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Despegar.com Dividenden en inkoop
Dividend criteriumcontroles 0/6
Despegar.com heeft geen dividenduitkeringen gedaan.
Belangrijke informatie
n/a
Dividendrendement
-0.008%
Terugkoop Rendement
| Totaal aandeelhoudersrendement | -0.008% |
| Toekomstig dividendrendement | 0% |
| Dividendgroei | n/a |
| Volgende betaaldatum dividend | n/a |
| Ex-dividenddatum | n/a |
| Dividend per aandeel | n/a |
| Uitbetalingsratio | n/a |
Recente updates van dividend en inkoop
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Recent updates
Seeking Alpha • Mar 27
Despegar.com: B2B Expansion, But Caution Due To Investigations In Brazil
Summary Despegar.com posted a 35% increase in gross bookings and a 94% rise in adjusted EBITDA, with the B2B segment now representing 19% of total operations. The acquisition agreement with Prosus could strengthen Despegar's financial and technological position, pending shareholder and regulatory approval. Potential investigation impacts could adjust the acquisition price. Ongoing investigations into alleged fare fraud in Brazil pose reputational and legal risks. The outcome could impact the company’s relationships and long-term valuation. Despite strong growth, Despegar’s high P/E (FWD) and asset valuation suggest potential overvaluation, advising caution for new investors until FY 2024 results and investigation developments. Read the full article on Seeking AlphaAnalyseartikel • Dec 10
Despegar.com (NYSE:DESP) Seems To Use Debt Quite Sensibly
Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...Seeking Alpha • Nov 27
Despegar.com's Growth Outlook Is Fairly Valued
Summary Despegar.com, Corp. has shown strong growth with good tourism growth in Latin America, boosted further by market share gains, acquisitions, and B2B revenue growth. The Q3 results represented good financial momentum with greatly improving margins. The earnings growth tailwinds are in part moderated by a weaker mid- to long-term take rate outlook, as well as elevated currency risks. The DESP stock seems to be valued fairly, despite an EV/EBITDA discount to peers. Read the full article on Seeking AlphaAnalyseartikel • Nov 22
Despegar.com, Corp.'s (NYSE:DESP) 26% Jump Shows Its Popularity With Investors
Despite an already strong run, Despegar.com, Corp. ( NYSE:DESP ) shares have been powering on, with a gain of 26% in...Analyseartikel • Oct 23
Is There An Opportunity With Despegar.com, Corp.'s (NYSE:DESP) 21% Undervaluation?
Key Insights Using the 2 Stage Free Cash Flow to Equity, Despegar.com fair value estimate is US$18.50 Despegar.com's...Analyseartikel • Oct 05
Despegar.com, Corp.'s (NYSE:DESP) Share Price Matching Investor Opinion
There wouldn't be many who think Despegar.com, Corp.'s ( NYSE:DESP ) price-to-sales (or "P/S") ratio of 1.4x is worth a...Seeking Alpha • Sep 19
Despegar.com: Excellent Value In An Expensive Market
Summary Despegar.com is a strong buy due to its robust constant-currency bookings growth and market-leading position in Latin America, despite FX headwinds. The company benefits from exposure to fast-growing emerging economies, increasing middle-class travel in Latin America, and lucrative vacation package deals, boosting its take rates. U.S. interest rate cuts could ease FX headwinds, enhancing Despegar's appeal as a value stock with a low 5.2x EV/FY24 adjusted EBITDA multiple. Despite risks from volatile currency rates and a softening global economy, Despegar's international exposure and strong bookings growth make it a compelling investment. Read the full article on Seeking AlphaSeeking Alpha • Sep 01
Why Despegar.com Stock Is A Hold Amid Market Challenges
Summary Despegar has a solid presence in Latin America but faces intense competition from local and global players, limiting its competitive advantages. Despite strong fundamentals and growth prospects, high external and macroeconomic risks make Despegar's stock less attractive. The company's valuation is reasonable, with a forward P/E of 11.5x and EV/EBITDA of 5.7x, but not a bargain considering the risks. Despegar's future success hinges on maintaining relevance and increasing market share in a fragmented and uncertain market. Read the full article on Seeking AlphaAnalyseartikel • Aug 07
Is Despegar.com (NYSE:DESP) A Risky Investment?
Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...Analyseartikel • Jul 17
Are Investors Undervaluing Despegar.com, Corp. (NYSE:DESP) By 25%?
Key Insights The projected fair value for Despegar.com is US$19.26 based on 2 Stage Free Cash Flow to Equity...Seeking Alpha • Jul 08
Despegar: Cheap And Worth A Buy, But Be Mindful Of FX Risks
Summary Despegar has achieved tremendous bookings growth this year, capitalizing on strong travel demand. It estimates the travel TAM in its local Latin America market to be $150 billion, indicating that it is less than 1% penetrated into this market. The company trades at a cheap <5x adjusted EBITDA multiple, far less than U.S. rivals like Expedia and Booking. Be mindful of FX risks, as the U.S. dollar recently rallied against the Mexican peso and the Brazilian real. Read the full article on Seeking AlphaSeeking Alpha • May 27
Despegar.com: Brazil Continues To Lead Growth
Summary Q1 2024 financials show impressive growth in gross bookings and revenue, particularly in the Brazilian market. Despegar.com has continued to reduce its long-term debt. I continue to take a bullish view on Despegar.com. Read the full article on Seeking AlphaAnalyseartikel • May 21
Despegar.com, Corp. (NYSE:DESP) Stock Rockets 27% But Many Are Still Ignoring The Company
Despegar.com, Corp. ( NYSE:DESP ) shares have continued their recent momentum with a 27% gain in the last month alone...Analyseartikel • Apr 12
Despegar.com (NYSE:DESP) Has A Somewhat Strained Balance Sheet
David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...Seeking Alpha • Mar 25
Despegar: The Booking Holdings Of Latin America With More Catalysts And Growth
Summary Despegar is a rapidly growing online travel company that trades at multiples way below peers. The company is now profitable with accelerating revenues and cash flow. It is rapidly gaining market share in a growing market that is underpenetrated. Despegar has an unusually large number of catalysts that should lead to significantly higher revenues and earnings. Read the full article on Seeking AlphaSeeking Alpha • Mar 19
Despegar.com: Strong Growth In Revenue And Gross Bookings Led By Brazilian Market
Summary Despegar.com has experienced strong growth in gross bookings and revenue, particularly in the Brazilian market. The company's recent earnings report showed a 31% increase in gross bookings as compared to the previous year. Despegar.com also continues to maintain a strong balance sheet overall. I continue to take a long-term bullish view on Despegar.com. Read the full article on Seeking AlphaAnalyseartikel • Mar 12
Despegar.com, Corp. (NYSE:DESP) Could Be Riskier Than It Looks
It's not a stretch to say that Despegar.com, Corp.'s ( NYSE:DESP ) price-to-sales (or "P/S") ratio of 1x right now...Seeking Alpha • Feb 01
Despegar's Stock Price Is Overly Optimistic
Summary Despegar achieved operational profitability with increased revenues and flat costs, resulting in a 40% stock appreciation. The stock requires significant optimism to generate an adequate yield. Despegar's growth rate of 13% for five years may not be sustainable, and the company is still exposed to economic cycles. Read the full article on Seeking AlphaSeeking Alpha • Nov 24
Despegar.com: A Profitable Rapid Growth Tech Trading At Only 1X Revenues
Summary Despegar is a rapidly growing online travel company that trades at a multiple way below peers such as Expedia, Booking.com, Make My Trip and Trip.com. Despegar has an unusually large number of catalysts that should lead to significantly higher revenues and earnings. The disconnect appears to be caused by past losses and a confusing income statement and balance sheet, which will be fully explained. Read the full article on Seeking AlphaAnalyseartikel • Nov 06
Is Despegar.com (NYSE:DESP) A Risky Investment?
Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...Seeking Alpha • Aug 26
Despegar.com: Strong Earnings Recovery And Brazilian Growth Encouraging
Summary Despegar.com has seen a strong recovery in earnings and vibrant growth in the Brazilian market. Earnings per share have rebounded into positive territory, driven by growth in the Packages, Hotels, and Other Travel Products segment. The company has kept long-term debt levels low, which is encouraging. Read the full article on Seeking AlphaSeeking Alpha • Jun 15
Despegar.com: Attractive Valuation With Growth Potential
Summary Despegar.com, an online travel agency in Latin America, has faced underperformance due to macroeconomic conditions, the impact of COVID-19, and an initially high valuation. Despite not being profitable yet, Despegar's Q1 2023 financial results show record revenue and growth, with potential for further expansion and new business segments like fintech. The company is currently undervalued compared to its peers, and it represents an attractive long-term investment opportunity. Read the full article on Seeking AlphaSeeking Alpha • Jun 08
Why Despegar Could Lift Off Once Again
Summary Latin American online travel agent Despegar is on the threshold of returning to profitability. The company is reporting tremendous year-over-year growth. I believe shares could enjoy a major rerating over the next 12 months as the company completes its post-pandemic turnaround. Read the full article on Seeking AlphaAnalyseartikel • May 08
Does Despegar.com (NYSE:DESP) Have A Healthy Balance Sheet?
Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...Seeking Alpha • Feb 15
Emeth Value Capital - Despegar: 2x Higher Profitability As Industry Normalizes
Summary Despegar, one of our portfolio companies, has fallen by more than eighty percent since its IPO in 2017. Share of packages as a percentage of gross bookings has more than doubled at Despegar since 2017, and margins on package sales have increased significantly. Despegar recently disclosed that after a successful integration they have increased the EBITDA margin as a percentage of gross bookings at the acquired company by 5.5 percentage points. At present, white labels account for seven percent of gross bookings, and Despegar believes this segment can grow to ten percent of total gross bookings by 2025. It is worth noting that Despegar would offer significant value to a strategic acquirer. The following segment was excerpted from this fund letter. Despegar Corp (DESP) Overview Despegar is the leading online travel agency (OTA) in Latin America. Increasingly, OTAs have become a destination of choice for consumers as they offer the ability to easily search, compare, and purchase travel products across thousands of suppliers on a single platform. Concurrently, OTAs provide travel suppliers, such as airlines and hoteliers, with a turn-key distribution channel to reach consumers who are rapidly becoming digital-native. Despegar was founded in Buenos Aires in 1999, and over the last two decades it has invested more than $2.5 billion developing a technologically world-class product offering and a leading brand presence in key markets, such as Brazil, Mexico, Argentina, Chile, and Colombia. The group has a blue-chip investor base including previous venture funding from General Atlantic, Tiger Global, Accel, and Sequoia, and current strategic investments from L Catterton (LCAA) and Expedia Group (EXPE). Despegar presently serves over five million travel customers per annum who account for nearly $6 billion in annual gross bookings. A History of Travel Distribution By the 1950s, exponential growth in consumer air travel began to stress the airlines’ existing manual reservation systems. Inaccuracies that drove flights to be frequently over or under booked were common, as route information and seat availability were hand documented by ticketing agents. In 1953, a chance meeting between a young IBM salesman, Blair Smith, and the president of American Airlines (AAL), C.R. Smith, incited the idea for a data processing system that could manage airline seat reservations electronically. The system would leverage the technology underpinning the first national air defense network, SAGE (Semi-Automatic Ground Environment), previously co-developed by IBM and MIT in the height of the Cold War. A decade later in 1964, American Airlines had the first operational Central Reservation System ((CRS)), which they called SABRE (Semi-Automated Business Research Environment). The system could process 7,500 reservations per hour at a near zero error rate, and information could be accessed instantly by ticketing agents through a network of 1,500 connected terminals. The success of the program prompted IBM to build its own system to market to airlines, and by the 1970s the technology was ubiquitous. However, while airline operations steadily became computerized, travel agency processes remained manual and reliant on calling the airlines to book reservations. It became clear that for airlines to fully benefit from automation, their new systems would need to bridge externally, thereby reducing the need to constantly grow the ticketing agent staff that handled inbound telephone calls. In 1976, United Airlines announced its intent to sell agency access to its CRS, APOLLO, and several other airlines followed shortly thereafter. Under this model, airlines would provide CRS access in an exclusive, long-term contract with the travel agency that included terminal installation, software maintenance, and training. At the outset, however, conditions proved less than ideal, as systems were expensive and travel agents, being bound to the CRS provider, could not access multiple airlines. Acknowledging the need for improvement, and amid the backdrop of the recently passed Airline Deregulation Act of 1978, airlines began to open their CRS platforms to non-competing carriers that paid co-host and booking fees. Ultimately, competing carriers subscribed to competitor CRS platforms as well, although they were charged higher booking fees and were often disadvantaged on search display results. By the mid-1980s, over ninety percent of travel agencies subscribed to a CRS platform, and American Airlines’ SABRE and United Airlines’ APOLLO controlled forty-nine percent and thirty-one percent of the market, respectively. In tandem, the importance of CRS platforms was magnified by the expanding role of travel agencies. In 1977, thirty-eight percent of airline tickets were booked through a travel agency and by 1989 that figure reached seventy-five percent. Owing to the growing dominance of a select few CRS platforms, the Department of Transportation promulgated a series of regulations throughout the 1980s and 1990s aimed at leveling competition for airlines that did not own a CRS. Among other things, these rules prohibited screen biasing, required non-discriminatory booking fees, and established mandatory equivalent participation for major airlines in competing CRS platforms. By the late 1990s, airlines began to divest their ownership in CRSs. SABRE launched an IPO in 1996, APOLLO followed in 1997, and AMADEUS, a platform founded by Air France, Iberia, Lufthansa, and SAS, filed for IPO in 1999. As these newly independent and increasingly global platforms continued to scale, it marked the emergence of a new vertical within travel, Global Distribution Systems or GDSs. Today, the GDS platforms account for roughly half of the 4.5 billion global airline passengers traveled per annum and connect travel agencies, both traditional and OTAs, to thousands of global travel suppliers. The efforts within the hotel industry to process bookings electronically progressed more slowly. During the 1980s, while a vast majority of airline bookings were being processed electronically, over eighty percent of hotel reservations were still manual. Integration with GDS platforms proved expensive and onerous, particularly given the high fragmentation within the hotel industry. Moreover, connectivity that did exist on a one-off basis was scant, as incorporating the data requirements of a more diverse hotel product was difficult on purpose-built airline centric GDS platforms. Both the type and amount of data that could be displayed was limited, which resulted in simplified, abbreviated, or truncated descriptions and only a narrow selection of room availability. Some progress was made when, in 1988, a consortium of sixteen leading hotel chains established The Hotel Industry Switch Company (THISCO) and built a common user interface (UltraSwitch) between their central reservation systems and the GDSs. The effort to develop standardized communication protocols was a huge success and for the first time allowed travel agents to easily access a wide range of travel offerings, both air and hotel, through a single GDS terminal. Some years later, in the mid-1990s, mass internet adoption would create a paradigm shift in the travel landscape. In 1995, TravelWeb, founded by Pegasus Systems, the parent company of THISCO, became the first company to provide individual travelers the ability to make hotel reservations over the internet. In 1996, TravelWeb partnered with AMADEUS to offer direct flight booking capabilities and became the first full-service OTA. In addition, in 1996, Travelocity was founded by SABRE as a consumer-facing OTA, and Microsoft (MSFT) launched Expedia as its online travel division. Booking.com (BKNG) was also founded in 1996, and Priceline was founded in 1997. Travel suppliers quickly realized that the rise of personal computing and the internet provided an alternative channel to reach end consumers without relying on a GDS. Airlines and large hotel chains began promoting direct access to reservations via their own website.com platforms, and many OTAs began developing direct connections with suppliers that bypassed GDSs. For the first time in its history, GDS market share fell as a percentage of global travel. Notably, direct connections with OTA platforms offered important advantages for travel suppliers beyond cost savings. HTML based webpages offered the ability to incorporate extensive data, including graphics, about a hotel property that simply was not possible via GDS platforms, which operated legacy code on IBM mainframes. Furthermore, in contrast to GDSs, the OTA’s modern technology platforms supported an era of exploding look-to-book ratios, from tens-to-one to thousands-to-one, which required that they operate with their own inventory and rate databases powered by direct connect XML interfaces. Today, OTAs have continued to leverage their second-mover advantage in technology to become the most sophisticated players in global travel distribution and as a result continue to gain market share more than two decades since inception. OTA vs. Metasearch It is important to draw a further distinction between two common business models in online travel - metasearch platforms and online travel agencies. While a consumer may find little difference between the two, the competitive position and economics that result contrast meaningfully. Metasearch platforms such as Tripadvisor (TRIP), Kayak, and Trivago (TRVG) serve as price comparison tools by aggregating data from across the internet, which primarily includes listings from OTAs and direct from supplier websites. Consumers are then offered rates from multiple providers for a given property or itinerary. Notably, metasearch platforms are not booking channels, but rather they are search engines for various booking channels. Consumers are able to view and select the best offer but are then redirected to the travel company website to complete the booking. Unlike travel agencies that earn a commission based on travel bookings sold, metasearch engines operate an advertising model that generates revenue on a pay-per-click basis. In effect, inventory suppliers set marketing budgets and pay metasearch providers for leads that may or may not convert into bookings. On the other side of the ledger, metasearch providers acquire paid traffic through large search engines, such as Google, and traditional advertising methods. This leaves metasearch providers in a challenging position with a concentrated group of OTAs on one side of the platform and Google (GOOG, GOOGL) on the other. Indeed, the competitive challenges intensify when considering that Google itself operates a dominant travel metasearch imbedded within its own platform, which, as the de facto global starting point for search, has a near zero cost of customer acquisition, and because OTAs compete directly with metasearch for the same paid traffic that they would presumably be resold. The result has not been a good one for metasearch. On the other hand, OTAs that own the relationship with travel suppliers, have fragmentation on both sides of the platform, and have the scale to efficiently compete in acquiring paid traffic have proven to be wonderful businesses. There are dozens of OTAs globally; however, Booking.com and Expedia dominate the market with over seventy percent of OTA market share by revenue. The Travel Industry in Latin America Travel is a structurally growing industry. Over the last five decades, global air passenger traffic has approximately doubled every fifteen years, and in Latin America the developments have been analogous. According to data from the International Air Transport Association, roughly 281 million air passengers were carried in Latin America in 2019, which represented a 6.4 percent annual growth rate in traffic since 1970. For refence, 4.56 billion air passengers were carried worldwide in 2019, which represented a 5.6 percent annual growth rate in traffic over the same time frame. Remarkably, while the air transportation market is often associated with cyclicality, there has only been one period over the five decades of reported data, both worldwide and in Latin America, when the three-year growth rate of passengers was negative (*pre-covid). More specifically, the travel market serving Latin American consumers is attractive by several measures. Latin America is one of the largest and most diverse regions in the word, comprised of over forty countries with a total population in excess of 650 million, and possesses a relatively low current propensity to travel that is inflecting higher with the growth of the middle class. For instance, travelers in the United States take 2.1 trips per year on average, compared with 0.57 trips per year on average for Latin American travelers. The data is clear that propensity to travel is closely linked to levels of disposable income, and, on this basis, global market forecasts by Boeing (BA) and Airbus (OTCPK:EADSF) project travelers in Latin America to reach a propensity to travel of 1.2 trips per annum by 2041. In dollar terms, across both flights and hotels, the total travel market in Latin America is approximately $120 billion in gross bookings and is expected to grow at six percent per annum over the next several years. However, online travel currently represents only forty-two percent of gross bookings in Latin America, compared with seventy-two percent in the United States. As the penetration in online travel increases, which Euromonitor estimates to reach forty-seven percent in Latin America by 2026, the result is a growth rate for digital bookings that is fifty percent higher than the travel market in aggregate. Competitive Landscape Despegar’s competitors can be broadly segmented into the following three categories: (i) global, ((ii)) regional, and ((iii)) supplier direct. Within the segment of global competitors, Despegar competes with both OTAs and metasearch providers. Among OTAs, although Expedia and Booking.com are both globally dominant, Booking.com has a strong position across Latin America; whereas, Expedia is only a relevant competitor in Mexico. More specifically, the Booking.com brand is synonymous with leadership in the hotels segment, where it possesses the largest offering of properties across the region, and is particularly strong in Brazil, where the group has a more active marketing focus. The most relevant global metasearch providers, which function as both competitors and partners to Despegar, are Google and Trivago. Trivago is majority owned by Expedia and has a strong brand presence across Latin America. However, as alluded to previously, the economic model of metasearch is challenged, and Trivago is a case in point. Trivago has historically depended on Expedia and Booking.com for nearly eighty percent of its revenue, and as OTAs have prioritized spend that drives conversion of future direct bookings, pure performance marketing channels have been severely damaged. This dynamic is likely to limit Trivago’s capacity for growth in the years ahead. On the other hand, Google’s dominance within travel metasearch is growing rapidly, even while its ambiguous competitive position within the travel ecosystem has at times been a major source of concern for OTAs. In 2015, Google launched an instant booking option that for the first time would allow users to complete a hotel or flight booking without leaving the main search platform. Many believed that this was Google’s attempt to become a travel agency itself and cut out vertical specific players, like Booking.com or Despegar, even if that meant walking away from billions of dollars of ad revenue. This was a particular concern as the Google Flights and Google Hotels widgets often sit at the top of the search engine results page for generic travel search queries and because Google search is still the starting point for a large proportion of consumer travel. However, in 2022 after low consumer take-up, Google discontinued its instant booking option for both hotels and flights and transitioned to a pure metasearch model. Google is likely to remain an essential partner and competitor for many years. Within regional competitors, Despegar competes with smaller OTAs that are often focused on a single country market and local offline travel agencies. The most notable offline competitor is CVC, the largest tour operator in Brazil with 1,200 physical store locations. CVC operates a franchise model, and over the last decade it has successfully doubled its unit count by adding new franchisees and converting existing independent travel agents into franchisees. However, the number of existing units has decreased by nearly twenty percent since the pandemic and is unlikely to be a source of growth going forward. Finally, Despegar competes with its own travel suppliers that are constantly aiming to increase their share of direct bookings. From Flights to Hotels+ Despegar has grown substantially in product scope since launching as a flights-only travel agency in 1999. Following a decade of successful geographic expansion, the group extended its product offering to include hotels in 2009 and today offers vacation packages, vacation rentals, car rentals, and a variety of destination services. This has positioned Despegar as a true one-stop shop for consumer travel and has been a critical driver of profitability, as hotels and packages have significantly higher commission rates than air travel products. For instance, commission rates on flights are between two to five percent, while hotel commission rates can be up to twenty percent. Of note, Latin American travelers have a unique preference to spend their travel dollars on complete vacation packages, which has become a strategic focus at Despegar and the fastest growing product segment. Besides offering convenience and value to the consumer, bundling multiple products into a package with a single quoted price allows Despegar to opaque underlying fares and access rates that are often unavailable on a stand-alone basis. This dynamic not only increases effective commission rates but also provides travel suppliers with a way to manage slow-moving inventory. Share of packages as a percentage of gross bookings has more than doubled at Despegar since 2017, and margins on package sales have increased significantly. Finally, the inclusion of higher margin hotel products is essential to establishing platform value at Despegar. For example, while limited flexibility is offered by low margin flight products, Despegar can leverage the higher margin hotel product to offer targeted discounts and drive consumer engagement. If a customer booked a flight earlier in the year and is now looking to book a hotel, Despegar can offer that customer an exclusive discount to reward loyalty while still generating profit in the transaction. The same creativity is impossible with low single digit percentage commission rates on flight products. Moreover, platform value can benefit supply partners as well as customers. Despegar’s preferred partners program is a widely accepted tool for hotels to boost sales. Preferred partners invest an additional five to ten percent of their net sales price to participate, and Despegar leverages its demand steering capabilities to generate incremental bookings via: (i) preferred sorting and highlighting, ((ii)) higher awareness through marketing activities, and ((iii)) default selection for packaged products. Data shows that for an additional eight percent investment of net sales price, participating preferred partners increased their total bookings by more than forty percent, or a 200 percent return on capital. Pasaporte Despegar In 2019, Despegar launched its first loyalty program, Pasaporte Despegar. Although Expedia and Booking.com have had loyalty programs for several years, and large airlines and hotel chains for decades before that, there has been a renewed focus across the industry to invigorate loyalty programs to promote enduring customer relationships. Critically, OTA’s strategic position in the travel landscape offers important advantages for developing a comprehensive cross-product program. Reward points earned on hotels can be redeemed for flights and vice versa, points earned on one hotel can be redeemed across thousands of hotels, not only at a specified chain, points earned on flights can be redeemed on any airline, and consumers can often double-dip by earning airline miles on OTA booked flights. Pasaporte Despegar was launched in Brazil in 2019, Argentina in 2020, Mexico in 2021, and most recently Colombia and Ecuador in 2022. While still early days, the program has been a tremendous success as it has features that are tailormade for Latin America and is among the most generous with rewards points. There are three levels of Pasaporte membership: (i) Traveler, ((ii)) Explorer, and ((iii)) Global. All customers who register can immediately access the benefits of the Traveler Passport, which include 1 point for every dollar of flight purchases and 2 points for every dollar of non-flight purchases (i.e., hotels, car rentals, activities, etc.) plus up to ten percent discounts at participating hotels. Customers who spend more than $1,500 in a year are upgraded to the Explorer Passport that rewards 1.2 points for every dollar of flight purchases and 2.4 points for every dollar of non-flight purchases plus up to fifteen percent discounts at participating hotels. Finally, customers who spend more than $5,000 in a year obtain the Global Passport where they earn 1.4 points for every dollar of flight purchases and 2.8 points for every dollar of non-flight purchases plus up to twenty percent discounts a participating hotels. This program structure is significantly more attractive than Booking.com’s loyalty program that offers similar discounts at participating hotel properties but with no points and Expedia’s loyalty program that offers limited hotel discounts and fewer points. Notably, both Despegar’s and Expedia’s reward points have a monetary value of approximately one cent, which is on par with other loyalty programs offered directly by travel suppliers. In addition, there are no blackout dates to consider when redeeming Pasaporte Despegar points, and customers can use any combination of points and cash on any transaction. In tandem, Despegar has entered into strategic partnerships with local banks to launch cobranded credit cards in each market that reward Pasaporte points for everyday purchases and additional points for purchases made at Despegar. Co-branded cards have been launched with Santander (SAN) in Brazil, Banco Invex in Mexico, and ICBC in Argentina. Consumers can earn up to 2.5 points on everyday purchases and an additional 3.5 points on purchases made at Despegar, or an effective six percent reward for dollars spent at Despegar for Global Passport members. As of September 2022, Pasaporte Despegar has 9.3 million members, which is up from 1 million members in September 2021, and in markets where the program is fully deployed Pasaporte members account for seventy-five percent of all purchases. Strengthening Via Consolidation Despegar is a proven consolidator in the Latin American travel market. Over the last five years, the group has successfully acquired three regional travel agencies, a payments technology company, and a vacation rental channel manager. In the genre of competing travel agencies, acquisitions often come with a playbook of highly predictable synergies. For example, at the outset Despegar can merge travel supplier inventory and optimize the commercial agreements of overlapping suppliers. This enhances revenue margin, increases inventory selection, and at times offers an opportunity to cross-sell substantially higher margin hotel inventory into a previously flight-centric travel agency. In addition, Despegar has one of the most sophisticated and scalable technology platforms in the region made possible by over half a billion dollars of research and product development. This provides a unique competitive advantage, particularly in relation to regional acquirers. The group’s platform provides acquired companies with enhanced performance marketing capabilities, increased traffic conversion through data driven UX design, improved payment capabilities and fraud detection, and a lower cost of fulfillment. Furthermore, because Despegar already has local teams in all the countries where it makes acquisitions, substantial overhead costs can be eliminated. The result is an extremely high cashflow conversion per dollar of acquired revenue. For instance, consider Viajes Falabella, a Chilean travel agency that Despegar acquired in 2019 for $27 million. Viajes Falabella generated $50 million in revenue and $3.5 million in EBITDA in 2018, and while exact gross bookings were not disclosed, a twenty percent take rate would imply approximately $250 million in annual gross bookings. Despegar recently disclosed that after a successful integration they have increased the EBITDA margin as a percentage of gross bookings at the acquired company by 5.5 percentage points. In other words, on a base of $250 million of gross bookings and a post-acquisition EBITDA margin of 6.9 percent, Despegar’s adjusted purchase price multiple was less than two times. Similarly, Despegar agreed to acquire BestDay, a leading OTA in Mexico, for $57 million in 2020. BestDay generated $140 million in revenue and $8 million of EBITDA in 2019, and while gross bookings were not disclosed, a twenty percent take rate would imply approximately $700 million in annual gross bookings. Despegar disclosed that they shortened the integration time by a factor of three as compared to Viajes Falabella and that they have increased the EBITDA margin as a percentage of gross bookings at BestDay by 3.4 percentage points. Therefore, on a base of $700 million of gross bookings and a post-acquisition EBITDA margin of 4.5 percent, Despegar’s adjusted purchase price multiple was less than two times. While there is a relatively concise list of remaining regional OTAs Despegar would be interested to acquire, based on historical deal metrics and the group’s current market capitalization of $420 million, each $20 million of deployed capital in acquisitions would accrete more than two percentage points to shareholder free cash flow yield. Building The B2B Platform In company with its primary consumer travel business, Despegar has built a scalable B2B platform that is offered to other travel agencies and corporates. This enables the group to enhance monetization of its existing travel content, leverage increased scale to optimize supplier agreements, and collect more data on consumer travel habits. Despegar sells to third-party travel companies in two ways: (i) API connectivity offered to global wholesalers and OTAs, and ((ii)) an HTML solution for small and medium sized physical travel agencies across Latin America. Many of the largest players in global travel have API connectivity agreements with Despegar, including Expedia, Ctrip, Hotelbeds, and Restel. Furthermore, upwards of ten thousand affiliate travel agencies in Latin America access Despegar’s platform via HTML where they procure inventory at pre-negotiated rates. These affiliates generally earn commissions from Despegar, depending on traveler origin and type of product sold. At present, B2B sales to third-party travel companies account for approximately six percent of gross bookings, and Despegar believes this segment can grow to fifteen percent of total gross bookings by 2025. In addition, Despegar offers white label solutions that allow corporates from any industry to offer a travel platform, often for the redemption of loyalty points, while keeping customers in the ecosystem of their own brand. Despegar works with some of the region’s largest financial services firms, retailers, airlines, and hotels, such as Santander, BBVA, Nubank, Visa (V), LATAM Airlines (OTCPK:LTMAY), and Hard Rock Hotels. At present, white labels account for seven percent of gross bookings, and Despegar believes this segment can grow to ten percent of total gross bookings by 2025. Payment Solutions - Installments In Latin America, paying in installments has been prevalent for more than thirty years, and as a dominant form of payment it remains critical for retailers that wish to maximize their demographic reach. For context, fifty-four percent of ecommerce purchases in Brazil are paid for using an installment plan. These installments, known as parcelas in Brazil, cuotas in Argentina, and meses in Mexico, are offered “interest free” to consumers who pay off the balance in monthly intervals typically ranging from three to twelve months. They are offered either through a credit card provider or through an alternative financing provider, which can also allow cash a means of payment. For example, if a consumer has a $1,000 credit card limit, they can buy a $500 flight using a portion of their available credit line and spread the purchase over several installments. However, credit card penetration in Latin America is low, and the average credit limit for those who do have credit cards is normally only a few hundred dollars. Consequently, the existence of alternative financing providers allows consumers to pay in installments without a credit card or without using their available credit limit and allows for several methods of payment. For instance, Boleto Bancário is an official Brazilian push payment method regulated by the Central Bank of Brazil that generates 3.7 billion transactions per year, and accounts for nearly twenty percent of all online sales in the country. Consumers can select Boleto as a method of payment at checkout and are given a digital voucher with a barcode and payment details. This voucher can then be printed, enabling consumers to pay the amount owed in cash at thousands of locations across Brazil, such as a supermarket, convenience store, or post office. In addition, Boleto is often offered in an installment option by a financing provider in which consumers can make their scheduled Boleto payments in cash over the course of several months. Each country has its own unique cultural payment preferences, and integrating the broadest assortment of payment options requires extensive negotiating between the merchant and local financial institutions. Despegar offers nearly two hundred payment options on its platform, including a broad portfolio of installments and non-card payment methods. These unique payments capabilities are a meaningful competitive advantage versus global competitors, such as Booking.com, who do not offer installments and whose existing agency sales model would require wholesale change to provide financing solutions as the merchant of record. Crucially, all agreements with local financial institutions allow Despegar to offer installment plans without assuming collection risk from the customer. Koin In August 2020, Despegar acquired Koin, a fintech company that offers non-card installment payment solutions in Brazil. Despegar initially acquired eighty-four percent of the business through the capitalization of $4 million of owed receivables and the remaining sixteen percent for a $3.2 million cash payment. Notably, because Koin had operated on Despegar’s platform since early 2019, integration risk was limited. The acquisition enabled Despegar to combine its best-in-class fraud and errors platform with a proven financing solution to use alternative payments as both a lever for customer acquisition and monetization. Moreover, the platform would combine Koin’s amassed credit underwriting data with Despegar’s information on 24 million travelers across Latin America to increase conversion and reduce NPLs. Over the longer term, Koin offers the potential to scale through three vectors: (i) deepening penetration of Despegar’s gross bookings in Brazil, ((ii)) expanding within Despegar to other geographies across Latin America, and ((iii)) offering payment solutions to third-party merchants. In Brazil, Koin’s conversion rates have improved by seven percentage points since being acquired, and its penetration of Despegar’s gross bookings has doubled to five percent. In addition, customers that purchase through Koin have shown to have higher ASPs, thereby enhancing profit per transaction, and are largely new customers for Despegar, which corroborates an expanding addressable market. Outside of Brazil, Koin announced its first geographic expansion into Colombia in 2022 via a partnership with Movii, the country’s largest digital challenger bank. While it is still early days, Colombia is a market ripe for disruption, and Despegar has secured a first-rate partner. Only fourteen percent of Colombian adults have access to credit and cash still accounts for nearly ninety percent of all transactions. Koin will enable Movii’s more than three million users to increase their purchasing power without being subject to the frictions of the traditional banking system. Finally, more than two hundred third-party merchants across Brazil have integrated Koin’s payment solutions. Third-party transactions now account for twenty-five percent of Koin’s transaction volume and are growing rapidly. Importantly, while this segment provides optionality to scale into a meaningful profit driver over time, the amplified dataset allows Koin to develop better risk engines at a quicker pace. Today, Koin has a run rate transaction volume of approximately $75 million and is expected require an additional $20 million in cash before breaking even in 2024 at substantially higher volume levels. Achieving profitability is principally a function of scale, iterating risk models, and driving repeat business from known customers. On a unit basis, the average Koin installment loan has a duration of four months and carries an additional take rate of sixteen percent, which offers a healthy margin of safety above expected loss rates. Valuation As of the third quarter 2022, Despegar showed that on an “as reported” basis its gross bookings had recovered to ninety-five percent of pre-pandemic levels. However, adjusting for BestDay and Viajanet, which were acquired in 2020 and 2022 respectively, it is reasonable to believe that Despegar’s pro forma gross bookings have a further twenty-five percent to increase before reaching actual pre-pandemic volumes. This is validated by industry data which shows that apart from Mexico most markets across Latin America have recovered between seventy-five and eighty-five percent of travel activity. In addition, owing to extensive cost overhauls that were completed during the pandemic, Despegar is exiting this side of the recovery with markedly more efficient and profitable operations. For example, the group was able to eliminate $100 million of annual fixed costs during the pandemic and has expanded its use of automation and other process improvements to maximize its cost structure. As a result, Despegar believes it can attain a level of profitability that is two times higher than its pre-pandemic margins as the industry continues to normalize.Seeking Alpha • Jan 14
Despegar.com: Watch Out For A Possible Rebound Soon
Summary Despegar.com could present an opportunity in the travel services industry. The Argentinian online travel and holiday services company is benefiting from robust demand in South America for domestic and international leisure activities. Investors' higher risk aversion to US-listed stocks has impacted Despegar.com's stock price performance, but seasonality and another strong catalyst could result in an interesting price action soon. Looking for Opportunities in the Travel Services Industry: Despegar.com Looking for opportunities in the travel industry based on people's desire for vacations after the COVID-19 virus pandemic, Despegar.com, Corp. (DESP) does not go unnoticed by the detector. The potential for an interesting near-term recovery in the stock price could generate interest in holding or even buying shares. Potential is currently defined by the likelihood of a positive impact from seasonal factors, supported by an ongoing business recovery amid robust South American domestic and international holiday demand. The combination could potentially lead to sharp increases in share prices. Despegar.com, Corp. In Travel Services Industry Despegar.com, Corp., headquartered in Buenos Aires, operates an online travel company in Latin America. In addition to the Despegar and Decolar brands, the group also owns the Best Day, Viajes Falabella and Koin brands. The latter is a fintech provider of digital payments. The company says it has served more than 29 million Latin American customers over the past two decades. The company aims to help people enjoy their lives and strives to promote alternative payment methods and financing to facilitate Latin Americans' access to travel industry services. Latin American customers can take advantage of Despegar.com's wide range of travel and travel-related products available on the websites and through mobile applications. The company operates through two segments, namely the Air segment and the Package Travel, Hotels and Other Travel Products segment. The first segment offers airline tickets, while the second segment offers travel packages, hotel rooms, rental cars, bus and cruise tickets, travel insurance, destination services and other travel-related products. The Despegar.com marketplace allows Latin American consumers to find and compare travel products and plan trips. Despegar.com also makes its technology available to travel suppliers to manage their travel products and access travelers. Continued Positive Trends In Despegar.com Sales And Profits For the third quarter of 2022, total revenue was $145.6 million, an increase of 75% over the same quarter of 2021 and an increase of 10% over the same quarter of 2019. The airline segment, or the sale of airline tickets, accounted for 40.7% of total revenue in the third quarter of 2022, up 85% year on year and up 16% from the same quarter in 2019. The packages, hotels and other travel products segment, which may include airline tickets and other products in addition to hotel rooms, accounted for 58.5% of total revenue in the third quarter of 2022, up 66% year on year and up 5% from three years ago. While the financial services segment, which offers personal loan services and "Buy Now Pay Later" technology services, accounted for 2.6% of total revenue in the third quarter of 2022, a 9.5x increase year over year. Year over year, the company reported a 44-basis point improvement in revenue margin to 13.1%, reflecting not only significantly fewer cancellations but also a higher take rate achieved in Mexico and Argentina. Instead, the improvement was 191 basis points compared to the same quarter of 2019, reflecting not only higher upfront incentives but also customer fees. Total Adjusted EBITDA was $12 million for the third quarter of 2022, reflecting a positive trend reversal from the net loss of $10.3 million in the same quarter of 2021 and growth of 28% over the same quarter of 2019. The earnings line benefited from a higher average selling price and take rate. The 39% year over year increase in operating expenses to $93.9 million in the third quarter of 2022 was driven by higher sales and marketing expenses as the company seeks to increase its presence in the South American market, especially in Brazil. The increase in operating expenses was also due to higher general and administrative expenses, mainly due to foreign exchange unfavorable fluctuations and local inflation, as well as increased technology and product development due to the hiring of developers. The company also had higher financing costs related to factoring receivables in Brazil. The company says that since it has focused on improving its operating leverage, these cost items have actually declined when viewed as a percentage of Despegar.com's gross bookings. Despegar.com ended the third quarter of 2022 with a diluted GAAP net loss of $0.21 versus a diluted GAAP net loss of $0.38 in Q3 2021 while the average number of shares outstanding for the third quarter of 2022 was 81,544,000 versus 81,841,000 in the third quarter of 2021. How Operations Are Performing Despegar.com, Corp. recorded a 21% year on year increase in the number of transactions to nearly 2.21 million in the third quarter of 2022, but still marks a lower level compared to about 2.72 million transactions in the same quarter of 2019 (before the COVID-19 virus-induced pandemic). The number of transactions was split at a ratio of approximately 50/50 between the Air segment and the Packages, Hotels & Other Travel Products segment. Compared to the first segment, the second segment grew almost 2.5 times faster year on year while declining approximately 4.1 times less since the third quarter of 2019. Essentially, overall transactions improved year on year thanks to higher demand in Brazil and Argentina for international travel as international flight restrictions were lifted. However, staff shortages at several international airports continued to create headwinds, which explains why flight transactions in the third quarter of 2022 were still not on par with pre-pandemic levels. Total gross bookings for the third quarter of 2022 were $1.1 billion, up 68% year over year and nearly matching the level of the third quarter of 2019. The improvement was achieved thanks to strong demand for domestic trips coupled with a good recovery in the demand for overseas trips despite capacity issues at several international airports. The higher average selling price of $503 increased by 40% compared to Q3 2021 and by 16% compared to Q3 2019, supported by growing demand for travel, particularly internationally, and increased inflation in countries in South America. The Financial Condition of Despegar.com The company believes the cash position of $263 million as of September 30, 2022, will provide the financial flexibility needed to grow Despegar's business. Despegar is pursuing this goal by expanding its vacation rental portfolio (there were 21,600 units on the company's vacation rental platform in Q3 2022) and further improving conversion and acceptance rates through the acquisition of Brazilian online travel agency Viajanet. However, based on the following two metrics, the balance sheet does not appear to be financially sound. Indeed, Altman Z Score -0.07% implies a risk of bankruptcy that could occur within a few years. While comparing Despegar.com's weighted average cost of capital of 13.72% to Despegar.com's return on investment of -2.39% shows that Despegar.com is destroying value when it should be creating value instead. The financial position needs to make a significant qualitative leap, which will require time and skill on the part of the board, but judging by the course the company has taken, the goal is within reach. What to Expect in the Future Although Despegar.com's travel demand is still far from the level it was before the COVID-19 virus pandemic, the company continues to see improvements despite multiple headwinds caused by macroeconomic and global political issues. There's no doubt that high inflation (which hasn't spared travel and vacation packages), rising fuel prices leading to more expensive airline tickets and rising cash costs discouraging lending have played against Despegar.com. Travel services make up the list of consumer products that consumers tend to reduce as disposable income is challenged by the factors mentioned. In addition, the company is also struggling with the inability of several international airports to handle increased travel volumes, which are still far from pre-pandemic levels, partially due to insufficient ground staff. But this kind of issue affects its competitors as well. However, the significant improvement in transactions and bookings, mainly due to the travel and holiday desires of Brazilians and Argentinians, despite the economic uncertainty that also prevails in their countries, bodes well for Despegar.com shareholders for the long-term potential of their company. Of course, positive sentiment towards US equities is also necessary for the share price to up-trend. Therefore, the outlook for Despegar.com's business is positive, given that the company's strategy of increasing its profitability through a disciplined management approach is supported by strong South American demand for traveling and vacations. In the short term, the company expects profitability to improve further in the fourth quarter of 2022. Given the positive trends outlined above and the solid base provided by strong South American travel and vacation demand, there's good reason to believe it will be as forecast by the company. Added to this is the seasonality factor, which increases the likelihood that the company's anticipated event will provide a strong basis for higher prices in the period between mid-February and mid-March. As can be seen in the chart below from Investing.com, usually the stock price recovers after the last quarter of the year, as that quarter largely coincides with the South American summer and thus the holiday season. Source: Investing.com Despegar.com Corp is expected to report its fourth quarter 2022 results on Thursday, March 9th, after which the stock price could potentially recover significantly. The Stock Valuation Despegar.com, Corp. shares are down nearly 43% over the past year amid the strong known headwinds of macroeconomic and geopolitical factors. The share price, which has been trading at $5.76 for a market cap of $372.3 million as of this writing, has fallen a lot and is now close to the 50-day simple moving average and well below the 100- and 200-day simple moving average lines. Source: Seeking Alpha Also, the stock has a 52-week range of $4.44 to $12.70, and it doesn't pay dividends. The TTM Price / Sales ratio is 0.89 versus the sector median of 0.93, while the FWD Price / Sales ratio is 0.68 versus the sector median of 0.93.Seeking Alpha • Nov 16
Despegar.com Q3 2022 Earnings Preview
Despegar.com (NYSE:DESP) is scheduled to announce Q3 earnings results on Thursday, November 17th, before market open. The consensus EPS Estimate is -$0.16 (+46.7% Y/Y) and the consensus Revenue Estimate is $131.9M (+58.2% Y/Y). Over the last 2 years, DESP has beaten EPS estimates 63% of the time and has beaten revenue estimates 100% of the time. Over the last 3 months, EPS estimates have seen 1 upward revision and 0 downward.Seeking Alpha • Oct 08
Despegar.com: Not A Bet On The Company But On Latin America
Summary Despegar.com is the leading Latin American online travel agency. The company has usually traded at growth multiples. DESP is recovering fast from the pandemic, but I believe it will soon reach a revenue ceiling imposed by its market's size and lack of growth. Without being able to pass that ceiling, DESP is not interesting as an investment from a fundamental perspective. However, it does represent an interest vehicle for speculation on sentiment recovery or Latin American macroeconomic conditions. Despegar.com (DESP) is the biggest Latin American online travel agency. DESP has always been valued as a growth business, trading at lofty multiples. The company was able to generate positive net income before the pandemic, and has shown fast recovery after it. With low debt, interesting cash dynamics, and positive EBITDA, the company presents low risks of financial distress. However, I doubt the business deserves the growth multiples that it received in the past. The company was not able to grow that much before the pandemic, probably influenced by Latin America's generalized recessions (particularly in Argentina and Brazil). Additionally, I do not like some aspects of the company's financial reporting practices. From a fundamental, long-term standpoint, I do not believe DESP is a good investment at these prices. However, it may interest more speculative readers, because of its all-time-low market cap and the possibility of Latin America's economic recovery and return to growth. It is indeed a high-beta bet on Latin America's recovery. Note: Unless otherwise indicated, all information has been obtained from DESP's filings with the SEC. Competitive position DESP's competitive position has some positive and some negative aspects. Among the positives, I consider its penetration in Latin America, bargaining power with inventory suppliers, and cash dynamics. More nuanced aspects are operational leverage and the fact that the Latin American market is underdeveloped. On the negative I consider its lack of sustainable moat against international competitors, and the industry's cyclicality. Starting with market penetration, DESP and Decolar (the Brazilian brand) are well known in its core markets. The chart below, presented in DESP's latest investors presentation, shows general population brand awareness. The chart shows a positive, DESP is known in most markets, but also a negative, it is not significantly more well known than out of region alternatives, like Trivago or Booking (BKNG). Also, the polls were conducted on the general population, not particularly on travel or leisure customers, which could have provided different results. Travel related brand awareness in core Latin American markets (general population) (DESP' latest investors presentation) For example, if the above chart is representative, how come that SiteMinder, a hotel management software suite, lists DESP below Booking and Expedia as a revenue generator in Mexico, even though Despegar has higher awareness in that country. OTA list by hotel revenue generation (SiteMinder) Although the company may not have a sustainable moat against foreign competitors just because it is a Latin American company, it has enough customer traffic to gain bargaining power against its inventory suppliers. This is the second positive characteristic of the company's competitive position. Airlines and hotels have negative competitive conditions, because most of their costs are fixed before providing the product. Therefore, they are willing to push down prices and conditions in order to sell and fill the planes or rooms. This means that a site that moves traffic, like DESP, has the upper hand in a negotiation and can attract significant inventory. Companies want to be listed in DESP. This allows the company to extract a 12% to 15% commission on the gross billings it generates. This in turn leads to the third positive condition, which is great cash dynamics. DESP gets paid in advance for 90% of its sales, sometimes months in advance, but only has to pay the supplier of the service (airline or lodging) when the customer consumes the service. This means that DESP has free working capital, as much as $200 million, as the chart below shows. Data by YCharts Continuing with more nuanced conditions, DESP has substantial operational leverage, because its SG&A costs have been mostly fixed. This can be considered both an advantage or not. In any case, it definitely increases DESP's exposure to cycles. Data by YCharts Cycles are a big issue for DESP for two reasons. First, the industry is definitely income elastic, with people traveling more if they have more disposable income. This is a negative aspect. Second, DESP operates in Latin America, an underdeveloped region with an underdeveloped travel and leisure market, that has suffered from significant fluctuations in GDP. This second aspect is also nuanced. On one hand, underdevelopment means the future possibility of faster growth, and the possibility to import good practices and business models from outside. On the other hand, Latin America's market has a smaller size, meaning that it may not be able to sustain a big structure, or to provide significant scale benefits. I believe that in fact DESP may have reached the ceiling of Latin America's market penetration in 2019. The company was not able to grow revenues significantly after IPOing in 2017, and the reason might be that Latin America's leisure market was not growing, because its main economies were not growing either (Brazil, Mexico and Argentina). Data by YCharts Latin America and the Caribbean outbound tourism expenditure (World Bank ) Another negative aspect of DESP compared to its global competitors is that the company is completely concentrated in Latin America. If the region does well, DESP is probably going to grow. But if the region stagnates (as it has done for more than a decade) then the company suffers. Corrections to quarterly reporting Unfortunately, DESP does not provide sufficient quarterly information. The company does not fill complete quarterly reports with the SEC, but only earnings reports. I do not understand how a company with revenue above $400 million cannot provide complete reports. Also, in the reports important information is missing or prone to misinterpretation. Two aspects in particular are worth noting. First, DESP's financial expenses include losses for FX variations that companies usually put in other comprehensive income. In 2021, the company reported $10 million in net financial expenses, but these included $5 million of exchange rate variations and $5 million of factoring expenses. The earnings report for 2Q22 shows almost $10 million in financial expenses for that quarter alone, but does not separate across categories. It is improbable that DESP is generating $10 million in net interest expense a quarter, or even a year, given that it only has $30 million in debts, and almost $275 million in cash. A second aspect absent from DESP's quarterly earnings reports is the accrued dividends to the two classes of preferred shares the company issued during the pandemic. These include $150 million in class A shares accruing 10% a year and $50 million in class B shares accruing 4% a year. The total expense, from the perspective of the common shareholder, is $17 million a year. However, DESP does not report comprehensive income quarterly, only net income. In this way, the $17 million yearly ($4.25 million quarterly) are ignored. I am not against the preferred shares. The cash provided by them has helped DESP survive the pandemic financially unscathed and make several small sized ($5 to $30 million) acquisitions of distressed companies (Best Day, Viajes Falabella, Koin, Viajanet, HotelDo, Stays). The problem is not reporting the expense the preferred dividends represent for the common stockholder clearly. Securitization of receivables DESP acquired a controlling stake in Koin, a Brazilian buy now pay later solution. When DESP acquired it, in 2021, Koin had $5 million in negative equity. Koin generates significant bad loan losses, but DESP reports this only tangentially. In the report for 1Q22, DESP mentions that adjusted EBITDA for the company was negative $7 million, excluding Koin. However, adding back Koin's results moves the adjusted EBITDA for the quarter to negative $12 million. In the second quarter, DESP reclassified another $4 million of Koin's bad debts for the quarter from SG&A to COGS. On its investors presentation from June, DESP mentions that $20 million more will be needed before Koin is cash positive. The company also comments on its 20-F for FY21 that it would start securitizing Koin's receivables. The securitization will be carried through a trust that will buy receivables from DESP and sell debt to investors. DESP will carry residual and subordinated tranches of that debt. Although the SPV's creditors are not supposed to have recourse rights against DESP, the company will keep the SPV as a consolidated entity on its books. DESP's quarterly reports for 1H22 shows more than $5 million positive cash flows from securitization. Although the figures might not seem enormous for DESP's size, Koin has grown its loan generation 5 times on YoY basis, and it represents a completely different line of business. I am worried that DESP may be entering into a risk profile that is unrelated to its core business strategy. Also, consolidating the securitization trust will obscure the company's balance sheet. More information should be provided by DESP on Koin on a quarterly basis. Profitability calculations What is the revenue and profitability implied in DESP's current stock price, from a purely business-fundamental perspective? DESP's current market cap stands at $450 million, but its EV is $200 million lower because of the company's cash reserves and low debts. I assume that the company will keep a gross margin of 65%, which is the historical average. SG&A costs probably will surround $330 million. DESP has shown in the past that this cost category is sticky to revenue growth and decrease. Further, I assume yearly financial costs of $10 million (coming mostly from factoring, not net interest), $17 million in preferred dividends and an effective tax rate of 25%. With that cost structure, DESP can reach breakeven at $550 million in revenues. From then on, operational leverage plays a significant role. With $600 million in revenues, DESP could generate $25 million in net income (10% return on a $250 million EV). With $640 million, it can generate $45 million (10% on the company's market cap of $450 million).Seeking Alpha • Aug 18
Despegar.com Non-GAAP EPS of -$0.23, revenue of $134.4M
Despegar.com press release (NYSE:DESP): Q2 Non-GAAP EPS of -$0.23. Revenue of $134.4M (+113.0% Y/Y). Gross Bookings of $1.1 billion, up 129% year-over-year (“YoY”) and in line with 2Q19 levels, as travel restrictions were largely eliminated and demand continued to recover steadily Transactions increased 65% YoY to 90% of 2Q19 volume Room nights increased 67% YoY to 69% of 2Q19 levels Mobile represented 46% of Transactions, up 175 basis points (“bps”) YoY and 550 bps compared to 2Q19Seeking Alpha • Jul 26
Despegar.com: Showing Revenue Growth, But Still Too Much Risk
Despegar.com has been seeing revenue growth rebound to pre-pandemic levels. However, low growth in cash and earnings levels remain a concern. Inflation could significantly lower demand for travel across Latin America. I take the view that the stock is too risky at this point in time. Investment Thesis: While Despegar.com has been seeing a significant rebound in revenue, low growth in cash and earnings levels make the stock too risky at this point in time. In a previous article, I made the argument that Despegar.com (DESP) could be in a good position to see upside on the basis of a rebound in growth across the Brazilian market - with this market having accounted for 33% of transaction volume in Q4 2021. With that being said, earnings came in below expectations in the last quarter, which has made investors largely shy away from the stock. investing.com As an emerging markets stock in what remains a volatile time for the travel industry - Despegar.com is by no means without risk. While revenue growth has been rebounding - the purpose of this article is to investigate whether this would be sufficient for the stock to rebound longer-term. Performance As mentioned, earnings recently came in below expectations for Q1 2022, with GAAP EPS of -$0.45 missing expectations by $0.29. However, revenue of $112.4M still beat expectations by $7.55M. Particularly, when we look at the price to sales ratio - we can see that the stock is trading near a 10-year low on this basis while revenue per share has been showing a significant rebound: YCharts In this regard, while earnings have yet to rebound into positive territory - revenue growth is moving in the right direction. In addition, Q1 2022 saw gross bookings of $803.9 million - which was up by 118% year-on-year and accounted for 69% of levels seen in Q1 2019. Moreover, Despegar.com has limited exposure to currency risk given that the company holds its cash reserves in U.S. dollars in the United States and the United Kingdom. However, when we compare the company's cash position for Q1 2019 and Q1 2022 - we can see that the company's cash to current liabilities ratio has decreased quite considerably: March 2019 March 2022 Cash and cash equivalents 311657 235175 Current liabilities 345862 479910 Cash to current liabilities ratio 90.11% 49.00% Source: Figures sourced from Q1 2019 and Q1 2022 Despegar.com Earnings Releases. Cash to current liabilities ratio calculated by author. From this standpoint, while the company has been seeing a rebound in revenue - Despegar.com has less cash available than previously to be able to meet its short-term debt obligations. Looking Forward The main issue with Despegar.com at the current time is that operating expenses are simply outpacing that of revenue growth. We can see that total operating expenses in Q1 2022 are up by 55% from Q2 2020.Stabiliteit en groei van betalingen
Dividenden ophalen
Stabiel dividend: Er zijn onvoldoende gegevens om te bepalen of het dividend per aandeel van DESP in het verleden stabiel is geweest.
Groeiend dividend: Er zijn onvoldoende gegevens om te bepalen of de dividendbetalingen van DESP zijn gestegen.
Dividendrendement versus markt
| Despegar.com Dividendrendement versus markt |
|---|
| Segment | Dividendrendement |
|---|---|
| Bedrijf (DESP) | n/a |
| Markt onderkant 25% (US) | 1.4% |
| Markt Top 25% (US) | 4.2% |
| Gemiddelde industrie (Hospitality) | 2.3% |
| Analist prognose (DESP) (tot 3 jaar) | 0% |
Opmerkelijk dividend: Het dividendrendement van DESP kan niet worden vergeleken met dat van de onderste 25% van de dividendbetalers, aangezien het bedrijf geen recente uitbetalingen heeft gerapporteerd.
Hoog dividend: Het dividendrendement van DESP kan niet worden vergeleken met dat van de top 25% van de dividendbetalers, aangezien het bedrijf geen recente uitbetalingen heeft gerapporteerd.
Winstuitkering aan aandeelhouders
Verdiendekking: Er zijn onvoldoende gegevens om de payout ratio DESP te berekenen en vast te stellen of de dividendbetalingen worden gedekt door de winst.
Contante uitbetaling aan aandeelhouders
Kasstroomdekking: De duurzaamheid van het dividend kan niet worden berekend, omdat DESP geen uitbetalingen heeft gerapporteerd.
Ontdek bedrijven met een sterk dividend
Bedrijfsanalyse en status van financiële gegevens
| Gegevens | Laatst bijgewerkt (UTC-tijd) |
|---|---|
| Bedrijfsanalyse | 2025/05/14 09:54 |
| Aandelenkoers aan het einde van de dag | 2025/05/14 00:00 |
| Inkomsten | 2024/12/31 |
| Jaarlijkse inkomsten | 2024/12/31 |
Gegevensbronnen
De gegevens die gebruikt zijn in onze bedrijfsanalyse zijn afkomstig van S&P Global Market Intelligence LLC. De volgende gegevens worden gebruikt in ons analysemodel om dit rapport te genereren. De gegevens zijn genormaliseerd, waardoor er een vertraging kan optreden voordat de bron beschikbaar is.
| Pakket | Gegevens | Tijdframe | Voorbeeld Amerikaanse bron * |
|---|---|---|---|
| Financiële gegevens bedrijf | 10 jaar |
| |
| Consensus schattingen analisten | +3 jaar |
|
|
| Marktprijzen | 30 jaar |
| |
| Eigendom | 10 jaar |
| |
| Beheer | 10 jaar |
| |
| Belangrijkste ontwikkelingen | 10 jaar |
|
* Voorbeeld voor effecten uit de VS, voor niet-Amerikaanse effecten worden gelijkwaardige formulieren en bronnen gebruikt.
Tenzij anders vermeld zijn alle financiële gegevens gebaseerd op een jaarperiode, maar worden ze elk kwartaal bijgewerkt. Dit staat bekend als Trailing Twelve Month (TTM) of Last Twelve Month (LTM) gegevens. Meer informatie.
Analysemodel en Snowflake
Details van het analysemodel dat is gebruikt om dit rapport te genereren zijn beschikbaar op onze Github-pagina. We hebben ook handleidingen over hoe je onze rapporten kunt gebruiken en tutorials op YouTube.
Leer meer over het team van wereldklasse dat het Simply Wall St-analysemodel heeft ontworpen en gebouwd.
Industrie en sector
Onze industrie- en sectormetrics worden elke 6 uur berekend door Simply Wall St, details van ons proces zijn beschikbaar op Github.
Bronnen van analisten
Despegar.com, Corp. wordt gevolgd door 4 analisten. 5 van deze analisten hebben de schattingen van de omzet of winst ingediend die zijn gebruikt als input voor ons rapport. Inzendingen van analisten worden de hele dag door bijgewerkt.
| Analist | Instelling |
|---|---|
| James Fuller | Guggenheim Securities, LLC |
| Edward Yruma | KeyBanc Capital Markets Inc. |
| Walter Chiarvesio | Santander |