Despegar.Com ( (DESP) ) has released its Q3 earnings. Here is a breakdown of the information Despegar.Com presented to its investors.
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Despegar.com, a leading travel technology company in Latin America, provides digital travel services across the region, operating under brands such as Despegar, Decolar, and others.
In its third-quarter 2024 financial results, Despegar.com reported record profitability with a 94% increase in adjusted EBITDA year-over-year and a 9% growth in revenue. The company’s strong performance is attributed to an increase in its take rate and the expansion of higher-margin travel package sales.
Key financial metrics include a 35% year-over-year increase in gross bookings on a foreign exchange neutral basis to $1.3 billion, despite a reported decline of 4% due to FX headwinds. Adjusted net income surged by 309% to $36.1 million, with a significant improvement in adjusted earnings per share from $0.01 to $0.34. Despegar also expanded its B2B gross bookings by 23% and renewed its strategic lodging outsourcing agreement with Expedia.
The company also highlighted the advancement of its AI travel assistant, SOFIA, into a SaaS offering, marking its first major partnership with Karisma Hotels & Resorts. This initiative underscores Despegar’s commitment to innovation and customer-centric services.
Looking forward, Despegar’s management remains optimistic, raising the full-year 2024 adjusted EBITDA guidance to at least $170 million, reflecting a 47% year-over-year growth. The company aims to sustain market leadership and long-term value creation despite the challenging FX environment.
