Despegar.com, Corp. (NYSE: DESP) reported Q1 EPS of $0.03, $0.02 worse than the analyst estimate of $0.05. Revenue for the quarter came in at $133.1 million versus the consensus estimate of $128.9 million.

First Quarter 2019 Key Financial and Operating Highlights

• Transactions up 5% year-over-year, with Room Nights up 4% YoY
• Gross bookings reached $1.2 billion, a year-over-year increase of 24% on an FX neutral basis (down 6% as reported)
• Excluding Argentina, transactions, room nights and gross bookings increased 11%, 22%, and 7% YoY, respectively
• Share of mobile transactions up 720 basis points YoY, accounting for 38% of total transactions in 1Q19
• Net Promoter Score (NPS) up 586 bps YoY
• Revenues totaled $133.1 million, up 19% on an FX neutral basis (down 10% as reported)
• Packages, Hotels and Other Travel Products accounted for 63% of total revenue in 1Q19, up 361 basis points from first quarter 2018
• Adjusted EBITDA decreased 44% year-over-year
• Operating cash flow of ($5.6) million in 1Q19, compared to $14.2 million in 1Q18
• Agreed to acquire 100% of Viajes Falabella with operations in Chile, Colombia, Peru and Argentina, and entered into long-term strategic alliance with Falabella Financiero

Message from CEO

Commenting on the Company’s results, Damian Scokin, CEO stated, “We continue to execute on our strategic initiatives, making disciplined investment decisions to accelerate growth. To that end, we recently announced that we reached an agreement to acquire Viajes Falabella, a business with strong focus on packages and operating across our fastest growing markets. Successful execution of our strategy resulted in a strong first quarter 2019 performance across our key commercial and operational metrics given the challenging macro environment, particularly in Argentina. Importantly, profitability improved sequentially while posting attractive growth despite tougher comps from last year’s record first quarter. And, on an FX neutral basis, we reported year-over-year increases in gross bookings, ASPs, revenues, and gross profit.”

“We are focused on pursuing organic and inorganic growth and profitability opportunities as competitive dynamics evolve in light of the weakening macro environment unfolding. We will not lose focus on our long-term growth strategy, while in the medium-term balancing growth versus profitability. We have the right strategy to create long term shareholder value, which will become increasingly evident as our business strategy continues gaining traction in the marketplace and macro conditions improve,” concluded Mr. Scokin.

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