Despegar.com (DESP) Q4 2024 earnings summary

Executive summary

• Achieved consolidated revenue of $774.1M in 2024, up 9.6% from 2023, with net income of $27.9M, a 13.9% increase year-over-year.

• Operating income rose 91.7% to $123.1M, driven by higher travel demand and improved operating leverage.

• Completed a merger agreement to be acquired by Prosus for $19.50 per share in cash, pending regulatory approvals in Brazil and Mexico.

• No dividends declared or paid on ordinary shares; focus remains on reinvestment and growth.

Financial highlights

• Gross profit increased 18.6% to $565.9M, with gross margin improving to 73.1% from 67.6%.

• Adjusted Segment EBITDA reached $175.2M, up 51.6% from 2023.

• Air segment revenue grew 1.9% to $262.5M; Packages, Hotels and Other Travel Products rose 13% to $494.0M.

• Financial Services revenue increased 25% to $51.1M.

• Total transactions rose 7.3% to 9.7M; gross bookings net up 2.3% to $5.45B.

Outlook and guidance

• Management expects continued growth in mobile transactions and cross-selling, with a focus on expanding product offerings and leveraging technology.

• The merger with Prosus is expected to close in Q2 2025, subject to regulatory approvals.