Latin America-based online travel agency Despegar ended the third quarter of 2021 with an adjusted EBITDA loss of $10.3 million, its highest adjusted EBITDA figure since the pandemic-affected second quarter of 2020.
Gross bookings for the period ending September 30, 2021, rose 34% quarter-over-quarter, reflecting higher demand for domestic travel in Brazil, Argentina and Chile. Year-over-year, gross bookings grew 298%, but decreased 44% compared with pre-pandemic levels in Q3 2019.
Transactions for Q3 2021 increased 44% quarter-over-quarter and 221% year-over-year, yet were 30% lower compared to Q3 2019.
Room nights increased 62% quarter-over-quarter and 162% year-over-year, but were 42% lower compared to Q3 2019.
Mobile accounted for 48% of transactions in the quarter, up 643 bps compared to 2019.
Revenues of $83.4 million were up 32% quarter-over-quarter, though remained 37% lower than Q3 2019 levels.
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Selling and marketing expenses for Q3 2021 increased 36% quarter-over-quarter and 393% year-over-year. Compared to the third quarter of 2019, sales and marketing expenses were down 44%, in line with the decline in gross bookings.
According to Despegar, its loyalty program, Pasaporte Despegar, reached one million members in Q3 2021 with members in key markets including Brazil, Mexico and Argentina.
In Mexico, Despegar is continuing its integration of Best Day, which it announced it was acquiring in January of last year.
“Reflecting the success of our geographic diversification strategy, Despegar achieved a 34% sequential increase in total gross bookings and 44% quarter-over-quarter growth in transactions. Importantly, we reported the highest level of quarterly gross bookings and transactions since the beginning of the pandemic driven by the strong recovery in domestic travel in Brazil, Argentina and Chile, following the positive trends observed in Mexico and Colombia in 2Q21, says Despegar CEO Damian Scokin.
“We also reported the highest adjusted EBITDA since 2Q20, close to break-even when excluding extraordinary charges. This positive performance was achieved with gross bookings at 56% of the pre-pandemic level of Q3 2019.
“As mentioned in prior quarters, the improving adjusted EBITDA trend reflects our sustained focus on revenue management which supports a strong take-rate, and the benefits of a leaner cost structure, which this quarter resulted in a relatively stable cost of revenue while keeping operating expenses in check. These metrics underscore the success of the initiatives taken last year to enhance the earnings power of the company.”