Corporate Presentation as of 3Q17 January 2018
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
Leading OTA in Latin America Pan-regional OTA operating across 20 markets with leading brand awareness in key markets, including Brazil and Argentina (1) $4.2 Billion Gross Bookings (3) Significant Scale 2017 LTM (4) $491 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 9M16 to 9M17 (5) 72% Adj. EBITDA Comprehensive product offering including air, packages, hotels and other travel products to a large customer base 9M17 Revenue Revenue Diversification 9M17 Transactions (6) Best in class mobile offering Served over 3.6 million customers during 9M17, up 19% 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 September 30, 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 September 30, 2017 (5) % change from September 30, 2016 YTD audited consolidated financial statements to September 30, 2017 YTD unaudited consolidated financial statements (6) Number of transactions is the total number of customer orders completed on our platform in a given period Other 3
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 2016 2017 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 2012 2013 2014 10 million downloads of our mobile app Migrated all call center sales to online 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 2007 1999 2000 2001 Launched site in Argentina Expanded to United States and Venezuela 2.7 MM 48% Growth in Customers 4.0 MM 2012 2016 4
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
1 Operating at Significant Scale in a Rapidly Growing Online Travel Market USD Bn Latin America Travel Market Size 2016 2020E $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
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
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
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 2015 2020E 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 2012 2016 2017E 2021E U.S. Argentina 2015 2020E 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 2015-2020E period 9
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
2 Leveraging Air Purchases to Drive Packages, Hotels & Other Products Differentiated Platform Connecting Customers with Suppliers Large Market Opportunity Scalable Technology Platform Full Service Product Offering & Flexible Financing Broad Supplier Base (2) Significant Cross Sell Opportunity 250+ Airlines Air Products 900+ Car Rentals Latin America Travel Market 200+ Bus Carriers 300K+ Hotels (Including Vacation Rentals) Packages, Hotels & Other Products 250+ Destination Service Suppliers 6 Cruise Lines 7,000+ Activities Flexible Payments through Financing Arrangements with Banking Partners Drive Margin & Profitability Generated 54% of Revenue in 9M17 Notes (1) Refers to customers repeat customers who had previously purchased other travel products through Despegar s platform as of September 30 th 2017 (2) Inventory figures as of end of June 2017 11
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 1H2017 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
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
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 September 30 th 2017 from Google s Share of Voice report (Google s Trend data) 14
3 Virtuous Cycle Based on Increasing Scale and Brand Recognition 15
3 Strong Brand Recognition and Awareness Cumulative Marketing Investment Strong Brand Awareness Drives Direct Traffic to Platform % Traffic Source by Channel as of 1H2017 (2) US$1Bn+ Invested Since our Founding (1) Direct ~52% Indirect ~48% 1999 9M2017 Notes (1) Marketing investments include marketing personnel as of June 30 th 2017 (2) Includes traffic on desktop website, mobile desktop and mobile App (3) As of September 30, 2017 Approximately 9MM user generated reviews (3) 16
3 Marketing Dollars Focused on Driving Profitable Growth Proven Marketing Investment Strategy Drives Growth Dynamic Budget Allocation Maximize Growth at ROI target 500 450 400 (US$MM) $422 $411 $380 65% 60% 55% 350 50% Custom Attribution Model Performance Optimization Tailored to our Business Needs and Markets Always On Strategy 300 250 200 150 40% $300 30% 30% 32% 45% 40% 35% 30% 25% Cross-Device Insights and Custom Attribution Model and Bidding Tools 100 FY15 FY16 9M16 9M17 Revenue Sales & Marketing % of Revenue 20% 17
3 And Supporting Our High Brand Recognition Branded Search Recognition by Country for 3Q2017 Latin America Mexico 27% 13% 11% 9% 8% 4% 22% 15% 14% 12% 9% 7% Booking 1 st Trivago CVC AirBnb Tripadvisor Brazil Trivago Bestday AirBnB Expedia Booking Chile 28% 32% 18% 14% 11% 7% 4% 16% 12% 8% 7% 6% CVC Booking Trivago AirBnB Hotel Urbano Argentina Booking Falabella Trivago AirBnB Cocha Colombia 34% 23% 16% 1 st 9% 9% 7% 5% 15% 11% 8% 7% 7% Booking.com Trivago Almundo AirBnB Tripadvisor Tiquetes Decameron Booking Trivago Atrapalo Global Player Local Player Source: Google s Share of Voice report based on Google s Trend data as of September 30 th 2017. Graph shows the relative number of searches of the Brand related keywords. 18
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 first half of 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, 2017 19
4 Our Mobile First Approach Most Downloaded OTA App in the Region (1) Apple App Store Google Play App Store 35+ Million Cumulative App Downloads (2) Mobile Transactions up +56% 9M16 to 9M17 Share of mobile transactions +550bps YoY to 29% 9M16 to 9M17 4.4 Stars Rating on Apple App Store Based on 2.39k reviews (3) 4.4 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 November 30, 2017. Star ratings as of December 26, 2017 (3) Includes reviews for both Despegar and Decolar apps on ios App Store and Google Play as of end-of-month December 2017 Based on 147,405 reviews (3) 20
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
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 million @ $26 per share plus ~0.2 million of vested restricted shares 22
6 Financial Highlights 1. Operating at Significant Scale in a Rapidly Growing, Multi-Billion Dollar Market 2. Accelerating Revenue Growth Driven by Packages and Hotel Segments 3. Strong Transaction Growth Driven by High Repeat Customer Purchase Activity 4. Operating Leverage Driving Increased Margins 5. Favorable Working Capital Dynamics
6 Strong Business Momentum in 2017 with Strategic Initiatives Driving Higher Margin Packages, Hotels and OTPs Total Transactions by Segment In millions Gross Bookings In US$ Bn 8.8 7.5 7.7 7.2 6.6 3.9 3.3 6.3 5.0 3.3 3.0 5.2 2.7 2.8 2.2 3.8 2.2 1.7 3.6 3.3 3.2 2.5 1.3 4.4 4.3 3.0 3.9 1.1 0.6 2.3 '- 2015 2016 9M16 9M17 '- 2015 2016 9M16 9M17 24
6 Supporting Revenue Growth and an Increasingly Diversified Mix Total Revenue In US$ millions Revenue Mix % of total revenue Revenue per Transaction In US$ 455.0 1.25 390.0 325.0 1 60.8 69.3 71.2 74.8 260.0 0.75 48% 50% 51% 54% 2015 2016 9M16 9M17 195.0 421.7 411.2 379.9 0.5 130.0 300.0 65.0 0.25 52% 50% 49% 46% '- 2015 2016 9M16 9M17 0 2015 2016 9M16 9M17 50.1 48.4 48.5 44.9 Air Packages, Hotels & OTPs 2015 2016 9M16 9M17 25
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% 12.5% 16.9% 48.6 37.4 64.2-39.1 2015 2016 9M16 9M17 26
6 Solid Balance Sheet and Strong Cash Flow Generation Increase in Cash and Cash Equivalents In US$ millions 254 39 12 4 10-55 -19 1Q16 1Q17 2Q16 2Q17 3Q16 3Q17 Cash Excluding IPO Proceeds IPO Proceeds 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 ~54% of total transactions (2) Booking by Customers Despegar Receives Cash from Customer Payments Average Time to Check-in Despegar Pays Supplier Consolidated Cash Flow Data In US$ millions 1 2 3 4 2015 2016 9M16 9M17 Net cash flow provided by / (used in) operating activities (24.2) (43.3) (60.9) 36.0 All Other Typically less than one month (3) Cash Positive (+) Net cash flows (used in) / provided by investing activities (81.0) 14.4 24.2 (11.3) Net cash flows provided by financing activities 198.8 5.1 3.5 255.3 Brazil w/ Installments Scheduled payment due date from the customer - Net IPO proceeds 254.3 Effect of FX rate changes on cash and cash equivalents (12.5) (2.4) (2.0) 0.1 Net Increase/ (decrease) in cash and cash equivalents 81.1 (26.1) (35.3) 280.1 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
6 Operating Model 2015 2016 9M16 9M17 Revenue as % of Gross Bookings 11.7% 12.6% 13.3% 11.9% Gross Profit 63.4% 69.2% 68.9% 72.6% Selling & Marketing 40.3% 29.5% 29.7% 31.6% Technology & Product Development 17.4% 15.4% 15.7% 13.7% General & Administrative 18.5% 15.7% 14.2% 13.9% Adjusted EBITDA (2) -9.3% 11.8% 12.5% 16.9% 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 nine months ended September 30, 2017 28
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 29
Appendix
Key Financial & Operating Trended Metrics (in thousands U.S. dollars, unless otherwise stated) 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 FINANCIAL RESULTS Revenue $95,115 $98,797 $106,088 $111,162 $124,999 $123,462 $131,468 Cost of revenue 33,494 33,752 26,150 33,279 31,140 35,087 37,869 Gross profit 61,621 65,045 79,938 77,883 93,859 88,375 93,599 Operating expenses Selling and marketing 28,577 29,133 31,374 32,382 35,546 43,289 41,097 General and administrative 15,186 13,960 13,576 21,961 18,869 18,618 15,318 Technology and product development 15,561 15,942 15,718 16,030 15,408 17,644 18,907 Total operating expenses 59,324 59,035 60,668 70,373 69,823 79,551 75,322 Operating income 2,297 6,010 19,270 7,510 24,036 8,824 18,277 Net financial income (expense) (386) (3,653) (850) (1,863) (6,156) (1,611) (2,880) Net income before income taxes 1,911 2,357 18,420 5,647 17,880 7,213 15,397 Income tax expense 2,646 2,178 4,067 1,647 2,486 3,806 4,190 Net income /(loss) (735) 179 14,353 4,000 15,394 3,407 11,207 Net income/ (loss) ($735) $179 $14,353 $4,000 $15,394 $3,407 $11,207 Add (deduct): Financial expense, net 386 3,653 850 1,863 6,156 1,611 2,880 Income tax expense 2,646 2,178 4,067 1,647 2,486 3,806 4,190 Depreciation expense 1,265 1,263 1,450 1,111 1,343 1,362 1,337 Amortization of intangible assets 1,728 1,918 2,060 2,129 1,517 2,039 2,454 Share-based compensation expense 50 50 50 424 1,176 930 959 Adjusted EBITDA $5,340 $9,241 $22,830 $11,174 $28,072 $13,155 $23,027 Net Increase (Decrease) in Cash & Cash Equivalents ($55,203) $38,656 ($18,707) $9,106 $12,314 $3,825 $263,911 31
Key Financial & Operating Trended Metrics (cont.) (in thousands U.S. dollars, unless otherwise stated) 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 KEY METRICS Operational Number of transactions 1,632 1,706 1,839 2,035 2,129 2,210 2,298 - YoY growth (6%) (8%) (9%) (3%) 30% 30% 25% Air 927 1,009 1,089 1,225 1,246 1,325 1,328 - YoY growth (1%) (4%) (4%) (3%) 34% 31% 22% Packages, Hotels & Other Travel Products 704 697 750 810 883 885 970 - YoY growth (13%) (12%) (16%) (2%) 25% 27% 29% Gross bookings $661,577 $755,413 $844,782 $998,462 $1,019,102 $1,061,026 $1,116,022 - YoY growth (19%) (13%) (10%) 3% 54% 40% 32% 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%) Air $44.8 $50.2 $50.1 $48.1 $44.8 $46.0 $44.1 - YoY growth (11%) (4%) 4% (4%) (0%) (8%) (12%) Packages, Hotels & Other Travel Products $76.1 $69.1 $68.6 $64.4 $78.4 $70.7 $75.2 - YoY growth 23% 16% 13% 5% 3% 2% 10% ASP $405 $443 $459 $491 $479 $480 $486 - YoY growth (13%) (6%) (1%) 6% 18% 8% 6% 32
Unaudited Consolidated Balance Sheets (in thousands U.S. dollars) As of September 30, 2017 As of December 31, 2016 ASSETS Current assets Cash and cash equivalents $356,018 $75,968 Restricted cash and cash equivalents 30,020 22,738 Accounts receivable net of allowances 160,061 121,098 Related party receivable 4,581 2,240 Other current assets and prepaid expenses 32,837 27,184 Total current assets 583,517 249,228 Non-current assets Restricted cash and cash equivalents 10,000 20,459 Property and equipment net 15,413 13,717 Intangible assets net 34,236 31,412 Goodwill 40,023 38,894 Total non-current assets 99,672 104,482 TOTAL ASSETS 683,189 353,710 As of September 30, 2017 As of December 31, 2016 LIABILITIES AND SHAREHOLDERS DEFICIT Current liabilities Accounts payable and accrued expenses 39,512 25,335 Travel suppliers payable 132,502 102,237 Related party payable 80,962 71,006 Loans and other financial liabilities 8,092 7,179 Deferred Revenue 24,003 29,095 Other liabilities 51,961 49,686 Contingent liabilities 4,546 3,613 Total current liabilities 341,578 288,151 Non-current liabilities Other liabilities 1,302 409 Contingent liabilities 10,011 22,413 Related party liability 125,000 125,000 Total non-current liabilities 136,313 147,822 TOTAL LIABILITIES 477,891 435,973 SHAREHOLDERS EQUITY (DEFICIT) Common stock 1 254,311 6 Additional paid-in capital 315,220 312,155 Other reserves (728) (728) Accumulated other comprehensive income 16,469 16,286 Accumulated losses (379,974) (409,982) Total Shareholders' Equity Attributable to Despegar.com Corp TOTAL LIABILITIES AND SHAREHOLDERS EQUITY 205,298 (82,263) 683,189 353,710 1. Represents 58,518 (at USD 0.0001) and 10,579 (issued at USD 26, incorporated at USD 24, net of issuance expenses) thousands shares issued and outstanding at September 30, 2017 and 58,518 (at USD 0.0001) thousands shares issued and outstanding at December 31, 2016. 33
Investor Relations Contact Ines Lanusse IR and External Communications Manager Phone: (+5411) 4894 3582 E-mail: investorelations@despegar.com