Despegar.com Announces Preliminary Select 2020 First Quarter Financial Results

Despegar.com, Corp. (NYSE: DESP), (“Despegar” or the “Company”), the leading online travel company in Latin America, announced today that it filed its Annual Report on Form 20-F for the fiscal year ended December 31, 2019 (the “2019 20-F”) on April 10, 2020. As a result of the unprecedented impact that the COVID-19 pandemic is having on the global economy and the travel industry, in advance of its next quarterly earnings release, which will take place on or about May 4, 2020, the Company is providing an update of its performance during the first quarter of 2020, including the following:

• preliminary estimates of gross bookings, revenues and operating income for the first quarter of 2020;
• preliminary estimates of cash position and certain aggregate net operational short-term obligations as of March 31, 2020;
• preliminary estimates of run-rate for Structural Costs (as defined below) during the second and third quarters of 2020, taking into account its previously announced cost containment / cash preservation measures; and
• an update on its previously announced agreement to acquire Best Day.

Preliminary Estimates of Select Performance Results for the First Quarter of 2020

Operating Results: The Company’s operating and financial performance during the first quarter of 2020 was adversely affected by the COVID-19 pandemic. Based on the Company’s preliminary estimates:

• Gross bookings are expected to amount to approximately $790 million for the first quarter of 2020, compared to $1,158 million during the first quarter of 2019, down 32% YoY. Gross bookings is an operating measure that represents the aggregate purchase price of all travel products booked by the Company’s travel customers through its platform during a given period.

• Revenue is expected to amount to approximately $78 million for the first quarter of 2020, compared to $133 million during the first quarter of 2019, down 41% YoY.

• Operating loss is expected to range between $(26) million and $(21) million for the first quarter of 2020, compared to operating income of $7.6 million during the first quarter of 2019. Operating loss data for the first quarter of 2020 includes depreciation and amortization expenses and stock-based compensation expected to range between $8 million and $10 million.

Cash Position: The Company believes that its existing cash and cash equivalents, together with expected cash flows generated from operating activities, will be sufficient to meet its currently-anticipated cash needs for the next twelve months. Based on the Company’s preliminary estimates: