Despegar Com - DESP STOCK NEWS

Despegar (NYSE: DESP), Latin America's leading travel technology company, has announced a strategic partnership with HBX Group, a prominent B2B travel technology marketplace. The collaboration aims to integrate HBX Group's European and North American non-air inventory into Despegar's platform, expanding options for both B2C and B2B customers.

The agreement includes an advance payment from HBX Group to Despegar and requires Despegar to meet specific booking targets over approximately eight and a half years. Failure to meet these targets may result in penalties, including paying HBX Group a percentage of the shortfall amount.

Key benefits include expanded hotel inventory with competitive rates and enhanced travel packages for leisure and business travelers. The partnership is expected to provide Despegar's customers with greater flexibility and choice while giving HBX Group's accommodation suppliers access to Despegar's distribution channels.

Prosus has announced a definitive agreement to acquire Despegar (NYSE: DESP), Latin America's leading Online Travel Agency, for US$1.7 billion at $19.50 per share, representing a 33% premium. The transaction, expected to close in Q2 2025, will expand Prosus's Latin American ecosystem to serve over 100 million customers.

Despegar operates in 19 Latin American markets through B2C and B2B platforms, handling over 9.5 million transactions annually. The company generated $5.3 billion in gross bookings, $706 million in revenue, and $116 million in EBITDA for 2023. Prosus plans to create synergies between Despegar and its regional businesses, including iFood and Sympla, leveraging its consumer ecosystem to drive growth and enhance platform value.

Despegar.com (NYSE: DESP), Latin America's leading travel technology company, has announced a definitive merger agreement to be acquired by Prosus in an all-cash transaction valued at approximately $1.7 billion. Under the agreement, shareholders will receive $19.50 per share, representing a 34% premium over the 90-day volume weighted average trading price.

The transaction, expected to close in Q2 2025, has been approved by Despegar's Board of Directors and will result in the company becoming privately held and delisted from the NYSE. As part of the Prosus Group, Despegar aims to accelerate its growth strategy, leveraging Prosus's resources, operational expertise, and AI capabilities to enhance its market presence in Latin America.

WeVets, a leading independent veterinary hospital group in Brazil, has received a strategic investment from L Catterton, a global consumer-focused investment firm. Founded in 2020, WeVets operates 15 hospitals and two labs in São Paulo and Rio Grande do Sul, providing 24-hour comprehensive veterinary care through a tech-driven model. The investment will support WeVets' expansion across Brazil through acquisitions and organic growth. The company aims to become the leading vet hospital platform in Brazil's highly fragmented pet market, which is the third largest globally. L Catterton brings significant experience in the pet care sector, with investments in multiple successful pet-focused businesses worldwide.

Despegar.com (NYSE: DESP) reported strong Q3 2024 financial results with record profitability. Adjusted EBITDA increased 94% YoY to $48.0 million, with margins reaching a historic high of 24.8%. Revenues grew 9% YoY to $193.9 million, while FX-neutral revenues rose 53% YoY. The company achieved a record Take Rate of 14.6% and saw B2B Gross Bookings increase 23% YoY. App transactions reached 50.5% of total transactions, and loyalty program members grew 51% YoY to 30 million. Despegar raised its FY2024 Adjusted EBITDA guidance to at least $170 million while maintaining revenue guidance of at least $760 million.

Despegar.com (NYSE: DESP), Latin America's leading travel technology company, has scheduled its Third Quarter 2024 financial results announcement for Thursday, November 14, 2024, after market close. The company will host a conference call at 4:30 p.m. Eastern Time on the same day. Participants can join via phone using the provided U.S. domestic and International dial-in numbers, or through the webcast link. Pre-registration is available for immediate access to the call.

Despegar (NYSE: DESP) announces its first Software as a Service (SaaS) partnership with Karisma Hotels & Resorts, licensing its AI Travel Assistant, Sofia. This collaboration will enhance Karisma's existing chatbot functionalities, offering personalized assistance to guests. The partnership represents Despegar's strategic expansion into SaaS offerings, positioning the company to tap into new revenue streams while strengthening its B2B partnerships. By integrating Sofia, Karisma aims to improve customer travel planning and booking experiences, setting new standards for digital engagement in hospitality.

Despegar.com, Corp. (NYSE: DESP), Latin America's leading travel technology company, and Nubank (NYSE: NU), the largest digital banking platform outside Asia, have announced the integration of NuPay as a new payment option on Despegar's travel platform. This strategic collaboration offers multiple benefits:

• Despegar gains access to Nubank's 95.5 million Brazilian customers
• Nubank's customers get access to Despegar's travel services with increased spending limits and enhanced purchasing power
• The partnership aims to create a more streamlined payment process, potentially boosting Despegar's conversion rates
• Both companies can capitalize on their strengths, delivering enhanced value to customers and opening new opportunities

This integration combines Nubank's extensive customer base with Despegar's travel services, aiming to improve the overall user experience.

Despegar.com (NYSE: DESP) reported strong Q2 2024 financial results, with Adjusted EBITDA up 22% YoY to $36.7 million and revenues increasing 12% YoY to $185.0 million. The company's focus on profitable growth is evident in its strong Take Rate of 13.8%. Gross Bookings increased 4% YoY to $1.3 billion, impacted by FX headwinds, but grew 37% YoY on an FX-neutral basis. Adjusted Net Income surged 397% YoY to $30.2 million.

Despegar raised its FY2024 Adjusted EBITDA guidance to at least $160 million, representing at least 39% YoY growth. However, due to FX volatility and the divestment of its DMC business, the company updated its annual revenue guidance from at least $820 million to at least $760 million.