Despegar.com Posts Mixed Q1 Earnings; Hopes On Travel Demand Recovery

Despegar.com Corp DESP reported first-quarter FY22 sales growth of 117% year-on-year to $112.4 million, missing the consensus of $104.85 million.
Gross Bookings increased 118% Y/Y to $803.9 million and at 69% of Q1 FY19 levels.
Transactions increased 59% Y/Y, reaching 74% of Q1 FY19 volume. Mobile represented 43% of transactions in the quarter.
Gross profit increased 234% to $74.4 million. The gross profit margin was 66.2%.
The operating loss for the quarter narrowed to $(4.7) million versus a loss of $(35.9) million.
Despegar held $285.8 million in cash and equivalents as of March 31, 2022.
Adjusted EBITDA for the quarter was $6.8 million versus an adjusted EBITDA loss of $(20) million last year.
Adjusted EPS loss of $(0.45) missed the analyst consensus of $(0.14).
Damian Scokin, CEO, said, "With Omicron behind us and travel restrictions practically eliminated, we expect demand to continue recovering, based on the prevailing trends we have observed in April and early May."
Price Action: DESP shares closed lower by 6.23% at $8.88 on Wednesday.

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