Despegar marks the second quarter of profitability as demand recovers

Latin American online travel company Despegar published its second consecutive positive quarter with adjusted EBITDA of $ 12.3 million for the period ending March 31, 2022.

The figure, which excludes the Koin payment platform, rose from a negative $ 20 million a year ago.

Gross provisions for the first quarter of 2022 are $ 803.9 million, an increase of 118% on an annual basis and 69% of the levels for the first quarter of 2019. Due to the omicron variant and seasonality in the region, the company says that gross bookings were slower in January, but recovered 40% in March. Negative $ 20 million a year ago.

Transactions for the quarter increased by 59% n on an annual basis, reaching 74% of the volume for the first quarter of 2019. Mobile devices accounted for 43% of transactions for the period, a decrease of 685 basis points on an annual basis, but with 271 basis points more than in the first quarter of 2019.

Meanwhile, overnight stays in rooms increased by 65% ​​on an annual basis to 57% of the levels for the first quarter of 2019.

Revenue for the first quarter of 2022 increased 117% year-over-year to $ 112.4 million, reaching 84% of the levels for the first quarter of 2019.

Despegar reports that it generated $ 29.2 million in cash from operating activities, compared to the use of $ 7.2 million in cash in the first quarter of 2021 and $ 6 million in the first quarter of 2019.

The company’s loyalty program reached 3.2 million members in the first quarter of 2022, compared to 2.8 million in the fourth quarter of 2021.

Sales and marketing expenses for the quarter were $ 30.5 million, down $ 34.6 million in the fourth quarter of 2021.

Earlier this month, Despegar acquired rival Viajanet in Brazil for $ 15 million, marking the company’s third acquisition.

In August 2020, it bought Koin, a Brazilian online payment platform, and earlier in 2022 acquired a 51% stake in Stays, a Brazilian-based provider of holiday property management solutions.

“We continue to identify opportunities to consolidate the highly fragmented travel market in Latin America. The recent acquisition of Brazil’s Viajanet, an online travel platform focused on the country’s air segment, will allow us to sell additional Despegar products with higher margins that are not air-conditioned at its large customer base, ”said the CEO. Despegar Damian Skokin.

“In addition, we intend to stimulate other synergies by supplying this latest acquisition with Despegar’s sophisticated technology platform. The acquisition of Viajanet adds a new brand to our portfolio, as well as a talented local technology development team.

Skokin goes on to say that Despegar is expanding Koin’s geographical reach beyond Brazil through a strategic partnership with Movii, Colombia’s largest digital portfolio.

By combining forces, Koin will offer its Buy Now, Pay Later solutions to Movii’s four million customers, which will not only significantly increase our target market, but also help Despegar conquer more than the large OTA market. in the country, “he said.

With the Omicron switch, Skokin says he expects demand to continue to recover based on trends Despegar observed in April and early May.

“We are even more encouraged by the significant opportunity offered by the resumption of international travel, given Despegar’s regional leadership,” he said.