Despegar.com (DESP) 16 May 242024 Q1 Earnings call transcript

Good morning, and welcome to Despegar's First Quarter 2024 Earnings Conference Call. My name is Krista, and I will be your operator for today's call. At this time, all participants are in a listen-only mode. And please note that this call is being recorded. There will be an opportunity for you to ask questions at the end of today's presentation.

to call like to would I turn over the Mr. Now Investor Relations. Pfeifer, Luca Please go ahead.

everyone, joining Good thanks and morning, for us today.

considered In in measures accordance should carefully accounting unaudited and including foreign financial U.S. operating the calculations. measures press them. reporting discuss accepted metrics Investors are neutral financial will in only. principles, addition generally our we financial release definitions isolation, be Non-GAAP metrics, should measures non-GAAP included that GAAP and read understand exchange with to to the for certain metrics they results provided substitute of these operating financial and not to information or in as ensure as superior supplemental and measures

that materially may number made could are the including risks and certain not that course but of of begin related and expectations beyond that current forward-looking on subject limited include, acquired. constitute may the to to statements differ, a factors of allow we to, uncertainties we and and cause Before prepared you company's These remarks, during discussion the our which performance and are expectations integration be assumptions results please the management's are statements, beliefs based control. the actual remind me businesses to to

refer description U.S. please a Commission For of with press these release. to the and filings our risks, Securities our and Exchange

our many quarter call Damian who an strategic Scokin, is today's CEO, well update initiatives. as performance first Speaking as on of growth on Despegar's will provide an overview our

Singh, will prepared open detailed results. please the the with we system, your Sofia. financial Damian, recent After of you our an a before Amit on travel of remarks Estebarena go quarter's that, developments our provide will our wrap-up finally, follow review AI-powered our for Damian ahead. a CFO, call will Gonzalo questions. end with with CTO, Next, more And update

constant significant Despegar We another you, focus day, strong robust finish XX% Luca, year, our achieved strong everyone. year-over-year for top in a our there gross with demand to increasing and leverage and XX%, bookings gross increasing results packaged hotels Notably, growing good on performed bookings line year-over-year billion. with through last grew well regions, respectively. markets, delivered XX% our Thank currency In and deals year-on-year. growth bookings These quarter. enabling Building reflect us $X.X effective bookings XX% execution. Brazil position these strong leadership commercial to and Mexico

high we travel Our commercial sales efforts in as continue gross segment, XX.X% bookings. of the all-time our package drive to further in this with results impressive of an reaching expand category

adjusted XX.X%, quarter. very a also strong X.X% as in profitable rate But $XXX negative We impact million reached increase more take revenues, Largely, year-on-year. for of a revenues currency, robust constant in maintained EBITDA year-on-year year. revenue quarter now increased XX% of quarter to leverage. million, year-on-year ever in and sales, in highest the margin increased operating non-Air efficiencies the focus expanded to XXX% to same relentless history our EBITDA the Adjusted drive our revenue had exchange improving the XX% a from cost our on QX. significant foreign combined with leading with XX.X% accounting in the in And our continue $XX last in expected, mix around to Despegar XX.X%, growth a for which revenue

the income net substantial income the our to representing was $XX.X first adjusted million XXXX. in $XX.X of net adjusted very of compared XX% year-on-year XXXX, first quarter the increase for Additionally, million, quarter a

Mexico. position in the leader billion. quarter, reinforces business reaching performance to during year-on-year was in have brand $X.X the This by as bookings hotel robust Turning also package first Brazil segment. XX% our sales the our primarily particularly growth region. This driven BXC and and grew a highlighted,

flexibility. array highly which needs and of competitive to Latin diverse well approach compelling for continue a maintaining are relentlessly a key the to edge, for of focus and Americans to Despegar our a for preferences sustained and essential affordability portfolio at the strategic markets reflects laser foreseeable our reputation competitive travel. comprehensive payment purchase caters quality, to commitment pursuing for offer while This positioned and options, levels offering of a product on and we We By customer prices, most and growth higher future. financial remain drive also the base profitability

recently accounts Latin our channel asset-light business to for Brazil sales online and pleased in successfully in Argentina, to performance travel the presence, of XX% our expanding model roughly penetrate off-line we America. sales segment, addition In are which launched with of an off-line the

in levels strategic Gross front have cash for successful been As label highlighting and These have at past, option discussed while becoming the the continue reading market highlight white including now the penetrate wide in the side. features the to banks. segment Brazil's and the purchases in purchase Brasil bookings and key enabler the in offline these platform that points to an travel on key through points the white not The operations largest off-line label markets of massive packages. can from resulted accelerating now label operated growth platform products, largest relevance. A increase. only loyalty directly XX% an with on program. travel do by third partnership level our first region's the The saw the but year-on-year, on redeem the highly is and Despegar partnerships Bradesco, white of second program largest new quarter, year-over-year ones. with be customers our to our we've our label Brazil's to expansions Through transition impressive operation products is can significant XX% Brazil. this They Livelo, online Livelo was made BXB drivers goal the in be BXB grew to our and white purchases Banco accumulate white-label also

billion accumulated their points reward travel by XXX million over services Livelo collective exclusive XX to have perspective, access offered For members now for redeem Despegar.

possible as many one enable Peru us our in position choice as to Latin best provide step the the as Despegar we best-in-class their travel marks to our eagerly other loyalty regardless underscores Livelo well partners other promotions and is such of coming customers. that for partners and provide which experiences as significant with relationships of other platform, size solutions months as highly the our a the brands. programs as of collaboration solutions We Bolivia, for. and as deepening Our white of customized Colombia in to with for quarters. banks, well America's well look forward strength their technology as Argentina, Livelo leading travel partner It Livelo consolidating label the significant

our strategically is solutions to to $X.X of delivering broadening confined previously and our exceptional last America. targeted communicated, of the we for and market. value globe. vision across our strategy platform impact to the commitment Latin to leverage As scalability label white trillion travel our segments penetrate strength have the reflects proven not aim We This

evidenced on emerging I offerings operating driving we financial for our high like the of travel base our understanding an enabled platform, packaging in maintain across to discuss which, in various gross Next, and already deliver of some deep bookings with as results. by as customer sales, a of along highly preferences resonate XX% our the our continued unique us database At This technology all-time to quarter. our would innovation to extensive that with increase our Despegar, are the that tailored mentioned, improvements of customer focus ways markets. and the leverage industry-leading customer reached

customer Our customer focus on innovation loyalty. engagement as cultivating and which includes tool for serve long-term apps, driving mobile our an effective

bringing a marked quarter growth. through XX% of significant apps increased to during XX%, first quarter, The terms additional nearly of achievement downloads app base were of our the engagement. total all driving transactions devices. XX a million our Year-on-year installed our our Furthermore, organic app in processed record

customer Our AppFirst the acquisition delivering and from cross-selling strategy well retention customer results improved other as to most opportunities. positive costs in as increased engagement is many ways lower

As discussed our our earnings SOFIA. on innovation, of proud call, most we are particularly last recent

work. are features. months Our her, operating our engaging discussing of dedicated many seeing as about refining extend culmination launching that SOFIA into continue incorporating includes with are we to is customer capabilities, we and SOFIA such which see travel of months generative AI travel reservations, After customers how beyond assistant feedback development a ago, topics X enhancing

on SOFIA of truly we our powerful a this extensive a our of data, customer product assistant. array inventory a make area comprehensive set travel which latest trained reminder, as vast and the in Despegar's her is will of digital to on exciting the discuss the continue to pace SOFIA web-based travel. As Gonzalo Later information, all call, update

Next, customer-centric maintain brand to approach I across to our also discuss region. enabled leadership us the want how

industry-leading driver integral identity brand of program, and retention. remains Pasaporte our Our Despegar, to is key another loyalty customer

membership program a activity transactions, year-on-year an close growth continues redemptions impressive X.X of the its customers, steadily maintained the total Despegar total during million Pasaporte trajectory. Furthermore, increase reached increase the quarter, first significant to of quarter, loyalty quarter in of the By representing quarter, versus XX XXXX. of XX% with increase. first This percentage X.X% exceeding points redemption points had XX.X% now

to more points membership loyalty X as improvement year-on-year our while by on we improving and simultaneously underscores efficient also been experiences. our our redemption, point a our growing percentage rising evidenced NPS, to strengthened rose addition Score, Net which loyalty in In substantially significant customer scalable. service exceptional important to and dedication we improvement this model delivering have This making travel front XX%. Moreover, Promoter

improving focus efficiently also both consistently and and the this positions international drivers of technology platform through us customers the and our core the travel to brand evidence translates our across to strengthening than options product focus to only our preferred continue of for of all key our traffic summary, travel not model Innovation higher awareness, be is coupled commercial were more a to product makes strength. relationships a into Industry-leading Despegar travel-related the profitable sharp our performance solid markets, execution from competitors. brand suppliers competitive robust brand operating in mix. For a retention on cases. unaided region. and consistent our further leadership ongoing as self-service with our which benefit also brand quarter as example, in improvements who maintaining In leading organic our as resolve partner operational inquiries advantage efficiency, Further customer leverages majority brand local empower towards recognition customer satisfaction the well to our

and to white high Additionally, market BXB and penetrate we label segments. in drive large organic further potential continue and traffic the growth

rest ahead. to look as position the ahead excellence excited turn about being current expect to committed Despegar paramount endeavors. of is of We our are over further we Gonzalo, growth technology always innovation, maintaining in walk effectively pursuing most the travel leadership. growth ahead year opportunities SOFIA. that industry's very trip staying I will our in innovation with to to industry remain beyond, and now profitable Continuous many the able consolidate the relentlessly the and our we and towards sustain all embracing and we As recent firmly our AI lie through to call trends challenges, you planner, emerging navigate momentum to will our advancements who market leader

Thank you, Damian.

our SOFIA. into insights product reflect latest on the delving I'd we've launching Before like valuable since updates, gained to

most trial additional issues, make the companion. X identifies our thousands features the past quarter. it months, providing SOFIA not XX% even interactions, responses feedback indispensable We also as more during of crucial desires, appropriate the to understanding pressing had of several cases. made that been During only SOFIA SOFIA and significant over clients enhancements ones travel-related in customer of has successfully but This will our enhances

pricing our and and innovative hotel in Despegar's feedback integrated enables hotel compare an to along integration research, way. This we with complete First, book history. customer clients stays inventory, effortlessly related

For well now as preferences Paris in accommodations can as suggestions past more and example, about on based a interactions SOFIA tailored her. as with their customer receive

particularly to enabling offer from to also page initial with the on consider of from information filtering based the suggestions solutions customers' more travel needs offers capabilities, is offer SOFIA's the can available input as from A landing them. the can and previous conversation of destinations the retain enhancement you interactions update Despegar's interaction quality redesigned we needed later upgraded platform. interactions coupled personalized that as that reduce repetitive SOFIA inspired with improve as derived the to user's customers promotions. now with travel well specific personalized exciting to recall memory. and location Second, and SOFIA's We've her

capability is Looking AI-powered that not platform. to share multiple enhancing capabilities consistently ahead, planning SOFIA continuously forward. well are experience refining communication by continue gained in customer interact which by This various believe facilitating generating quite smoothly. communications exceeds solution features central implementing future personalizable and our as intend customers expectations our will travel travel solutions to how aftersales bespoke nodes also and across We we the going The components comprehensive and as operating integrates SOFIA's SOFIA, we enriches from insights enhancing our with services. revolutionizing integrate only rapidly.

have better levels order cost decrease AI with sustained business while efficiency effort operations, handle to deliver on we SOFIA, interactions tools Beyond automatically more our This throughout per results equipping promising customer are leveraging growth. already meet advanced our to unparalleled analyzing These in to to poised customer innovation customer and shown our we customer operational to and a of the includes information to are AI experiences accurate effectively, service. accessing drive utilizing and prepandemic and needs. us organization initiatives continued inquiries achieving satisfaction. tailor Through drive our customer focus faster, allowing service significant compared AI technologies, higher patients services the effectiveness summarizing with

first the I quarter to performance, Amit. to our provide financial call review a of pass Now will detailed

Gonzalo. Thanks,

Our positive growth gained a last to as built quarter that are the and results robust we momentum very very demonstrate year. trend on first continue we

a As in This commercial the Mexico. on currency, increase performance, at quarter. we $X.X total impressive was take with bookings They solid Damian effectively discussed, drove Brazil. more this represented much closer capitalized billion In main XX% year-over-year. Brazil to our backdrop, that gross strong markets, regional especially through XX% year-over-year. market, our a our travel the With starting look constant and key at execution, in excellent demand, growth let's

with growth shift our focus on on noted attractive prioritizing call, financing resonating spending, services along focus been value has a The earnings with gross experiences. our in our trend on bookings and creating year-over-year Damian clear continue in opportunities towards this package offerings through our across on Capitalizing in is delivering affordable consumers previous that favorable trend, and robust As customers often spending achieved growth Brazil. markets. we impressive there

ongoing FX-neutral climbed reaching direct hotel in a our were year-over-year million. bookings strategic year-over-year $XXX of result our basis, outstanding primarily by quarter, strength a the an performance package or was and increase This XX% During XX% on driven initiatives. commercial sales,

gain position industry-leading as Additionally, Shifting our is in solidify share, our market Mexico. market. largest more second further to attention Brazil. we This we our

the Gross significant transactions We with on which quarter. sales. growth efficacy Brazil. Meaning package attributed hotel travel performance $XXX million revenue on and of our basis, growth robust our achieved nearly our primarily for success in are strengthening strong can bookings driving to profitable quarter replicating basis international be reaching Brazil, strategies, a XX% Mexico air year-on-year commercial continuous increase robust year-over-year in a there, the in pleased a more the growth diversified This also and XX% Mexico's in currency are or and continued first reported non-air underscores grew constant core streams. trajectory the

Mexico, XX% To in FX proposition. and in basis, on reached in of particularly of year-on-year our of versus Latin travel $XXX of same our primarily is rest mainly experienced continue last the tailwinds, increased and significant capitalize strong This at ASPs, customer X% Chile. XX% for Argentina the sales and year. quarter to the prioritizing packages, Brazil million we area bookings in commercial year-over-year America, offerings an value in gross share gross decrease a better to focus within XX% non-air business. which particularly bookings secular reflected our quarter, due the Looking FX-neutral bookings gross on that a But affected pressures this

our our bookings passed a revenue As that year-over-year result, demand business, in channels, quarter. $X.X a sales gross XX% to the core BXB mix. observe at into none distribution translated robust ticket reaching increase XX% we reach air revenue surged our in travel of billion Analyzing

continue drive segments in evidence respectively. growth BXB label XX% of in adjacent our Moreover, white share position. XX% Our further our ongoing gaining the and market to year-over-year throughout bookings, above-market and is solidified segments the efforts region. These we have that growth delivered gross increase

Our continues while mix our commitment customers value improving to pay delivering to revenue Despegar's to unmatched off.

leader quarter revenue. solid million $XXX remain respect with adjusted in that to we on million, of XX.X% currency. and quarter were year. first line capturing we on line region implying optimize remarkable a top the position the in with and operating of adjusted an the companies particular our an rate able and This XX.X% XX.X% year-over-year globally. leverage, take a performance, EBITDA strategies, to as XXX% Through In our XX% streamlining with and the revenue XX% for to yielding to a X% financial growth firmly efficiencies focused constant deliver reinforces Despegar's and quarter a focus same $XX EBITDA our travel in translates of We growth efforts in in up versus margin last increase improving believe particularly expenses. With a fastest-growing technology the rate technology strong a one FX-neutral growth G&A our

company's highest since in the Damian it XXXX. As was adjusted EBITDA margin noted, our IPO

excluding income, additional with by aims to the comparing specific on point nonrecurring like metric to results investors made reference, detailed figures reporting highlight our help of to underlying of As profitability this adjustments and a calculate in expenses an reconciliation largely are This to which a in our release. the our clearer The basis our I'd net give normalized adjusted picture table facilitate earnings of previous started quarter. peers. the metric we

of income the net first very a was in XX% quarter $XX.X representing net our first income adjusted to XXXX, $XX.X million, XXXX. year-on-year substantial the million For increase of quarter the adjusted compared

a line to operating the roughly XXXX. during quarter first quarter receivable portion with our the Brazil of uses $X.X our as expenses. of discussed less cash the in the of in while our in line our factoring flow, our generated in accretive we the of on call. balance our with objective balance during CapEx sheet, strategy approximately cash quarter our used million million reducing was accounts during and used This at in our $X.X we of of Looking XXXX, which compares is factor cash million quarter, earnings previously have with $X cash we specifically, More to expenditure of during the

we half of year-over-year. $XX million and dividends payment was preferred million interest of to shares, which as reflecting almost our $XXX holders This of $XX the paid on XXXX. reported a of equivalents For catch-up cash total was million, cash decline a in quarter, expected peaked decrease of we

rebuilding discussed with reduce used In We anticipate addition, years. the balance cash prior our year, the line to of in factoring in on we in earlier, our cash trends observed balance expenses. second as cash half sheet

commitment prudent a to steadfast. allocation capital Our approach to remains

to initiatives growth continue in our We bolstering BXB investments organic prioritize initiatives. on a with emphasis particular

Our us on positioning vision this beyond strategic the Latin new help focus avenue new long-term for into fulfill for growth will potential expansion while America, our markets region.

targets potential disciplined we organic synergies market growth in specific ecosystem, enhancing on or our significantly Although Any travel a our our focus we evaluate approach. must M&A trajectory. penetration with deliver remain acquisition deepening clear enhance and Despegar's

our also and we Lastly, allows strong which position financing us also reduce debt examine costs, cash to regularly.

have Looking on bullish ahead, we still our a outlook business.

robust positive confidence initiatives strategic travel million our success that which for market profitability. of observe to the least as at we at are various XX%. to well in as the that of of our revenue stems revenue maintain We, and from $XXX least the therefore, continue trends growth Our XXXX, driving guidance online annual equates strong consistently

global revenue XXXX, in reported reported constant this headwinds industry second said, XQ accelerate expect leader for we revenue growth. our year. FX be other levels. far growth still some from reported our created players, growth While That growth Moreover, of revenue expect a revenue ahead currency the to to in we industry quarter our has remains of

at Additionally, now leverage growth, XXXX guidance which to million, in our the adjusted XX%. maintaining company. $XXX least increasing of implies we efficiency now us Building on revenue firmly on least to and Despegar's the raise EBITDA at world's and committed remain growth position at exceptional $XXX year-over-year focus as expansion, growth million technology profitable our operational adjusted is from EBITDA travel least fastest-growing to our allowing

Combined outside unparalleled a remain culture our with commercial focus revenue is market our cost America. margins by and potential strategy, experiencing well as leading further we see leverage, online Our operating solid further platform a travel about expertise anticipated, innovation, unlock of efficiency. the combination maintain market our industry-leading global expand positioned in continued the Latin future local driven growth is relationships on in and success supplier bolstering and long-term Latin we brands, a of the technology market-leading and future. Also, powerful optimism and entering proven for foreseeable growth, to relentless markets

provide we the Now I'll before of floor for summary turn you. will today's your over a the who questions. to Damian, open Thank review floor brief

were Amit. long-term you, it that and again. conclude, is to representing once aligned results our quarter for solid goals, our evident To significant progress first Thank Despegar's

growth of disciplined continued success of our strategy. well-defined rigorous and is Our execution result the

Our this as strategically our offerings. leading-edge strong coupled platforms BXC a the bolster technology deep as commercial core This again leverage instrumental exceptional performance region expand competitive label well in local market continue we white the were strength presence with driving to knowledge, advantage across our quarter. as excellence, brand BXB and to brand and our

be expanding direct nurturing apps success objectives Our portfolio strategic high-performing to of program. continue through loyalty of traffic established our continued our package revenue, and key the driving

important we while of to early All highly parading market. excitement highly intention and while experience. let's our achieved user competitive efficiency, represents firmly leverage. delivering will as that, they the a introduced the booking open floor interactive With SOFIA operating adaptability forward functionalities look digital in cost towards line characterized latest shift travel system. Accordingly, to Sofia for to increasing personalization, travel SOFIA's to our apprised the maintaining questions. keeping growth by of build and innovations It future a We of is you are experience, further a also the are top innovative success on sustained structure. reiterate our this to and committed a be

Instructions] comes Stanley. Andrew Thank Morgan from you. first Your [Operator with question Ruben

we at first the I be expect items, Two going it in revenue through get as you XQ, there's the a on acceleration looking year. the Amit side. Congrats mentioned implies may. if guidance, to pickup on the the Maybe to revenue see result. a

countries help the anything continues pick contribute help be Just the increasing, curious was of to think to up, some So XX% us then how to on see about would And acceleration? BXC, more anything on drivers, break the can business. app it on whether second pickup, anything I us the it's down the what thinking penetration the bridge if or you're consumer-facing you point We to I'm could year-on-year. FX? really

it's a side was just understanding get So what of sizable trying gain. you're in what significant that helpful. on to marketing commercial I'm you step-up the the app doing the attribute or an or be very would still

Damian. is This much. Thank you very

of see pipeline that's, see forward. close solidly even and Mexico. going in we recall, conditions In a with see only the perspectives see of were pickup, as not and the very revenue but last of we the market growth very that market basis increasing you of time. and strong our trend the said trend the budget, deals we on terms remaining and Brazil announce, increasing to that BXB we very consistent business the That's the also what We an current in reflected

As how you user-friendly, excited per a as result the app, and taken. to able there's app app how type we on news of lot has the consumer. a we expect are to each in of more a There's is our Obviously, become. notifications, the many lot And to things tailor and actions that much front, on. too. going know, of do really push offers many about We're it's of the dimensions, performing

customers obviously, that is acquisition the the you see further with interactions that our to long The customer gain continues important reflecting that that increased only loyalty cost app penetration. not as thing will come as on down about

just follow-up. even Great. quick a And maybe

And between consumer app in SOFIA, the terms what you've indication the anything that queries of is has you uptake? how or early of you seeing the that type of desktop? terms search In on are engage and surprised interaction noted any

Gonzalo. is this Yes,

So SOFIA in use the app. tend many to people the

to say much very and the was SOFIA want normal browsing in in the understanding they them the saying to to of is more been is cases, prices in people we where some have In seen And our exploratory. has they the use what to app. that features react users channel, I do then on SOFIA in at of the terms So Damian developed some of the we it prefer terms in to In recommendations general, when users. the constantly, the for by go much the would flights app only launch flow. and convert of when surprised to tend beginning, let's what destinations. most before trying say, us it's preference to move even initiated are hotel. for ask yet with would not rest initial People use consistent of that and have about

Now are that after a ask lot available, about sales. people hotels

and given used accepting they this [indiscernible] the to the We the normalize I to that to and not always technology fact getting and a expect only as people version use the able they have or very small try next that next beta are service be being thing is soon. aftersales users yet assistant do very available. mentioned how

Khan Riley with comes B. Securities. Your Naved question next from

assuming you the you are one. you And of Maybe currencies when in or organic the rates? just on underlying assuming rates this what of of terms the guidance. in rates What exchange growth give growth That's guidance? are terms

question second just have The I side. the is on cost

nice seeing think of factoring the of to terms So the as that working our technology, reduce sort should expense. give really And how us improvement a in the that your about or going thoughts model out? continue should be G&A. expense in of we we leverage baseline Is off we from you're about trying savings to factoring here kind in build of to

This is Amit.

with let the FX So part. first me start

our as year, remarks call, trend, up should FX had during first specifically in headwinds, we last you full quarter half. out our in this lay second time, below starting the significant our FX prepared it's this especially we last the year, mark don't in guidance, discussed growth XX% then revenue see expectation But the picking our overall year. discussed and for had reported we -- we earnings the expected. We do that As in well. as we discussed have and but as This

of been start plus helped BXB FX Damian with kicking little a is had a Some that bit, initiatives down lot in, of as has tamper as mentioned.

the inorganic, and On last now, was that's ago. know, you So XXX% growth on The is our organic. FX. a right as organic while we acquisition did

-- So here the has focused and now has on until much been overall, on trajectory all very growth guidance our that. been and and

cost, In drive continue of cost to very strong we leverage. terms

EBITDA seen our for guidance, our quarter, EBITDA Obviously, have at in guidance highest the in our -- our below the our adjusted now you IPO. margin As full overall you reported our is terms it's if adjusted since EBITDA we very is first are year look while in because business. plans we what the have also strong first below invest to are driving margin, in we margin, quarter of is adjusted we doing what

know, still very But in very the of getting comfortable XX% do then getting receivables uses to question, of margin remain that of investing the long-term have sorry. a in in So we our to to EBITDA balance this on gradually earnings But strong evaluating active growth. on sheet. past very especially and to that eventually the -- while any adjusted we we targets. so our On -- until accretive mid-XX%. Brazil. to very we discussed call, in cash is, your factoring as strong you one we in then normalized drive feel coming our business factor then, plan we organic And cash Obviously, M&A

is And doing accounts a to net-net, shows total cash. that increase you cash it in what But us, change. what are of some moving is assets, there's no receivable, see And an our decrease in but in so terms does we for Brazil.

amount But increase of just cash. You an our account expense. reduces in receivable for it same factoring see the in decrease

as in amount. income. be this of going benefit factoring in But that net quarter, exact makes whenever don't well, So it to the strategy. our strategy on And forward, it us, specify that that we our even cash and going expense sense balance reducing forward a from our move we quarter, small reduce sheet Brazil, this amount net had income even utilize in our to for helping factoring turn, our will we overall

That's very helpful.

something answering you clarify to said Just just question. my in

from affecting on. of So about you here kind talked investments margins

in? did about how line And I we investing but you you're second improving about should mean, think top in So kind -- the what are the you EBITDA. quarter, of areas talked

Yes.

BXB. across strong long Establishing position ourselves of already towards investing as But investments, well, of also term. loyalty we capabilities position investments very like we long-term investments markets can BXB rate that But at in how time, a remain over where the further course, our the very we main in a solidify the lot areas we our bases our for do of BXC are are are So in, investments at drive investments growth. board. And to our the program. the then same these

right investments they are but our rate. now, us these of All growth eventually help solidify long-term

should EBITDA about that? then second think How And for we quarter?

guide you say as I feel we can specifically, guidance in know, about But or year guide is EBITDA for to to very what just raised confident basis. quarter. don't full We EBITDA margin quarter-to-quarter this that the we

Your from the comes TD next question Kevin of from Cowen. line Kopelman

mean how share our business what of than... share harder I and overall you any there into? you are mortgage, maybe And you what expanding presumable partner mentioned the markets Can looking And progress are? then prices

question? bit. you that a repeating Would quite up mind breaking You

Yes. you hear Yes, me? can

Yes, this is better.

market, I was Livelo partnership maybe asking the part how looking of of outstanding you're and what markets, [indiscernible]. spent that's in percent then and are what into the markets big customers business any BXB but overall

partner, exploring business, white at label surface. Pasaporte just that are a travel exchanging for scratching in opportunity revenue not lot agent. a but great points the it's loyalty given big growth Yes. the a that we're on only it's the opportunities Despegar of Brazil, and Ample programs very and leading room their There's for program joint options Livelo, loyalty Despagar. we the largest meeting it's cooperation even

in people all as past, into are Mexico the surprised traction we in per on some the inquiries geographies. mentioned markets, the Latin America to by we are and the in business gaining and beyond largest respond is partnership As to different Brazil we started BXB, exploring geographies. models other Obviously, focusing from

diversified well say look footprint the is to opportunities our beyond So starting growth and to LatAm. I that would geographic of

comes Soares with Your worries from next Citi. question Joao

into Guys, the a bit short-term little I to just wanted deeper dig front.

a largest gross bookings the versus compare you peers large gaining when share sector. clearly You're the in trends the

happening share what those trying you -- happening. wondering, what's at some is of I'm get are... the If consolidation could what how terms companies. we an in understand of And there, in little I supplier yes, to Brazil? mean, just level bit update the So a are airline I with currently understand I'm -- market of side And there's

lot. This thanks a few things. Jacob, a is Damian. would I highlight

know, in at you of we important But First of total we than country. our competitors. all, overall market are do the still really market not you share terms small. But Latin growing travel growing disclose by size thing as if as you our was profitably. vis-a-vis is said, even, potential, American rapidly we're And look the more

So an ample market to comparing -- of XXx profitable America. there for our still what It's That's growth. growth potential, we grow and larger room lies Latin not issue be have potential, can share. us in our growth still for out

but our our will if at, that, line individual not just top look but improving. at go region, add into you if to top in the profitability And say, also you Brazil, also profitability market, look just growth, let's I of Brazil our is we don't

we growing while than much materially we're that while peers, our So profitability. doing also faster improving are

organically we So right? here, about regions quarters strategies, years. not as is then be good in continue well to With pair as is this feel the how the from and to we giving in expect us commercial all Brazil, other we company consolidating coming the And but in and our just market, are our opportunity #X the moving the market the regions. this trend scale very

Okay.

function the think factory thing to credit about partners, Just other consumers expenses. how that with cash in financial commented those result follow-up. from of the to to also sales partner right, Brazil. One a such and to that pass relationship in as and side, reduce geographies I'm utilizing given on reduce to financial are and both quick placing that a I receivables based enabler that you possibly you're just the a dependent on factoring wondering factory it

seeing guys wondering as to opportunities, and well? how you those So are right, just I'm reduce expenses bottle factoring those

laid So for pad that But call our credit card installment we reduce to and a out provide we very again, cost have strategic fees. and overall very, even we it of it. And out path there's strong have processing don't things into targets internally, it. how a go a or lot laid -- of specific

is leaders are the are example. where country gaining these we have each But We relationship partners, even more it going in towards managing for in will country. drive will more financial we turn we a It individual -- global where working help direct and us rates. forward specific partners with volume us we scale, helping strategy help which can also us more or lower have as

us we same speak. strong will position So share while future to, the also to overall we'll the utilize And sheet, so sense help potentially our growth help a reduce factoring wherever cash that expense, -- our expense income. to rate, in time, and the on it of market makes gain have net improve overall our cash or balance our in the reduce factoring at end,

I BXB, much naturally -- Right. mean And well, I point. to into to right? go it mean expect should just factoring finalize or also require last that you doesn't as you one just as

are is, and as interest trend is see as go, also the does It more not the but positive. they trending much the And factoring true. know, you downwards, where rates That's other thing we'll expense. require

So help well. as reduce going forward that expense factoring should us

Thomas comes question Cantor the next line Your Shinske with from of Fitzgerald.

single storage, the the higher-margin model, the should just generative it of for to guess any customer I be new guess SOFIA the thought to more your train on I I momentum there Good there there? model. thoughts and all recommend within any guess, a versus AI customers is see memory towards packages retention more accommodations. great data little bit.

Yes.

fact the is currently book do it to and packages same in in the yet valuable So SOFIA Basically, haven't we the to to book is launched definitely features technology is, have SOFIA question. solution. already of to thanks many to in But a been steer the packaging one is solution product is with categories SOFIA way that within category. accumulation for to the exactly an any or each which combination try And book a of we flights we able and solutions to implemented one a develop to a we way when way, let's it flight our so website SOFIA all it the answer within basically logic of logic is order trained the that potentially of that of for to done have developed that basically Basically, our way course, to demand same is years a many, explain us. combination that that what more effective most means the have a how terms package. it, the of simpler, and -- humane one as Today, the the how how accommodation in in be recommends say. towards it's in it's make built our more yes, most necessary is that of that back-end the packages products, products the use that client, of also our because profitable on we available basically that but we is

Awesome. may. I And if then one more,

increase receivable, cash of an to in operations. a flow from of accounts bit kind a Just headwind

that the of Just accounts thinking wondering be receivable how the year. the on about rest and seasonality should we throughout

as go Like we up are less cash. Yes. and we receivables account mentioned, move do factoring

a the are as sort discussing year. we that's receivable overall the of bookings And direction So same throughout should in as were earlier. trending strategy account trend whole

strategies account So -- factoring. trend of outside specific should I see to wouldn't wouldn't expect trend. I the similar receivable normalized reduce growth bookings The our to growth

Congrats on quarter. the

line question from next Tom with Piper of Sandler. Your comes the Champion

or Damian Amit. for X Maybe

little you a just the Brazil bit First, if more strategy. out off-line sales flesh wondering I'm could

about you off-line sure a the I'm direct if there's ton And like curious and have downloads. your could your script. You seems reasons to trying I'm you on just very just referenced that you market execution your And traffic app of macro what on dynamic. How secondly, I'm ago? you it your valid take XX to relative versus then and about just days strong. do strategy. and with momentum And in would it. some the app talk seem the wondering market improving parse behind feel results

a offline of conversion initiatives. offline that the XX% have of portion the XX and Brazilian things. online On customers Remember those there of into Two Tom, moment. transacting very is we is to at only main of stores much. accelerate strategy market the still thank what the And to capture you customers.

I on of roughly our bought stores customers that one, fact where the the our Despegar customers think previous or who we mentioned from bought on the before. XX% that not call last had

clients. into online tapping market we So converting new clients those a into are new and

what As line outlook, we as what line the performance very business we so capture seen of be top to And on even for. operational the able this the planned not per macro, side, much accelerate current more leverage we'll with but will in that we've the is on only far expectations our our grow.

positive, little So a outlook ago. remains as more positive perhaps bit XX than days

Kelly with comes Our last Oppenheimer. from question Jed

of Just ones. a couple

you if the Just on that in helping about just how key you I just realize investments the the about for it's dynamics just talk in can AI the then service? market? market, markets customer into you you of any from competitive Brazil earlier, you're that's seeing And one the and Airbnb. mentioned on talk them Can -- competition

Okay.

service. customer on question on the AI take differential correctly I'll So and

use assistant, back initiatives. So office, the SOFIA in in lot our only visible not travel we in a our several AI, we have also but basically,

specific would to done currently summary that on until now we saving on to a time conversation a do of a the able XX% in the summary example, that conversation continuity be called call, a is customer again offer some, Just let's with patient automatically of to dedicates say, an creates interaction those. few that so pick now One, that of agents that up to approximately up next mention our our the And small the that the able on follow-up to order when the would slide. of for has is fact to to the nation call. the easily. us be have create AI with And

a significant So us. for very it's saving

are relate suffered fact in the this will a trip, opportunities that use client significantly. analyzing that that that and will other the our data of very, that how is to us to create the a of have -- terms only very calls break our person points client-specific that Another to are the will to is waiting is the are other but -- cost prioritize be have AI to model eventually able to data of ample all conversation the that also lawsuits not transcript understand or a call conversation, from tool that we whether to things in a needs, of tone we the of situation the a like also the predicts what claim legal commercial have a market even predict a and is responded many this it of to like and major the is data answered very are already businesses. complication is list for still person be that disruption days we and points, in that we chance use and especially when for also on same that If chance capturing lot his trip the which that Brazil, customers able able he example, in common the policies And to be example, current appropriate. there what for before remains and that a has to,

of script the understand we recommended, our how one use how during to our Another following take let's customer example, also much a a that is, for agents are call. conversation say, to

we select different dedicate are is we give resources create hear service for we to then calls examples the in agent some used we supervisors the cases. a supervisors let's So a interactions processes they using we to, human AI, calls which be are have. by AI that are this So that based enhanced supervisor an complicated recommended, what say, and doing and creates currently feedback on productivity just to create our okay? say, only are the can office, a back the to not but which the steer the customer what our the these where of also us at that sample will to score more let's adherence much better to on of doing What

this Damian. is And Jed,

On vacation side. rental the

I this that mind than Latin in today America all XX% represents searches. mean, keep of First, category, less

of relevant, on as it's it's relevant of others. that's vacation though growing our battery So an on which reflection part Even will the just rentals, but not all-time strongly growth is we as reach very non-airbookings, mentioned, we're and that high.

category overall well much scheme So are in very rentals. hotels in the America. very that in Latin is doing larger we we're more in well of doing But overall importantly, things, vacation the

over like to floor back I Scokin for gentlemen, the remarks. and Mr. would Ladies to any closing now turn

like and care. our forward you are to you Despegar just when quarter a our really for second with call in in take interest looking all we today, again joining We'd for to we release thank lot, and your get Thanks results. touch

concludes today's call. conference This

now may You disconnect.