Despegar.com (DESP) Q2 2024 earnings summary

Executive summary

• Revenues grew 12% year-over-year to $185M, with FX-neutral revenue growth of 46% and a 13.8% take rate, driven by strong demand in Brazil and Mexico and a focus on higher-margin packages.

• Adjusted EBITDA reached $37M, up 22% year-over-year (82% excluding a prior one-time benefit), with margin up to 19.8%.

• Adjusted Net Income hit $30.2M, up 397% year-over-year, while reported Net Income fell due to a prior-year tax benefit.

• Gross bookings grew 4% year-over-year to $1.3B, or 37% in constant currency, reflecting strong underlying demand despite significant FX headwinds.

• Strategic focus on higher-margin package sales and non-air revenues, with packages now 35% of gross bookings and non-air revenue at 64% of total.

Financial highlights

• Gross bookings: $1.3B (+4% reported, +37% constant currency year-over-year).

• Total revenue: $185M (+12% reported, +46% constant currency year-over-year).

• Adjusted EBITDA: $37M (+22% year-over-year; +82% adjusted for prior one-time benefit).

• Adjusted net income: $30.2M (+397% year-over-year).

• Cash balance: $204M, down $39M year-over-year, due to working capital, dividends, and factoring.

Outlook and guidance

• FY24 revenue guidance lowered to at least $760M (8% year-over-year growth), down from $820M, reflecting FX headwinds and DMC divestiture.

• FY24 Adjusted EBITDA guidance raised to at least $160M (39–40% year-over-year growth), up from $155M, due to strong cost efficiencies.

• Expectation of continued strong constant currency growth and operating leverage.