Despegar.com, Corp. Reports Third Quarter 2024 Financial Results
Despegar.com, Corp. (NYSE: DESP), Latin America’s leading travel technology company, announced its unaudited financial results for the three months ended September 30, 2024.
Key Financial Metrics (in millions, except EPS):
| Metric | 3Q24 | 3Q23 | YoY Change |
|---|---|---|---|
| Total Revenue | $193.9 | N/A | +53% (FX Neutral) |
| Adjusted EBITDA | $48.0 | N/A | +94% |
| Adjusted Net Income | $36.1 | $8.8 | +309% |
| Adjusted Earnings Per Share | $0.34 | $0.01 | +3300% |
Interpretation: Despegar's financial performance in the third quarter of 2024 demonstrated significant growth, with a 94% increase in Adjusted EBITDA and a notable leap in Adjusted Net Income. The company's ability to leverage strong demand trends and improve operational efficiencies was critical in achieving record profitability.
Revenue Breakdown Across Major Segments:
| Segment | 3Q24 Revenue | YoY Growth (FX Neutral) |
|---|---|---|
| Gross Bookings | $1.3 billion | +35% |
| Travel Packages | Included | +253 basis points to 33% of Gross Bookings |
Interpretation: The segment breakdown shows that Travel Packages were a significant driver of revenue growth, boosting the overall profitability by increasing their share in the Gross Bookings.
Key Developments and Operational Highlights:
- Record profitability with 3Q24 Adjusted EBITDA up 94% YoY.
- Gross Bookings on an FX neutral basis rose 35% YoY to $1.3 billion.
- App Transactions increased to 50.5% of total Transactions, up 1,034 basis points from 3Q23.
- Strategic renewal of the lodging outsourcing agreement with Expedia.
- Launch of a SaaS partnership with Karisma Hotels & Resorts through the AI travel assistant, SOFIA.
Comments from Company Officers:
CEO Damian Scokin highlighted the robust demand across Latin America and significant advancements in the B2B segment, with a 23% YoY growth in gross bookings. CFO Amit Singh emphasized the effective execution of strategic priorities and strong financial foundations, underscoring Despegar's resilience and market leadership.
Forward Guidance:
- Revenue forecast for FY24 remains at least $760 million, indicating at least an 8% YoY growth.
- Adjusted EBITDA guidance for FY24 increased to at least $170 million, representing a 47% YoY growth.
Stock Price Movement: Following the earnings release, Despegar's stock price experienced a noteworthy post-event increase of 1.95%.
This report underscores Despegar's strong emphasis on innovation and expansion, as well as their strategic partnerships, which are pivotal elements in sustaining growth and profitability in the competitive travel technology sector.
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