853 |
|
$ |
1,457 |
|
$ |
1,286 |
|
$ |
6,305 |
|
Restructuring, reorganization and other exit activities charges |
|
— |
|
|
— |
|
$ |
— |
|
|
11,344 |
|
|
|
(389 |
) |
|
427 |
|
|
732 |
|
|
2,598 |
|
Adjusted EBITDA |
$ |
17,272 |
|
$ |
29,957 |
|
$ |
24,730 |
|
$ |
43,588 |
|
|
$ |
38,965 |
|
$ |
36,687 |
|
$ |
48,034 |
|
$ |
51,507 |
|
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) |
||||||||||||||||||||||||
|
|
1Q23 |
|
|
2Q23 |
|
|
3Q23 |
|
|
4Q23 |
|
|
1Q24 |
|
|
2Q24 |
|
|
3Q24 |
|
|
4Q24 |
|
Net (Loss) / Income |
$ |
(0.7 |
) |
$ |
28.0 |
|
$ |
(0.3 |
) |
$ |
(2.5 |
) |
$ |
13.8 |
|
$ |
13.4 |
|
$ |
8.9 |
|
$ |
(8.3 |
) |
Add (deduct): |
|
|
|
|
|
|
|
|
||||||||||||||||
Foreign Exchange (FX) and Blue Chip Swap impact |
$ |
7.8 |
|
$ |
(2.2 |
) |
$ |
(4.4 |
) |
$ |
7.4 |
|
$ |
0.3 |
|
$ |
8.9 |
|
$ |
22.2 |
|
$ |
29.5 |
|
Acquisitions related expenses |
$ |
2.0 |
|
$ |
1.7 |
|
$ |
1.5 |
|
$ |
1.5 |
|
$ |
1.5 |
|
$ |
0.8 |
|
$ |
1.0 |
|
$ |
1.0 |
|
Share-based compensation expense |
$ |
1.5 |
|
$ |
0.9 |
|
$ |
1.0 |
|
$ |
— |
|
$ |
0.9 |
|
$ |
1.5 |
|
$ |
1.3 |
|
$ |
6.3 |
|
Impairment of long-lived assets |
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
Restructuring, reorganization and other exit activities charges |
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
6.8 |
|
$ |
(0.4 |
) |
$ |
0.4 |
|
$ |
0.7 |
|
$ |
2.2 |
|
Discontinued operations |
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
Amortization expense of intangible assets |
$ |
5.0 |
|
$ |
5.7 |
|
$ |
5.5 |
|
$ |
5.6 |
|
$ |
6.5 |
|
$ |
6.7 |
|
$ |
6.9 |
|
$ |
7.1 |
|
Items included in legal reserves related to transactional taxes |
$ |
— |
|
$ |
— |
|
$ |
(1.9 |
) |
$ |
1.0 |
|
$ |
0.2 |
|
$ |
(1.8 |
) |
$ |
— |
|
$ |
0.1 |
|
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 |
$ |
(2.3 |
) |
$ |
(13.7 |
) |
$ |
7.4 |
|
$ |
10.9 |
|
$ |
(0.4 |
) |
$ |
0.3 |
|
$ |
(5.2 |
) |
$ |
(7.3 |
) |
Total Adjusted Net Income |
$ |
13.3 |
|
$ |
6.1 |
|
$ |
8.8 |
|
$ |
21.1 |
|
$ |
22.4 |
|
$ |
30.2 |
|
$ |
35.8 |
|
$ |
30.6 |
|
Note: Preferred Dividends are not included in adjusted Net Income calculation as they do not impact Net Income |
||||||||||||||||||||||||
n.m.: Not Meaningful |
||||||||||||||||||||||||
4Q24 Earnings Conference Call
As previously announced on December 23, 2024, Despegar has entered into a definitive merger agreement (the “Agreement”) to be acquired by Prosus (Euronext: PRX), a leading global technology company for
The transaction is currently expected to close in the second quarter of 2025, subject to the receipt of required regulatory clearances and other customary closing conditions. On March 4, 2025, Despegar’s shareholders approved the Merger Agreement, the Plan of Merger and the Merger Proposal in a special meeting of shareholders, as previously disclosed.
In light of the pending transaction, Despegar will not hold a conference call to discuss its fourth quarter and full-year 2024 results.
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, including those risks and uncertainties included under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 20-F for the year ended December 31, 2023, which was filed with the
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. The Company defines:
Total Adjusted EBITDA as net income/(loss) exclusive of financial result, net, income tax, depreciation and amortization, impairment charges, stock-based compensation expense, restructuring charges and acquisition transaction costs. Since our results for the year ended December 31, 2020, we exclude restructuring charges and acquisition costs from our calculation of Total Adjusted EBITDA.
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 and related reorganization 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/20250425424437/en/
IR Contact
Luca Pfeifer
Investor Relations
Phone: (+1) 305 481 1785
E-mail: luca.pfeifer@despegar.com
Source: Despegar.com, Corp.
