Despegar.com Announces Preliminary Select 2020 First Quarter Financial Results - Seite 2

• Unrestricted cash and cash equivalents are expected to amount to approximately $221 million as of March 31, 2020, compared to $309.2 million as of December 31, 2019.

• Aggregate net operational short-term obligations (comprised of travel suppliers payable plus related party payables and accounts payable and accrued expenses, minus accounts receivable net of allowances and related party receivables) are expected to range between $46 million and $52 million as of March 31, 2020, compared to aggregate net operational short-term obligations of $120.1 million as of December 31, 2019.

Cost Control and Cash Preservation Measures

As previously announced, the Company is taking significant measures to mitigate the impact of the COVID-19 pandemic on the Company, which focus on: 1) taking care of the health and safety of its employees, 2) supporting its travel customers’ needs during this time of disruption in travel, and 3) supporting the sustainability and success of its long term strategy.

Based on the Company’s estimates of the cost savings from its cost containment and cash preservation measures and assumptions with respect to the effects of the COVID-19 pandemic, the Company estimates that its run-rate for Structural Costs (excluding one-time items such as restructuring costs and other extraordinary items) will be:

• during the second quarter of 2020, approximately $34 million; and
• during the third quarter of 2020, approximately $28 million.

Structural Costs represents management’s estimations of the fixed portion of the Company’s cost of revenue and operating expenses, which includes: call center fees (included in cost of revenue), plus the fixed portion of selling and marketing expenses (i.e., primarily personnel expenses), general and administrative expenses, and technology and product development expenses. Structural Costs does not include stock-based compensation, depreciation and amortization, capitalized IT and impairment. The estimates above do not include any costs that the Company may incur in connection with an acquisition of Best Day, as described below.

The Company cannot assure you that the assumptions used in these estimates will be correct, particularly because the effects of the COVID-19 pandemic on the global economy and travel industry are recent, uncertain and changing rapidly, and, as a consequence, it is difficult to predict the full extent that the pandemic will have on the Company.