Despegar.com, Corp. (NYSE: DESP) reported Q2 EPS of $0.02, $0.05 worse than the analyst estimate of $0.07. Revenue for the quarter came in at $128.3 million versus the consensus estimate of $133.55 million.

• Transactions up 18% year-over-year
• Gross bookings up 12% year-over-year
• Revenue up 4% year-over-year
• Packages, Hotels and Other Travel Products accounted for 59% of total revenue in 2Q18, up 704 basis points from second quarter 2017
• Mobile transactions up 37% year-over-year, accounting for 33% of total transactions in 2Q18
• Over 43 million cumulative mobile application downloads as of June 30, 2018, up 32% year-over-year
• Adjusted EBITDA decreased 9% year-over-year
• Operating cash flow of $0.3 million in 2Q18, compared to $7.3 million in 2Q17

Message from CEO

Commenting on the Company’s results, Damian Scokin, CEO stated, “Against a challenging macro backdrop, we reported solid second quarter 2018 results, with gross bookings up 12% year-on-year. Although a good performance, currency volatility in Latin America hurt overall industry demand, and caused a mix-shift from international to domestic travel and impacted FX translation on gross bookings. In this context, we took advantage of our leading market position and financial strength, including lowest cost operating structure, to gain market share at an accelerated pace compared with past quarters. We also grew twice as fast as our main competitors in some markets. Additionally, we continued investing in enhancing customer satisfaction and in technology to provide new products and services for our customers. In the near-term, these actions put pressure on margins, but will drive benefits in the future, further differentiating us from the competition and expanding our market share.”

Mr. Scokin further commented, “With over two decades experience operating in the region, we have the expertise and resources to navigate through various economic cycles and a business model that provides flexibility. We are already well positioned with a large and stable customer base as we continue to see consumers shift their travel expenditures online and to mobile and believe we will be generating improved margins when macro conditions improve. We remain focused on our long-term strategic priorities. To that end, we have made significant progress as higher margin Packages, Hotels and Other Travel Products now account for 59% of revenue, over one-third of transactions are now via mobile and NPS after trip experience scores have improved 400 basis points year over year”.

For earnings history and earnings-related data on Despegar.com, Corp. (DESP) click here.