Financial Performance - The company achieved nearly 3billioninannualgrossbookings,primarilyintheleisuretravelmarketsegmentoriginatinginNorthAmerica[138].−ForthethreemonthsendedJune30,2024,thecompanyprocessed1,134transactions,comparedto721transactionsinthesameperiodof2023,representinga57.3677,957 thousand, slightly down from 679,244thousandinthesameperiodof2023[149].−RevenuesforthethreemonthsendedJune30,2024,increasedby1.6 million or 3% compared to the same period in 2023, primarily driven by acquisitions [165]. - Revenue from the Travel Marketplace segment increased by 1.4millionor29.6 million or 9% compared to the same period in 2023, primarily driven by acquisitions [180]. - Revenue growth in the Travel Marketplace segment was supported by a 3% increase in gross bookings value and a 59% increase in the number of transactions processed [181]. Expenses and Losses - Personnel expenses increased by 9.7millionor792.0 million or 5% due to reduced marketing spend following the divestiture of LBF [168]. - Total operating expenses for the three months ended June 30, 2024, increased by 6.0millionor9.625.5 million, an increase of 10.9millionor74.60.4 million, an increase of 1126% compared to the same period in 2023 [172]. - Personnel expenses increased by 15.5millionor780.9 million or 1%, driven by a 12% increase in affiliate marketing expenses [182]. - Interest expense increased by 4.4millionor5212,618 thousand, up 55.3% from 8,125thousandinthesameperiodof2023[198].−AdjustedNetLossforthethreemonthsendedJune30,2024,was(10,030) thousand, a 135.3% increase from (4,263)thousandinthesameperiodof2023[201].CashFlowandLiquidity−AsofJune30,2024,thecompanyhad32.3 million in cash and cash equivalents, restricted cash, and short-term investments available for working capital [207]. - For the six months ended June 30, 2024, cash provided by operating activities was 11.1million,despiteanetlossof45.0 million, offset by non-cash charges of 36.7million[221].−CashusedininvestingactivitiesforthesixmonthsendedJune30,2024,was7.9 million, primarily for the purchase of property, equipment, and software [223]. - Cash used in financing activities during the same period was 5.3million,duetopaymentsrelatedtoearn−outconsiderationanddebtrepayment[226].−ThecompanywasinbreachoftheliquidityfinancialcovenantontheTermLoanasofJune30,2024,butthisbreachwaswaivedbytheTwenty−firstAmendment[220].StrategicInitiatives−ThecompanyplanstoexpanditsinternationalfootprintbyacquiringdistributorsandplatformsbeyondNorthAmericaandLatinAmerica[141].−Thecompanyisfocusedonexpandingitspenetrationofthe"gigeconomy"segmentofthetravelmarket,aimingtoservegigworkersseekingmoreflexibility[140].−Thecompanyhassuccessfullyintegratedtwentytravelcompaniesintoitstechnology−enabledecosystem,enhancingitscompetitiveposition[138].EconomicandMarketFactors−Macroeconomicfactorssuchasrisinginterestratesandinflationmaynegativelyimpactthecompany′sresultsofoperations[143].−Thecompanyhasoperationsexposedtointerestrateriskandforeigncurrencyrisk,particularlywithfluctuationsintheBrazilianreal[229].−Ahypothetical105.1 million to revenues and an increase of $0.4 million to net profit for the six months ended June 30, 2024 [232]. Internal Controls and Compliance - Management's remediation efforts to address material weaknesses in internal control over financial reporting are ongoing and have not yet been completed [236]. - Management concluded that as of June 30, 2024, disclosure controls and procedures were not effective due to previously identified material weaknesses [235]. - There were no changes in internal control over financial reporting that materially affected the Company during the quarter ended June 30, 2024 [237]. - None of the pending legal proceedings are expected to have a material adverse effect on the Company's financial condition or results of operations [239].
