Amit Singh: Sure. So first of all, as you’ve seen in the fourth quarter of this year and as you’ve seen the results for full year 2023, we have very strongly driven our adjusted EBITDA margins higher, driven by operating leverage, and our gross margins improving, but then also strong efficiencies that we have driven in our tech and content, sales and marketing, and G&A expenses. And then as we mentioned during our earnings call, as the company has a lot of very strong growth opportunities in front of us, we have also streamlined our growth strategy, which is helping us not only drive operating efficiencies but a lot of cost efficiencies in all these line items that I just mentioned. So we feel very confident in driving adjusted EBITDA margins higher as we move into 2024.
And a lot of those steps to drive that adjusted EBITDA margin, we have already taken. As we discussed in the prepared remarks, we drove a lot of cost efficiencies in fourth quarter, and the results of it, you will see in the coming quarters.
Kevin Kopelman: Great. And then one last model housekeeping question, how should we think about the net financial results line? What’s the driver there and what should we be looking for as 2024 goes on? Thanks.
Amit Singh: Sure. I think as a percent of GB or as a percent of revenue, it should remain — for now, I would have it as largely same as 2023, but we are actively working on driving efficiency below our EBITDA line items, too. And what are those efficiencies? For example, we do some factoring in Brazil for the bookings that are installment. We are driving efficiencies in reducing that cost. In there, we have some FX expenses, and we are driving efficiencies in how do we manage that better. So while there are a lot of programs in place within our company to drive efficiencies below adjusted EBITDA margins, but for now, I would model it largely similar to 2023.
Operator: We will next our first question from Brett Knoblauch with Cantor Fitzgerald.
Brett Knoblauch: Hi, guys. Thanks for taking my question. I know, at least in the US, I think towards the middle back half of December, we saw a slowdown in travel, and it looks like the data shows that have picked back up the start of the year. But curious if you saw something similar in LatAm and maybe just some more commentary on how the beginning of the year has started for you guys and if that has played a part in the current thinking for 2024 guidance.
Damián Scokin: Hi, Brett. This is Damian. Thanks for your question. We haven’t seen any dips in demand into Q4. And as per the beginning of the year, it’s shaping up as expected. Keep in mind that, as Amit mentioned before, seasonality makes that the last two quarters are the strongest, but margin performance has been in line with our expectations during this first month of the year.
Brett Knoblauch: Thank you. And then maybe as we think about cash generation for ’24, following the restructuring that you guys have already conducted, so we expect maybe the adjusted EBITDA free cash flow conversion to improve in 2024?
Amit Singh: Yeah. So as you have seen, even in 2023, quarter over quarter, our overall cash conversion to EBITDA or cash conversion to net income, whichever way you want to look at it, it has continued to improve. So the trend has been improving and now especially that — us further streamlining a lot of our costs. And then in the previous question, as I was saying, a lot of efficiencies that we are driving even below the EBITDA line item, all those should help in our — continuing to improve our overall cash conversion as we go into 2024.
Operator: And ladies and gentlemen, that concludes the audio question-and-answer session. We will now take the webcast questions. And our first webcast question comes from from Morgan Stanley. He asked, 4Q margins came well ahead of our estimates on both operating leverage and GM expansion. Can you provide more color on how was the margin expansion in each of the countries, or at a minimum, how much margins, example, Argentina expanded?
Amit Singh: Hi, this is Amit. Thank you for the question. So we generally don’t go into detail on margins by country, but I can broadly say that the margin expansion has been very strong across all the regions that we operate in. And some of the things I explained in the last question, we are driving efficiencies in our cost of revenues and then in tech and content, G&A, and sales and marketing expenses. All of those have been showing very positive trend. And we expect that trend — especially after the streamlining that we did in fourth quarter, we expect that trend to continue strongly into 2024.
Operator: And second question from Mr. Namioca is guidance. It implies at least plus 190 bps year over year. Can you please give more granularity on the areas of margin expansion to achieve it? Also, can you provide more color on what is implied in your top-line growth for 2024? How much industry growth are you expecting, and any M&A?
Amit Singh: So as we were discussing in the last question, all the line items that I mentioned, our operating leverage and all the other line items above EBITDA, we are actively driving very strong efficiencies there, largely driven by our focused growth strategy, which is helping us do that because the costs are very much aligned to our growth strategies. So we feel very good and comfortable about the margin expansion that we are guiding for in 2024 and even beyond. As we have spoken in the past, there’s a ton of opportunities that are in front of us that we will continue to get and execute on, not just in 2024 but even beyond that. In terms of overall industry growth, as we have said, in the past, the industry — and as has been mentioned by Euromonitor and a lot of other industry research organizations, we believe, based on all that data, that the industry in Latin America is growing at that 10%-ish rate, and we should grow faster than the industry as we continue to consolidate the market in various ways.
