Despegar.com, Corp. (NYSE:DESP) Q4 2023 Earnings Call Transcript

Operator: Our next webcast question comes from Bruno Goldstein from Itaú. Congratulations on the results. Could you give a little more detail on increasing the related party payable on this quarter?

Amit Singh: Sure. This is Amit. So that — as you know, we have an agreement with one of our peers, Expedia, through which we source international lodging inventory. So this is related to us — as the demand environment remains very strong for us, both within Latin America and people traveling from Latin America to outside, so it’s the strong growth in bookings that is leading to that increase that you’re seeing in our balance sheet.

Operator: And our next question is from from . It says, hi, congrats on the results. My question is regarding the financial services results and Koin. How is it expected to perform during 2024? Is it generating synergies with the core business? And what has changed in order to achieve breakeven during the quarter?

Damián Scokin: Hi, this is Damian. Thanks for the question. As we had committed, Koin not only reached breakeven but was positive in its EBITDA by $3 million. Our expectations for 2024 is to consolidate this profitable growth trajectory into the year because that’s what has driven the positive results in Q4. Our unit economics remain very strong, and the more we grow, the more profitable Koin becomes. We will not disclose specific growth or profitability target, but it will generate not only positive EBITDA but positive cash flow in 2024.

Operator: And ladies and gentlemen, that is all the time we have for questions today. And I would now like to turn the floor back over to Mr. Scokin for closing remarks.

Damián Scokin: Just wanted to thank you all for your participation and interest in the company, and we look forward to talking to you in our next earnings call. Thank you, all.

Amit Singh: Thank you.