Despegar Results Presentation Deck

Made public by

sourced by PitchSend

13 of 18

Category

Consumer

Published

August 2023

Slides

Transcriptions

#12023 Earnings Conference Call August 17, 2023#2DISCLAIMER This presentation includes forward-looking statements. We have based these forward-looking statements largely on our current beliefs, expectations and projections about future events and financial trends affecting our business and our market. Some of the factors, risks and uncertainties that might materially affect the forward-looking statements contained herein and may make an investment in our securities speculative or risky include, but are not limited to, the following: the ongoing COVID-19 pandemic is disrupting the global economy and the travel industry, and consequently adversely affecting our business, results of operations and cash flows, and it is difficult to predict the full extent of the impact that the pandemic will have on our Company; we are subject to the risks generally associated with doing business in Latin America and risks associated with our business concentration within this region; general declines or disruptions in the travel industry may adversely affect our business and results of operations; our business and results of operations may be adversely affected by macroeconomic conditions; we are exposed to fluctuations in currency exchange rates; if we are unable to maintain or increase consumer traffic to our sites and our conversion rates, our business and results of operations may be harmed; our business could be negatively affected by changes in search engine algorithms and dynamics or other traffic-generating arrangements; we operate in a highly competitive and evolving market, and pressure from existing and new companies, as well as consolidation within the industry, may adversely affect our business and results of operations; if we are unable to maintain existing, and establish new, arrangements with travel suppliers, our business may be adversely affected; we rely on the value of our brands, and any failure to maintain or enhance consumer awareness of our brands could adversely affect our business and results of operations; we rely on information technology, including third-party technology, to operate our business and maintain our competitiveness, and any failure to adapt to technological developments or industry trends, including third-party technology, could adversely affect our business; we are subject to payments- related fraud risk; any system interruption, security breaches or lack of sufficient redundancy in our information systems may harm our business; our ability to attract, train and retain executives and other qualified employees, particularly highly-skilled IT professionals, is critical to our business and future growth; our business depends on the availability of credit cards and financing options for consumers; internet regulation in the countries where we operate is scarce, and several legal issues related to the internet are uncertain; acquisitions could present risks and disrupt our ongoing business; we may not be able to consummate acquisitions or other strategic opportunities in the future; we are a foreign private issuer under U.S. securities regulations and, as a result, we will not be subject to U.S. proxy rules and will be subject to Exchange Act reporting obligations that, to some extent, are more lenient and less frequent than those of a U.S. issuer; and the strategic interests of our significant shareholders may, from time to time, differ from and conflict with our interests and the interests of our other shareholders. We operate in a competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this presentation. In particular, the COVID-19 pandemic, and governments' extraordinary measures to limit the spread of the virus, are disrupting the global economy and the travel industry, and consequently adversely affecting our business, results of operation and cash flows and, as conditions are uncertain and changing rapidly, it is difficult to predict the full extent of the impact that the pandemic will have or when travel will resume to pre-pandemic levels.. The words "believe," "may," "should," "aim," "estimate," "continue," "anticipate," "intend," "will," "expect" and similar words are intended to identify forward-looking statements. Forward-looking statements include information concerning our possible or assumed future results of operations, business strategies, capital expenditures, financing plans, competitive position, industry environment, potential growth opportunities, the effects of future regulation and the effects of competition. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update publicly or to revise any forward-looking statements after the date of this presentation because of new information, future events or other factors, except as required by law. In light of the risks and uncertainties described above, the future events and circumstances discussed in this presentation might not occur or come into existence and forward-looking statements are thus not guarantees of future performance. Considering these limitations, you should not make any investment decision in reliance on forward-looking statements contained in this presentation. This presentation includes industry, market and competitive position data and forecasts that we have derived from independent consultant reports, publicly available information, industry publications, official government information, other third-party sources and our internal data and estimates. Independent consultant reports, industry publications and other published sources generally indicate that the information contained therein was obtained from sources believed to be reliable. The inclusion of market estimations in this presentation is based upon information obtained from third-party sources and our understanding of industry conditions. Although we believe that this information is reliable, the information has not been independently verified by us. Trademarks and service marks appearing in this presentation are the property of their respective holders. This presentation includes preliminary financial information which is subject to year-end audit and adjustment. 2#3Record Quarter on Demand Recovery, Improving Revenue Mix and Operating Leverage 2Q'23 Executive Summary 1. Improving revenue mix coupled with increasing ASPS drove revenues +23% YoY to a quarterly record of $165.5 M 2. 5. 3. 4. Excluding one-time items, total operating expenses decreased 18 bps YoY as a percentage of GBs Adjusted EBITDA excluding one time impacts increased 71% YoY to $20.2 M Koin trending toward EBITDA breakeven at -$0.6 M EBITDA Deepening omnichannel strategy with Al applications and offline penetration 3#4Key Focus Areas Drive Sustained Improvement in Profitability and Diversification of Revenue Streams (1) 57₁ Focus Areas Revenue Diversification Multichannel Customer Focus Objectives Packages (% of GB) GB weight MEX + BRA B2B1¹ as % of total GB App share of online B2C (% transactions) # of Loyalty Members (M) % of point redemptions NPS post Trip Includes B2B and B2B2C services (2) Includes VF and Viajanet Apps launched in Q4 2022 2Q19 2Q22 2Q23 20% 54% 6% 24.5% 0.0 0% 68.3% 27% 55% 9% 34.4% 5.7 4% 63.9% 33% 60% 15% 37.8%² 16.9 8% 67.5% 4#5Strong Take Rate in a Recovering Market Led to Record Revenues and Gross Profit in 2023 1 Revenue ($ M) vs Take Rate (%) 13.1% 13.8% 13.8% Take Rate 12.1% 134.4 2Q22 Gross Profit 89.3 45.1 145.6 2Q22 3Q22 4Q22 2 Cost of Revenue ($ M) vs Gross Profit 95.2 50.3 145.5 3Q22 100.6 44.9 158.7 4Q22 1Q23 107.7 51.0 12.9% 1Q23 165.5 2023 105.5 60.0 2Q23 110.0 55.5 2Q23 +23% Excluding one-time items: +$2.5M customer Claims +$2.0 M VAT recoverability Revenues +23% YoY to $165.5 M, a record quarterly high Strong Take Rate at 12.9%, with sustained focus on profit-taking in Mexico, Chile and Argentina As reported CoR +33% YoY, partly due to one- time expenses. Excluding these costs, COR would have increased 23% YoY Excluding one-time costs, Gross Profit + 23% YoY, reaching $110.0M 5#6Cost Discipline Builds Additional Operating Leverage as Revenues Expand 1 G&A + T&PD ($M) 48.4 21.4 27.0 2Q22 47.7 22.8 24.9 3022 51.1 25.0 26.1 4Q22 G&A=T&PD 48.6 26.0 22.7 1Q23 49.1 26.4 14.3 8.4 2Q23 Fixed costs +1% YoY, when including one-time items, mainly due to increase in T&PD expenses related to expanding developer team as well as to FX and inflation 2 G&A + T&PD (%Rev) One-time impact 20.1% 15.9% 2Q22 17.1% 15.7% 3Q22 17.9% 17.2% 4Q22 - G&A (% Rev) 16.4% ● 14.3% 1Q23 16.0% 13.7% 2023 T&PD (% Rev) As % of Revenues, G&A -640 bps YoY excluding one-time items, while T&PD +5 bps As % of Revenues, G&A -15 percentage points YoY including one-time items 3 Sales & Marketing ($M) 42.2 2Q22 46.2 3Q22 46.2 4Q22 51.9 1Q23 51.7 2Q23 S&M expenses +22% YoY due to investments in high margin offline sales channels as well as growth investments in Brazil O S&M expenses flat QoQ 6#7Demand Recovery, Improving Revenue Mix and Operating Leverage Across the Region Led to Strong Profit Levels 1 Quarterly Adj. EBITDA Evolution (% vs $M) 8% 11.8 #PA 10.6 2Q-22 8% C 12.0 3Q-22 +183% Adj. EBITDA as a % of Revenue 9% 12.5 4Q-22 11% 17.3 1Q-23 Adj. EBITDA in $ million 30.0 (9.8) ........ 20.2 2Q-23 18% one-time gain (net) 12% +71% Profit Margin Expansion OExcluding one-time items, Adj. EBITDA +71% YoY to $20.2 M and reaching 12% margin Ostrongest 2Q Adj. EBITDA since IPO ÖReported Adj. EBITDA +183% YoY to $30.0 M, on operating leverage and improving revenue mix ÖReported Adj. EBITDA margin +1022 bps YoY to 18%, highest since 2018 7#8Koin trending toward EBITDA breakeven at -$0.6 M EBITDA 1 120 100 80 60 40 20 0 Monthly TPV Evolution (R$ M) 3rd party TPV Decolar TPV Q2-22 Q3-22 -29% Q4-22 Q1-23 Q2-23 2 Take Rate vs Expected Losses (R$M) Expected Loss 29.0 24.0 19.0 14.0 9.0 4.0 Q4-22 Take Rate Q1-23 Take Rate vs Expected Losses spread continues to increase 2023 EBITDA loss of -$0.6 M, improving $1.9 M QoQ and $3.9 M YOY Q2-23 Koin Evolution to Date O TPV contracts 29% YoY in line with prudent approach to loan origination as Brazilian credit remains challenging market 8#9Strengthening our Technology Moat Through Generative Al Efficiency Gains Our Developer teams are assessing ways to apply Al to optimize and automate code writing, aiming to increase overall IT Team efficiency Developer Efficiency Trip Planner Artificial Intelligence ga Customer Support 7 Al Chat Functionality Leveraging our large customer database in combination with machine learning models, we aim to launch a Beta version of an Al Trip planner in 30'23 Customer Care Employing Al we are improving query resolution, reducing resolution times and increasing customer satisfaction 9#10Deploying Proven, Asset-Light Offline Strategy in Brazil and Argentina to Further Expand Margin while Substantially Increasing Market Penetration Offline Bookings % of Total Market" 48% 52% 2022 CAGR (12%) (13%) 54% 46% 2022 Online Travel Market (1) Source: Euromonitor 46% 15% 54% 12% 50% 2027 50% 2027 Offline Travel Market D decolar Is 02 Loja conceito-D decola COMPLETA 112x Brazil Rollout Strategy Initial Phase Timing Locations Store Types 10 Stores by year-end Openings to begin Nov'23 São Paulo, Campinas, Rio de Janeiro, Belo Horizonte 1 Flagship + 9 Standard Stores Argentina Rollout Strategy Initial Phase Timing Location Store Types 5 Stores by year-end Openings to begin Nov'23 Buenos Aires 1 Flagship + Standard Stores + Booths#112023 Summary: Accelerating Performance and on Track to Meet 2023 Guidance K Strong Demand Recovery Travel demand continues recovering, particularly in Brazil and Chile Koin EBITDA -$0.6M Koin continues improving and remains on track to reach EBITDA breakeven in 2H23 Consistently Strong Take Rate Drives Revenue 12.9% Take Rate O Revenue +23% YoY to $165.5 M i19 Looking Ahead Continuing recovery trend observed year to date $20.2 million Adjusted EBITDA O Highest 2Q EBITDA since IPO O Driven by operating leverage and improving revenue mix On track to Meet FY'23 Guidance Revenue: $640 M - $700 M EBITDA: $80 M - $100 M 11#12Q&A 2023 Earnings Conference Call 12#13THANK YOU! CONTACT INVESTOR RELATIONS Luca Pfeifer +57 315 3824802 [email protected] 13#14Appendix#15Trends in Key Financial & Operating Metrics (in thousands U.S. dollars, unless otherwise stated) FINANCIAL RESULTS Total Revenue Cost of revenue Gross profit Operating expenses Selling and marketing General and administrative Technology and product development Total operating expenses Gain / (loss) from equity investments Operating (loss) / income Financial result, net Loss before income taxes Income tax (benefit) / expenses Net loss Net loss attributable to non controlling interest Net loss attributable to Despegar.com, Corp Total Adjusted EBITDA 3021 $83.368 37,953 45,415 26,138 22,162 19,432 67,732 (29) (22,346) (3.254) (25,600) (1,654) (23,946) $273 (23,673) ($10,346) 4021 $124.556 53.765 70,791 34,582 18,689 19,508 72,779 343 (1.645) (3.809) (5,454) 7,545 (12.999) $526 (12,473) $9.002 1022 $112,414 42,558 69,856 30.517 23.523 20,735 74,775 117 (4.802) (7.023) (11,825) 19,093 (30,918) (30,918) $6,787 2022 $134,421 45,149 89,272 42,214 27.037 21,407 90,658 16 (1.370) (10,529) (11,899) 1,266 (13.165) (13,165) $10.594 3022 $145,596 50,305 95,291 46,174 24,873 22,834 93,881 (105) 1.305 (15,359) (14,054) (4,767) (9.287) (9,287) $12,015 4022 $145,542 44,897 100,645 46,245 26,092 25,015 97,352 (192) 3,101 (12.543) (9,442) 5,717 (15,159) (15,159) $12,525 1023 $158.707 51,027 107,680 51,892 22,672 25,971 100,535 113 7,258 (12,595) (5,337) (4,640) (697) (697) $17,272 2023 $165,524 60,000 105,524 51,695 8,396 26,448 86,539 (285) 18.700 (3.948) 14,752 (13,251) 28,003 28,003 $29,957 15#16Trends in Key Financial & Operating Metrics (in thousands U.S. dollars and thousand transactions, unless otherwise stated) KEY METRICS Operational Gross bookings - YoY growth TPV Financial Serivces - YoY growth Number of transactions - YoY growth Air - YoY growth Packages, Hotels & Other Travel Products - YoY growth Revenue per transaction - YoY growth Air - YoY growth Packages, Hotels & Other Travel Products - YoY growth ASPS - YoY growth 3021 $656,957 297% 7,555 416% 1,827 207% 999 155% 827 307% $45.7 131% $32.0 102% $61.3 125% $360 30% 4021 $957,041 138% 17,279 226% 2,257 79% 1,277 88% 1,021 76% $54.2 28% $48.7 74% $75.4 28% $417 31% 1022 $799.499 117% 20,293 572% 1,955 61% 1,015 55% 940 64% $57.5 36% $43.7 71% $68.0 11% $411 37% 2022 $1,113,568 128% 22,472 778% 2,193 70% 1,129 77% 1,033 49% $61.3 29% $47.2 45% $76.2 27% $511 39% 3022 $1,104,608 68% 17,830 136% 2,208 21% 1,122 12% 1,063 29% $65.9 44% $52.0 62% $79.7 30% $503 40% 4022 $1,053,429 10% 15,092 (13%) 1,959 (13%) 1,027 (20%) 925 (9%) $74.3 37% $59.5 22% $84.3 12% $539 29% 1023 2023 $1,151,241 $1,286,976 44% 17,959 (12%) 2,062 5% 975 (4%) 1,076 14% $77.0 34% $58.5 34% $98.0 44% $558 36% 16% 16,733 (26%) 2,204 0% 1,041 (8%) 1,154 12% $75.1 23% $58.5 24% $98.0 29% $585 14% 16#17Unaudited Consolidated Balance Sheets (in thousands U.S. dollars) ASSETS Current assets Cash and cash equivalents Restricted cash and cash equivalents Accounts receivable, net of allowances Loan receivables, net Related party receivable. Other current assets and prepaid expenses Total current assets Non-current assets Other assets and prepaid expenses Loan receivables, net Restricted cash Lease right-of-use assets Property and equipment net Intangible assets net Goodwill Total non-current assets TOTAL ASSETS As of June 30, 2023 218,535 24,434 211,787 16,911 12,092 47,346 531,105 81,752 974 965 18,912 14,848 97,461 154,125 369,037 900,142 As of March 31, 2023 205,143 22,015 170,672 18,057 9,277 40,993 466,157 76,798 857 864 19,820 15,959 94,083 147,216 355,597 821,754 LIABILITIES AND SHAREHOLDERS' DEFICIT Current liabilities Accounts payable and accrued expenses Travel suppliers payable Related party payable Short-term debt Deferred Revenue Other liabilities Contingent liabilities Lease Liabilities Total current liabilities Non-current liabilities Other liabilities Contingent liabilities Long term debt Lease liabilities Related party liability Total non-current liabilities TOTAL LIABILITIES Series A non-convertible preferred shares Series B convertible preferred shares Mezzanine Equity SHAREHOLDERS' DEFICIT Common stock Additional paid-in capital Other reserves Accumulated other comprehensive loss Accumulated losses Treasury Stock Total Shareholders' Deficit Attributable to Despegar.com Corp TOTAL LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS' DEFICIT As of June 30, 2023 54,715 375,143 59,791 27.984 29,057 92.235 12,020 5,075 656,020 15,991 15,300 2,734 14,811 125,000 173,836 829.856 127,594 46,700 174,294 288,240 310,218 (728) (7.458) (616,013) (78,267) (104.008) 900.142 As of March 31, 2023 60,087 314,714 42,226 21.392 26,001 110,763 9,488 5,506 590,177 17.786 30.786 3,433 15,252 125,000 192,257 782,434 120,582 46,700 167,282 287,844 317,526 (728) (10.318) (644,019) (78,267) (127.962) 821,754 17

Download to PowerPoint

Download presentation as an editable powerpoint.

Related

Second Quarter 2022 Earnings Presentation image

Second Quarter 2022 Earnings Presentation

Consumer

TATA CONSUMER PRODUCTS Earnings Update image

TATA CONSUMER PRODUCTS Earnings Update

Consumer

Aeva Results Presentation Deck image

Aeva Results Presentation Deck

Consumer

Despegar Investor Day Presentation Deck image

Despegar Investor Day Presentation Deck

Consumer

Vroom Investor Day Presentation Deck image

Vroom Investor Day Presentation Deck

Consumer

Solo Brands IPO Presentation Deck image

Solo Brands IPO Presentation Deck

Consumer

Arrival Results Presentation Deck image

Arrival Results Presentation Deck

Consumer

Bed Bath & Beyond Results Presentation Deck image

Bed Bath & Beyond Results Presentation Deck

Consumer