#13023 Earnings Conference Call November 9, 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 Commercial Execution, Organic Growth and Operating Leverage 3Q'23 Executive Summary 1. 5. Strong execution, improving revenue mix and robust demand environment drove revenues +22% YoY to a quarterly record of $178.1 M 2. 3. 4. Adjusted EBITDA increased 106% YoY to $24.7 M, due to strong revenue growth and ongoing efforts to drive operating leverage Strategic focus on higher value Travel Packages led to strong growth, with Packages reaching 30 % of total GB, vs. 26% a year ago Robust growth trends and opportunities in B2C; B2B/B2B2C growing 2X vs B2C, as we leverage our robust and flexible technology platform Operating Cash Flow +$33 M, a strong year-over-year improvement, with total cash balance increasing to $256 M 3#4Significant Market Opportunity Sustains Despegar's Strong Growth Trajectory For The Foreseeable Future Significant Market Opportunity (1) World Latam Source: Euromonitor $2.2T Global Market Greenfield opportunity to grow B2B/B2B2C product in market expanding 9% CAGR¹ until 2028 (1) $150B $3 >$5.0B (23) 6 Current Potential Market Highly fragmented; Expected to grow at double digits Current Size 85% of GB generated online B2C; B2B/B2B2C at 15% of GB outgrowing B2C by 2X B2B 7% B2B2C 8% B2C 85% Connected >15K offline Agencies 77 White Label partners across Banking/ Retail/ Travel space Generated across LATAM, with majority in Brazil and Mexico 4#5Commitment to Continuous Innovation Solidifies our Position as Region's Market Leader Al Trip Planner Launch para ayudarte mejor. ¿Cuándo tienes planeado salir de Buenos Aires? quiero viajar del noviembre 15 al noviembre 20 A ver, a ver... Encontré estas ofertas que se adecuan a lo que estás buscando y creo te podrían gustar. 6 Dias/ 5 Noches Paquetes a Miami O Saliendo desde Buenos Vuelo con escalas ✰✰✰✰ Precio final por persona $ 887.752 Incluye Impto. PAIS Y Percepciones 6 Dia Paqu Sc > V SA Precio $ 89 Incluy Percep User Feedback The suggestions section was very accurate Very good interaction with the chat The chat provided me with a quick response Literally gave me what I was looking for "" App-based transactions (% of total) 42% 40% 38% 36% 34% 32% 30% 3Q-22 4Q-22 1Q23 2Q-23 3Q-23 +558 bps O DESP apps among most popular travel apps in LatAm O Reached installed base of approximately 13 million mobile devices +27% YoY O App-based transactions reached all-time high of over 40% (+558 bps YoY) 5#6Maintaining Undisputed Brand Leadership Across the Region Adds to Competitive Moat (O) 26% 47% 21% (1) UNAIDED BRAND AWARENESS ¹ 1 DESPEGAR TRIVAGO BOOKING CVC 123MILHAS AIRBNB LATAM GOL AZUL VOLARIS HOTEIS.COM AEROMEXICO EXPEDIA TRIPADVISOR 41% 37% 27% 21% 18% 16% 13% 10% 10% 9% 8% 8% 7% HOTEL URBANO AVIANCA BESTDAY VIAJES FALABELLA ALMUNDO AEROLINEAS AR AVIATUR VIAJANET JETSMART 43% 36% 29% 43% 37% 18% 15% 21% 20% - 12% 6% 5% 5% 4% 4% 3% 3% 2% 2% 2% 1% VIVA Source:Despegar Market Insights Brand Tracking. Unbranded Research On General Population Conducted Through Outsourced Online Panels. Oct-2023 7% 11% 4% 17% I 34% 8% 29% 27% 5% 15% 18% Rest of Latam 53% 27% 31% 12% 24% 1% 1.1% 6% 20% 15% 13% 12% 9% 7% 3% 6#7Substantially Boosting Our Global Inventory - Despegar Integrates VRBO Vacation Rentals North America 292K 14K LATAM 71K 23K Rollout completed Rollout next 3 months Rest of world 392K 94K Despegar VR growth (k units) 362 422 468 436 451 Vrbo 557 755 886 1022 2022 3022 4022 1Q23 2023 3Q23 4Q23(e) O Vacation Rentals product offers additional avenue to boost growth O 61% inventory increase YTD#8Key Focus Areas Continue Driving More Profitable Product Mix While Diversifying Revenue Streams 5571 Focus Areas Revenue Diversification Multichannel Customer Focus Objectives Packages (% of GB) GB weight MEX + BRA B2B/B2B2C as % of total GB App share of online B2C¹ (% transactions) # of Loyalty Members (M) % of point redemptions NPS post Trip (1) 2019: D!. 2022: D! + BD. 2023: D! + BD + VF+ VN. (2) Decline due to COVID-19 pandemic 3Q19 21% 53% 6% 26.8% 0.0 0% 68.3% 3Q22 3Q23 26% 55% 11% 34.5% 9.1 5.5% 63.9%² 30% 61% 15% 40.1% 19.9 10% 67.5% 8#9Robust Execution On Effective Strategies Led to Record Revenues and Q3 Adj. EBITDA Since IPO 1 Revenue ($ M) vs Take Rate (%) 13.8% 13.8% Take Rate 2 13.1% 145.6 8% 145.5 12.0 9% 158.7 12.5 1Q23 3Q22 4Q22 2Q23 3Q23 Quarterly Adj. EBITDA Evolution (% vs $M) 11% 17.3 12.8% 3Q-22 4Q-22 1Q-23 Adj. EBITDA as a % of Revenue 165.5 9.8 12%. 12.9% 20.2 178.1 14% 24.7 +22% 2Q-23 3Q-23 Adj. EBITDA in $ million Revenues +22% YoY to $178.1 M, a quarterly high Strong Take Rate at 12.9%, reflecting focus on profitable growth Adj. EBITDA +106% YoY to $24.7 M, on operating leverage and improving revenue mix O Adj. EBITDA Margin +563bps YoY to +14% Strongest 3Q Adj. EBITDA since IPO Operating leverage achieved through YoY : efficiencies in G&A and T&C, -70 bps & -10 bps as % of GB, respectively#10Focus Markets Brazil and Mexico Drive Solid Growth in Gross Bookings Brazil Mexico 34% Gross Bookings (YoY %Growth) 66% 44% Brazil Rest of Latam 11% 32% Mexico FX Neutral 8% Rest of Latam As Reported 44% 25% Total Average Selling Price (YoY %Growth) 4% 12% Brazil 9% 29% Mexico FX Neutral 76% 14% Rest of Latam As Reported 33% 16% Total Outstanding results driven by strong execution and continuously improving competitive dynamics in this market, our success offering vacation packages, and continued growth in higher-ticket international travel O Positive trend driven by our strategic decision to invest in profitable growth, with focus on margin-accretive package sales O Gross Bookings increase largely attributed to international demand in Chile and positive demand trends in Argentina 10#11Already Solid Cash Position Increased $12 M QoQ to $256 M, Maintaining Financial Flexibility 1 Operating Cash Flow 10.4 O 3Q22 +$13M 33.8 3Q23 2 Cash & Cash Equivalents 244 2Q23 +$12M 256 3Q23 O Operating cash flow increased +$12M YoY in line with Net Working Capital increase driven by higher Gross Bookings and operating leverage during 3023 Despite preferred dividend payment, CAPEX and other investments Cash and Cash Equivalents increased +12M QOQ 11#123023 Summary: Excellent Results Through Strong Execution of Commercial Initiatives * Strong Commercial Execution Increase in package sales and accelerating App penetration to build customer loyalty Cash $256 M + $12M QOQ Solid cash position maintains financial flexibility Consistently Strong Take Rate Drives Revenue 12.9% Take Rate Revenue +22% YoY to $178.1 M i19 Looking Ahead Consistent execution of commercial strategy drives top line growth $24.7 million Adjusted EBITDA Highest 3Q EBITDA since IPO Driven by strong growth trend, operating leverage, and productivity improvements Raising lower end of FY23 Guidance Revenue: $670 M - $700 M EBITDA: $90 M - $100 M 12#13Q&A 3023 Earnings Conference Call 13#14THANK YOU! CONTACT INVESTOR RELATIONS Luca Pfeifer +57 315 3824802 [email protected] 14#15Appendix#16Trends 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 Impairment of long-lived assets 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 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) 2022 $134,421 $145,596 45,149 89,272 42,214 27,037 21,407 3022 (30,918) (13,165) $6,787 $10,594 46,174 24,873 22,834 90,658 16 (1,370) 1,305 (10,529) (15,359) (11,899) (14,054) 1,266 (4,767) (13,165) (9,287) 50,305 44,897 95,291 100,645 4022 93,881 (105) $145,542 $158,707 $165,524 51,027 60,000 107,680 105,524 46,245 26,092 25,015 97,352 (192) 3,101 (12,543) (9,442) 5,717 (15,159) 1023 (9,287) (15,159) $12,015 $12,525 51,892 22,672 25,971 2023 (697) $17,272 51,695 8,396 26,448 100,535 113 7,258 (12,595) (5,337) (4,640) (13,251) (697) 28,004 86,539 (285) 18,700 (3,947) 14,753 3023 $178,149 57,599 120,550 56,529 21,382 26,440 104,351 (948) 15,251 (3.215) 12,036 12,351 (315) (315) 28,004 $29,957 $24,730 16#17Trends 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 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 117% 20,293 572% 1,955 61% 1,015 55% 940 64% $57.5 2022 36% $43.7 71% $68.0 11% $411 37% $799,499 $1,113,400 $1,104,283 $1,053,429 $1,148,230 $1,286,976 $1,383,075 128% 22,472 778% 2,193 70% 1,129 77% 1,033 49% $61.3 3022 29% $47.2 45% $76.2 27% $511 39% 68% 17,830 136% 2,208 21% 1,122 12% 1,063 29% $65.9 4022 44% $52.0 62% $79.7 30% $503 40% 10% 15,092 (13%) 1,959 (13%) 1,027 (20%) 925 (9%) $74.3 1023 37% $59.5 22% $84.3 12% $539 29% 44% 17,959 (12%) 2,062 5% 975 (4%) 1,076 14% $77.0 2023 34% $60.0 37% $90.8 34% $558 36% 16% 16,733 (26%) 2,204 0% 1,041 (8%) 1,154 12% $75.1 3023 23% $58.3 24% $88.4 16% $584 14% 25% 18,558 4% 2,384 8% 1,161 4% 1,218 15% $74.7 13% $58.5 13% $98.0 23% $581 16% 17#18Unaudited 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 September 30, 2023 221,681 33,160 199,724 16,023 13,736 49,374 533,698 75,549 1,072 866 18,317 16.176 97,361 150,632 359,973 893,671 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 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 September 30, 2023 86,638 370,218 51,824 28,280 30,684 83,802 7,6 4,402 663,478 14,078 15,500 2,403 14,608 125,000 171,589 835,067 127,300 46,700 174,000 288,240 303,359 (728) (11.669) (616,331) (78,267) (115,396) 893,671 As of June 30, 2023 54,715 375,143 59,791 27,984 29,057 92,235 12,02 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 18