Despegar.com Reports First Quarter 2024 Results, Revenue of $173.7 Million, Up 9% YoY, and 126% YoY Adjusted EBITDA Margin Expansion to 22.4%

While traveling and working have both become increasingly remote in the past decade, travel bookings and online travel agencies (OTAs) continue to be an important part of the digital economy. Helping to keep the lights on at many vacation spots is Despegar.com, Corp. (NYSE: DESP), which today reported first quarter 2024 financial results and provided annual guidance for 2024.

Introduction: For the first quarter ended March 31, 2024, Despegar reported total revenue of $173.7 million, representing an increase of 9% year-over-year (YoY). The Company also reported a 126% YoY increase in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to $39.0 million, with an adjusted EBITDA margin of 22.4%, a 11.6% increase YoY. These results were driven by strong commercial execution and a largely robust demand environment, particularly in key focus markets of Brazil and Mexico. The Company also reported solid growth in its B2B and White Label businesses, which increased 47% and 11% YoY, respectively.

In light of this result, Damian Scokin, Despegar's CEO, commented:

"During the first quarter we built on our strong results of the year 2023 by continuing to drive solid top-line growth, particularly in Brazil and Mexico, and achieving our highest EBITDA margin ever. Our ability to offer compelling value and a superior customer experience through our industry-leading technology platform, coupled with the most comprehensive range of payment options in Latin America, continues to position us as the leading travel technology company in the region. These core capabilities also enable us to further capitalize on the travel market's strong secular growth trends. We also built on our impressive track record of innovation, with the recent launch of our exciting AI travel assistant, SOFIA."

Additionally, Amit Singh, the Company's CFO, added: "Our execution of profitable growth strategies, such as increasing package sales, continues to yield robust results. Our revenues grew 9% YoY, or 36% YoY in constant currency, reaching $174 million for the quarter. This top line growth, in combination with our relentless focus on driving operating efficiencies, drove a 126% YoY increase in Adjusted EBITDA,

Read more