Gross Bookings up 46% quarter-over-quarter, rising to 75% of pre-pandemic 4Q19 levels
13.0% Revenue Margin
Adjusted EBITDA of $9.0 million, 9% above that reported in 4Q19
BRITISH VIRGIN ISLANDS–(BUSINESS WIRE)–Despegar.com, Corp. (NYSE: DESP), (“Despegar” or the “Company”), the leading online travel company in Latin America, today announced unaudited financial results for the three-months ended December 31, 2021 (“fourth quarter 2021” or “4Q21”). Financial results are expressed in U.S. dollars and are presented in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). Financial results are preliminary and subject to year-end audit and adjustment.
Fourth Quarter 2021 Financial and Operating Highlights
(For definitions, see page 12)
- Gross Bookings increased 46% quarter-over-quarter (“QoQ”) to $958.8 million, reflecting higher travel demand across the region, and reaching 75% of the pre-pandemic level in 4Q19.
- Transactions rose 22% QoQ and to 82% of 4Q19 volume.
- Room nights rose 32% QoQ to 71% of 4Q19 nights.
- Mobile represented 47% of Transactions in 4Q21, up 333 basis points (“bps”) compared to 4Q19.
- Revenues increased 49% QoQ to $124.6 million, or 86% of 4Q19 levels.
- Adjusted EBITDA was $9.0 million, 9% higher than 4Q19, despite Gross Bookings reaching only 75% of the same quarter’s level.
- Excluding Extraordinary Charges and Koin, Adjusted EBITDA would have been $16.3 million, 30% above the comparable 4Q19 level.
- Loyalty Program nearly tripled QoQ to 2.8 million members in 4Q21.
- Reached an agreement to acquire a 51% ownership stake in Stays, Brazil’s leading vacation rental channel manager for a total price of approximately $3.1 million.
|
1 The Company has chosen to include comparisons against 4Q19, a pre-pandemic period, in this press release as a means for the investment community to compare 4Q21 results to a period not affected by the COVID-19 pandemic. |
|
2 See definition on page 13 |
Message from the CEO
Commenting on the Company’s performance, Damian Scokin, CEO stated:
“It is gratifying to report Adjusted EBITDA of $9.0 million, up 9% when compared to pre-pandemic profitability in 4Q19, especially considering that our Gross Bookings were only 75% of that quarter’s level. The improvement in profitability is even more impressive when setting aside Koin, our merchant payments solution in Brazil, in which we are investing to scale the business. When excluding Koin and Extraordinary Charges, Adjusted EBITDA rose 30% to $16.3 million compared to 4Q19. Further, while Gross Bookings increased a strong 46% sequentially, we effectively managed sales and marketing expenses, which rose at a far slower rate of 32%. Despegar’s encouraging fourth quarter results reflect the efforts we have made over the last two years to reduce our cost structure, capture synergies from acquisitions, diversify our revenue streams and increase profitability. These initiatives have significantly boosted our Company’s earnings power, which is growing with improving demand conditions that we benefited from this quarter.”
Our loyalty program also finished the year strongly, with membership nearly tripling sequentially to 2.8 million customers. We are also very pleased with the strong adoption of Koin´s merchant payment solution, which is setting the stage to become another key growth driver for Despegar.
Given the relevance of Brazil’s travel market and consistent with our M&A strategy to acquire new core competencies and broaden our product portfolio, we have agreed to acquire 51% of Stays, the leading channel manager in the vacation rental segment in that country.
Past inorganic as well as organic growth initiatives have enabled us to not only capture demand in recovering markets but also drive profitability, as Viajes Falabella demonstrated this quarter, having benefited from strong travel demand in Chile and Colombia.
While Omicron is still dampening travel trends in the current quarter, we anticipate seeing a recovery in travel purchases next quarter and expect to benefit from substantial pent-up demand during the remainder of the year,” concluded Mr. Scokin.
| Operating and Financial Metrics Highlights | |||||||
| (In millions, except as noted) | |||||||
|
4Q21 |
4Q20 |
% Chg |
4Q19 |
% Chg | |||
| Operating metrics | |||||||
| Number of transactions |
2.339 |
1.257 |
86% |
2.855 |
(18%) |
||
| Gross bookings |
$958.8 |
$401.3 |
139% |
$1,280.9 |
(25%) |
||
| Financial metrics | |||||||
| Revenues |
$124.6 |
$53.2 |
134% |
$145.6 |
(14%) |
||
| Net income (loss) |
($10.7) |
($28.8) |
n.m. |
($2.6) |
n.m. | ||
| Net income (loss) attributable to Despegar.com, Corp |
($10.2) |
($28.6) |
n.m. |
($2.6) |
n.m. | ||
| Adjusted EBITDA |
$9.0 |
($19.3) |
n.m. |
$8.3 |
9% |
||
| EPS Basic 2 |
($0.22) |
($0.40) |
n.m. |
($0.04) |
n.m. | ||
| EPS Diluted 2 |
($0.22) |
($0.40) |
n.m. |
($0.04) |
n.m. | ||
| Extraordinary Charges | |||||||
| Adjusted EBITDA |
$9.0 |
($19.3) |
n.m. |
$8.3 |
n.m. | ||
| Extraordinary cancellations due to COVID-19 |
(4.0) |
(5.0) |
n.m. |
– |
n.m. | ||
| Extraordinary restructuring and integration charges |
(0.8) |
(0.4) |
n.m. |
(2.2) |
n.m. | ||
| Bad Debt due to exposure to Airlines in Chapter 11 |
0.9 |
1.1 |
n.m. |
(2.0) |
n.m. | ||
| Adjusted EBITDA (Excl. Extraordinary Charges) |
$13.0 |
($14.9) |
n.m. |
$12.5 |
n.m. | ||
| Average Shares Oustanding – Basic (1) |
82,008 |
71,501 |
15% |
69,503 |
18% |
||
| Average Shares Oustanding – Diluted (1) |
82,008 |
71,501 |
15% |
69,503 |
18% |
||
| EPS Basic (Excl. Extraordinary Charges) (2) |
(0.17) |
(0.34) |
n.m. |
0.02 |
n.m.. | ||
| EPS Diluted (Excl. Extraordinary Charges) (2) |
(0.17) |
(0.34) |
n.m. |
0.02 |
n.m. | ||
| (1) In thousands | |||||||
| (2) Round numbers | |||||||
| n.m.: Not Meaningful |
Business Update on COVID-19
4Q21 Governmental Restrictions on Mobility and Impact on Industry Travel Dynamics
In Brazil, international and domestic travel restrictions were lifted in October and November, with the US opening its borders to Brazilians holding complete vaccination cards.
In October, activities in most of Mexico’s states remained subject to certain restrictions that were subsequently lifted in November, when land borders with the US were reopened. However, in December some activities were restricted again due to the spread of the new Omicron variant.
In Argentina, entry quotas for air passengers were eliminated starting in October, while the EU began accepting travelers from Argentina. In November, all foreign nationals were allowed to enter the country. On November 26, 2021, Argentina’s Central Bank banned credit card operators from financing payments through installment plans intended for purchasing international travel, including plane tickets and car rentals.
Starting in October, Chile began lifting travel restrictions, allowing non-vaccinated travelers to enter the country and ending the quarantine country-wide. Toward the end of October, the city of Santiago de Chile reinstated certain restrictions as a result of a spike in COVID cases at the time. In early December, border restrictions were lifted, although with the onset of the Omicron variant some restrictions were imposed.
Travel restrictions in Colombia remained limited during the quarter, although emergency measures and safety protocols were again implemented in December and remained in effect in February.
Overview of Fourth Quarter 2021 Results
| Key Operating Metrics | ||||||||||||
| (In millions, except as noted) | ||||||||||||
|
4Q21 |
4Q20 |
% Chg | FX Neutral % Chg |
4Q19 |
% Chg | |||||||
| $ | % of total | $ | % of total | $ | % of total | |||||||
| Gross Bookings |
$958.8 |
$401.3 |
139% |
158% |
$1,280.9 |
(25%) |
||||||
| Average selling price (ASP) (in $) |
$410 |
$319 |
28% |
39% |
$449 |
(9%) |
||||||
| Number of Transactions by Segment & Total | ||||||||||||
| Air |
1.3 |
55% |
0.7 |
54% |
88% |
1.7 |
58% |
(23%) |
||||
| Packages, Hotels & Other Travel Products |
1.1 |
45% |
0.6 |
46% |
83% |
1.2 |
42% |
(11%) |
||||
| Total Number of Transactions |
2.3 |
100% |
1.3 |
100% |
86% |
2.9 |
100% |
(18%) |
||||
Transactions reached 2.3 million in 4Q21, increasing 22% QoQ, mainly due to higher domestic travel demand in Brazil and Colombia and a recovery in both domestic and international travel in Argentina. On a year-over-year (“YoY”) basis, Transactions rose 86%, but were 18% below 4Q19 levels.
Gross Bookings increased 46% QoQ to $958.8 million, principally driven by 50% growth in Brazil together with increases of 128% and 112% in Chile and Argentina, respectively. On a YoY basis, Gross Bookings increased 139% and were 25% lower than 4Q19 levels.
Total international gross bookings increased 76% sequentially and reached 59% of 4Q19 levels, while domestic gross bookings were 31% higher QoQ, surpassing 4Q19 levels by 7%. Despite the solid growth in international travel, its recovery significantly trails the growth in domestic demand across the region, when compared to 4Q19 levels.
ASPs in 4Q21 increased 19% QoQ, mainly reflecting higher international travel, and rose 28% YoY to $410.0 per transaction. However, ASPs remained 9% below 4Q19 levels. On an FX neutral basis, ASPs increased 39% YoY.
Geographic Breakdown
| Geographic Breakdown of Select Operating and Financial Metrics | |||||||
| (In millions, except as noted) | |||||||
| 4Q21 vs. 4Q20 – As Reported | |||||||
| Brazil | Mexico | Rest of Latam | Total | ||||
| % Chg. | % Chg. | % Chg. | % Chg. | ||||
| Transactions (‘000) |
34% |
51% |
209% |
86% |
|||
| Gross Bookings |
81% |
62% |
274% |
139% |
|||
| ASP ($) |
35% |
7% |
21% |
28% |
|||
| Revenues |
134% |
||||||
| Gross Profit |
169% |
||||||
| 4Q21 vs. 4Q20 – FX Neutral Basis | |||||||
| Brazil | Mexico | Rest of Latam | Total | ||||
| % Chg. | % Chg. | % Chg. | % Chg. | ||||
| Transactions (‘000) |
34% |
51% |
209% |
86% |
|||
| Gross Bookings |
86% |
63% |
325% |
158% |
|||
| ASP ($) |
39% |
8% |
38% |
39% |
|||
| Revenues |
153% |
||||||
| Gross Profit |
186% |
||||||
Brazil represented 33% of total Transactions in 4Q21, rising from 29% in 3Q21, a 40% QoQ increase in volume, reflecting an improvement in domestic air travel demand and also supported by growth in international transactions.
Gross Bookings increased 50% QoQ and 81% YoY. Compared to 4Q19, Gross Bookings were 44% lower, as a result of the pandemic’s impact on travel demand. ASPs increased 8% QoQ and 35% YoY, but were 20% below 4Q19 levels.
Mexico accounted for 22% of total Transactions in 4Q21, down from 27% in the previous quarter, reflecting a rise in travel demand in other geographies. Transactions decreased 1% QoQ while Gross Bookings increased 9% as a result of a 10% rise in ASPs.
Transactions and Gross Bookings in Mexico increased YoY by 51% and 62%, respectively, due to a rise in travel demand. Compared to 4Q19, Transactions increased 24% while Gross Bookings rose 20%, reflecting the contribution of Best Day, acquired in October 2020. ASPs posted an increase of 7% YoY and a decrease of 3% when compared to 4Q19.
Across the Rest of Latin America, Transactions and Gross Bookings increased QoQ by 25% and 64%, respectively, as Chile and Colombia benefitted from a recovery in international ASPs. Compared to 4Q20, Transactions and Gross Bookings rose 209% and 274%. In comparison with 4Q19, Transactions and Gross Bookings were 21% and 22% lower, respectively. ASPs increased 31% QoQ, 21% YoY and decreased 1% compared to 4Q19.
Revenue
| Revenue Breakdown | ||||||||||
|
4Q21 |
4Q20 |
% Chg |
4Q19 |
% Chg | ||||||
| $ | % of total | $ | % of total | $ | % of total | |||||
| Revenue by business segment (in $Ms) (Excluding Cancellations) | ||||||||||
| Air |
$48.7 |
39% |
$19.1 |
36% |
156% |
$53.3 |
37% |
(9%) |
||
| Packages, Hotels & Other Travel Products |
$74.7 |
60% |
$34.2 |
64% |
119% |
$92.3 |
63% |
(19%) |
||
| Unallocated |
$1.1 |
1% |
– |
n.m | n.m |
– |
n.m. | n.m | ||
| Total Revenue |
$124.6 |
100% |
$53.2 |
100% |
134% |
$145.6 |
100% |
(14%) |
||
| Total revenue margin |
13.0% |
13.3% |
(28) bps |
11.4% |
+162 bps | |||||
| Extraordinary Charges | ||||||||||
| Extraordinary Cancellations due to COVID-19 |
($4.0) |
– |
($5.0) |
– |
n.m. |
– |
– |
n.m. | ||
| Total Revenue (Excluding Extraordinary Charges) |
$128.5 |
$58.2 |
121% |
$145.6 |
(12%) |
|||||
| Total revenue margin (Excluding Extraordinary Charges) |
13.4% |
14.5% |
(110) bps |
11.4% |
+204 bps | |||||
On a QoQ basis, Revenues increased 49% to $124.6 million in 4Q21, consistent with growth in Gross Bookings and Revenue Margin. Extraordinary cancellations declined 39% in the period to $4.0 million, following reduced travel restrictions. Excluding Extraordinary Cancellations in both quarters, Revenues would have increased 43% to $128.5 million.
Revenue Margin increased 31 bps to 13.0%. When excluding extraordinary cancellations in both quarters, revenue margin decreased 27 bps to 13.4%, reflecting additional investments in Despegar’s business levers in specific markets demonstrating a strong recovery in demand.
On a YoY basis, Revenues grew 134% to $124.6 million, while Extraordinary Cancellations decreased 20% to $4.0 million. Excluding extraordinary cancellations, Revenues would have risen 121% to $128.5 million.
Compared to 4Q19, Revenues decreased only 14%, a result of a 25% comparable decline in Gross Bookings that was partially offset by a higher Revenue Margin. During this period, industry air passenger traffic in the region contracted 31%. When Excluding Extraordinary Cancellations, revenues would have been 12% below 4Q19 levels.
Revenue Margin in 4Q21 was 13.0%, up 162 bps as compared to 4Q19, driven by the contribution from Best Day, and higher up-front incentives and customer fees. Revenue Margin Excluding Extraordinary Cancellations would have increased 204 bps to 13.4%, from 11.4% in 4Q19.
Cost of Revenue and Gross Profit
| Cost of Revenue and Gross Profit | |||||||
| (In millions, except as noted) | |||||||
|
4Q21 |
4Q20 |
% Chg |
4Q19 |
% Chg | |||
| Revenue |
$124.6 |
$53.2 |
134% |
$145.6 |
(14%) |
||
| Revenue Margin |
13.0% |
13.3% |
(28) bps |
11.4% |
+162 bps | ||
| Cost of Revenue |
$50.9 |
$25.8 |
97% |
$51.4 |
(1%) |
||
| Cost of Revenue as a % of GB |
5.3% |
6.4% |
(113) bps |
4.0% |
+129 bps | ||
| Gross Profit |
$73.7 |
$27.4 |
169% |
$94.2 |
(22%) |
||
| Gross Profit as a % of GB |
7.7% |
6.8% |
+86 bps |
7.4% |
+33 bps | ||
| Extraordinary Charges | |||||||
| Total Revenue |
$124.6 |
$53.2 |
$145.6 |
||||
| Extraordinary Cancellations due to COVID-19 |
($4.0) |
($5.0) |
n.m. |
– |
n.m. | ||
| Total Revenue (Excl. Extraordinary Charges) |
$128.5 |
$58.2 |
121% |
$145.6 |
(12%) |
||
| Revenue (Excl. Extraordinary Charges) as a % of GB |
13.4% |
14.5% |
(110) bps |
11.4% |
+204 bps | ||
| Total Cost of Revenue |
$50.9 |
$25.8 |
$51.4 |
||||
| Extraordinary restructuring and integration charges |
($0.2) |
(0.2) |
n.m. |
– |
n.m. | ||
| Total Cost of Revenue (Excl. Extraordinary Charges) |
$50.7 |
$25.6 |
98% |
$51.4 |
(1%) |
||
| Cost of Revenue (Excl. Extraordinary Charges) as a % of GB |
5.3% |
6.4% |
(109) bps |
4.0% |
+127 bps | ||
| Gross Profit / (Loss) (Excl. Extraordinary Charges) |
$77.9 |
$32.6 |
139% |
$94.2 |
(17%) |
||
| Gross Profit / (Loss) (Excl. Extraordinary Charges) as a % of GB |
8.1% |
8.1% |
(1) bps |
7.4% |
+76 bps |
Cost of Revenue is mainly comprised of credit card processing fees, bank fees related to customer financing installment plans and fulfillment center expenses.
Gross profit increased 73% QoQ during 4Q21 to a record $73.7 million since the onset of the pandemic, with the gross margin expanding 799 bps to 59%. Excluding Extraordinary Charges, Gross Profit would have been $77.9 million, with a gross margin of 61%.
On a QoQ basis, Cost of Revenue increased 25%, reflecting the 22% increase in Transactions, together with increased installment costs related to Company investments in markets with higher demand. Credit card purchasing fees also contributed to this increase, partially offset by operating leverage associated with fulfillment center costs.
Gross Profit, excluding Extraordinary Cancellations and other one-time charges in both periods, would have increased 56% QoQ to $77.9 million, exceeding the 43% increase in comparable Revenues.
On a YoY basis, Cost of Revenue rose 97% to $50.9 million, mainly resulting from (i) higher installment costs and credit card processing fees, and (ii) an increase in fulfillment center costs related to travel arrangements impacted by COVID-19.
Gross Profit increased 169% to $73.7 million, from $27.4 million in 4Q20. Excluding Extraordinary Charges, Gross Profit would have been $77.9 million, compared to $32.6 million in the same period last year, an increase of 139%.
Compared to 4Q19, Cost of Revenue decreased 1% due to lower Transaction volume, partially offset by increased fulfillment center costs associated with higher customer service demand in the context of the pandemic. During the same period, Gross Profit declined 22%, or a decrease of 17% when excluding Extraordinary Charges.
Operating Expenses
| Operating Expenses | |||||||
| (In millions, except as noted) | |||||||
|
4Q21 |
4Q20 |
% Chg |
4Q19 |
% Chg | |||
| Selling and marketing |
$34.6 |
$13.2 |
163% |
$49.6 |
(30%) |
||
| S&M as a % of GB |
3.6% |
3.3% |
+33 bps |
3.9% |
(27) bps | ||
| General and administrative |
$21.6 |
$29.5 |
(27%) |
$26.0 |
(17%) |
||
| G&A as a % of GB |
2.3% |
7.3% |
(510) bps |
2.0% |
+22 bps | ||
| Technology and product development |
$19.5 |
$17.2 |
14% |
$18.7 |
5% |
||
| T&C as a % of GB |
2.0% |
4.3% |
(224) bps |
1.5% |
+58 bps | ||
| Impairment of long-lived assets |
– |
$0.6 |
n.m. |
– |
n.m. | ||
| Total operating expenses |
$75.7 |
$60.4 |
25% |
$94.2 |
(20%) |
||
| Operating Expenses as a % of GB |
7.9% |
15.0% |
(716) bps |
7.4% |
+53 bps | ||
| Extraordinary Charges | |||||||
| Total Operating Expenses |
$75.7 |
$60.4 |
25% |
$94.2 |
(20%) |
||
| Extraordinary restructuring and integration charges |
(0.6) |
(9.9) |
n.m. |
(2.2) |
n.m. | ||
| Bad Debt due to exposure to Airlines in Chapter 11 |
0.9 |
1.1 |
n.m. |
(2.0) |
n.m. | ||
| Total operating expenses (Excl. Extraordinary Charges) |
$75.9 |
$51.5 |
47% |
$90.0 |
(16%) |
||
| Operating expenses (Excl. Extraordinary Charges) as a % of GB |
7.9% |
12.8% |
(492) bps |
7.0% |
+88 bps |
On a QoQ basis, Operating Expenses increased 16% to $75.7 million, a similar level when excluding Extraordinary Charges in both periods. The increase in operating expenses was below the growth in Transactions and Gross Bookings. When excluding the Best Day and Koin acquisitions as well as Extraordinary Charges, Operating Expenses would have risen 27%, principally reflecting investments in performance marketing in some of the Company’s core markets.
Structural Costs (management proxy for fixed costs)1 increased 3% sequentially to $37.9 million in 4Q21, mainly due to a 6% increase in payroll costs related to salary adjustments in Argentina.
On a YoY basis, Operating Expenses rose 25% to $75.7 million, mainly due to increased S&M spending in the context of improving travel demand and higher marketing investments. This was partially offset mainly by lower one-time G&A expenses in 4Q21.
When excluding Extraordinary Charges and the Best Day and Koin acquisitions, total operating expenses would have risen 30% to $57.1 million.
Structural Costs (management proxy for fixed costs)1 increased 31% YoY to $37.9 million, reflecting the impact of accelerated salary inflation in Argentina and the reinstatement of short-term incentives.
Compared to 4Q19, Operating Expenses declined 20% to $75.7 million, principally resulting from lower S&M expenses related to lower Gross Bookings. Excluding Extraordinary Charges and the Best Day and Koin acquisitions, Operating Expenses would have declined 37% to $57.1 million, mainly due to decreases in both S&M and G&A expenses.
|
1 |
See definition on page 12 |
Selling and Marketing (“S&M”) expenses rose 163% YoY to $34.6 million, an increase of 33 bps as a percentage of Gross Bookings when compared to 4Q20. This increase reflects branding and performance marketing investments in countries with strong recovery trends. This spend was partially offset by operating leverage gained in offline channels. Compared to 4Q19, S&M expenses as a percentage of Gross Bookings were 27 bps lower. Excluding Extraordinary Charges in 4Q21 and the contribution of Best Day and Koin in both quarters, S&M expenses would have increased 389% YoY to $26.0 million, although 47% below the level reported in 4Q19, reflecting increases in marketing investments.
General and Administrative (“G&A”) expenses declined 27% YoY to $21.6 million and were 17% below those in 4Q19. G&A expenses would have declined 36% YoY to $14.2 million, when excluding Extraordinary Charges and the cost contribution of Best Day and Koin in both quarters. Higher efficiencies achieved through the Company’s reorganization implemented in 2020 yielded a 39% decrease in G&A compared to 4Q19, when adjusting for Best Day, Koin and Extraordinary Charges.
Technology and Product Development expenses totaled $19.5 million, increasing 14% YoY and 5% when compared to 4Q19. Both increases resulted mainly from the inclusion of Best Day and Koin, which added $2.5 million in related expenses. Excluding Extraordinary Charges and costs associated with Best Day and Koin in both periods, Technology and Product Development costs would have increased 3% YoY. Comparable Technology and Product Development costs were 4% below 4Q19 levels, as Despegar streamlined related operations, while maintaining its development capabilities.
Financial Income/Expense
In 4Q21, Despegar reported a net financial loss of $3.8 million, compared to a net financial loss of $2.1 million in 4Q20. This was mainly due to costs associated with hedging activities and to FX losses incurred as a result of intercompany transactions. These costs were partially offset by certain FX gains in connection with Despegar’s cash position and current liabilities, among other balance sheet items.
Income Taxes
The Company reported an income tax gain of $5.3 million in 4Q21, compared to $8.2 million in 4Q20. The effective tax rate in 4Q21 was 107%, compared to 24% in 4Q20. The variation in the effective tax rate was mainly due to the following: i) a reduction in a portion of valuation allowances related to net operating losses in Brazil, Colombia, Peru and Argentina, following updated recoverability analyses for the coming years, and ii) incremental income tax withholdings.
Adjusted EBITDA
| Adjusted EBITDA Reconciliation | |||||||
| (In millions, except as noted) | |||||||
|
4Q21 |
4Q20 |
% Chg |
4Q19 |
% Chg | |||
| Net income/ (loss) |
($10.7) |
($28.8) |
(63%) |
($2.6) |
306% |
||
| Add (deduct): | |||||||
| Financial expense, net |
$3.8 |
$2.1 |
83% |
$6.7 |
(43%) |
||
| Income tax expense |
$5.3 |
($8.3) |
(164%) |
($4.1) |
(230%) |
||
| Depreciation expense |
$1.5 |
$1.8 |
(15%) |
$1.1 |
37% |
||
| Amortization of intangible assets |
$6.9 |
$6.9 |
0% |
$5.1 |
35% |
||
| Share-based compensation expense |
$2.2 |
$2.6 |
(14%) |
$2.1 |
6% |
||
| Impairment of long-lived assets |
– |
$0.6 |
n.m. |
– |
n.m. | ||
| Restructuring charges |
– |
$2.4 |
n.m. |
– |
n.m. | ||
| Acquisition transaction costs |
– |
$1.5 |
n.m. |
– |
n.m. | ||
| Adjusted EBITDA |
$9.0 |
($19.3) |
n.m. |
$8.3 |
n.m. | ||
| Extraordinary Charges | |||||||
| Adjusted EBITDA |
$9.0 |
($19.3) |
$8.3 |
||||
| Extraordinary cancellations due to COVID-19 |
(4.0) |
(5.0) |
n.m. |
– |
n.m. | ||
| Extraordinary restructuring and integration charges |
(0.8) |
(0.4) |
n.m. |
(2.2) |
n.m. | ||
| Bad Debt due to exposure to Airlines in Chapter 11 |
0.9 |
1.1 |
n.m. |
(2.0) |
n.m. | ||
| Adjusted EBITDA (Excl. Extraordinary Charges) |
$13.0 |
($14.9) |
n.m. |
$12.5 |
n.m. |
During 4Q21, Adjusted EBITDA increased to $9.0 million, from $8.3 million in 4Q19, even while Gross Bookings reached only 75% of 4Q19 levels. 4Q21 profitability compares with Adjusted EBITDA losses of $10.3 million in 3Q21 and $19.3 million in 4Q20.
Excluding Extraordinary Charges of $3.9 million principally related to cancellations in 4Q21 and restructuring charges in both periods, Adjusted EBITDA would have been $13.0 million in 4Q21, a record since 1Q19, and 4% higher compared to $12.5 million in 4Q19. In 3Q21 and 4Q20, Despegar posted comparable Adjusted EBITDA losses of $10.3 million and $14.9 million, respectively.
Balance Sheet and Cash Flow
The majority of Despegar’s cash balance is held in U.S. dollars in the United States and United Kingdom. Foreign currency exposure is minimized by managing natural hedges, netting the Company’s current assets and current liabilities in similarly denominated foreign currencies, and by managing short term loans and investments for hedging purposes.
Despegar generated $0.5 million in cash from operating activities in 4Q21, compared with use of cash of $30.8 million in 3Q21 and $43.1 million in 4Q20 and with cash generation of $15.3 million in 4Q19.
In 4Q21, funds from operations reflected (i) a net loss of $10.7 million, (ii) more than offset by $16.5 million in non-cash adjustments, mainly amortization of intangible assets, and by stock based compensation expenses, among other costs, and (iii) a $5.2 million investment in operating working capital.
Working capital investments in 4Q21 reflect increases of $54.0 million in accounts receivables and related party receivables, partially offset by an increase of $42.5 million in travel payables and related party payables.
Cash and cash equivalents, including restricted cash, increased $3.0 million QoQ to $279.2 million as of December 31, 2021, mainly due to an $11.
Contacts
IR
Natalia Nirenberg
Investor Relations
Phone: (+54911) 26684490
E-mail: natalia.nirenberg@despegar.com