Despegar.com Corp. (NYSE: DESP) reported Q2 EPS of ($0.83), $0.37 worse than the analyst estimate of ($0.46). Revenue for the quarter came in at $4.2 million versus the consensus estimate of $9.13 million.

Message from CEO

Commenting on the Company’s performance, Damian Scokin, CEO stated, “This past quarter, we were impacted not only by the natural fall off in travel demand but also by the travel restrictions imposed by the different governments in the region which, in some countries, were rather severe. Encouragingly, we have seen a positive trend in bookings both in June and July that has continued during the first two weeks of August.

With respect to the variables that are within our control, we have delivered against the objectives we had previously disclosed, including; i) reducing our cost structure and achieving a 32% reduction in our structural costs on a year over year basis, surpassing the targets outlined in the first quarter and taking this opportunity to become an even leaner organization going forward, ii) taking care of our customers by adding flexibility to our refund policy to those bookings impacted by the pandemic, iii) strengthening our balance sheet with new financings including a $40 million revolving facility and subsequent to quarter-end raising an additional $200 million via two private placement transactions, iv) executing against our M&A strategy. We renegotiated the terms of the Best Day acquisition which includes the deferral of the payment of the purchase price for 36 months. Additionally, the acquisition of Koin expands our technological platform through the addition of a payment solution serving the attractive Brazilian market.

While the outlook remains uncertain, we have taken appropriate action to mitigate the effects of the pandemic while continuing to protect our business and laying the foundation for an even stronger competitive position when travel once again resumes. I have been impressed and inspired by how the Despegar team has come together and how our employees responded to this crisis. I would like to thank all of our stakeholders, employees and investors for their support.”

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