Despegar.com, Corp. (NYSE: DESP) reported Q4 EPS of ($0.04), $0.03 better than the analyst estimate of ($0.07). Revenue for the quarter came in at $145.6 million versus the consensus estimate of $133.64 million

Fourth Quarter 2019 Key Financial and Operating Highlights

• Gross bookings on an FX neutral basis increased 26% year-over-year (YoY) and as reported 6% year-over-year (YoY) to $1.3 billion
• Revenues were up 34% on an FX neutral basis and 10% as reported to $145.6 million
• Transactions and Room Nights up 7% and +3% YoY, respectively.
• Share of mobile transactions up 466 basis points (bps) YoY, accounting for 41% of total transactions
• Net Promoter Score (NPS) down 50 bps YoY
• Packages, Hotels and Other Travel Products accounted for 63% of total revenue, up 130 bps when compared to 4Q18
• Excluding Extraordinary Charges, Adjusted EBITDA was $12.5 million. Reported Adjusted EBITDA was $8.3 million compared to $13.9 million in 4Q18.
• Operating cash flow of $15.3 million in 4Q19, compared to use of cash of $5.4 million in 4Q18
• Successful launch of Loyalty Program in Brazil
• Restructuring expenses mainly related to efficiency gains in support areas and fulfillment centers as a cost saving effort without hindering growth

“We are pleased with the strong fourth quarter results and the successful execution of our strategic initiatives.

During the quarter Gross Bookings and Revenue increased 26% and 34%, respectively, on a FX neutral basis. Additionally, Packages, Hotels and Other Travel Products accounted for 63% of total revenue, up 130 bps when compared to 4Q18, contributing to a 10% increase in revenues. Additionally, we gained 20bps of market share as the industry contracted in a low single digits range.

We have made significant achievements in the implementation of our strategy which was discussed at our recent Investor Day. We announced the acquisition of BestDay in Mexico, which will allow us not only to expand our presence in Mexico but also to strengthen our non-air share and to develop new capabilities both on the B2C and B2B verticals. We launched our loyalty program in Brazil which is a medium-term growth enabler. As the Partner of Choice in the region, we are entering into strategic agreements with very relevant industry companies, such as the introduction of a co-branded credit card in Brazil with Banco Santander and a commercial partnership with Tarjeta Naranja in Argentina. Additionally, we are also pleased by the benefits from our investment in brand building which is being reflected in increased use of our Mobile app which accounted for 41% of transactions in the fourth quarter.

The quarter and year, were not without some external challenges and some of them are expected to carry over into the first quarter. Nevertheless, looking ahead we remain focused on strengthening our business through targeted investments, maintaining a healthy balance sheet and a very focused integration strategy for both Viajes Falabella and Best Day.”

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