UNITED STATES SECURITIES AND EXCHANGE COMMISSION Table of Contents Washington, D.C. 20549 _________________________ FORM 20-F o REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2024 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 OR o SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF ...

Core Insights - The company has demonstrated solid performance with significant increases in bookings across all segments and improved EBITDA margins [1] - A recent acquisition agreement with Prosus is expected to enhance Despegar's financial and technological capabilities [1] Performance Metrics - There has been a strong increase in bookings across all segments, indicating robust demand and operational efficiency [1] - The improvement in EBITDA margins suggests better cost management and profitability [1] Strategic Developments - The acquisition agreement with Prosus could provide Despegar with additional resources and technological advancements, potentially leading to enhanced competitive positioning [1]

Merger Details - Prosus will acquire Despegar for $19.50 per share in an all-cash transaction, representing an enterprise value of approximately $1.7 billion [4] Law Firm Information - Monteverde & Associates PC is investigating Despegar.com, Corp. (NYSE: DESP) relating to the proposed merger with Prosus [4] - The law firm has recovered millions of dollars for shareholders and is recognized as a Top 50 Firm by ISS Securities Class Action Services Report [4] - Monteverde & Associates PC is headquartered at the Empire State Building in New York City [4] - The firm has a successful track record in trial and appellate courts, including the U.S. Supreme Court [5]

Core Viewpoint - The travel sector is experiencing a significant rebound post-Covid-19, highlighted by Prosus's acquisition of Despegar for $1.7 billion, aimed at expanding its operations in Latin America [1][2]. Company Overview - Despegar is one of the largest online travel agencies in Latin America, publicly traded on the NYSE with a market cap of $1.24 billion as of last Friday [2]. - The company has been operational since 1999 and also controls Decolar, another major travel brand in Brazil [4]. Financial Details - Prosus will pay $19.50 per share for Despegar, representing a 33% premium over its recent market price, although this is lower than Despegar's market cap on its first trading day in 2017 [2]. - Despegar reported approximately $5.3 billion in gross bookings, $706 million in revenue, and an EBITDA of $116 million for the full year 2023 [5]. Strategic Intent - Prosus aims to leverage Despegar to achieve greater economies of scale in Latin America, where GDP is expected to grow by 2-3% next year [6]. - The acquisition is part of Prosus's strategy to create a high-quality ecosystem of complementary businesses, enhancing Despegar's growth through its extensive customer touchpoints [2]. Market Position and Competition - Despegar competes with other travel brands like Hotel Urbano and operates in 19 different markets, offering both direct-to-consumer services and white-label solutions for banks and airlines [9][10]. - The acquisition is expected to provide Despegar with a boost in investment, which could help it overcome challenges faced over the past decade [7][8].

Core Insights - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher as stocks tend to continue in their established direction [1] - Despegar.com (DESP) currently holds a Momentum Style Score of A, indicating strong momentum characteristics [2] - The Zacks Rank for Despegar.com is 1 (Strong Buy), suggesting a high likelihood of outperforming the market [3] Performance Metrics - DESP shares have increased by 7.94% over the past week, significantly outperforming the Zacks Transportation - Services industry, which rose by 1.41% [6] - Over the last quarter, DESP shares have surged by 46.53%, and over the past year, they have gained 122.18%, while the S&P 500 has only increased by 7.61% and 33.32% respectively [7] - The average 20-day trading volume for DESP is 1,364,715 shares, indicating strong trading activity [8] Earnings Outlook - In the past two months, one earnings estimate for DESP has increased, raising the consensus estimate from $0.81 to $0.90 [10] - For the next fiscal year, one estimate has also moved upwards, with no downward revisions noted [10] Conclusion - Given the strong performance metrics and positive earnings outlook, Despegar.com is positioned as a 1 (Strong Buy) stock with a Momentum Score of A, making it a compelling investment opportunity [11]

Company Overview - Despegar.com, Corp. operates online platforms for purchasing airline tickets, travel packages, accommodations, car rentals, and other travel-related services [1] - The company utilizes various brands including Despegar, Decolar, Best Day, BD Experience, Viajanet, Stays, and HotelDo, with a focus on traffic from Latin America and the United States [1] Investment Focus - The investment philosophy emphasizes identifying mispriced securities by understanding the financial drivers of a company, often revealed through a DCF model valuation [2] - This approach allows for flexibility beyond traditional investment categories such as value, dividend, or growth investing, considering all prospects of a stock to assess risk-to-reward [2]

Core Insights - L Catterton has made a strategic investment in WeVets, a leading independent veterinary hospital group in Brazil, to enhance its veterinary platform and expand its operations across the country [1][2][3] Company Overview - WeVets was founded in 2020 and has rapidly grown to operate 15 hospitals and two diagnostic labs in São Paulo and Rio Grande do Sul, providing comprehensive veterinary care including primary and urgent care, surgery, diagnostics, and specialties [2][5] - The company utilizes a tech-driven model to improve the experience for pets and their owners [2][5] Investment Details - L Catterton's investment aims to support WeVets' long-term growth and strategic objectives, focusing on hospital expansion through both acquisitions and organic growth [2][3] - The partnership is expected to leverage L Catterton's extensive experience in the global pet care industry to help WeVets achieve world-class standards [3][4] Market Context - The Brazilian pet market is described as highly fragmented, presenting significant opportunities for WeVets to scale its operations based on exceptional technology and service [3] - L Catterton has a strong track record in the pet care sector, having invested in various successful pet-focused businesses globally [3][4] Financial Background - L Catterton manages approximately $35 billion in equity capital across multiple platforms, with the ability to invest between $5 million and $5 billion in well-positioned consumer businesses [4] - The firm has made over 275 investments in iconic consumer brands since its founding in 1989 [4]

Financial Data and Key Metrics Changes - Gross bookings for Q3 2024 slightly declined to $1.3 billion, anticipated due to foreign exchange headwinds, particularly in Brazil and Mexico, but showed a 35% year-over-year growth in constant currency [7][9] - Total revenues increased by 9% year-over-year to $194 million, with a 53% increase when adjusted for foreign exchange [8][9] - Adjusted EBITDA reached a record $48 million, a 94% year-over-year increase, with an adjusted EBITDA margin of 24.8% [10][55] - Adjusted net income rose 309% year-over-year to $36 million, leading to adjusted earnings per share of $0.34, up from $0.10 in the same quarter last year [10][56] Business Line Data and Key Metrics Changes - In the B2C segment, gross bookings reached $1.1 billion, down 8.4% year-over-year, attributed to foreign exchange impacts [11] - The B2B segment saw gross bookings grow by 23% year-over-year, now accounting for almost 19% of total gross bookings [12] Market Data and Key Metrics Changes - In Brazil, transactions grew by 14% year-over-year, reaching 1.2 million, driven by domestic air transactions and hotel demand [50] - In Mexico, transactions declined by 22% year-over-year, influenced by the divestiture of the Destination Management Company and reduced domestic air capacity [51] - Argentina showed a positive trend with significant market share gains due to tailored payment solutions and a strong product portfolio [52] Company Strategy and Development Direction - The company signed a new 10-year lodging outsourcing agreement with Expedia, effective January 1, 2025, aimed at optimizing lodging supply and expanding market presence [13][14] - The launch of the AI-powered travel assistant, SOFIA, is a key innovation, enhancing customer experience and offering a software-as-a-service solution to partners [16][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the commercial strategy for Q4, despite ongoing foreign exchange challenges, maintaining full-year revenue guidance of at least $760 million [61] - The company anticipates continued growth in Argentina and is optimistic about regaining revenue momentum in Mexico [90] Other Important Information - The loyalty program, Pasaporte Despegar, grew by over 50% year-over-year, reaching 30 million members, with 12% of transactions completed using loyalty points [20][21] - Mobile app downloads increased by 47% year-over-year, accounting for almost 51% of total bookings [22] Q&A Session Summary Question: Sustainability of the strong take rate - Management indicated that while the current take rate is strong, they expect it to stabilize around 13% in the mid to long term due to various strategic initiatives [67][68] Question: Impact of the Expedia renegotiation - The profitability impact from the new agreement with Expedia is expected to start reflecting in the P&L as early as Q1 2025, with significant flexibility for growth strategies [69][70] Question: Trends in Argentina - Management noted a positive market evolution in Argentina, driven by unique payment solutions and market share gains, with expectations for continued growth [76][77] Question: Q4 transaction growth trends - While specific transaction guidance was not provided, management expressed confidence in solid top-line trends despite FX headwinds [82] Question: Impact of air capacity in Mexico - Management acknowledged that air capacity issues may persist into Q4 but expects recovery in the following years as FX headwinds stabilize [83][90]

Financial Performance - 3Q24 Gross Bookings on an FX neutral basis rose 35% YoY to $1.3 billion, while reported Gross Bookings declined 4% YoY to $1.32 billion[5]. - Revenues increased 53% YoY on an FX neutral basis to $193.9 million, with a reported growth of 9% YoY[5]. - Adjusted EBITDA reached a record high of $48.0 million, up 94% YoY, resulting in an Adjusted EBITDA margin of 24.8%, an increase of 1,089 bps YoY[5]. - Adjusted Net Income surged 309% YoY to $36.1 million, with Adjusted EPS improving to $0.34 from $0.01 YoY[5]. - Revenue for Q3 2024 was $193,929,000, representing a 9% increase from $178,149,000 in Q3 2023[16]. - Gross profit increased by 19% to $143,139,000 in Q3 2024, up from $120,550,000 in Q3 2023[16]. - Operating income surged by 140% to $36,635,000 in Q3 2024, compared to $15,251,000 in Q3 2023[16]. - Net income for Q3 2024 was $8,928,000, a significant recovery from a net loss of $315,000 in Q3 2023[16]. - Adjusted EBITDA for Q3 2024 was $48,034,000, a 94% increase from $24,730,000 in Q3 2023[21]. - Adjusted Net Income for Q3 2024 was $36,095,000, a 309% increase from $8,825,000 in Q3 2023[22]. - Revenue for Q3 2024 was $272,000,000, a 53% increase from $178,000,000 in Q3 2023[25]. - Gross profit for Q3 2024 was $197,000,000, reflecting a 63% increase from $121,000,000 in Q3 2023[25]. Transactions and Market Activity - App Transactions accounted for 50.5% of total Transactions, up 1,034 bps from 40.1% in 3Q23[5]. - Total transactions in Q3 2024 reached 2,396,000, a slight increase of 0% compared to 2,384,000 in Q3 2023[25]. - The company reported a 14% increase in transactions in Brazil, with 1,186,000 transactions in Q3 2024 compared to 1,036,000 in Q3 2023[25]. Strategic Partnerships and Initiatives - Despegar renewed its lodging outsourcing agreement with Expedia, allowing a $125 million liability to be amortized over 10 years, enhancing strategic partnerships[5]. - The company announced its first major SaaS partnership with Karisma Hotels & Resorts, licensing its AI travel assistant, SOFIA, to provide personalized travel planning[5]. - The company aims to launch new travel packages that combine flights and accommodations, expected to increase transaction volume by 30%[36]. - Despegar's financial services segment is projected to grow by 40% in 2024, driven by increased demand for "Buy Now, Pay Later" options[42]. Guidance and Future Outlook - The company updated its 2024 revenue guidance to at least $760 million, reflecting at least 8% YoY growth, and Adjusted EBITDA guidance to at least $170 million, representing at least 47% YoY growth[7]. - Future outlook includes continued focus on market expansion and new product development to drive revenue growth[27]. - The company plans to expand its market presence in Brazil and Mexico, targeting a 20% increase in market share by the end of 2024[47]. - Despegar is investing in new technology to enhance its platform, with a budget allocation of $10 million for R&D in 2024[47]. Financial Position and Assets - Total current assets increased to $552,827,000 as of September 30, 2024, up from $530,045,000 as of June 30, 2024[17]. - Total assets reached $879,522,000 as of September 30, 2024, compared to $862,981,000 as of June 30, 2024[17]. - Total liabilities increased to $826,162,000 as of September 30, 2024, from $802,965,000 as of June 30, 2024[17]. - Cash and cash equivalents, along with restricted cash, totaled $219,677,000 at the end of Q3 2024, compared to $255,707,000 at the end of Q3 2023[19]. Non-GAAP Measures and FX Impact - Non-GAAP measures, including Adjusted EBITDA and Adjusted Net Income, are not recognized under U.S. GAAP and should be used in conjunction with GAAP measures for a comprehensive evaluation[52]. - The company presents FX neutral measures to provide investors with a clearer understanding of financial performance by excluding foreign currency exchange rate impacts[54]. - FX neutral measures are calculated using average monthly exchange rates from 2023 applied to corresponding months in 2024, aiming to reflect stable exchange rates[55]. - Foreign exchange impact on net income was a gain of $22,166,000 in Q3 2024, compared to a loss of $4,417,000 in Q3 2023[22]. - The company experienced a foreign exchange impact of $22.2 million in Q4 2023, which positively influenced the financial results[29].

Group 1: Despegar.com Overview - Despegar.com (DESP) shares increased by 7.4% to $14.18 in the last trading session, with a higher-than-average trading volume [1] - The stock has gained 50% year to date, supported by strong revenues and a robust Take Rate [1] - The company has entered an agreement with Nubank, expanding its customer base [1] Group 2: Financial Performance Expectations - Despegar.com is expected to report quarterly earnings of $0.20 per share, reflecting a year-over-year increase of 66.7% [1] - Revenue projections for the upcoming quarter are $190.59 million, which is a 7% increase from the same quarter last year [1] Group 3: Market Trends and Stock Analysis - The consensus EPS estimate for Despegar.com has remained unchanged over the last 30 days, indicating a potential correlation with stock price movements [2] - The stock currently holds a Zacks Rank of 3 (Hold), suggesting a neutral outlook [2] - Despegar.com is part of the Zacks Transportation - Services industry, which includes Universal Logistics (ULH), also holding a Zacks Rank of 3 [2][3]