Despegar.com Corp. (NYSE: DESP) reported Q4 EPS of ($0.24), $0.14 better than the analyst estimate of ($0.38). Revenue for the quarter came in at $53.2 million versus the consensus estimate of $34.39 million.

Message from CEO

Commenting on the Company’s performance, Damian Scokin, CEO stated, “We’re encouraged by the quarterly results which demonstrate that the efforts and initiatives implemented throughout 2020 are delivering the expected results despite ongoing adverse market circumstances. In 4Q20, we i) consolidated three months of Best Day operations, ii) improved revenue margin, iii) kept our structural costs and marketing spend in check while continuing to focus on gaining further efficiencies and improving profitability, and iv) closed the year with a strong balance sheet.

In this context, Despegar on a standalone basis was close to achieving Adjusted EBITDA break-even in 4Q20 when excluding Extraordinary Charges such as extraordinary cancellations due to Covid-19, restructuring charges and M&A and capital raise expenses.

While Gross Bookings increased significantly quarter-on-quarter, we have all learnt that the path to recovery, although clear in the long-run, is likely to be bumpy. Q4 recovery was strong in October and November, but we observed decreased demand in December and January as COVID cases increased globally. A more linear recovery will depend on the pace of the roll out of the vaccination programs in our relevant markets and on the lifting of travel restrictions globally.

Over the next few quarters, we will continue advancing on the successful integration of both Best Day and Koin, fostering our role as the preferred travel partner for well-known international players and clients, while keeping an eye on our bottom line.

As we look ahead, we have become a significantly leaner company, with a more diverse geographical reach through a broader footprint in Mexico and Brazil."

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