Despegar.com(US:DESP)2024-11-14 21:05Financial 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].