Despegar.com soars 15% on record Q3 profit, raised guidance

EditorRachael Rajan
Published 11/14/2024, 04:54 PM
DESP
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NEW YORK - Despegar.com Corp. (NYSE: NYSE:DESP) shares surged 15% on Tuesday after the Latin American online travel company reported record third-quarter profits and raised its full-year earnings guidance.

The company posted adjusted earnings per share of $0.34, handily beating analyst estimates of $0.17. Revenue rose 9% year-over-year to $193.9 million, also topping expectations of $189.84 million.

Despegar's adjusted EBITDA nearly doubled to $48 million, driven by a record-high take rate of 14.6% and improved operational efficiencies. The company cited strong commercial execution and innovative payment solutions as key factors behind the robust performance.

"We are pleased to report that our third-quarter 2024 performance reflects the sustained momentum we've built throughout the year," said CEO Damian Scokin. He highlighted significant strides in the B2B segment, with gross bookings growing 23% year-over-year to $230 million.

For the full year 2024, Despegar raised its adjusted EBITDA guidance to at least $170 million, up from its previous outlook of at least $160 million. The company maintained its revenue forecast of at least $760 million.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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