The following is a summary of the Despegar.com, Corp. (DESP) Q2 2024 Earnings Call Transcript:

Financial Performance:

• Despegar.com reported total Q2 revenue of $185 million, an increase of 12% year-on-year despite foreign exchange headwinds.

• Adjusted EBITDA for the quarter was $37 million, up 22% year-on-year. When factoring out last year's one-time $9.8 million benefit, this represents an 82% year-over-year increase.

• Adjusted net income for the quarter reached $30.2 million, marking a 397% increase year-over-year.

• Gross bookings grew 4% year-on-year to $1.3 billion; however, in constant currency terms, this represents a 37% increase.

Business Progress:

• Despegar launched AI-powered travel assistant, SOFIA, enhancing customer interaction and support. SOFIA now integrates after-sales support and can guide customers through sales processes more effectively.

• Strengthened B2B offerings with new white-label partnerships and API expansion planned for second half of the year.

• Continued expansion of B2B services, now reaching beyond Latin America with active discussions for new geographic partnerships.

• Significant growth in Despegar's loyalty program, Pasaporte Despegar, which saw a 65% year-on-year increase to 27.9 million members.

Opportunities:

• Despegar is leveraging its robust mobile app, which saw a 43% year-on-year increase in downloads to 18 million, to strengthen customer loyalty and expand cross-selling opportunities.

• The company's focus on strengthening Latin American market presence using strategic partnerships, such as the new Shakira brand campaign, and expanding services like the loyalty program and mobile offerings.

Risks:

• Despegar's financial performance continues to be significantly impacted by foreign exchange headwinds, which are stronger than initially expected for the year, affecting reported revenue growth.

• Temporary natural disasters such as the severe flooding in Rio Grande do Sul impacted operations, causing air cancellations which affected the company's revenues.

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