Gold prices steady ahead of Fed decision; weekly weakness noted
NEW YORK -On Tuesday, Despegar.com Corp. (NYSE:DESP) reported fourth quarter earnings that missed analyst expectations, while revenue came in above estimates.
The Latin American online travel company’s stock edged down -0.31% in premarket trading following the release.
Despegar posted adjusted earnings per share of $0.27 for the fourth quarter, falling short of the $0.39 consensus estimate. However, revenue rose 8.7% year-over-year to $221.4 million, surpassing analyst projections of $212.4 million.
The company’s gross bookings decreased 1% YoY to $1.5 billion on an as-reported basis, mainly due to foreign exchange headwinds. On an FX neutral basis, gross bookings increased 38% YoY.
Adjusted EBITDA grew 18% YoY to $51.5 million in Q4, with the adjusted EBITDA margin expanding 187 basis points to 23.3%. This improvement was driven by revenue growth, operational efficiencies, and an increase in travel package sales.
"We believe Despegar delivered strong results in 4Q24 and FY 2024, underscoring market leadership through key milestones," said CEO Damian Scokin. He highlighted the launch of the company’s AI travel assistant Sofia and expansion of B2B and white label offerings.
For the full year 2024, Despegar’s revenue increased 10% to $774.1 million, while adjusted EBITDA jumped 52% to $175.2 million.
The company is in the process of being acquired by Prosus (OTC:PROSF) for $19.50 per share in cash, with the transaction expected to close in the second quarter of 2025.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.