Corporate Presentation as of March 2018

Transcription

1 Corporate Presentation as of 2017 March 2018

2 Disclaimer This presentation includes forward-looking statements. We have based these forward-looking statements largely on our current beliefs, expectations and projections about future events and financial trends affecting our business and our market. Many important factors could cause our actual results to differ substantially from those anticipated in our forwardlooking statements, including: political, social and macroeconomic conditions in Latin America; currency exchange rates and inflation; current competition and the emergence of new market participants in our industry; government regulation; our expectations regarding the continued growth of internet usage and e-commerce in Latin America; failure to maintain and enhance our brand recognition; our ability to maintain and expand our supplier relationships; our reliance on technology; the growth in the usage of mobile devices and our ability to successfully monetize this usage; our ability to attract, train and retain executives and other qualified employees; and our ability to successfully implement our growth strategies. We operate in a competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this presentation. The words believe, may, should, aim, estimate, continue, anticipate, intend, will, expect and similar words are intended to identify forward-looking statements. Forward-looking statements include information concerning our possible or assumed future results of operations, business strategies, capital expenditures, financing plans, competitive position, industry environment, potential growth opportunities, the effects of future regulation and the effects of competition. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update publicly or to revise any forward-looking statements after the date of this presentation because of new information, future events or other factors, except as required by law. In light of the risks and uncertainties described above, the future events and circumstances discussed in this presentation might not occur or come into existence and forward-looking statements are thus not guarantees of future performance. Considering these limitations, you should not make any investment decision in reliance on forward-looking statements contained in this presentation. This presentation includes industry, market and competitive position data and forecasts that we have derived from independent consultant reports, publicly available information, industry publications, official government information, other third-party sources and our internal data and estimates. Independent consultant reports, industry publications and other published sources generally indicate that the information contained therein was obtained from sources believed to be reliable. The inclusion of market estimations in this presentation is based upon information obtained from third-party sources and our understanding of industry conditions. Although we believe that this information is reliable, the information has not been independently verified by us. Trademarks and service marks appearing in this presentation are the property of their respective holders. This presentation includes data from Euromonitor. Information sourced to Euromonitor is from independent market research carried out by Euromonitor International Limited as part of its annual Passport research. Euromonitor makes no warranties about the fitness of this intelligence for investment decisions. This presentation is strictly confidential, is for informational purposes only and may not be relied upon in connection with the purchase or sale of any security. You may not disclose any of the information contained herein to any other parties without the company s prior express written permission. This presentation is made pursuant to Section 5(d) of the Securities Act of 1933, as amended, and is intended solely for investors that are either qualified institutional buyers or institutions that are accredited investors (as such terms are defined under Securities and Exchange Commission ( SEC ) rules) solely for the purpose of determining whether such investors might have an interest in a securities offering contemplated by Despegar.com, Corp. Any such offering of securities will only be made by means of a registration statement (including a prospectus) filed with the SEC, after such registration statement is declared effective. No such registration statement has been declared effective as of the date of this presentation. This presentation shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. 2

3 Leading OTA in Latin America Pan-regional OTA operating across 20 markets with leading brand awareness in key markets, including Brazil and Argentina (1) $4.5 Billion Gross Bookings (3) Significant Scale 2017 (4) $524 Million Revenue 18 years operating history Deep expertise and ability to address market specific needs in a growing $30Bn market (2) opportunity 27% Revenue High Growth 34% Gross Profit 2016 to 2017 (5) 84% Adj. EBITDA Comprehensive product offering including air, packages, hotels and other travel products to a large customer base 2017 Revenue Revenue Diversification 2017 Transactions (6) Best in class mobile offering Served over 4.6 million customers during 2017, up 15% YoY Air 46% 54% Packages, Hotels and Other Travel Products Argentina 25% 34% 41% Brazil Notes (1) Based on search engine trend data that is based on the relative number of searches of brand related keywords in Google as of December 31, 2017 (2) $30Bn estimated online travel market as of 2016 based on airlines, lodging, attractions and car rentals data from Euromonitor (3) Gross bookings is the aggregate purchase price of all travel products booked by Despegar customers through its platform during a given period (4) As of last twelve months ended December 31, 2017 (5) % change from December 31, 2016 audited consolidated financial statements to December 31, 2017 audited consolidated financial statements (6) Number of transactions is the total number of customer orders completed on our platform in a given period Other 3

4 with a Track Record of Continued Growth in New Markets and Products Start-Up Successfully Established and Grew Our Strategic Platform Path to Further Growth Expanded to Bolivia, Costa Rica, Dominican Republic, Ecuador, Guatemala, Nicaragua, Panama, Paraguay and Puerto Rico Launched travel affiliates program and travel insurance product Reached ~50% mobile traffic Expanded to Brazil, Chile, Colombia, Mexico, and Uruguay Expanded to Peru Launched Hotels product Launched mobile app Reached 1 million downloads of the mobile app million downloads of our mobile app 2015 Deepened strategic partnership with Expedia, including its equity investment in our company Launched bus business and local concierge product as part of destination services 2009 Launched packages, rental cars and cruise products Launched destination services and vacation rentals offering Launched site in Argentina Expanded to United States and Venezuela 71% Growth in 2.7 MM 4.6 MM Customers

5 Why Despegar 1 Significant Market Opportunity Driven by Multiple Secular Trends 2 Leading & Comprehensive Travel Offering, with Numerous Payment Methods 3 Virtuous Cycle Underpinned by Scale, Brand and Effective Marketing 4 Leading Mobile Offering & Powerful Data Analytics 5 Experienced Management Team 6 Strong Financial Position with Significant Growth Potential 5

6 1 Operating at Significant Scale in a Rapidly Growing Online Travel Market USD Bn Latin America Travel Market Size E $98Bn (1) Total Travel Market $131Bn (1) Estimated Total Travel Market $30Bn Attractions & Car Rentals 2% Lodging Airlines 48% 50% $30Bn Online Travel Market $3.3Bn Bookings Despegar $48Bn Estimated Online Travel Market Online Travel Market Market Share (2) : ~11% Source: Euromonitor Notes (1) Online travel market from Euromonitor including airlines, lodging, attractions and car rentals. Air segment includes all Latin American countries and outbound globally; US$ ticket values includes round trip for intra-country, single trip for intra-region and single trip for outbound trips; Online Air includes direct and intermediaries sales; Offline Air covers all transactions that are not booked or paid over the internet (2) Despegar market share in terms of online travel market in Latin America by gross bookings 6

7 1 That is Highly Underpenetrated (% Online Penetration) 2016 Online Travel Penetration by Region 49% 52% 36% 30% $3.3Bn Bookings Despegar Latin America Asia US Western Europe Source: Euromonitor 7

8 1 Supplier Fragmentation Underpins Revenue Resiliency Latin America Airline Market is Highly Fragmented (% of air gross bookings as of 2015) (1) And Hotel Segment in Terms of Market Share (% of hotels gross bookings as of 2015) Latin America United States Latin America United States Top 4 Airlines 40% All Other 60% All Other 60% Top 4 Airlines 40% All Other 32% All Other 32% Top 4 Airlines 68% Top 4 Airlines 68% Top 10 Hotel Chains 15% All Other All Other 85% 85% Top 10 Hotel Chains 15% All Other 48% All Other 32% Top 10 Hotel All Other Chains 48% 52% Top 10 Hotel Chains 52% Growing number of smaller airlines, including low-cost airlines, are driving this fragmentation Major hotel chains in Latin America account for only 46% of total capacity compared to 72% in the United States Source: Euromonitor, CAPA Center for Aviation, Skift and SiteMinder Note (1) Includes international and domestic flights. 8

9 1 while Attractive Consumer & Economic Trends Support Online Travel Growth Internet Retail Market Size CAGR (%)(1) Secular Ecommerce Growth Driven by Increasing Internet Penetration Internet User Penetration (%) (2) 10% 14% 14% 20% 35% 52% +1.3x 50% 66% 82% 81% 74% 71% Western Europe North America 2017E 2021E Asia Pacific Latin America Asia Pacific Latin America Western Europe E North America Strong Regional Economic Rebound And Increasing Credit Card Use as a Means of Payment Real GDP CAGR (%) Credit Card Transactions CAGR (%) (3) 1.8% 1.7% 2.1% 1.9% +2.9x 0.9% 2.6% 5.6% 5.3% 3.5% 6.3% 9.6% Western Europe US Latin America Asia Pacific E 2021E U.S. Argentina E Brazil Source: Euromonitor Notes (1) Retail value (RSVP) including sales tax, at fixed 2016 exchange rates (2) Percentage of total population using internet (3) Millions of credit card transactions CAGR calculated for E period 9

10 2 Local Knowledge and Industry Leadership Provide Unique Competitive Advantages Different Languages, Local Customs and Travel Preferences Over 20 Different Tax Regimes Across Despegar s Markets Transitioning from Cash to Electronic Payments and Installments Highly Fragmented Market Proven Experience in Managing Currency Volatility Political & Regulatory Intricacies Complexities of Latin America Market Present Significant Barriers to Entry 10

11 2 Leveraging Air Purchases to Drive Packages, Hotels & Other Products Differentiated Platform Connecting Customers with Suppliers Significant Cross Sell Opportunity Air Products Packages, Hotels & Other Products Drive Margin & Profitability Generated 54% of Revenue in 2017 Notes (1) Refers to customers repeat customers who had previously purchased other travel products through Despegar s platform as of September 30th 2017 (2) Inventory figures as of end of December

12 2 Flexible Payment Solutions Enhance Market Appeal Despegar Key Characteristics 1 Primarily Merchant of Record Rather Than Agent 2 Overlapping Customer Base with Banks ~54% of Despegar Transactions in 1H17 were in installments 3 4 Brand / Scale Attract Partnerships Dynamic Marketing Campaigns Installments Paid Upfront to Despegar in Most Markets(1) No Collection Risk for Despegar 5 Increase Customers Purchase Capacity Note (1) In Brazil, we generally receive payment from the installment financing bank only after each scheduled payment due date from the customer (whether or not the makes the scheduled payments to the bank) 12

13 2 and Customer Experience Pay with 1 or 2 credit cards Pay at destination More bank options Installments with no interest Limited time offer 13

14 2 Broader and Differentiated Competitive Position Pan Regional Brand and Scale (1) Air + Hotel Multi-Product Offering Insurance + Cars + Dest. Serv. Vacation Rentals Latin American Customer Focused Installment Payment Options Global OTAs Local Offline Travel Agencies (Brazil) (Chile) Pre-Set Packages Smaller Online Travel Agencies (Mexico) (Colombia) (Argentina) Note (1) Based on presence across Latin America (Argentina, Brazil, Mexico, Chile, Colombia) measured by branded search recognition for December 31 th 2017 from Google s Share of Voice report (Google s Trend data) 14

15 3 Virtuous Cycle Based on Increasing Scale and Brand Recognition 15

16 3 Strong Brand Recognition and Awareness Cumulative Marketing Investment Strong Brand Awareness Drives Direct Traffic to Platform % Traffic Source by Channel as of 1H17 (2) US$1Bn+ Invested Since our Founding (1) Direct ~52% Indirect ~48% Notes (1) Marketing investments include marketing personnel as of December 31 st 2017 (2) Includes traffic on desktop website, mobile desktop and mobile App (3) As of September 30, 2017 Over 9MM user generated reviews (3) 16

17 3 Marketing Dollars Focused on Driving Profitable Growth Proven Marketing Investment Strategy Drives Growth Dynamic Budget Allocation (US$MM) $524 65% 60% Maximize Growth at ROI target Custom Attribution Model Performance Optimization Tailored to our Business Needs and Markets $422 40% $411 55% 50% 45% 40% 35% Always On Strategy % 32% 30% 25% Cross-Device Insights and Custom Attribution Model and Bidding Tools 100 FY15 FY16 FY17 Revenue Sales & Marketing % of Revenue 20% 17

18 3 And Supporting Our High Brand Recognition Branded Search Recognition by Country for 2017 Latin America Mexico 27% 13% 12% 10% 8% 4% 20% 16% 14% 11% 9% 7% Booking 1 st Trivago CVC AirBnb Tripadvisor Brazil Trivago Bestday AirBnB Expedia Booking Chile 28% 18% 14% 11% 7% 4% 31% 15% 12% 9% 7% 6% CVC Booking Trivago AirBnB Hotel Urbano Argentina Booking Falabella Trivago AirBnB Cocha Colombia 33% 16% 1 st 11% 9% 7% 5% 22% 15% 11% 9% 8% 7% Booking.com Trivago Almundo AirBnB Tripadvisor Tiquetes Decameron Trivago Booking Atrapalo Global Player Local Player Source: Google s Share of Voice report based on Google s Trend data as of December 31 th Graph shows the relative number of searches of the Brand related keywords. 18

19 4 Scalable Technology Platform Built for Continuous Innovation ~$189MM (3) Invested in Technology and Product Development Over the Last 3 Years Sophisticated Data Collection and Analytics Tracking search history Geolocation Supported by 800 Developers & Technology Professionals Award Winning Mobile Platform Personalized landing pages Personalization And Cross-Selling Robust User Centric Team Enhanced Fraud Prevention Mechanisms Rapid Product Development (One update approximately every 3 minutes) (1) Tracking Performance Metrics Self-Managed Post Sale Experience To Better Understand Local Customers And Travel Preferences Notes (1) From company data, in a period of approximately three months (March 20, 2017 to June 12, 2017) during the 1H 2017 (2) As of June 30, 2017 (3) Includes investments in Technology and Product Development during the year ended December 31, 2015 and 2016 and nine months ended September 30,

20 4 Our Mobile First Approach Most Downloaded OTA App in the Region (1) Apple App Store Google Play App Store 38+ Million Cumulative App Downloads (2) Mobile Transactions up +53% 2016 to 2017 Share of mobile transactions +510bps YoY to 29% 2016 to Stars Rating on Apple App Store Based on 27.9k reviews (3) 4.5 Stars Rating on Google Play Source: Internal data Notes (1) Despegar believes its ios App Store and Google Play apps are the most downloaded OTA apps in Latin America for the period from 2012 to 2017 (2) Downloads based on internal data, and as of December 31, Star ratings as of March 19, 2018 (3) Includes reviews for both Despegar and Decolar apps on ios App Store and Google Play as of March 19, 2018 Based on 300k reviews (3) 20

21 4 Differentiated Pricing to Incentivize Specific Customer Behavior No Discount Exclusive In-App Special Discount Special Discount for Being Logged In as a User Special Discount for Having Booked a Flight Recently 21

22 5 Experienced Management Team and Blue Chip Investors Focused on Long Term Success Executive Title Background Ownership ExecutiveStructure* Title Backgroun Damián Scokin Chief Executive Officer 20% Mike Doyle Chief Financial Officer 41% Gonzalo Estebarena Commercial Director 20% Sebastián Mackinnon Martín Molinari Head of Air Head of Packages, Hotels and Other Travel Products 6% 13% Andres Patetta Chief Marketing Officer Leandro Malandrini Head of Product Mgmt. & UX Alejandro Stein Head of Operations * Includes vested and unvested employees options of 3.8 $26 per share plus ~0.2 million of vested restricted shares 22

23 6 Financial Highlights 1. Operating at Significant Scale in a Rapidly Growing, Multi-Billion Dollar Market 2. Accelerating Revenue Growth Driven by Packages and Hotel Segments 3. Strong Transaction Growth Driven by High Repeat Customer Purchase Activity 4. Operating Leverage Driving Increased Margins 5. Favorable Working Capital Dynamics

24 6 Strong Business Momentum in 2017 with Strategic Initiatives Driving Higher Margin Packages, Hotels and OTPs Total Transactions by Segment In millions Gross Bookings In US$ Bn ' ' Packages, Hotel & OTPs Air 24

25 6 Supporting Revenue Growth and an Increasingly Diversified Mix Total Revenue In US$ millions Revenue Mix % of total revenue Revenue per Transaction In US$ % 50% 54% % 50% 46% 65.0 ' Air Packages, Hotels & OTPs

26 6 along with Robust Adjusted EBITDA Expansion Adjusted EBITDA and Adjusted EBITDA margin (%) In US$ millions and % of revenues Adjusted EBITDA Margin -9.3% 11.8% 17.1%

27 6 Solid Balance Sheet and Strong Cash Flow Generation Increase in Cash and Cash Equivalents In US$ millions Cash Flow Cycle In the Pre-Pay / Merchant Business Model Installments are only offered in transactions sold with the Pre-Pay / Merchant Model and represent ~55% of total transactions (2) Booking by Customers Despegar Receives Cash from Customer Payments Average Time to Check-in Despegar Pays Supplier Q16 1Q17 2Q16 2Q17 3Q16 3Q17 4Q16 4Q17 All Other Typically less than one month (3) Cash Positive (+) Cash Excluding IPO Proceeds IPO Proceeds Brazil w/ Installments Scheduled payment due date from the customer Notes (1) Cash flows timeline for illustrative purposes only. Various factors could cause actual payment timing to differ from those in the example timeline, including supplier practices, payment method and factoring arrangements (2) Approximately 54% of our transactions in 1H2017 were paid by installment (3) In all markets except Brazil, we typically receive payment in less than one month after booking 27

28 6 Rationale for Offering Installment Plans Key Themes of Installments in Despegar s Market 1. Commonly Used in Latin America 2. Key to Compete in the Region 3. Not Widely Offered by Global OTAs Latin America (Ex: Brazil) Brazil Implications Enhances Pricing Power Credit Risk Assumed by Despegar None Broadens Customer Base Additional Source of Financing Typical Timing of Payment Received by Despegar Upfront Over Time (1) Customers Protection Against Inflation and FX Depreciation 1. In some cases, Despegar elects to factor or discount Brazilian installment receivables, allowing the company to receive payments more quickly

29 6 Rationale for Offering Installment Plans Sources of Revenue 1 Supplier Commissions: Commissions earned from intermediating services, including facilitating reservations of flight tickets, hotel accommodations, car rentals and other travel-related products and services 2 Customer Fees: Service fees charged to customers for processing air tickets, hotel accommodations, car rentals and other travel-related products and services 3 Up-front & Back-end Incentives: Override commissions or incentives from suppliers and GDS providers if the Company meets certain volume thresholds Revenue Recognition Pre-pay/Merchant Business Model: Payments are recorded as Travel Supplier Payables until invoiced and revenue is recognized at the time of the booking or at the time of check-out for non-refundable and refundable transactions, respectively Pay-at-Destination/Agency Business Model: Revenue is recorded on a net and accrual basis when the travel occurs Incentives: Recognized when confirmed or invoiced by the supplier Advertising: Recorded ratably over the advertising period 4 Other Revenue: Advertising revenue from the sale of advertising placements on the Company s websites Cost of Revenue Items A Variable Credit Card Processing Fees Fees Paid to Banks for Installment Plans Fraud and Credit Card Chargebacks B Fixed Fulfillment Costs

30 6 Operating Model Revenue as % of Gross Bookings 11.7% 12.6% 11.8% Gross Profit 63.4% 69.2% 72.8% Selling & Marketing 40.3% 29.5% 31.7% Technology & Product Development 17.4% 15.4% 13.6% General & Administrative 18.5% 15.7% 13.9% Adjusted EBITDA (2) -9.3% 11.8% 17.1% Notes (1) As a percentage of revenue unless otherwise stated (2) Adjusted EBITDA removes the effects of Depreciation, Amortization and Share Based Compensation expense; refer to last page for EBITDA reconciliation (3) Based on unaudited consolidated financial statements for the twelve months ended December 31,

31 Strategic Priorities Driving Growth and Leadership INCREASE CONSUMER ENGAGEMENT EXPAND REACH IN THE REGION ENHANCE PRODUCT OFFERING & CROSS-SELL DEEPEN RELATINOSHIPS WITH SUPPLIERS FURTHER INVESTMENT IN MOBILE PRODUCTS INVEST IN IT & DATA TO DRIVE OPERATIONAL EFFICIENCY PURSUE STRATEGIC ACQUISITIONS REPEAT PURCHASE RATE ADDRESS NEW CUSTOMERS CAPTURE HIGH SHARE OF WALLET INCREASE & OPTIMIZE INVENTORY IMPROVE CUSTOMER EXPERIENCE EXPAND MARGINS BROADEN PLATFORM & MARKET SHARE GAIN 31

32 Appendix

33 Key Financial & Operating Trended Metrics (in thousands U.S. dollars, unless otherwise stated) FINANCIAL RESULTS 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 Revenue $95,115 $98,797 $106,088 $111,162 $124,999 $123,462 $131,468 $144,011 Cost of revenue 33,494 33,752 26,150 33,279 31,140 35,087 37,869 38,383 Gross profit 61,621 65,045 79,938 77,883 93,859 88,375 93, ,628 Operating expenses Selling and marketing 28,577 29,133 31,374 32,382 35,546 43,289 41,097 46,356 General and administrative 15,186 13,960 13,576 21,961 18,869 18,618 15,318 19,821 Technology and product development 15,561 15,942 15,718 16,030 15,408 17,644 18,907 19,349 Total operating expenses 59,324 59,035 60,668 70,373 69,823 79,551 75,322 85,526 Operating income 2,297 6,010 19,270 7,510 24,036 8,824 18,277 20,102 Net financial income (expense) (386) (3,653) (850) (1,863) (6,156) (1,611) (2,880) (6,232) Net income before income taxes 1,911 2,357 18,420 5,647 17,880 7,213 15,397 13,870 Income tax expense 2,646 2,178 4,067 1,647 2,486 3,806 4,190 1,512 Net income /(loss) (735) ,353 4,000 15,394 3,407 11,207 12,358 Net income/ (loss) ($735) $179 $14,353 $4,000 $15,394 $3,407 $11,207 $12,358 Add (deduct): Financial expense, net 386 3, ,863 6,156 1,611 2,880 6,232 Income tax expense 2,646 2,178 4,067 1,647 2,486 3,806 4,190 1,512 Depreciation expense 1,265 1,263 1,450 1,111 1,343 1,362 1,337 1,033 Amortization of intangible assets 1,728 1,918 2,060 2,129 1,517 2,039 2,454 2,741 Share-based compensation expense , ,224 Adjusted EBITDA $5,340 $9,241 $22,830 $11,174 $28,072 $13,155 $23,027 $25,100 Net Increase (Decrease) in Cash & Cash Equivalents ($55,203) $38,656 ($18,707) $9,106 $12,314 $3,825 $263,911 $14,995 33

34 Key Financial & Operating Trended Metrics (cont.) (in thousands U.S. dollars, unless otherwise stated) KEY METRICS Operational 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 Gross bookings $661,577 $755,413 $844,782 $998,462 $1,019,102 $1,061,026 $1,116,022 $1,258,398 - YoY growth (19%) (13%) (10%) 3% 54% 40% 32% 26% Number of transactions 1,632 1,706 1,839 2,035 2,129 2,210 2,298 2,419 - YoY growth (6%) (8%) (9%) (3%) 30% 30% 25% 19% Air 928 1,008 1,089 1,225 1,246 1,324 1,328 1,386 - YoY growth (0%) (4%) (4%) (3%) 34% 31% 22% 13% Packages, Hotels & Other Travel Products ,033 - YoY growth (13%) (12%) (16%) (2%) 25% 27% 29% 28% Revenue per transaction $58.3 $57.9 $57.7 $54.6 $58.7 $55.9 $57.2 $ YoY growth 5% 4% 8% 0% 1% (4%) (1%) 9% Air $44.8 $50.2 $50.1 $48.1 $44.7 $46.0 $44.1 $ YoY growth (11%) (4%) 4% (4%) (0%) (8%) (12%) (1%) Packages, Hotels & Other Travel Products $76.1 $69.1 $68.6 $64.4 $78.4 $70.6 $75.2 $ YoY growth 23% 16% 13% 5% 3% 2% 10% 17% ASPs $405 $443 $459 $491 $479 $480 $486 $520 - YoY growth (13%) (6%) (1%) 6% 18% 8% 6% 6% 34

35 Unaudited Consolidated Balance Sheets (in thousands U.S. dollars) As of December 31, 2017 As of December 31, 2016 ASSETS Current assets Cash and cash equivalents $371,013 $75,968 Restricted cash and cash equivalents $29,764 $22,738 Short Term Investments Accounts receivable, net of allowances $198,273 $121,098 Related party receivable 5,253 2,240 Other current assets and prepaid expenses 34,063 27,184 Total current assets 638, ,228 Non-current assets Restricted cash and cash equivalents 10,000 20,459 Property and equipment net 16,171 13,717 Intangible assets, net 35,424 31,412 Goodwill 38,733 38,894 Total non-current assets 100, ,482 TOTAL ASSETS 738, ,710 As of December 31, 2017 As of December 31, 2016 LIABILITIES AND SHAREHOLDERS DEFICIT Current liabilities Accounts payable and accrued expenses 45,609 25,335 Travel suppliers payable 174, ,237 Related party payable 84,364 71,006 Loans and other financial liabilities 8,220 7,179 Deferred Revenue 30,113 29,095 Other liabilities 39,751 49,686 Contingent liabilities 4,732 3,613 Total current liabilities 387, ,151 Non-current liabilities Other liabilities 1, Contingent liabilities 7,115 22,413 Related party liability 125, ,000 Total non-current liabilities 133, ,822 TOTAL LIABILITIES 520, ,973 SHAREHOLDERS EQUITY (DEFICIT) Common stock 1 253,535 6 Additional paid-in capital 316, ,155 Other reserves (728) (728) Accumulated other comprehensive income 16,323 16,286 Accumulated losses (367,616) (409,982) Total Shareholders' Equity Attributable / (Deficit) to Despegar.com Corp 217,958 (82,263) TOTAL LIABILITIES AND SHAREHOLDERS EQUITY 738, , Represents 58,518 (at $0.0001) and 10,578 (issued at $26 per share) issued and outstanding at September 30, 2017 and 58,518 shares issued and outstanding at December 31, (in thousands of shares) 35

36 Investor Relations Contact Ines Lanusse Investor Relations Manager Phone: (+5411)