Despegar.com Corp. (NYSE: DESP) (“Despegar” or the “Company”), the leading travel technology company in Latin America, today reported its unaudited financial results for the three months ending September 30, 2024 (“Q3 2024”). The results, presented in U.S. dollars and in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”), are preliminary and subject to audit and final adjustments. All comparisons are on a year-over-year (“YoY”) basis unless otherwise noted.
Q3 2024 Financial and Operating Highlights
- Gross Bookings: On a foreign exchange (“FX”) neutral basis, Gross Bookings increased 35% YoY to $1.3 billion, driven by strong demand. However, FX headwinds impacted reported Gross Bookings, which declined 4% YoY.
- Revenues: Revenues grew 53% YoY on an FX-neutral basis to $193.9 million, benefiting from a record Take Rate of 14.6%, supported by strong commercial performance and innovative payment solutions. Reported revenues increased 9% YoY.
- Adjusted EBITDA: Adjusted EBITDA surged 94% YoY, reaching a company-record $48.0 million, fueled by a higher Take Rate, enhanced operational efficiency, and the growth of higher-margin Travel Package sales. These packages now represent 33% of Gross Bookings, up 253 basis points YoY. The Adjusted EBITDA margin also expanded by 1,089 basis points YoY to a historic 24.8%.
- Adjusted Net Income: Adjusted Net Income rose dramatically by 309% YoY, reaching $36.1 million in Q3 2024, compared to $8.8 million in Q3 2023. Adjusted earnings per share (EPS) increased significantly, rising to $0.34 from $0.01 a year ago.
- Operating Cash Flow and Liquidity: The Company generated positive operating cash flow of $26.6 million. Total cash stood at $220 million, up $15.2 million from Q2 2024, driven by improved profitability and better working capital management.
- Loyalty Program: Despegar’s loyalty program grew by 51% YoY, with total membership reaching 30 million.
- Mobile App Transactions: Transactions via the Despegar app continued their strong upward trend, accounting for a record 50.5% of total transactions, a 1,034 basis-point increase from 40.1% in Q3 2023.
- B2B Growth: Consolidated B2B Gross Bookings rose 23% YoY, now representing 19% of total Gross Bookings, an increase of 420 basis points.
- Strategic Partnerships: Despegar renewed its lodging outsourcing agreement with Expedia, further solidifying its strategic partnership. The revised agreement allows the $125 million perpetual repayment liability on Despegar’s balance sheet to be amortized over ten years. Additionally, the Company announced its first major Software as a Service (SaaS) partnership with Karisma Hotels & Resorts, which will utilize Despegar’s AI travel assistant, SOFIA, to offer a personalized travel planning experience and unlock new revenue streams.