DESPEGAR.COM Reports FY2022 Q4 Earnings Results as of December 31, 2022 on March 16, 2023.

Earnings Overview

DESPEGAR.COM ($NYSE:DESP) released its earnings results for Q4 of FY2022, as of December 31, 2022, on March 16, 2023. Revenue for the quarter was USD -15.2 million, a decrease of 48.3% from the same period in the prior year. Net income was USD 145.5 million, a 16.8% increase from the same period in the prior year.

Transcripts Simplified

All participants will be in listen-only mode. Operator Instructions After today’s presentation, there will be an opportunity to ask questions. Operator Instructions I would now like to turn the call over to Ms. Marcela Martin, Chief Financial Officer. Please go ahead. Thank you. Good morning everyone and thank you for joining us today on our third quarter earnings call. Despite the challenging circumstances resulting from the pandemic, we are seeing promising signs of recovery across our markets with a steady improvement in customer confidence.

We remain focused on delivering a safe and convenient customer experience with the largest selection of product offerings across our markets. We continue to make significant investments to further strengthen our platform capabilities and ensure seamless customer service in this ever changing digital world. We are well prepared to take advantage of any dynamics that may arise from the adoption of this new standard and are confident that it will have a positive impact on our financials going forward. Thank you for your continued support and I look forward to updating you on our progress in the coming quarters. With that, I will now turn the call over to our CEO, Damian Scokin for his comments.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Despegar.com. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Despegar.com. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Despegar.com. More…

Key Ratios Snapshot

Some of the financial key ratios for Despegar.com are shown below. More…

Share Price

On Thursday, March 16, 2023, DESPEGAR.COM reported its fourth quarter earnings results for the fiscal year 2022, ending on December 31, 2022. The stock opened at $5.3 and closed at $5.5, up 2.2% from the previous closing price of 5.4, reflecting an overall positive sentiment towards the company’s results. They help connect travelers with the best deals and offers from a wide range of providers and partners across the region. The company’s strong results in the fourth quarter of FY2022 are a testament to their commitment to providing travelers with the most comprehensive and convenient travel experiences.

Their focus on innovation and customer service has helped them establish a loyal customer base and remain competitive in the industry. Overall, the company’s fourth quarter results indicate a promising outlook for their future financial performance. As they continue to expand their offerings and focus on delivering the best customer experience possible, they are well-positioned to continue their growth trajectory and maintain their position as a leader in the Latin American travel market. Live Quote…

Analysis

At GoodWhale, we have conducted a comprehensive analysis of the financial health of DESPEGAR.COM to gain an understanding of its wellbeing. Our Star Chart reveals that DESPEGAR.COM has an intermediate health score of 4/10, which shows that the company is likely to safely ride out any crisis without the risk of bankruptcy. We classify DESPEGAR.COM as a ‘rhino’ – a type of company that has achieved moderate revenue or earnings growth. The company is strong in cashflow and debt, medium in profitability and weak in assets, dividend and growth. Such a company may be attractive to value investors looking for a steady yet sustainable growth in the short-term. Other investors may also be interested in such a company as it offers the potential for stable long-term gains. More…

Peers

It competes with other online travel companies such as Yatra Online Inc, W&E Source Corp, and Travel+Leisure Co. These companies all strive to provide the best services to their clients by offering competitive prices, extensive travel options, and excellent customer service.

– Yatra Online Inc ($NASDAQ:YTRA)

Yatra Online Inc is an Indian online travel services company which provides customers with a platform to research and plan their travel, book flights, hotels, and other services. As of 2023, Yatra Online Inc has a market capitalization of 111.59 million USD. The company’s return on equity (ROE) is -12.28%, which indicates a decrease in profitability compared to the previous year. This can be attributed to increased competition in the online travel services space, as well as the effects of the COVID-19 pandemic on the travel industry.

– W&E Source Corp ($OTCPK:WESC)

W&E Source Corp is a business and technology services company that provides services ranging from IT consulting to managed services and project implementation. The company has experienced strong growth over the last few years, reflected in its market cap of 793.52k as of 2023. Additionally, W&E Source Corp has been able to achieve a Return on Equity of 49.09%, which is higher than the industry average. This suggests that the company is efficiently using its assets and is well-positioned to generate higher returns in the future.

– Travel+Leisure Co ($NYSE:TNL)

Travel+Leisure Co is a travel, hospitality, and lifestyle company that provides customers with an array of travel-related services and products. It has a market capitalization of 3.02 billion dollars as of 2023, which means that its stocks are valued at 3.02 billion dollars. Additionally, its Return on Equity (ROE) of -46.67% indicates that the company has had a poor financial performance in recent years. This could be due to a number of factors, including the pandemic which has affected the travel industry significantly.

Summary

DESPEGAR.COM has reported its 4th quarter earnings results for FY2022. Revenue decreased by 48.3% year-on-year, whereas net income rose by 16.8% year-on-year, amounting to USD 145.5 million. This presents a good opportunity for investors, who can benefit from the short-term increase in value, while also being confident that the company’s long-term position is strong due to the growth in income. Investors should consider the risks associated with investing in the company, such as any potential downturns in the travel industry that could directly affect DESPEGAR.COM’s performance.