4Q24 Revenue increased Rising 8.7% YoY to $221.4 Million and adjusted EBITDA Increased 18% YoY to $51.5 million,
FY24 Revenue Grew 10% YoY and Adjusted EBITDA Increased 52% YoY
BRITISH VIRGIN ISLANDS–(BUSINESS WIRE)–Despegar.com, Corp. (NYSE: DESP) (“Despegar” or the “Company”), Latin America’s leading travel technology company, today announced unaudited financial results for the three-months ended December 31, 2024 (“Fourth quarter 2024” or “4Q24”) and full year 2024 (“FY24”). Financial results are expressed in U.S. dollars and are presented in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). Financial results are preliminary and subject to year-end audit and adjustments. All comparisons in this announcement are year-over-year (“YoY”), unless otherwise noted.
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, approximately 94.7% 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 per share in an all-cash transaction.
- Gross Bookings decreased 1% YoY, on an as-reported basis mainly due to FX headwinds. On a Foreign Exchange (“FX”) neutral basis, Gross Bookings increased 38% YoY to $1.5 billion, driven by strong commercial execution and a robust demand environment across the region.
- On an as-reported basis, Revenues increased 8.7% YoY to $221.4 million, with a robust Take Rate of 14.7%. Revenues on a FX neutral basis increased 44% YoY.
- Adjusted EBITDA increased 18% YoY to $51.5 million, due to a combination of revenue growth, operational efficiencies and an increase in Travel Package sales which increased 457 bps YoY to 36.1% of Gross Bookings. As a result, Adjusted EBITDA margin expanded 187 bps YoY, to 23.3%.
- Net Loss of $(8.3) million in 4Q24, primarily driven by FX headwinds in the region. EPS for the quarter stood at $(0.19), compared to $(0.08) in 4Q23.
- Adjusted Net Income increased 45% YoY, reaching $30.6 million in 4Q24 compared to $21.1 million in 4Q23. Adjusted EPS improved YoY to $0.27 from $0.16 in the same quarter last year
- 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% and 30% YoY, respectively, and together accounted for 18% of total Gross Bookings, reflecting a YoY expansion of 418 basis points
- Total Cash, cash equivalents and restricted cash position of $247 million as of December 31, 2024, up $27.5 million QoQ, while operating cash flow was positive $27.7 million, increasing $1 million from 3Q24
- 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, representing a 2% YoY increase
- Total Revenue grew by 10% YoY to $774.1 million, compared to $706.0 million for FY23 (vs the FY24 revenue guidance of at least $760 million).
- Adjusted EBITDA increased 52% YoY to $175.2 million, $5 million vs the revised guidance of at least $170 million, while Net Income increased by 13.9% YoY from $24.5 million to $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 Sofia, our award winning AI travel assistant that transformed travel planning in Latin America with personalized real-time insights. We also expanded our B2B and White Label offerings, fortifying partnerships across the travel ecosystem. We further streamlined operations during 2024 by spinning off our DMC business through a partnership, sharpening our focus on core growth. Soon after, we redefined our Expedia partnership through a 10-year lodging outsourcing deal, boosting sourcing flexibility and broadening our travel portfolio. Most recently, at the beginning of 2025, we entered into a new partnership with HBX Group, further broadening the range of lodging options and travel packages available to our clients.
In late 2024 we signed a definitive merger agreement for Prosus to acquire Despegar at a price of $19.50 per share in an all-cash transaction and we anticipate closing the transaction in the second quarter of this year. Looking ahead, we are excited to leverage Prosus’ extensive network of companies and strong balance sheet as we continue focusing on accelerating innovation, broadening our reach, and setting new standards in the travel market. We believe this milestone positions Despegar for a new era of sustainable growth and success, and we could not be prouder of our team’s outstanding achievements over the past year.”
Amit Singh, the Company’s CFO, added: “We are pleased to report that our fourth quarter revenue grew by 8.7% year over year, reaching $221 million. More importantly, our continued focus on maintaining an efficient cost structure resulted in a 18% year-over-year increase in Adjusted EBITDA, which rose to $52 million in 4Q24. Looking ahead, we remain firmly focused on driving strong revenue growth and margins. We believe the effectiveness of our strategies—optimizing revenue mix, increasing organic traffic, and deepening our penetration into sizable B2B market segments—positions us well for continued success.”
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 $13.7 million in 4Q24 and $23 million in 4Q23 |
|
|
(2) |
Financial services segment reported a Total Adjusted EBITDA of positive $1.8 million compared to $3.0 million in 4Q23, as the company improved the spread between Take Rate and projected losses |
|
|
(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 U.S. dollars, except as noted) |
||||||||||||||||
|
|
||||||||||||||||
|
|
|
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 U.S. dollars, except as noted) |
|||||||
|
|
|||||||
|
|
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 U.S. dollars, except as noted) |
|||||||
|
|
|||||||
|
|
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 U.S. Dollars |
||||||||
|
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
Brazil |
|
Mexico |
|
Rest of Latin America |
|
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 ($) |
470 |
570 |
-18 |
% |
|
636 |
604 |
5 |
% |
|
680 |
712 |
-5 |
% |
|
574 |
629 |
-9 |
% |
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
221 |
204 |
9 |
% |
|||
|
Gross Profit |
|
|
|
|
|
|
|
|
|
|
|
|
168 |
143 |
17 |
% |
|||
|
4Q24 vs. 4Q23 – FX Neutral |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
Brazil |
|
Mexico |
|
Rest of Latin America |
|
Total |
||||||||||||
|
|
4Q24 |
4Q23 |
Δ % |
|
4Q24 |
4Q23 |
Δ % |
|
4Q24 |
4Q23 |
Δ % |
|
4Q24 |
4Q23 |
Δ % |
||||
|
Transactions (‘000) |
1,224 |
1,084 |
13 |
% |
|
337 |
419 |
-20 |
% |
|
1,060 |
906 |
17 |
% |
|
2,621 |
2,409 |
9 |
% |
|
Gross Bookings |
665 |
617 |
8 |
% |
|
246 |
253 |
-3 |
% |
|
1,178 |
645 |
83 |
% |
|
2,089 |
1,514 |
38 |
% |
|
TPV Financial Services (1) |
22 |
25 |
-13 |
% |
|
— |
— |
— |
% |
|
|
— |
— |
% |
|
22 |
25 |
-12 |
% |
|
ASP ($) |
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 $13.7 million in 4Q24 and $23 million in 4Q23 |
|||||||||||||||||||
|
Key Financial Trended Metrics |
|||||||||||||||||||||||||
|
(in thousands of U.S, except as noted) |
|||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||
|
|
|
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 |
||||||||||||||||||||||||
Contacts
IR Contact
Luca Pfeifer
Investor Relations
Phone: (+1) 305 481 1785
E-mail: [email protected]
