Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2017shares | |
Document And Entity Information [Abstract] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2017 |
Document Fiscal Year Focus | 2,017 |
Document Fiscal Period Focus | FY |
Trading Symbol | DESP |
Entity Registrant Name | Despegar.com, Corp. |
Entity Central Index Key | 1,703,141 |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Common Stock, Shares Outstanding | 69,097,610 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | |
Current assets | |||
Cash and cash equivalents | $ 371,013 | $ 75,968 | |
Restricted cash and cash equivalents | 29,764 | 22,738 | |
Accounts receivable, net of allowances | 198,273 | 121,098 | |
Related party receivable | 5,253 | 2,240 | |
Other assets and prepaid expenses | 29,405 | 23,587 | |
Total current assets | 633,708 | 245,631 | |
Non-current assets | |||
Other assets | 4,658 | 3,597 | |
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 | 104,986 | 108,079 | |
TOTAL ASSETS | 738,694 | 353,710 | |
Current liabilities | |||
Accounts payable and accrued expenses | 45,609 | 25,335 | |
Travel suppliers payable | 174,817 | 102,237 | |
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 | 48,684 | |
Contingent liabilities | 4,732 | 3,613 | |
Total current liabilities | 387,606 | 287,149 | |
Non-current liabilities | |||
Other liabilities | 1,015 | 1,411 | |
Contingent liabilities | 7,115 | 22,413 | |
Related party liability | 125,000 | 125,000 | |
Total non-current liabilities | 133,130 | 148,824 | |
TOTAL LIABILITIES | 520,736 | 435,973 | |
SHAREHOLDERS' EQUITY / (DEFICIT) | |||
Common stock | [1] | 253,535 | 6 |
Additional paid-in capital | 316,444 | 312,155 | |
Other reserves | (728) | (728) | |
Accumulated other comprehensive income | 16,323 | 16,286 | |
Accumulated losses | (367,616) | (409,982) | |
Total Shareholders' Equity / (Deficit) attributable to Despegar.com, Corp. | 217,958 | (82,263) | |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY / (DEFICIT) | $ 738,694 | $ 353,710 | |
[1] | Represents 58,518 shares issued at $0.0001 and 10,579 shares issued at $26.00 and outstanding at December 31, 2017 and 58,518 shares issued at $0.0001 and outstanding at December 31, 2016. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Common stock, shares issued | 58,518,000 | 58,518,000 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares outstanding | 10,579,000 | 58,518,000 |
Share issued price per share | $ 26 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Income Statement [Abstract] | ||||
Revenue | [1] | $ 523,940 | $ 411,162 | $ 421,711 |
Cost of revenue | (142,479) | (126,675) | (154,213) | |
Gross profit | 381,461 | 284,487 | 267,498 | |
Operating expenses | ||||
Selling and marketing | (166,288) | (121,466) | (170,149) | |
General and administrative | (72,626) | (64,683) | (78,181) | |
Technology and product development | (71,308) | (63,251) | (73,535) | |
Total operating expenses | (310,222) | (249,400) | (321,865) | |
Operating income / (loss) | 71,239 | 35,087 | (54,367) | |
Financial income | 2,389 | 8,327 | 10,797 | |
Financial expense | [2] | (19,268) | (15,079) | (23,702) |
Income / (loss) before income taxes | 54,360 | 28,335 | (67,272) | |
Income tax expense | (11,994) | (10,538) | (18,004) | |
Net income / (loss) | $ 42,366 | $ 17,797 | $ (85,276) | |
Earnings per share available to common stockholders: | ||||
Basic | $ 0.69 | $ 0.30 | $ (1.49) | |
Diluted | $ 0.69 | $ 0.30 | $ (1.49) | |
Shares used in computing earnings per share (in thousands): | ||||
Basic | 61,457 | 58,518 | 57,078 | |
Diluted | 61,548 | 58,609 | 57,186 | |
[1] | Includes $37,000, $27,008 and $22,911 for related party transactions for the years 2017, 2016 and 2015, respectively. See note 14. | |||
[2] | Includes $8,601, $10,516 and $17,218 for factoring of credit card receivables for the years ended 2017, 2016 and 2015, respectively. |
Consolidated Statements of Ope5
Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenue from related parties | $ 37,000 | $ 27,008 | $ 22,911 |
Credit Card Receivable [Member] | |||
Factoring expense | $ 8,601 | $ 10,516 | $ 17,218 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income / (loss) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Statement of Comprehensive Income [Abstract] | ||||
Net income / (loss) | $ 42,366 | $ 17,797 | $ (85,276) | |
Other comprehensive income / (loss), net of tax | ||||
Foreign currency translation adjustment | [1] | 37 | (17,501) | (6,733) |
Comprehensive income / (loss) | $ 42,403 | $ 296 | $ (92,009) | |
[1] | No tax impact |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity / (Deficit) - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Other Reserves [Member] | Accumulated Other Comprehensive Income [Member] | Accumulated Losses [Member] | ||
Beginning Balance at Dec. 31, 2014 | $ (89,578) | $ 5 | $ 192,338 | $ (728) | $ 40,520 | $ (321,713) | ||
Beginning Balance, Shares at Dec. 31, 2014 | 50,463 | |||||||
Stock-based compensation expense | 861 | 861 | ||||||
Foreign currency translation adjustment | (6,733) | [1] | (6,733) | |||||
Exercise of Stock Options by Employees | 63 | 63 | ||||||
Exercise of Stock Options by Employees, Shares | 63 | |||||||
Shareholders contributions | [2],[3] | 142,530 | $ 1 | 142,529 | ||||
Shareholders contributions, Shares | 9,590 | |||||||
Repurchase of common stocks | [3] | (45,000) | (24,210) | (20,790) | ||||
Repurchase of common stocks, Shares | (1,598) | |||||||
Net income for the year | (85,276) | (85,276) | ||||||
Ending Balance at Dec. 31, 2015 | (83,133) | $ 6 | 311,581 | (728) | 33,787 | (427,779) | ||
Ending Balance, Shares at Dec. 31, 2015 | 58,518 | |||||||
Stock issuance costs, net | 2,470 | |||||||
Stock-based compensation expense | 574 | 574 | ||||||
Foreign currency translation adjustment | (17,501) | [1] | (17,501) | |||||
Net income for the year | 17,797 | 17,797 | ||||||
Ending Balance at Dec. 31, 2016 | (82,263) | $ 6 | 312,155 | (728) | 16,286 | (409,982) | ||
Ending Balance, Shares at Dec. 31, 2016 | 58,518 | |||||||
Stock issuance costs, net | 0 | |||||||
Stock-based compensation expense | 4,289 | 4,289 | ||||||
Foreign currency translation adjustment | 37 | [1] | 37 | |||||
Issuance of common stock, value | [4] | 253,529 | $ 253,529 | |||||
Issuance of common stock, shares | [4] | 10,579 | ||||||
Net income for the year | 42,366 | 42,366 | ||||||
Ending Balance at Dec. 31, 2017 | 217,958 | $ 253,535 | $ 316,444 | $ (728) | $ 16,323 | $ (367,616) | ||
Ending Balance, Shares at Dec. 31, 2017 | 69,097 | |||||||
Stock issuance costs, net | $ 21,530 | |||||||
[1] | No tax impact | |||||||
[2] | Net of issuance costs of $ 2,470. | |||||||
[3] | See note 14. | |||||||
[4] | Net of issuance costs of $21,530. |
Consolidated Statements of Cha8
Consolidated Statements of Changes in Shareholders' Equity / (Deficit) (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Stockholders' Equity [Abstract] | |||
Stock issuance costs, net | $ 21,530 | $ 0 | $ 2,470 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Cash flows from operating activities: | ||||
Net income / (loss) | $ 42,366 | $ 17,797 | $ (85,276) | |
Adjustments to reconcile net income / (loss) to net cash flows from operating activities: | ||||
Unrealized foreign currency translation losses | 457 | 466 | 2,762 | |
Depreciation expense | 5,075 | 5,089 | 5,152 | |
Amortization of intangible assets | 8,751 | 7,835 | 9,287 | |
Stock based compensation expense | 4,289 | 574 | 861 | |
Interest and penalties | (65) | 1,494 | 2,439 | |
Income taxes | 5,507 | 3,846 | 8,340 | |
Allowance for doubtful accounts | 818 | 2,548 | 2,142 | |
(Recovery) / Provision for contingencies | (603) | 526 | 10,347 | |
Changes in assets and liabilities, net of non-cash transactions: | ||||
(Increase) / Decrease in accounts receivable, net of allowances | (85,383) | (71,389) | (22,834) | |
(Increase) / Decrease Related party receivables | (3,013) | (293) | (1,947) | |
(Increase) / Decrease in other assets and prepaid expenses | (10,090) | 3,591 | (8,030) | |
Increase / (Decrease) in accounts payable and accrued expenses | 22,363 | (13,895) | 22,689 | |
Increase / (Decrease) in travel suppliers payable | 78,835 | (20,121) | (15,079) | |
Increase / (Decrease) in other liabilities | (12,323) | 10,440 | (19,835) | |
Increase / (Decrease) in contingencies | (12,183) | 618 | 1,170 | |
Increase / (Decrease) in related party liabilities | 13,964 | 13,210 | 57,797 | |
Increase / (Decrease) in deferred revenue | 2,461 | (5,628) | 5,766 | |
Net cash flows provided by / (used in) operating activities | 61,226 | (43,292) | (24,249) | |
Cash flows from investing activities: | ||||
Sales of short-term investments | 40,013 | |||
Payments for short-term investments | (40,013) | |||
Acquisition of property and equipment | (8,746) | (4,419) | (7,085) | |
Increase of intangible assets, including internal-use software and website development | (12,929) | (12,159) | (13,552) | |
(Increase) / Decrease in restricted cash and cash equivalents | 3,414 | (9,051) | (20,336) | |
Net cash flows (used in) / provided by investing activities | (18,261) | 14,384 | (80,986) | |
Cash flows from financing activities: | ||||
Increase in loans and other financial liabilities | 30,159 | 10,142 | 1,200 | |
Decrease in loans and other financial liabilities | (29,574) | (5,000) | ||
Proceeds from issuance of shares (1) | [1] | 253,529 | 267,593 | |
Repurchase of common stocks (2) | [2] | (45,000) | ||
Loans received (2) | [2] | 25,000 | ||
Payments of loans (2) | [2] | (50,000) | ||
Net cash flows provided by financing activities | 254,114 | 5,142 | 198,793 | |
Effect of exchange rate changes on cash and cash equivalents | (2,034) | (2,382) | (12,478) | |
Net increase / (decrease) in cash and cash equivalents | 295,045 | (26,148) | 81,080 | |
Cash and cash equivalents as of beginning of the year | 75,968 | 102,116 | 21,036 | |
Cash and cash equivalents as of end of the period | 371,013 | 75,968 | 102,116 | |
Supplemental cash flow information | ||||
Cash paid for income tax | 18,455 | 6,111 | 16,316 | |
Interest paid | $ 942 | $ 684 | $ 1,519 | |
[1] | Net of issuance costs paid of $ 21,530 and $ 2,470 as of December 31, 2017 and 2015, respectively. See note 14 | |||
[2] | See note 14. |
Consolidated Statements of Ca10
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Investment Company, Capital Share Transactions [Abstract] | |||
Stock issuance costs, net | $ 21,530 | $ 0 | $ 2,470 |
Operations of the Company
Operations of the Company | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Operations of the Company | 1. Operations of the Company On May 3, 2017, the stockholders of Decolar.com, Inc., a Delaware holding company, exchanged their shares for ordinary shares of Despegar.com, Corp. to create a new British Virgin Island holding company. Following the exchange, the Company’s shareholders own shares of Despegar.com, Corp. and Decolar.com, Inc. is a wholly-owned subsidiary of Despegar.com, Corp. Despegar.com, Corp. (formerly Decolar.com, Inc.), is an online travel agency, which provides leisure and business travelers the tools and information they need to make travel reservations with providers of travel products around the world. Despegar.com is the leading online travel agency in Latin America and includes both the Decolar and Despegar brands. With a presence in 20 countries, Despegar’s websites and mobile apps help leisure and business travelers to book accommodations, airline tickets, packages, rental cars, cruises, destination services and travel insurance around the world. The Company operates primarily under the “Despegar.com” brand for Spanish and English speaking customers and the “Decolar.com” brand for Portuguese speaking customers. The Company also generates additional revenue through the sale of advertising on its websites. Despegar.com provides its customers with multiple ways to save on travel-related products and multiple alternatives to pay for such products. During September 2017, the Company successfully completed its registration process with the United States Security and Exchange Commission and initial public offering pursuant to which the Company sold 10,578,931 shares of common stock and certain selling shareholders sold 4,106,569 shares of common stock, resulting in net proceeds to us of $ 253,529 thousand. See more details in note 20. |
Basis of Consolidation
Basis of Consolidation | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Consolidation | 2. Basis of consolidation The consolidated financial statements include the accounts of the Company and its subsidiaries. The following are the Company’s main operating subsidiaries (all wholly-owned): Name of the Subsidiary Country of Incorporation Despegar.com.ar S.A. Argentina Decolar.com LTDA. Brazil Despegar.com Chile SpA Chile Despegar Colombia S.A.S. Colombia DespegarEcuador S.A. Ecuador Despegar.com México S.A. de C.V. Mexico Despegar.com Peru S.A.C. Peru Despegar.com USA, Inc. United States Travel Reservations S.R.L. Uruguay The consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”). Although the subsidiaries transact the majority of their businesses in their local currencies, the Company has selected the United States dollar (“U.S. dollar”) as its reporting currency. All significant intercompany accounts and transactions have been eliminated. Foreign currency translation The Company’s foreign subsidiaries (except for Travel Reservations S.R.L in Uruguay and other subsidiaries in the United States, Ecuador and Venezuela, which use the U.S. dollar as functional currency) have determined the local currency to be their functional currency. Assets and liabilities are translated from their local currencies into U.S. dollars at the end-of-the-year Gains and losses resulting from transactions in non-functional |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 3. Summary of significant accounting policies The following is a summary of significant accounting policies followed by the Company in the preparation of these consolidated financial statements. Use of estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from estimates. The significant estimates underlying the Company’s consolidated financial statements include revenue recognition, including the accounting for certain merchant revenues, allowance for doubtful accounts, recoverability of intangible assets with indefinite useful lives and goodwill, contingencies, fair value of stock based compensation and fair value of financial instruments. The consolidated financial statements reflect all adjustments considered, in the opinion of management, necessary to fairly present the results for the periods presented. Concentration of risk The Company’s business is subject to certain risks and concentrations including dependence on relationships with travel suppliers, primarily airlines, dependence on third-party technology providers, exposure to risks associated with online commerce security and payment related fraud. It also relies on global distribution system (“GDS”) partners and third-party service providers for certain fulfillment services. Financial instruments, which potentially subject the Company to concentration of credit risk, mainly consist of cash and cash equivalents and accounts receivable (ie. clearing house for credit cards). The Company maintains cash and cash equivalents balances in financial institutions that management believes are high credit quality. Accounts receivable are settled mainly through customer credit cards and debit cards; the company maintains allowance for doubtful accounts based on management’s evaluation of various factors, including the credit risk of customers, historical trends and other information. Revenue recognition The Company generates revenue as a result of the booking of travel products and services on its websites and mobile apps. The Company provides customers the ability to book travel products and services on both a stand-alone basis or as a vacation package, primarily through its merchant and agency business models. The Company derives its revenue mainly from: • Commissions earned from intermediating services, including facilitating reservations of flight tickets, hotel accommodations, car rentals and other travel-related products and services; • Service fees charged to customers for processing air tickets, hotel accommodations, car rentals and other travel-related products and services; • Override commissions or incentives from suppliers and GDS providers if the Company meets certain performance conditions; and • Advertising revenues from the sale of advertising placements on the Company’s websites. Revenue is recognized when earned and realizable based on the following criteria: (1) persuasive evidence of an agreement exists, (2) the fee is fixed or determinable and (3) collectability is reasonably assured. The Company also evaluated the presentation of revenue on a “gross” versus a “net” basis. The consensus of the authoritative accounting literature is that the presentation of revenue as “the gross amount billed to a customer because it has earned revenue from the sale of goods or services” or “the net amount retained (i.e., the amount billed to a customer less the amount paid to a supplier) because it has earned a commission or fee” is a matter of judgment that depends on the relevant facts and circumstances. Despegar.com has determined net presentation is appropriate for the majority of its transactions. In making an evaluation of this issue, some of the factors that were considered are as follows: (i) the Company is not the primary obligor in the arrangement (strong indicator); (ii) the Company has no general supply risk (before customer order is placed or upon customer return) (strong indicator); and (iii) the Company has latitude in establishing price. The guidance clearly indicates that the evaluations of these factors, which at times can be contradictory, are subject to significant judgment and subjectivity. The Company concludes that it performs as an agent without assuming the risks and rewards of ownership of goods, and therefore revenue is reported on a net basis. The Company offers travel products and services through the following business models: the Prepay/Merchant Model, which represents approximately 80% of total revenue, Other Revenue including GDS incentives, advertising represents 15% and the Pay-at-destination/Agency Prepay/Merchant Business Model Through this model the Company provides customers the ability to book air travel, accommodation, car rentals, cruises, destination services and vacation packages. The Company generates revenue based on the difference between the total amount that the customer pays for the travel product and the net rate owed to the supplier plus estimated taxes. Despegar.com also earns revenue by charging customers a service fee for booking their travel reservation. Customers generally pay at the time of booking and the Company generally pays to the supplier at a later date, which is normally at the time the customer uses the travel reservation. Depegar.com records the payments as deferred merchant bookings in travel suppliers payable in the balance sheet until the travel occurs; at that point, the Company recognizes the revenue for those refundable transactions on a net basis. For travel products that are cancelled by the customer after a specified period of time, the Company may charge a cancellation fee or penalty similar to the amount that the supplier charges for the cancellation. In nonrefundable transactions, as the Company does not have significant post-delivery obligations, the revenue is recorded on a net basis when the customer completes the reservation process in the Company’s platform. Packages and sales transactions performed by customers through affiliated agencies are recognized following the revenue recognition policy described above for refundable / non refundable transactions. Pursuant to the terms of the Company’s merchant supplier agreements, the Company’s travel service suppliers are permitted to bill it for the underlying cost of the service during a specified period of time. In the event that the Company is not billed by the travel supplier within a 12-month check-out Pay-at-Destination/Agency Through this model, the Company provides customers the ability to book hotels, car rentals and other travel-related products and services to be paid at destination. Despegar.com earns a commission paid directly by suppliers. The Company generally collects these commissions after the customer uses the travel reservation. In certain circumstances, the Company may also earn revenue by charging customers with a service fee for booking their travel reservation. The Company generally records revenue on an accrual basis when the travel occurs and is presented on a net basis. In addition, the Company records an allowance for collection risk on this revenue based on historical experience. Incentives The Company may receive override commissions from air, hotel and other travel service suppliers when it meets certain performance conditions. These commissions are recognized when the amount of the commission becomes fixed or determinable, which is generally when collection is reasonably assured (i.e. upon notification of the respective air supplier). Additionally the Company uses GDS services provided by recognized suppliers. Under GDS service agreements, the Company earns revenue in the form of an incentive payment for sales that are processed through a GDS if certain contractual volume thresholds are met. Revenue is recognized for these incentive payments on a monthly accrued basis in accordance with ratable volume thresholds. Advertising The Company records advertising revenue ratably over the advertising period or upon delivery of advertising material, depending on the terms of the advertising agreement. Sales tax The Company’s subsidiaries in Brazil, Argentina and Colombia are subject to certain sales taxes, which are classified as contra-revenue. Cash and cash equivalents Cash and cash equivalents include investments with an original maturity of three months or less. All results generated from these investmentes are recorded as financial results when earned. Restricted cash and cash equivalents The primary purpose of restricted cash and cash equivalents is to collateralize operations with suppliers of travel products and services and related service providers such as IATA. In addition, the Company maintains $10,000 as security deposit with Expedia, as established in the Expedia Outsourcing Agreement. Accounts receivable, net of allowances for doubtful accounts Accounts receivables are recorded net of an allowance for doubtful accounts. The Company determines its allowance based on the aging of its receivables. While management uses the information available to make evaluations, future adjustments to the allowance may be necessary if future economic conditions differ substantially from the assumptions used in making the evaluations. Management has considered all events and/or transactions that are subject to reasonable and normal methods of estimations, and the consolidated financial statements reflect that consideration. Property and equipment, net Property and equipment are stated at acquisition cost, less accumulated depreciation. Depreciation expense is calculated using the straight-line method, based on the estimated useful lives of the related assets. The estimated useful lives (in years) of the main categories of the Company’s property and equipment are as follows: Asset Estimated useful life (years) Computer hardware 3 Office furniture and fixture 10 Buildings 50 Expenditures for repairs and maintenance are charged to expense as incurred. The cost of significant renewals and improvements is added to the carrying amount of the respective asset and its depreciated over the life of the contract. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts, and any resulting gain or loss is reflected in the consolidated statement of operations. Goodwill and Intangible assets, net Goodwill represents the excess of the purchase price over the fair value of the net tangible and intangible assets acquired in a business combination. Goodwill is not subject to amortization, but is subject to an annual assessment for impairment, or more frequently, if events and circumstances indicate impairment may have occurred, applying a fair-value based test. Intangible assets resulting from the acquisition of companies were estimated by management based on the fair value of assets received. Identifiable intangible assets are comprised of trademarks and internet domains. Trademarks and domains are not subject to amortization, but subject to an annual impairment assessment. Certain costs incurred related to the development of internal-use Software internally developed is amortized over a period of three years according to its expected useful life, using the straight-line method. In addition, the asset value of the software is evaluated for impairment periodically. Financial systems are amortized over a period of 10 years, using the straight-line method. Impairment of Long-Lived Assets The Company reviews long-lived assets for impairments whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to undiscounted future net cash flows expected to be generated by the asset. If such assets are considered to be impaired on this basis, the impairment loss to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Goodwill and intangible assets with indefinite lives are reviewed at least annually for impairment, generally as of December 31, or more frequently if events and circumstances indicate impairment may have occurred. Impairment of goodwill is tested at the reporting unit level by comparing the reporting units carrying amount, including goodwill, to the fair value of the reporting unit. The fair values of the reporting units are estimated using a combination of the income or discounted cash flows approach and the market approach, which utilizes comparable companies’ data. If the carrying amount of the reporting unit exceeds its fair value, goodwill is considered impaired and a second step is performed to measure the amount of impairment loss, if any. No impairments were recognized during the reporting years for goodwill or intangible assets with indefinite life. Pension information The Company does not maintain any pension plans. The laws in the different countries in which the Company carries out its operations provide for pension benefits to be paid to retired employees from government pension plans and/or private pension plans. Amounts payable to such plans are accounted for on an accrual basis. Severance payments The Company may register a liability for severance payments if the following criteria are met: (a) management, having the authority to approve the action, commits to a plan of termination; (b) the plan identifies the number of employees to be terminated, their job classifications or functions and their locations, and the expected completion date; (c) the plan establishes the terms of the benefit arrangement, including the benefits that employees will receive upon termination, in sufficient detail to enable employees to determine the type and amount of benefits they will receive if they are involuntarily terminated; (d) actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn; and (e) the plan has been communicated to employees. Contingent liabilities The Company has certain regulatory and legal matters outstanding, as discussed further in note 13 “Commitments and Contingencies.” Periodically, the status of all significant outstanding matters is reviewed to assess the potential financial exposure. When (i) it is probable that an asset has been impaired or a liability has been incurred and (ii) the amount of the loss can be reasonably estimated, the Company records the estimated loss in the consolidated statements of operations. Additionally, disclosure in the notes to the consolidated financial statements is provided for loss contingencies that do not meet both of these conditions if there is a reasonable possibility that a loss may have been incurred that would materially impact the financial position and results of operations. Significant judgment is required to determine the probability that a liability has been incurred and whether such liability is reasonably estimable. The Company records accruals related to commercial, labor and tax contingencies that may generate an obligation for the Company. Accruals are made on the best information available at the time; such analysis may be highly subjective. The final outcome of these matters could vary significantly from the amounts included in the accompanying consolidated financial statements. Derivative instruments Derivative instruments are carried at fair value on the consolidated balance sheets. The fair values of the derivative financial instruments generally represent the estimated amounts the Company would expect to receive or pay upon termination of the contracts as of the reporting date. As of December 31, 2017 the Company maintained derivative instruments consisting of foreign currency forward contracts. The Company uses foreign currency forward contracts to hedge exposure in currencies different from the reporting currency. The goal in managing the foreign exchange risk is to reduce, to the extent practicable, the potential exposure to exchange rate fluctuations and its resulting effect on earnings, cash flows and financial position. The foreign currency forward contracts are typically short-term and do not qualify for hedge accounting treatment. Changes in fair value are recorded in financial results. Following is the derivatives position as of December 31, 2017 and 2016: Currency Notional Type Due Avg Price Fair value 2017 Argentine pesos $ 2,000 Purchase Jan-18 17.835 115 Chile pesos $ 8,500 Purchase Jan-18 634.49 (260 ) Mexican pesos $ 7,000 Sell Jan / Feb-18 19.27 (214 ) 2016 Brazilian Reais $ 15,000 Sell Jan-17 3.37 457 Argentine pesos $ 5,000 Purchase Jan-17 16.17 (49 ) (1) In each respective currency. The changes in fair value of derivatives has been accounted for under Financial income/(expense) in the consolidated statement of operations. Comprehensive income / (loss) Comprehensive income / (loss) includes net income / (loss) as currently reported under U.S. GAAP and also considers the effect of additional economic events that are not required to be recorded in determining net income, but are rather reported as a separate component of shareholders’ deficit. Other comprehensive income / (loss) includes the cumulative translation adjustment relating to the translation of the financial statements of the Company’s foreign subsidiaries (see Note 2 “Foreign currency translation”). Stock-based compensation Compensation cost related to stock-based employee compensation arrangements are accounted for at fair value at the time of grant. The calculation of fair value is affected by the Company’s stock price estimation as well as assumptions regarding a number of highly complex and subjective variables at the time of the grant. Compensation cost is recognized on a straight-line basis over the requisite service period which commences on the grant date as there exists a mutual understanding of the key terms and conditions at the date the award is approved by the board of directors or other management with relevant authority and the following conditions are met: • The award is a unilateral grant and, therefore, the recipient does not have the ability to negotiate the key terms and conditions of the award with the employer. • The key terms and conditions of the award had been communicated to an individual recipient within a relatively short time period from the date of approval. Marketing and advertising expenses The Company incurs advertising expense consisting of offline costs, including television and radio advertising, and online advertising expense to promote the business. The Company expenses the production costs associated with advertisements in the period in which the advertisement first takes place. The Company expenses the costs of advertisement in the period during which the advertisement space or airtime is consumed. Internet advertising expenses are recognized based on the terms of the individual agreements, which is generally over the greater of (i) the ratio of the number of clicks delivered over the total number of contracted clicks, on a pay-per-click Advertising expenses for 2017, 2016 and 2015 amounted $ 144,777, $ 102,770 and $149,814, respectively. Accounting for income taxes The Company is subject to U.S. and foreign income taxes. The provision for income taxes includes federal and foreign taxes. Income taxes are accounted for under the asset and liabilities method. Under this method, deferred income tax assets and liabilities are recognized for the future tax consequences attributable to differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred income tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company set up a valuation allowance for that component of net deferred tax assets which does not meet the more-likely-than-not Due to inherent complexities arising from the nature of the Company’s business, future changes in income tax law, transfer pricing new regulations or variances between actual and anticipated operating results, the Company makes certain judgments and estimates. Therefore, actual income taxes could materially vary from those estimates. Expedia transaction As further discussed in note 14, in March 2015, the Company entered into a $270,000 equity transaction with (sale of common stock to) Expedia, Inc. (Expedia) while at the same time an agreement (the Expedia Outsourcing Agreement a revenue arrangement for the Company to act as an agent for Expedia in certain countries) was signed which includes a $125,000 termination fee if certain minimum revenue thresholds are not achieved or if and when the Company ultimately terminates the agreement. At the same time as these transactions occurred, the Company repurchased common stock of certain shareholders seeking liquidity at the same purchase price per share paid by Expedia to the Company under the Stock Purchase Agreement. The termination provisions of the Expedia Outsourcing Agreement never expire and also could be triggered by Expedia if the Company does not meet certain minimum volume commitments, which is not within the Company’s control. Eventually, the Company will terminate the agreement or there may be a change of control and will need to refund $125,000 to Expedia. Accordingly, this payment is not considered as a contingent payment but rather a known payment with just a contingency as to timing of payment. Following the guidance in ASC 505 and ASC 605-50, Management has determined the fair value of the equity issued to Expedia taking into account independent valuations, resulting in an amount of approximately $145,000. Therefore, it was concluded that the Expedia transaction was issued at a premium of approximately $125,000, which was recorded as a liability to reflect the termination fee. According to the Expedia Outsourcing Agreement, the Company must consistently generate a certain minimum volume of paid customer activity for Expedia over the term of the Expedia Outsourcing Agreement or Expedia would have the right to terminate the agreement and the Company would be subject to pay $ 125,000 in liquidated damages to Expedia. In addition, if in the future management and the Company’s directors determine that the Company should exit the Expedia Outsourcing Agreement after the minimum term of seven years, which the Company has no present intention of doing, it would be required to pay $ 125,000 to do so. As the agreement with Expedia automatically renews indefinitely and there is no way for the Company to exit the agreement and avoid this payment without agreement from Expedia, the obligation to ultimately pay Expedia upon termination of the arrangement (even if delayed) represents a long-term liability in the amount of the $ 125,000 termination fee. The revenue derived from Expedia Lodging outsourcing agreement is fixed and determinable and is not subject to any refund beyond the $ 125,000 termination fee that has been fully accrued. Stock issuance costs totaling $2,470 were recorded as a reduction of stock purchase price. Recently issued accounting pronouncements The Company provides below a description of those standards which are relevant to the Company’s business only and the impact of their adoption if any. New Revenue Recognition policy In May 2014, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standard Update (“ASU”) amending revenue recognition guidance and requiring more detailed disclosures to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. In August 2015, the FASB issued an ASU deferring the effective date of the revenue standard so it would be effective for annual and interim reporting periods beginning after December 15, 2017. In addition, the FASB has also issued several amendments to the standard which clarify certain aspects of the guidance, including principal versus agent consideration and identifying performance obligations. The Company has determined that the new guidance will not change our previous conclusion on net presentation. The Company has also determined that the standard will affect the moment in which the revenue is recognized for pre-paid check-out pre-paid pay-at-destination The Company has completed the overall assessment and finalized the quantification of the retained earnings impact. Additionally, the Company has identified and implemented changes on its accounting policies and practices, business processes, and controls to support the new revenue recognition standard. The Company is continuing the assessment of potential changes to its disclosures under the new standard. On February 25, 2016 the FASB issued ASU 2016-02. The amendments right-of-use right-of-use On June 16, 2016 the FASB issued the ASU 2016-13 In August 2016, the FASB issued Accounting Standard Update No. 2016-15, Statement of Cash Flows Classification of Certain Cash Receipts and Cash Payments In November 2016, the FASB issued Accounting Standards Update No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash 2016-18), beginning-of-period end-of-period In January 2017, the FASB issued ASU No. 2017-04. To simplify the subsequent measurement of goodwill, the amendments eliminate Step 2 from the goodwill impairment test. The annual, or interim, goodwill impairment test is performed by comparing the fair value of a reporting unit with its carrying amount. An impairment charge should be recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. In addition, income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit should be considered when measuring the goodwill impairment loss, if applicable. The amendments also eliminate the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. A public business entity should adopt the amendments for its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The adoption of this standard is not expected to have a material impact on the Company’s financial statements. On May 10, 2017 the FASB issued “ASU 2017-09—Compensation—Stock On September 29, 2017 the FASB issued “ASU 2017-13—Revenue 2014-09, Revenue 2016-02, Leases On November 22, 2017 the FASB issued “ASU 2017-14—Income No. 33-10403, On February 14, 2018 the FASB issued “ASU 2018-02—Income |
Cash and Cash Equivalents
Cash and Cash Equivalents | 12 Months Ended |
Dec. 31, 2017 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents | 4. Cash and cash equivalents Cash and cash equivalents consist of the following: As of December 31, As of December 31, Cash 12 10 Banks 344,809 22,681 Time deposits — 50,000 Money market funds 26,192 3,277 $ 371,013 $ 75,968 |
Accounts Receivable, Net of All
Accounts Receivable, Net of Allowances | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
Accounts Receivable, Net of Allowances | 5. Accounts receivable, net of allowances Accounts receivable, net of allowances consist of the following: As of December 31, As of December 31, Accounts receivable 197,389 123,267 Others 4,048 1,344 Allowance for doubtful accounts (3,164 ) (3,513 ) $ 198,273 $ 121,098 |
Other Assets and Prepaid Expens
Other Assets and Prepaid Expenses | 12 Months Ended |
Dec. 31, 2017 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets and Prepaid Expenses | 6. Other assets and prepaid expenses Other current assets and prepaid expenses consist of the following: As of December 31, As of December 31, Tax credits (1) 23,866 16,985 Cash managed by third parties 3,473 4,337 Advertising paid in advance 383 715 Others 1,683 1,550 $ 29,405 $ 23,587 (1) Mainly includes $ 10,833 of VAT credits, $ 7,394 of income tax credits, $ 2,965 of sales tax credits and $ 2,674 of other tax credits as of December 31, 2017; and $ 3,093 of VAT credits, $ 7,835 of income tax credits, $ 4,581 of sales tax credits and $ 1,476 other tax credits as of December 31, 2016. Other non-current As of December 31, As of December 31, Deferred tax assets 4,658 3,597 $ 4,658 $ 3,597 |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | 7. Property and equipment, net Property and equipment, net consists of the following: As of December 31, As of December 31, Computer hardware and software 26,001 22,334 Office furniture and fixture 11,915 9,071 Buildings 2,790 2,298 Land 64 75 Total property and equipment 40,770 33,778 Accumulated depreciation $ (24,599 ) $ (20,061 ) Total property and equipment, net $ 16,171 $ 13,717 Total depreciation expense for the years 2017 and 2016 is $5,075 and $5,089, respectively. |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets, Net | 8. Goodwill and intangible assets, net Goodwill and intangible assets, net consists of the following: As of December 31, As of December 31, Goodwill (1) 38,733 38,894 Intangible assets with indefinite lives Brands and domains 13,882 13,882 Amortizable Intangible assets Internal-use 47,980 35,217 Total intangible assets 61,862 49,099 Accumulated amortization (2) (26,438 ) (17,687 ) Total intangible assets, net $ 35,424 $ 31,412 (1) Following is the breakdown of Goodwill per reporting unit as of December 31, 2017 and 2016: Balance of beginning Other comprehensive Balance at end of 2017 Argentina 2,187 (321 ) 1,866 Brazil 12,959 (193 ) 12,766 Mexico 6,909 353 7,262 Uruguay 16,839 — 16,839 Total 38,894 (161 ) 38,733 2016 Argentina 2,665 (478 ) 2,187 Brazil 10,816 2,143 12,959 Mexico 8,234 (1,325 ) 6,909 Uruguay 16,839 — 16,839 Total 38,554 340 38,894 Goodwill is fully attributable to the Air operating segment. (2) Total amortization expense for the years 2017 and 2016 is $ 8,751 and $ 7,835, respectively. The estimated future amortization expense related to intangible assets with definite lives as of December 31, 2017, assuming no subsequent impairment of the underlying assets, is as follows: 2018 5,986 2019 5,986 2020 5,986 2021 717 2022 and beyond 2,867 Total 21,542 |
Accounts Payable and Accrued Ex
Accounts Payable and Accrued Expenses | 12 Months Ended |
Dec. 31, 2017 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Expenses | 9. Accounts payable and accrued expenses Accounts payable and accrued expenses consist of the following: As of December 31, As of December 31, Marketing suppliers 28,301 15,723 Provision for invoices to be received 6,285 3,353 Affiliated agencies 977 690 Other suppliers 10,046 5,569 $ 45,609 $ 25,335 |
Travel Suppliers Payable
Travel Suppliers Payable | 12 Months Ended |
Dec. 31, 2017 | |
Text Block [Abstract] | |
Travel Suppliers Payable | 10. Travel Suppliers payable Travel Supplier payables consist of the following As of December 31, As of December 31, Hotels and other travel service suppliers (1) 151,023 96,357 Airlines 23,794 5,880 $ 174,817 $ 102,237 (1) Includes $ 137,396 and $ 84,477 as of December 31, 2017 and 2016, respectively, for deferred merchant bookings which will be due after the traveler has checked out. |
Other Liabilities
Other Liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Other Liabilities Disclosure [Abstract] | |
Other Liabilities | 11. Other liabilities Other current liabilities consist of the following: As of December 31, As of December 31, Salaries payable (1) 31,141 33,266 Taxes payable 5,517 13,912 Others 3,093 1,506 $ 39,751 $ 48,684 (1) As of December 31, 2016, includes settlements payables with certain management stockholders (note 13) Other non-current As of December 31, As of December 31, Taxes payable (1) 1,015 1,411 $ 1,015 $ 1,411 (1) Includes deferred tax liabilities as of December 31, 2016. See note 12. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 12. Income taxes The following table presents a summary of U.S. and foreign income tax expense components: As of December 31, 2017 As of December 31, 2016 As of December 31, 2015 Current: Foreign (7,682 ) (4,459 ) (9,879 ) Federal (36 ) (50 ) 14 Deferred: Foreign 2,063 663 (220 ) Withholding: Foreign (6,339 ) (6,692 ) (7,919 ) Income tax expense $ (11,994 ) $ (10,538 ) $ (18,004 ) Below the classification of deferred tax assets/liabilities by current and non-current: As of December 31, 2017 As of December 31, 2016 Non-Current 47,242 49,123 Total deferred tax assets 47,242 49,123 Less valuation allowance (42,584 ) (45,526 ) Net deferred tax assets 4,658 3,597 Non-Current — (1,002 ) Total deferred tax liabilities — (1,002 ) Total deferred tax 4,658 2,595 The Company had adopted ASU 2015-17, which requires entities to present deferred tax assets and deferred tax liabilities as noncurrent in a classified statement of financial position. The Company adopted the retrospective approach. As of December 31, 2017, consolidated loss carryforwards for income tax purposes were $88,041. If not utilized, tax loss carryforwards will begin to expire as follows: Expiration Date NOLs Amount Expires 2020 6,990 Thereafter 14,248 Without expiration dates 66,803 TOTAL (1) 88,041 (1) These tax loss carryforwards detailed above are fully reserved at December 31, 2017. NOLs Carryforwards expiration: • Brazil: $66,802. No expiration but offset limitation of 30% of the taxable income by fiscal year. • USA: $6,388. Expiration after 20 years, but offset limitation of 90% of the taxable income by fiscal year. • Argentina: $1,200. Five fiscal years expiration. • Colombia: $2,917. Three fiscal years expiration. • Venezuela: $6,989. Three fiscal years expiration, but offset limitation of 25% of the taxable income by fiscal year. • Peru: $261. No expiration, but offset limitation of 50% of the taxable income by fiscal year. • Mexico: $3,500. Ten fiscal years expiration. Deferred tax assets and liabilities are recognized for the future tax consequences of differences between the carrying amounts of assets and liabilities and their respective tax bases using enacted tax rates in effect for the year in which the differences are expected to reverse. The Company has foreign subsidiaries with aggregated undistributed earnings of $ 1,847 as of December 31, 2017. We have not provided deferred income taxes on taxable temporary differences related to investments in certain foreign subsidiaries where the foreign subsidiary has or will invest undistributed earnings indefinitely outside of the United States. In the event we distribute such earnings in the form of dividends or otherwise, we may be subject to income taxes. Further, a sale of these subsidiaries may cause these temporary differences to become taxable. Due to complexities in tax laws, uncertainties related to the timing and source of any potential distribution of such earnings, and other important factors such as the amount of associated foreign tax credits, it is not practicable to estimate the amount of unrecognized deferred taxes on these taxable temporary differences. The following table summarizes the composition of deferred tax assets and liabilities as of the years ended December 31, 2017 and 2016: December 31, 2017 December 31, 2016 Deferred Tax Assets Tax loss carryforwards 33,067 39,950 Allowance for doubtful accounts 322 515 Royalties 1,379 1,249 Provisions and other assets 12,474 7,409 Total Deferred Tax Assets 47,242 49,123 Less valuation allowance (42,584 ) (45,526 ) Total Deferred Tax Assets, net 4,658 3,597 Deferred Tax Liabilities Property and equipment — (54 ) Others — (948 ) Total Deferred Tax Liabilities — (1,002 ) Total Deferred Tax 4,658 2,595 The following is a reconciliation of the difference between the actual provision for income taxes and the provision computed by applying the weighted average income tax rate for 2017, 2016 and 2015 to income / (loss) before taxes: As of December 31, As of December 31, As of December 31, Net Income / (Loss) before Income Tax 54,360 28,335 (67,272 ) Weighted average income tax rate (3) 33 % 30 % 30 % Income tax expense at weighted average income tax rate 17,740 8,501 (20,182 ) Permanent differences: (Non-Taxable Non-Deductible (1) (10,714 ) (6,826 ) 2,151 Foreign non-creditable (2) 6,339 6,692 7,919 Non-deductible 2,223 2,928 26,698 Others (651 ) (94 ) 1,198 Change in Valuation allowance (2,943 ) (663 ) 220 Income Tax expense 11,994 10,538 18,004 (1) Includes tax benefits / non- non-free (2) Includes foreign withholding taxes on royalties and services. (3) The Company uses a weighted average rate for the income tax reconciliation. Weighted average income tax rate is calculated based on the aggregated amount of the income before taxes by country multiplied by the prevailing statutory income tax rate, derived by the consolidated income before tax. The following table presents the changes in the Company’s valuation allowance as of December 31, 2017, 2016 and 2015: Balance of beginning of period Increase (Decrease) Balance at end of period 2017 45,526 4,716 (7,658 ) 42,584 2016 46,189 1,897 (2,560 ) 45,526 2015 45,969 9,039 (8,819 ) 46,189 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 13. Commitments and contingencies Leases The Company leases office space under operating lease agreements with original terms ranging from 2 to 5 years. Rent expense amounted to $ 4,413 and $ 2,348 for the years ended December 31, 2017 and 2016, respectively. The Company’s lease obligations under non-cancellable Year ended December 31, 2017 Amount Within 1 year 4,036 2 – 3 years 7,023 4 – 5 years 2,171 Total 13,230 Employment agreements The Company has entered into employment agreements with certain key employees providing compensation guidelines for each employee. Pursuant to the terms of the employment agreements, the executives are generally entitled to receive compensation in the form of (i) an annual salary payable in cash on a monthly basis and (ii) a yearly bonus subject to the fulfillment of certain performance targets. Tax, legal and other The Company is involved in disputes arising from its ordinary course of business. Although the ultimate resolution on these matters cannot be reasonably estimated at this time, management does not believe that they will have a material adverse effect on the financial condition or results of operations of the Company. As of December 31, 2017 the Company had accrued liabilities of approximately $7,910 related to unasserted tax claims. The Company currently estimates unasserted possible losses related to matters for which it has not accrued liabilities, as they are not deemed probable and reasonably estimable, to be approximately $23,100. The Company evaluates the likelihood of probable and reasonably possible losses, if any, related to all known contingencies on an ongoing basis. As a result, future increases or decreases to its accrued liabilities may be necessary and will be recorded in the period when such amounts are determined to be probable and reasonably estimable. Brazilian Tax Authority Claim In March 2013, São Paulo tax authorities asserted taxes (Brazilian municipal taxes “Imposto Sobre Serviço”) and fines against the Company’s Brazilian subsidiary relating to the period from 2008 to 2011 in an approximate updated amount of $ 21,500, including ordinary taxable services on commissions earned. On April 2, 2013, the Company’s Brazilian subsidiary filed an administrative defense against the authorities’ claim. In a decision published on August 30, 2014 the São Paulo tax authorities ruled against the Brazilian subsidiary upholding the claimed taxes and the fines previously imposed. An appeal to the São Paulo City Administrative Court was filed on September 30, 2014. On December 4, 2015, the Administrative Court ruled partially against the Brazilian subsidiary upholding the claimed taxes and the fines previously imposed. The Company accrued liabilities of $ 9,928 for the contingency. On July 5, 2017, the Municipality of São Paulo published the terms of a special installment program called “ Programa de Parcelamento Incentivado |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 14. Related party transactions Settlement with Certain Management Stockholders In the last two months of 2016, the Company entered into settlement agreements and terminated the employment of two management stockholders (“Founders”). The settlement agreements includes a payable cash amount of $ 5,800, as a result of an employee relationship benefit and non competition and non disclosure agreement, out of which 50% was payable on July 1, 2018 or upon the occurrence of a liquidity event, which may result from the consummation of an initial public offering, or a capital injection among other conditions. On September 20, 2017, the Company completed its initial public offering; and the settlement was fully paid in December 2017. In 2015, the Company terminated the employment of two management stockholders and entered into settlement agreements with each of them. The settlement agreement included the payment of a cash amount for approximately $ 5,400 and the repurchase by the Company of a portion of their shares. Transaction with Expedia, Inc. Common stock agreement On March 3, 2015 (“Transaction Date”), Expedia invested $ 270,000 to purchase 9,590,623 of common stock, representing 16.36% of the Company’s issued and outstanding shares on a basic shares count basis as of that date. See note 3 – Expedia transaction, for an explanation of the accounting for this transaction. In order to facilitate the transaction, the Company issued common shares to Expedia on the Transaction Date and then, as mandated in the agreement, repurchased 1,598,434 shares from selling shareholders. The repurchase of shares was made above the fair value at the Transaction Date. The agreement specifically indicates the following use of the proceeds: (i) $ 50,000 to repay certain Loans furnished by the shareholders; (ii) $ 45,000 to repurchase shares from all shareholders (including founders and employees) other than the controlling shareholder; and (iii) $ 175,000 for general corporate purposes. Expedia Outsourcing Agreement In conjunction with the Stock Subscription Agreement, the Company entered into a Lodging Outsourcing Agreement (the “Expedia Outsourcing Agreement”) with Expedia expanding its commercial relationship. The Expedia Outsourcing Agreement broadened Expedia’s powering of Decolar.com’s hotel supply, including the designation of Expedia as provider of hotel inventory outside of Latin America as from April 1, 2015. During the term of the agreement, Expedia will pay Decolar.com a marketing fee for each booking of Expedia’s inventory. The Expedia Outsourcing Agreement includes customary terms for this type of long-term partnership, and also includes: (a) the obligation to generate a minimum volume of transactions; and (b) a termination penalty of $ 125,000; (see comment in note 3 – Expedia transaction), and (c) unilaterally by Expedia in the event of a change of control of the Company. In addition, the Expedia Outsourcing Agreement provided the opportunity for Expedia to access Decolar’s hotel supply inventory in Latin America. Under the Expedia Outsourcing Agreement, “Change of Control” means (a) the sale, lease or transfer, in one or a series of related transactions, of all or substantially all the assets of the Company and its subsidiaries, taken as a whole, to any Strategic Party or (b) the acquisition by any Strategic Party, in a single transaction or in a related series of transactions, by way of merger, consolidation or other business combination or purchase of beneficial ownership, of more than 50% of the total voting or economic power of the securities of the Company or any direct or indirect parent of the Company. “Strategic Party” means any Person other than a single individual which does not directly or indirectly own or control any assets or companies operating (x) in the consumer or corporate travel industry, or (y) as an Internet-enabled provider of travel search or information services. Unilateral termination of the Expedia Outsourcing Agreement by the Company, in addition to triggering the penalty described above, also gives Expedia the right to sell its shares back to the Company for fair market value. Balances and operations with Expedia Starting in March 2015, as a result of the execution of the Expedia Outsourcing Agreement executed with Expedia, the Company recognized balances and operations with Expedia as a related party. The balances between the Company and Expedia are: $ 5,253 and $ 2,240 as of December 31, 2017 and 2016, respectively, recorded in Related party receivable; and $ 84,364 and $ 71,006 as of December 31, 2017 and 2016, respectively, recorded in Related party payables. The net related party transactions are $37,000, $ 27,008 and $22,911 for the years ended December 31, 2017, 2016 and 2015, respectively, recorded in Revenue. In addition, the Company has provided Expedia with a guaranty in form of security deposits in an aggregated amount of $ 10,000. They are recorded in restricted cash and cash equivalents non-current. Shareholders’ loans In 2013, Decolar.com Inc. received loans (the “Loans”) from the following shareholders: Tiger Global Private Investment Partners IV, L.P., Tiger Global Investments, L.P., Scott Shleifer 2011 Descendants’ Trust, Ventoux V LLC and Metal Monkey Trust (the Lenders) for $ 25,000. The Loans were instrumented through promissory notes, which included the following conditions: • Interest rate: no interest shall accrue or be payable • Voluntary prepayment: at the option of the Company, in whole or in part, at any time, without premium or penalty In February 2015, Decolar.com Inc. received a loan (the “February loan”) from the following shareholders: Tiger Global Private Investment Partners IV, L.P., Tiger Global Investments, L.P., Scott Shleifer 2011 Descendants’ Trust, Ventoux V LLC and Metal Monkey Trust (the Lenders) for $ 25,000. The February loan was instrumented through a promissory note. On March 2015, the Loans and the February loan were prepaid in full with the proceeds of the Expedia transaction. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 15. Fair value measurements The following table summarizes the Company’s financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2017 and 2016: Description Balances Quoted Significant Balances Quoted Significant Assets Derivatives Foreign currency forward contract — — — 408 — 408 Liabilities Derivatives Foreign currency forward contract (359 ) — (359 ) — — — Total financial assets (359 ) — (359 ) 408 — 408 As of December 31, 2017 and 2016, the Company’s financial assets valued at fair value consisted of assets valued using; (i) Level 1 inputs: unadjusted quoted prices in active markets (Level 1 instrument valuations are obtained from observable inputs that reflect quoted prices (unadjusted) for identical assets in active markets); and (ii) Level 2 inputs, which are obtained from readily-available pricing sources for comparable instruments as well as instruments with inactive markets at the measurement date. As of December 31, 2017 and 2016, the Company did not have any assets without market values that would require a high level of judgment to determine fair value (Level 3). As of December 31, 2017 and 2016, the carrying value of the Company’s financial assets and liabilities measured at amortized cost approximated their fair value because of its short term maturity. These assets and liabilities included cash and cash equivalents; restricted cash; accounts receivables, net; other receivables and prepaid expenses; other non-current The fair values for those financial assets and liabilities of the Company measured at amortized cost, is equal to their respective book values as of December 31, 2017 and 2016. In addition, as of December 31, 2017 and 2016, the Company had $ 39,764 and $ 93,197 of cash and cash equivalents and restricted cash and cash equivalents, respectively, which consisted of time deposits. Those investments are accounted for at amortized cost, which, as of December 31, 2017 and 2016, approximates their fair values. There have been no reclasifications among fair value levels. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 16. Earnings per share Earnings per share Basic earnings per share Basics earnings per share was calculated for the year ended December 31, 2017, 2016 and 2015 using the weighted average number of common shares outstanding during the period. Diluted earnings per share For the year ended December 31, 2017 and 2016, the Company computed diluted earnings per share using (i) the number of shares of common stock used in the basic earnings per share calculation as indicated above (ii) if diluted, the incremental common stock that the Company would issue upon the assumed exercise of restricted stock units. For the year ended December 31, 2017, the incremental common stock that the Company would issue upon the assumed exercise of the stock option plan was not included in the diluted earnings per share even when they were in-the-money, as under the treasury stock computation method they have an antidilutive effect as the sum of the proceeds, including unrecognized compensation expense, exceeds the average stock price. For the year ended December 31, 2016, stock options were out-of-the-money as the strike price exceeded the current share price; therefore they are not included in the computation of diluted earnings per share. There is no antidilutive effect for the year ended December 31, 2015. The following table presents basic and diluted earnings per share: 2017 2016 2015 Net income / (loss) attributable to Despegar.com Corp. 42,366 17,797 (85,276 ) Earnings per share attributable to Despegar.com Corp. Basic 0.69 0.30 (1.49 ) Diluted 0.69 0.30 (1.49 ) Weighted average number of shares outstanding Basic 61,457 58,518 57,078 Dilutive effect of restricted stock units 90 90 n/a |
Stock Based Compensation
Stock Based Compensation | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Based Compensation | 17. Stock based compensation 2015 Restricted Stock Unit Plan On March 6, 2015, the shareholders of the Company approved a new restricted stock unit plan including the issuance of 90,626 restricted stock unit (the “RSUs”) in favor of an officer of the Company. The RSUs include the following conditions: • Time-based condition: satisfied with respect to • 40,626 RSUs on January 1, 2016; • 20,000 RSUs on January 1, 2017; • 20,000 RSUs on January 1, 2018; and • 10,000 RSUs on July 1, 2018; provided that the officer remains in continuous service through each applicable date. • Liquidity Event Requirement: satisfied on the earlier to occur of • an Initial Public Offering of the Company’s common stock, or • a change of control transaction (sale event). • No additional vesting exists upon completion of a liquidity event. • Restrictions: • Repurchase rights: in the event of a change of control, the Company has the right to repurchase certain shares contingent upon the valuation of the Company at such time, and • Transfer restrictions: after the consummation of an Initial Public Offering transfer restrictions apply limiting the ability to transfer certain shares subject to the valuation of the Company at such time. The fair value of RSU granted during the year ended December 31, 2015, was estimated at the date of grant using the income approach valuation technique, including the Black-Scholes and Monte Carlo option-pricing models, assuming the following weighted average assumptions: Expected volatility 41.69 % Expected life (in years) 10 Weighted-average estimated fair value of options granted during the year $ 7.47 The remaining vesting period as of December 31, 2017 is 6 months. The following table presents a summary of the Company’s RSU activity: RSU’s Weighted Average Grant per share Balance as of January 1, 2015 — — Granted 90,626 7.47 Balance as of December 31, 2015 90,626 7.47 Granted — — Vested / (Cancelled) — — Balance as of December 31, 2016 90,626 7.47 Granted — — Vested / (Cancelled) — — Balance as of December 31, 2017 90,626 7.47 2016 Stock Option Plan On November 2016, the Board of Directors of the Company approved, subject to the approval of the Company’s Stockholders (which occurred in March 2017), to adopt a stock plan and reserve for issuance up to 4,000,000 stock options, from which 3,175,000 stock options were effectively granted in favor of some officers of the Company. The plan includes the following conditions: • Time-based condition: satisfied with respect to: • 5% of stock options vest on December 1, 2017; • 10% of stock options vest on December 1, 2018; • 15% of stock options vest on December 1, 2019; • 20% of stock options vest on December 1, 2020; • 25% of stock options vest on December 1, 2021; and • 25% of stock options vest on December 1, 2022; if the officer remains in continuous service through each applicable date. • Liquidity Event Requirement: satisfied on the earlier to occur of • (i) an Initial Public Offering of the Company’s common stock, or • (ii) a change of control event. • No additional vesting exists upon completion of a liquidity event. The Company has used the Fair Value Method for determining the value of the stock options plan. The remaining vesting period as of December 31, 2017 is 59 months. The fair value of stock options granted during the year ended December 31, 2017, was estimated at the date of grant using the income approach valuation technique, including the Black-Scholes and Monte Carlo option-pricing models, assuming the following weighted average assumptions: Risk-free interest rate 1.49 % Expected volatility 40.1 % Expected life (in years) 10 Weighted-average estimated fair value of options granted during the year $ 10.737 The fair value of stock options granted during the year ended December 31, 2016, was estimated at the date of grant using the income approach valuation technique, including the Black-Scholes and Monte Carlo option-pricing models, assuming the following weighted average assumptions: Risk-free interest rate 1.84 % Expected volatility 39.9 % Expected life (in years) 10 Weighted-average estimated fair value of options granted during the year $ 6.90 The following table presents a summary of the Company’s stock option activity: Options Weighted per share Remaining Balance as of December 31, 2015 — — — Granted 3,175,000 26.02 Balance as of December 31, 2016 3,175,000 26.02 6 Granted 600,000 26.02 Balance as of December 31, 2017 3,775,000 26.02 5 As of December 31, 2017, there was approximately $24,600 of unrecognized stock-based compensation expense related to unvested stock-based awards, which is expected to be recognized in expense over a weighted-average period of 4.8 years. Compensation cost will not be impacted upon completion of a liquidity event. On August 10, 2017, the Board of Directors and Company’s Stockholders approved Amended and Restated 2016 Stock Incentive Plan and reserve for issuance 861.777 shares, which increases total stock subject to the plan to no more than 4.861.777 shares. On March 1 and April 1, 2018, the Board of Directors and Company’s Stockholders granted an additional 375,000 options to certain employees of the Company. In addition, 250,000 options were forfeited by departing employees. As of the date of these financial statements, there are 3,900,000 issued options outstanding. Additionally, the Board of Directors and Company’s Stockholders approved 465,518 restricted share units which have not yet been granted. |
Guarantees
Guarantees | 12 Months Ended |
Dec. 31, 2017 | |
Guarantees and Product Warranties [Abstract] | |
Guarantees | 18. Guarantees The Company is required to be accredited by the International Air Transport Association (“IATA”) to be permitted to sell international airlines tickets of airlines affiliated with IATA. During 2017, certain Despegar.com subsidiaries granted guarantees for $ 39,764 for the benefit of the IATA, Expedia and other suppliers in the form of time deposits or bank and insurance guarantees, which were recorded as Restricted cash and cash equivalent in the consolidated balance sheet at December 31, 2017 and also granted a mortgage in favor of IATA on a building in Argentina. |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2017 | |
Valuation and Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts | 19. Valuation and qualifying accounts The following table presents the changes in the Company’s valuation and qualifying accounts. Balance of Increase / Utilization Other Balance at end 2017 Allowance for doubtful accounts 3,513 818 (984 ) (183 ) 3,164 2016 Allowance for doubtful accounts 3,401 2,548 (2,515 ) 79 3,513 2015 Allowance for doubtful accounts 7,493 2,142 (5,388 ) (846 ) 3,401 |
Initial Public Offering
Initial Public Offering | 12 Months Ended |
Dec. 31, 2017 | |
Text Block [Abstract] | |
Initial Public Offering | 20. Initial Public Offering In September 2017, the Company successfully completed its registration process (the offering) with the United States Securities and Exchange Commission (SEC) through which 12,770,000 shares of common stock were sold to the underwriters at $ 26 per share less an underwriting discount of 5.75%. From this total, 8,663,431 shares were sold by the Company and 4,106,569 shares were sold by stockholders. The Company granted to the Underwriters an option, exercisable for 30 days, from September 20, 2017, to purchase up to 1,915,500 additional shares at the public offering price less the underwriting discount. The option was exercised on September 20, 2017, for all the shares available. The net proceeds of the offering totaled $253,529 after deducting the underwriting discount and offering expenses payable by the Company. The proceeds will be used for general corporate purposes. |
Segment information
Segment information | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment information | 21. Segment information In order to make operating decisions and assess performance, the Company’s chief operating decision function organized the Company’s business in two operating segments, namely “Air” and “Packages, Hotels and Other travel products”, each of them having their own respective segment management. The “Air” operating segment derives its revenue from commissions earned from facilitating reservations of flight tickets, service fees charged to customers for processing flight tickets and override commissions or incentives from suppliers and GDS if the Company meets certain volume thresholds. The “Packages, Hotels and Other travel products” operating segment derives its revenue from commissions earned from facilitating reservations of packages, accommodations, car rentals and other travel related products and services, service fees charged to customers for processing bookings, advertising revenue from the sale of advertising placements on the Company’s websites and override commissions or incentives from suppliers if the Company meets certain volume thresholds. Packages are bundle deals where the customer selects and buys multiple products, within the same session. In these transactions the Company acts as an intermediary. Packages transaction may include airline tickets. The air portion of these package transactions is included within the “Packages, Hotels and Other travel products” operating segment. The Company’s primary measure of a segment’s profit or loss is Adjusted EBITDA, which includes allocations of certain expenses based on transaction volumes and other usage metrics. The Company’s allocation methodology is periodically evaluated and may change. The Company does not have: • transactions between reportable segments • assets allocated by segment, or • revenue from transactions with a single customer amounting to 10 percent or more of revenue. The following tables present the Company’s segment information for 2017, 2016 and 2015. While depreciation and amortization is allocated to operating segments based on operational measures such as relative headcount and IT investment, property and equipment is not allocated to operating segments, and the Company does not report the assets by segment as this information is not regularly provided to its chief operating decision makers. 2017 Air Packages, Hotels and Other Unallocated Total Revenue 241,015 282,925 — 523,940 Adjusted EBITDA 58,397 31,341 (384 ) 89,354 Depreciation and amortization (1,865 ) (2,556 ) (9,405 ) (13,826 ) Stock-based compensation — — (4,289 ) (4,289 ) Operating income / (loss) 56,532 28,785 (14,078 ) 71,239 Financial income — — — 2,389 Financial expense — — — (19,268 ) Income before income tax — — — 54,360 Income tax expense — — — (11,994 ) Net income — — — 42,366 2016 Air Packages, Hotels and other Unallocated Total Revenue 205,721 205,441 — 411,162 Adjusted EBITDA 27,940 20,643 2 48,585 Depreciation and amortization (4,099 ) (3,842 ) (4,983 ) (12,924 ) Stock-based compensation — — (574 ) (574 ) Operating income / (loss) 23,841 16,801 (5,555 ) 35,087 Financial income 8,327 Financial expense (15,079 ) Income before income tax 28,335 Income tax expense (10,538 ) Net income 17,797 2015 Air Packages, Hotels and other Unallocated Total Revenue 219,817 201,894 — 421,711 Adjusted EBITDA 8,259 (34,383 ) (12,943 ) (39,067 ) Depreciation and amortization (6,350 ) (1,872 ) (6,217 ) (14,439 ) Stock-based compensation — — (861 ) (861 ) Operating income / (loss) 1,909 (36,255 ) (20,021 ) (54,367 ) Financial income 10,797 Financial expense (23,702 ) Income / (loss) before income tax (67,272 ) Income tax expense (18,004 ) Net income / (loss) (85,276 ) Geographic information In 2017, 26% of revenue was originated in transactions invoiced by the subsidiary in Argentina, 29% by the subsidiary in Brazil and 28% by subsidiaries in Uruguay (27%, 28% and 27%, respectively, in 2016 and 32%, 30% and 19%, respectively, in 2015). Subsidiaries in no individual country other than those detailed above accounted for more than 10% of revenue. |
Summary of Significant Accoun32
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Use of estimates | Use of estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from estimates. The significant estimates underlying the Company’s consolidated financial statements include revenue recognition, including the accounting for certain merchant revenues, allowance for doubtful accounts, recoverability of intangible assets with indefinite useful lives and goodwill, contingencies, fair value of stock based compensation and fair value of financial instruments. The consolidated financial statements reflect all adjustments considered, in the opinion of management, necessary to fairly present the results for the periods presented. |
Concentration of risk | Concentration of risk The Company’s business is subject to certain risks and concentrations including dependence on relationships with travel suppliers, primarily airlines, dependence on third-party technology providers, exposure to risks associated with online commerce security and payment related fraud. It also relies on global distribution system (“GDS”) partners and third-party service providers for certain fulfillment services. Financial instruments, which potentially subject the Company to concentration of credit risk, mainly consist of cash and cash equivalents and accounts receivable (ie. clearing house for credit cards). The Company maintains cash and cash equivalents balances in financial institutions that management believes are high credit quality. Accounts receivable are settled mainly through customer credit cards and debit cards; the company maintains allowance for doubtful accounts based on management’s evaluation of various factors, including the credit risk of customers, historical trends and other information. |
Revenue recognition | Revenue recognition The Company generates revenue as a result of the booking of travel products and services on its websites and mobile apps. The Company provides customers the ability to book travel products and services on both a stand-alone basis or as a vacation package, primarily through its merchant and agency business models. The Company derives its revenue mainly from: • Commissions earned from intermediating services, including facilitating reservations of flight tickets, hotel accommodations, car rentals and other travel-related products and services; • Service fees charged to customers for processing air tickets, hotel accommodations, car rentals and other travel-related products and services; • Override commissions or incentives from suppliers and GDS providers if the Company meets certain performance conditions; and • Advertising revenues from the sale of advertising placements on the Company’s websites. Revenue is recognized when earned and realizable based on the following criteria: (1) persuasive evidence of an agreement exists, (2) the fee is fixed or determinable and (3) collectability is reasonably assured. The Company also evaluated the presentation of revenue on a “gross” versus a “net” basis. The consensus of the authoritative accounting literature is that the presentation of revenue as “the gross amount billed to a customer because it has earned revenue from the sale of goods or services” or “the net amount retained (i.e., the amount billed to a customer less the amount paid to a supplier) because it has earned a commission or fee” is a matter of judgment that depends on the relevant facts and circumstances. Despegar.com has determined net presentation is appropriate for the majority of its transactions. In making an evaluation of this issue, some of the factors that were considered are as follows: (i) the Company is not the primary obligor in the arrangement (strong indicator); (ii) the Company has no general supply risk (before customer order is placed or upon customer return) (strong indicator); and (iii) the Company has latitude in establishing price. The guidance clearly indicates that the evaluations of these factors, which at times can be contradictory, are subject to significant judgment and subjectivity. The Company concludes that it performs as an agent without assuming the risks and rewards of ownership of goods, and therefore revenue is reported on a net basis. The Company offers travel products and services through the following business models: the Prepay/Merchant Model, which represents approximately 80% of total revenue, Other Revenue including GDS incentives, advertising represents 15% and the Pay-at-destination/Agency Prepay/Merchant Business Model Through this model the Company provides customers the ability to book air travel, accommodation, car rentals, cruises, destination services and vacation packages. The Company generates revenue based on the difference between the total amount that the customer pays for the travel product and the net rate owed to the supplier plus estimated taxes. Despegar.com also earns revenue by charging customers a service fee for booking their travel reservation. Customers generally pay at the time of booking and the Company generally pays to the supplier at a later date, which is normally at the time the customer uses the travel reservation. Depegar.com records the payments as deferred merchant bookings in travel suppliers payable in the balance sheet until the travel occurs; at that point, the Company recognizes the revenue for those refundable transactions on a net basis. For travel products that are cancelled by the customer after a specified period of time, the Company may charge a cancellation fee or penalty similar to the amount that the supplier charges for the cancellation. In nonrefundable transactions, as the Company does not have significant post-delivery obligations, the revenue is recorded on a net basis when the customer completes the reservation process in the Company’s platform. Packages and sales transactions performed by customers through affiliated agencies are recognized following the revenue recognition policy described above for refundable / non refundable transactions. Pursuant to the terms of the Company’s merchant supplier agreements, the Company’s travel service suppliers are permitted to bill it for the underlying cost of the service during a specified period of time. In the event that the Company is not billed by the travel supplier within a 12-month check-out Pay-at-Destination/Agency Through this model, the Company provides customers the ability to book hotels, car rentals and other travel-related products and services to be paid at destination. Despegar.com earns a commission paid directly by suppliers. The Company generally collects these commissions after the customer uses the travel reservation. In certain circumstances, the Company may also earn revenue by charging customers with a service fee for booking their travel reservation. The Company generally records revenue on an accrual basis when the travel occurs and is presented on a net basis. In addition, the Company records an allowance for collection risk on this revenue based on historical experience. Incentives The Company may receive override commissions from air, hotel and other travel service suppliers when it meets certain performance conditions. These commissions are recognized when the amount of the commission becomes fixed or determinable, which is generally when collection is reasonably assured (i.e. upon notification of the respective air supplier). Additionally the Company uses GDS services provided by recognized suppliers. Under GDS service agreements, the Company earns revenue in the form of an incentive payment for sales that are processed through a GDS if certain contractual volume thresholds are met. Revenue is recognized for these incentive payments on a monthly accrued basis in accordance with ratable volume thresholds. Advertising The Company records advertising revenue ratably over the advertising period or upon delivery of advertising material, depending on the terms of the advertising agreement. Sales tax The Company’s subsidiaries in Brazil, Argentina and Colombia are subject to certain sales taxes, which are classified as contra-revenue. |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents include investments with an original maturity of three months or less. All results generated from these investmentes are recorded as financial results when earned. |
Restricted cash and cash equivalents | Restricted cash and cash equivalents The primary purpose of restricted cash and cash equivalents is to collateralize operations with suppliers of travel products and services and related service providers such as IATA. In addition, the Company maintains $10,000 as security deposit with Expedia, as established in the Expedia Outsourcing Agreement. |
Accounts receivable, net of allowances for doubtful accounts | Accounts receivable, net of allowances for doubtful accounts Accounts receivables are recorded net of an allowance for doubtful accounts. The Company determines its allowance based on the aging of its receivables. While management uses the information available to make evaluations, future adjustments to the allowance may be necessary if future economic conditions differ substantially from the assumptions used in making the evaluations. Management has considered all events and/or transactions that are subject to reasonable and normal methods of estimations, and the consolidated financial statements reflect that consideration. |
Property and equipment, net | Property and equipment, net Property and equipment are stated at acquisition cost, less accumulated depreciation. Depreciation expense is calculated using the straight-line method, based on the estimated useful lives of the related assets. The estimated useful lives (in years) of the main categories of the Company’s property and equipment are as follows: Asset Estimated useful life (years) Computer hardware 3 Office furniture and fixture 10 Buildings 50 Expenditures for repairs and maintenance are charged to expense as incurred. The cost of significant renewals and improvements is added to the carrying amount of the respective asset and its depreciated over the life of the contract. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts, and any resulting gain or loss is reflected in the consolidated statement of operations. |
Goodwill and Intangible assets, net | Goodwill and Intangible assets, net Goodwill represents the excess of the purchase price over the fair value of the net tangible and intangible assets acquired in a business combination. Goodwill is not subject to amortization, but is subject to an annual assessment for impairment, or more frequently, if events and circumstances indicate impairment may have occurred, applying a fair-value based test. Intangible assets resulting from the acquisition of companies were estimated by management based on the fair value of assets received. Identifiable intangible assets are comprised of trademarks and internet domains. Trademarks and domains are not subject to amortization, but subject to an annual impairment assessment. Certain costs incurred related to the development of internal-use Software internally developed is amortized over a period of three years according to its expected useful life, using the straight-line method. In addition, the asset value of the software is evaluated for impairment periodically. Financial systems are amortized over a period of 10 years, using the straight-line method. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company reviews long-lived assets for impairments whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to undiscounted future net cash flows expected to be generated by the asset. If such assets are considered to be impaired on this basis, the impairment loss to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Goodwill and intangible assets with indefinite lives are reviewed at least annually for impairment, generally as of December 31, or more frequently if events and circumstances indicate impairment may have occurred. Impairment of goodwill is tested at the reporting unit level by comparing the reporting units carrying amount, including goodwill, to the fair value of the reporting unit. The fair values of the reporting units are estimated using a combination of the income or discounted cash flows approach and the market approach, which utilizes comparable companies’ data. If the carrying amount of the reporting unit exceeds its fair value, goodwill is considered impaired and a second step is performed to measure the amount of impairment loss, if any. No impairments were recognized during the reporting years for goodwill or intangible assets with indefinite life. |
Pension information | Pension information The Company does not maintain any pension plans. The laws in the different countries in which the Company carries out its operations provide for pension benefits to be paid to retired employees from government pension plans and/or private pension plans. Amounts payable to such plans are accounted for on an accrual basis. |
Severance payments | Severance payments The Company may register a liability for severance payments if the following criteria are met: (a) management, having the authority to approve the action, commits to a plan of termination; (b) the plan identifies the number of employees to be terminated, their job classifications or functions and their locations, and the expected completion date; (c) the plan establishes the terms of the benefit arrangement, including the benefits that employees will receive upon termination, in sufficient detail to enable employees to determine the type and amount of benefits they will receive if they are involuntarily terminated; (d) actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn; and (e) the plan has been communicated to employees. |
Contingent liabilities | Contingent liabilities The Company has certain regulatory and legal matters outstanding, as discussed further in note 13 “Commitments and Contingencies.” Periodically, the status of all significant outstanding matters is reviewed to assess the potential financial exposure. When (i) it is probable that an asset has been impaired or a liability has been incurred and (ii) the amount of the loss can be reasonably estimated, the Company records the estimated loss in the consolidated statements of operations. Additionally, disclosure in the notes to the consolidated financial statements is provided for loss contingencies that do not meet both of these conditions if there is a reasonable possibility that a loss may have been incurred that would materially impact the financial position and results of operations. Significant judgment is required to determine the probability that a liability has been incurred and whether such liability is reasonably estimable. The Company records accruals related to commercial, labor and tax contingencies that may generate an obligation for the Company. Accruals are made on the best information available at the time; such analysis may be highly subjective. The final outcome of these matters could vary significantly from the amounts included in the accompanying consolidated financial statements. |
Derivative instruments | Derivative instruments Derivative instruments are carried at fair value on the consolidated balance sheets. The fair values of the derivative financial instruments generally represent the estimated amounts the Company would expect to receive or pay upon termination of the contracts as of the reporting date. As of December 31, 2017 the Company maintained derivative instruments consisting of foreign currency forward contracts. The Company uses foreign currency forward contracts to hedge exposure in currencies different from the reporting currency. The goal in managing the foreign exchange risk is to reduce, to the extent practicable, the potential exposure to exchange rate fluctuations and its resulting effect on earnings, cash flows and financial position. The foreign currency forward contracts are typically short-term and do not qualify for hedge accounting treatment. Changes in fair value are recorded in financial results. Following is the derivatives position as of December 31, 2017 and 2016: Currency Notional Type Due Avg Price Fair value 2017 Argentine pesos $ 2,000 Purchase Jan-18 17.835 115 Chile pesos $ 8,500 Purchase Jan-18 634.49 (260 ) Mexican pesos $ 7,000 Sell Jan / Feb-18 19.27 (214 ) 2016 Brazilian Reais $ 15,000 Sell Jan-17 3.37 457 Argentine pesos $ 5,000 Purchase Jan-17 16.17 (49 ) (1) In each respective currency. The changes in fair value of derivatives has been accounted for under Financial income/(expense) in the consolidated statement of operations. |
Comprehensive income / (loss) | Comprehensive income / (loss) Comprehensive income / (loss) includes net income / (loss) as currently reported under U.S. GAAP and also considers the effect of additional economic events that are not required to be recorded in determining net income, but are rather reported as a separate component of shareholders’ deficit. Other comprehensive income / (loss) includes the cumulative translation adjustment relating to the translation of the financial statements of the Company’s foreign subsidiaries (see Note 2 “Foreign currency translation”). |
Stock-based compensation | Stock-based compensation Compensation cost related to stock-based employee compensation arrangements are accounted for at fair value at the time of grant. The calculation of fair value is affected by the Company’s stock price estimation as well as assumptions regarding a number of highly complex and subjective variables at the time of the grant. Compensation cost is recognized on a straight-line basis over the requisite service period which commences on the grant date as there exists a mutual understanding of the key terms and conditions at the date the award is approved by the board of directors or other management with relevant authority and the following conditions are met: • The award is a unilateral grant and, therefore, the recipient does not have the ability to negotiate the key terms and conditions of the award with the employer. • The key terms and conditions of the award had been communicated to an individual recipient within a relatively short time period from the date of approval. |
Marketing and advertising expenses | Marketing and advertising expenses The Company incurs advertising expense consisting of offline costs, including television and radio advertising, and online advertising expense to promote the business. The Company expenses the production costs associated with advertisements in the period in which the advertisement first takes place. The Company expenses the costs of advertisement in the period during which the advertisement space or airtime is consumed. Internet advertising expenses are recognized based on the terms of the individual agreements, which is generally over the greater of (i) the ratio of the number of clicks delivered over the total number of contracted clicks, on a pay-per-click Advertising expenses for 2017, 2016 and 2015 amounted $ 144,777, $ 102,770 and $149,814, respectively. |
Accounting for income taxes | Accounting for income taxes The Company is subject to U.S. and foreign income taxes. The provision for income taxes includes federal and foreign taxes. Income taxes are accounted for under the asset and liabilities method. Under this method, deferred income tax assets and liabilities are recognized for the future tax consequences attributable to differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred income tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company set up a valuation allowance for that component of net deferred tax assets which does not meet the more-likely-than-not Due to inherent complexities arising from the nature of the Company’s business, future changes in income tax law, transfer pricing new regulations or variances between actual and anticipated operating results, the Company makes certain judgments and estimates. Therefore, actual income taxes could materially vary from those estimates. |
Recently issued accounting pronouncements | Recently issued accounting pronouncements The Company provides below a description of those standards which are relevant to the Company’s business only and the impact of their adoption if any. New Revenue Recognition policy In May 2014, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standard Update (“ASU”) amending revenue recognition guidance and requiring more detailed disclosures to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. In August 2015, the FASB issued an ASU deferring the effective date of the revenue standard so it would be effective for annual and interim reporting periods beginning after December 15, 2017. In addition, the FASB has also issued several amendments to the standard which clarify certain aspects of the guidance, including principal versus agent consideration and identifying performance obligations. The Company has determined that the new guidance will not change our previous conclusion on net presentation. The Company has also determined that the standard will affect the moment in which the revenue is recognized for pre-paid check-out pre-paid pay-at-destination The Company has completed the overall assessment and finalized the quantification of the retained earnings impact. Additionally, the Company has identified and implemented changes on its accounting policies and practices, business processes, and controls to support the new revenue recognition standard. The Company is continuing the assessment of potential changes to its disclosures under the new standard. On February 25, 2016 the FASB issued ASU 2016-02. The amendments right-of-use right-of-use On June 16, 2016 the FASB issued the ASU 2016-13 In August 2016, the FASB issued Accounting Standard Update No. 2016-15, Statement of Cash Flows Classification of Certain Cash Receipts and Cash Payments In November 2016, the FASB issued Accounting Standards Update No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash 2016-18), beginning-of-period end-of-period In January 2017, the FASB issued ASU No. 2017-04. To simplify the subsequent measurement of goodwill, the amendments eliminate Step 2 from the goodwill impairment test. The annual, or interim, goodwill impairment test is performed by comparing the fair value of a reporting unit with its carrying amount. An impairment charge should be recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. In addition, income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit should be considered when measuring the goodwill impairment loss, if applicable. The amendments also eliminate the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. A public business entity should adopt the amendments for its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The adoption of this standard is not expected to have a material impact on the Company’s financial statements. On May 10, 2017 the FASB issued “ASU 2017-09—Compensation—Stock On September 29, 2017 the FASB issued “ASU 2017-13—Revenue 2014-09, Revenue 2016-02, Leases On November 22, 2017 the FASB issued “ASU 2017-14—Income No. 33-10403, On February 14, 2018 the FASB issued “ASU 2018-02—Income |
Basis of Consolidation (Tables)
Basis of Consolidation (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Company's Main Operating Subsidiaries | The consolidated financial statements include the accounts of the Company and its subsidiaries. The following are the Company’s main operating subsidiaries (all wholly-owned): Name of the Subsidiary Country of Incorporation Despegar.com.ar S.A. Argentina Decolar.com LTDA. Brazil Despegar.com Chile SpA Chile Despegar Colombia S.A.S. Colombia DespegarEcuador S.A. Ecuador Despegar.com México S.A. de C.V. Mexico Despegar.com Peru S.A.C. Peru Despegar.com USA, Inc. United States Travel Reservations S.R.L. Uruguay |
Summary of Significant Accoun34
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary Estimated Useful Lives of Property and Equipment | The estimated useful lives (in years) of the main categories of the Company’s property and equipment are as follows: Asset Estimated useful life (years) Computer hardware 3 Office furniture and fixture 10 Buildings 50 |
Summary of Derivative Position | Following is the derivatives position as of December 31, 2017 and 2016: Currency Notional Type Due Avg Price Fair value 2017 Argentine pesos $ 2,000 Purchase Jan-18 17.835 115 Chile pesos $ 8,500 Purchase Jan-18 634.49 (260 ) Mexican pesos $ 7,000 Sell Jan / Feb-18 19.27 (214 ) 2016 Brazilian Reais $ 15,000 Sell Jan-17 3.37 457 Argentine pesos $ 5,000 Purchase Jan-17 16.17 (49 ) (1) In each respective currency. |
Cash and Cash Equivalents (Tabl
Cash and Cash Equivalents (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of Cash and Cash Equivalents | Cash and cash equivalents consist of the following: As of December 31, As of December 31, Cash 12 10 Banks 344,809 22,681 Time deposits — 50,000 Money market funds 26,192 3,277 $ 371,013 $ 75,968 |
Accounts Receivable, Net of A36
Accounts Receivable, Net of Allowances (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
Summary of Accounts Receivable, Net of Allowances | Accounts receivable, net of allowances consist of the following: As of December 31, As of December 31, Accounts receivable 197,389 123,267 Others 4,048 1,344 Allowance for doubtful accounts (3,164 ) (3,513 ) $ 198,273 $ 121,098 |
Other Assets and Prepaid Expe37
Other Assets and Prepaid Expenses (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Summary of Other Current Assets and Prepaid Expenses | Other current assets and prepaid expenses consist of the following: As of December 31, As of December 31, Tax credits (1) 23,866 16,985 Cash managed by third parties 3,473 4,337 Advertising paid in advance 383 715 Others 1,683 1,550 $ 29,405 $ 23,587 (1) Mainly includes $ 10,833 of VAT credits, $ 7,394 of income tax credits, $ 2,965 of sales tax credits and $ 2,674 of other tax credits as of December 31, 2017; and $ 3,093 of VAT credits, $ 7,835 of income tax creditsu, $ 4,581 of sales tax credits and $ 1,476 other tax credits as of December 31, 2016. |
Summary of Other Assets, Non-current | Other non-current As of December 31, As of December 31, Deferred tax assets 4,658 3,597 $ 4,658 $ 3,597 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property and Equipment | Property and equipment, net consists of the following: As of December 31, As of December 31, Computer hardware and software 26,001 22,334 Office furniture and fixture 11,915 9,071 Buildings 2,790 2,298 Land 64 75 Total property and equipment 40,770 33,778 Accumulated depreciation $ (24,599 ) $ (20,061 ) Total property and equipment, net $ 16,171 $ 13,717 |
Goodwill and Intangible Asset39
Goodwill and Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Goodwill and Intangible Assets, Net | Goodwill and intangible assets, net consists of the following: As of December 31, As of December 31, Goodwill (1) 38,733 38,894 Intangible assets with indefinite lives Brands and domains 13,882 13,882 Amortizable Intangible assets Internal-use 47,980 35,217 Total intangible assets 61,862 49,099 Accumulated amortization (2) (26,438 ) (17,687 ) Total intangible assets, net $ 35,424 $ 31,412 (1) Following is the breakdown of Goodwill per reporting unit as of December 31, 2017 and 2016: Balance of beginning Other comprehensive Balance at end of 2017 Argentina 2,187 (321 ) 1,866 Brazil 12,959 (193 ) 12,766 Mexico 6,909 353 7,262 Uruguay 16,839 — 16,839 Total 38,894 (161 ) 38,733 2016 Argentina 2,665 (478 ) 2,187 Brazil 10,816 2,143 12,959 Mexico 8,234 (1,325 ) 6,909 Uruguay 16,839 — 16,839 Total 38,554 340 38,894 Goodwill is fully attributable to the Air operating segment. (2) Total amortization expense for the years 2017 and 2016 is $ 8,751 and $ 7,835, respectively. The estimated future amortization expense related to intangible assets with definite lives as of December 31, 2017, assuming no subsequent impairment of the underlying assets, is as follows: 2018 5,986 2019 5,986 2020 5,986 2021 717 2022 and beyond 2,867 Total 21,542 |
Accounts Payable and Accrued 40
Accounts Payable and Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Payables and Accruals [Abstract] | |
Summary of Accounts Payable and Accrued Expenses | Accounts payable and accrued expenses consist of the following: As of December 31, As of December 31, Marketing suppliers 28,301 15,723 Provision for invoices to be received 6,285 3,353 Affiliated agencies 977 690 Other suppliers 10,046 5,569 $ 45,609 $ 25,335 |
Travel Suppliers Payable (Table
Travel Suppliers Payable (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text Block [Abstract] | |
Schedule of Travel Supplier Payables | Travel Supplier payables consist of the following As of December 31, As of December 31, Hotels and other travel service suppliers (1) 151,023 96,357 Airlines 23,794 5,880 $ 174,817 $ 102,237 (1) Includes $ 137,396 and $ 84,477 as of December 31, 2017 and 2016, respectively, for deferred merchant bookings which will be due after the traveler has checked out. |
Other Liabilities (Tables)
Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other Liabilities Disclosure [Abstract] | |
Summary of Other Current Liabilities | Other current liabilities consist of the following: As of December 31, As of December 31, Salaries payable (1) 31,141 33,266 Taxes payable 5,517 13,912 Others 3,093 1,506 $ 39,751 $ 48,684 (1) As of December 31, 2016, includes settlements payables with certain management stockholders (note 13) |
Summary of Other Non-current Liabilities | Other non-current As of December 31, As of December 31, Taxes payable (1) 1,015 1,411 $ 1,015 $ 1,411 (1) Includes deferred tax liabilities as of December 31, 2016. See note 12. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Summary of Income Tax Expense Components | The following table presents a summary of U.S. and foreign income tax expense components: As of December 31, 2017 As of December 31, 2016 As of December 31, 2015 Current: Foreign (7,682 ) (4,459 ) (9,879 ) Federal (36 ) (50 ) 14 Deferred: Foreign 2,063 663 (220 ) Withholding: Foreign (6,339 ) (6,692 ) (7,919 ) Income tax expense $ (11,994 ) $ (10,538 ) $ (18,004 ) |
Summary of Deferred Tax Assets Liabilities by Current and Non-current | Below the classification of deferred tax assets/liabilities by current and non-current: As of December 31, 2017 As of December 31, 2016 Non-Current 47,242 49,123 Total deferred tax assets 47,242 49,123 Less valuation allowance (42,584 ) (45,526 ) Net deferred tax assets 4,658 3,597 Non-Current — (1,002 ) Total deferred tax liabilities — (1,002 ) Total deferred tax 4,658 2,595 |
Summary of Tax Loss Carryforwards Expiry | As of December 31, 2017, consolidated loss carryforwards for income tax purposes were $88,041. If not utilized, tax loss carryforwards will begin to expire as follows: Expiration Date NOLs Amount Expires 2020 6,990 Thereafter 14,248 Without expiration dates 66,803 TOTAL (1) 88,041 (1) These tax loss carryforwards detailed above are fully reserved at December 31, 2017. |
Summary of Composition of Deferred Tax Assets and Liabilities | The following table summarizes the composition of deferred tax assets and liabilities as of the years ended December 31, 2017 and 2016: December 31, 2017 December 31, 2016 Deferred Tax Assets Tax loss carryforwards 33,067 39,950 Allowance for doubtful accounts 322 515 Royalties 1,379 1,249 Provisions and other assets 12,474 7,409 Total Deferred Tax Assets 47,242 49,123 Less valuation allowance (42,584 ) (45,526 ) Total Deferred Tax Assets, net 4,658 3,597 Deferred Tax Liabilities Property and equipment — (54 ) Others — (948 ) Total Deferred Tax Liabilities — (1,002 ) Total Deferred Tax 4,658 2,595 |
Summary of Reconciliation of Difference between Actual Provision for Income Taxes and Provision Computed by Applying Weighted Average Income Tax Rate | The following is a reconciliation of the difference between the actual provision for income taxes and the provision computed by applying the weighted average income tax rate for 2017, 2016 and 2015 to income / (loss) before taxes: As of December 31, As of December 31, As of December 31, Net Income / (Loss) before Income Tax 54,360 28,335 (67,272 ) Weighted average income tax rate (3) 33 % 30 % 30 % Income tax expense at weighted average income tax rate 17,740 8,501 (20,182 ) Permanent differences: (Non-Taxable Non-Deductible (1) (10,714 ) (6,826 ) 2,151 Foreign non-creditable (2) 6,339 6,692 7,919 Non-deductible 2,223 2,928 26,698 Others (651 ) (94 ) 1,198 Change in Valuation allowance (2,943 ) (663 ) 220 Income Tax expense 11,994 10,538 18,004 (1) Includes tax benefits / non- non-free (2) Includes foreign withholding taxes on royalties and services. (3) The Company uses a weighted average rate for the income tax reconciliation. Weighted average income tax rate is calculated based on the aggregated amount of the income before taxes by country multiplied by the prevailing statutory income tax rate, derived by the consolidated income before tax. |
Summary of Changes in Valuation Allowance | The following table presents the changes in the Company’s valuation allowance as of December 31, 2017, 2016 and 2015: Balance of beginning of period Increase (Decrease) Balance at end of period 2017 45,526 4,716 (7,658 ) 42,584 2016 46,189 1,897 (2,560 ) 45,526 2015 45,969 9,039 (8,819 ) 46,189 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Lease Obligations Under Non-cancellable Operating Leases | The Company’s lease obligations under non-cancellable Year ended December 31, 2017 Amount Within 1 year 4,036 2 – 3 years 7,023 4 – 5 years 2,171 Total 13,230 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table summarizes the Company’s financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2017 and 2016: Description Balances Quoted Significant Balances Quoted Significant Assets Derivatives Foreign currency forward contract — — — 408 — 408 Liabilities Derivatives Foreign currency forward contract (359 ) — (359 ) — — — Total financial assets (359 ) — (359 ) 408 — 408 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Earnings Per Share | The following table presents basic and diluted earnings per share: 2017 2016 2015 Net income / (loss) attributable to Despegar.com Corp. 42,366 17,797 (85,276 ) Earnings per share attributable to Despegar.com Corp. Basic 0.69 0.30 (1.49 ) Diluted 0.69 0.30 (1.49 ) Weighted average number of shares outstanding Basic 61,457 58,518 57,078 Dilutive effect of restricted stock units 90 90 n/a |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Summary of Weighted Average Assumptions of Black-Scholes and Monte Carlo Option-Pricing Models | The fair value of stock options granted during the year ended December 31, 2017, was estimated at the date of grant using the income approach valuation technique, including the Black-Scholes and Monte Carlo option-pricing models, assuming the following weighted average assumptions: Risk-free interest rate 1.49 % Expected volatility 40.1 % Expected life (in years) 10 Weighted-average estimated fair value of options granted during the year $ 10.737 The fair value of stock options granted during the year ended December 31, 2016, was estimated at the date of grant using the income approach valuation technique, including the Black-Scholes and Monte Carlo option-pricing models, assuming the following weighted average assumptions: Risk-free interest rate 1.84 % Expected volatility 39.9 % Expected life (in years) 10 Weighted-average estimated fair value of options granted during the year $ 6.90 |
Schedule of Share Based Compensation Restricted Stock Units Award Activity | The following table presents a summary of the Company’s RSU activity: RSU’s Weighted Average Grant per share Balance as of January 1, 2015 — — Granted 90,626 7.47 Balance as of December 31, 2015 90,626 7.47 Granted — — Vested / (Cancelled) — — Balance as of December 31, 2016 90,626 7.47 Granted — — Vested / (Cancelled) — — Balance as of December 31, 2017 90,626 7.47 |
Summary of Stock Option Activity | The following table presents a summary of the Company’s stock option activity: Options Weighted per share Remaining Balance as of December 31, 2015 — — — Granted 3,175,000 26.02 Balance as of December 31, 2016 3,175,000 26.02 6 Granted 600,000 26.02 Balance as of December 31, 2017 3,775,000 26.02 5 |
Restricted Stock Units (RSUs) [Member] | |
Summary of Weighted Average Assumptions of Black-Scholes and Monte Carlo Option-Pricing Models | The fair value of RSU granted during the year ended December 31, 2015, was estimated at the date of grant using the income approach valuation technique, including the Black-Scholes and Monte Carlo option-pricing models, assuming the following weighted average assumptions: Expected volatility 41.69 % Expected life (in years) 10 Weighted-average estimated fair value of options granted during the year $ 7.47 |
Valuation and Qualifying Acco48
Valuation and Qualifying Accounts (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule of Changes in Valuation and Qualifying Accounts | The following table presents the changes in the Company’s valuation and qualifying accounts. Balance of Increase / Utilization Other Balance at end 2017 Allowance for doubtful accounts 3,513 818 (984 ) (183 ) 3,164 2016 Allowance for doubtful accounts 3,401 2,548 (2,515 ) 79 3,513 2015 Allowance for doubtful accounts 7,493 2,142 (5,388 ) (846 ) 3,401 |
Segment information (Tables)
Segment information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Segment Information | The following tables present the Company’s segment information for 2017, 2016 and 2015. While depreciation and amortization is allocated to operating segments based on operational measures such as relative headcount and IT investment, property and equipment is not allocated to operating segments, and the Company does not report the assets by segment as this information is not regularly provided to its chief operating decision makers. 2017 Air Packages, Hotels and Other Unallocated Total Revenue 241,015 282,925 — 523,940 Adjusted EBITDA 58,397 31,341 (384 ) 89,354 Depreciation and amortization (1,865 ) (2,556 ) (9,405 ) (13,826 ) Stock-based compensation — — (4,289 ) (4,289 ) Operating income / (loss) 56,532 28,785 (14,078 ) 71,239 Financial income — — — 2,389 Financial expense — — — (19,268 ) Income before income tax — — — 54,360 Income tax expense — — — (11,994 ) Net income — — — 42,366 2016 Air Packages, Hotels and other Unallocated Total Revenue 205,721 205,441 — 411,162 Adjusted EBITDA 27,940 20,643 2 48,585 Depreciation and amortization (4,099 ) (3,842 ) (4,983 ) (12,924 ) Stock-based compensation — — (574 ) (574 ) Operating income / (loss) 23,841 16,801 (5,555 ) 35,087 Financial income 8,327 Financial expense (15,079 ) Income before income tax 28,335 Income tax expense (10,538 ) Net income 17,797 2015 Air Packages, Hotels and other Unallocated Total Revenue 219,817 201,894 — 421,711 Adjusted EBITDA 8,259 (34,383 ) (12,943 ) (39,067 ) Depreciation and amortization (6,350 ) (1,872 ) (6,217 ) (14,439 ) Stock-based compensation — — (861 ) (861 ) Operating income / (loss) 1,909 (36,255 ) (20,021 ) (54,367 ) Financial income 10,797 Financial expense (23,702 ) Income / (loss) before income tax (67,272 ) Income tax expense (18,004 ) Net income / (loss) (85,276 ) |
Operations of the Company - Add
Operations of the Company - Additional Information (Detail) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Sep. 30, 2017USD ($)shares | Dec. 31, 2017USD ($)Country | Dec. 31, 2015USD ($) | [1] | ||
Organization And Nature Of Business [Line Items] | |||||
Number of operating countries | Country | 20 | ||||
Number of common shares issued | 10,578,931 | ||||
Proceeds from issuance of shares | $ | $ 253,529 | $ 253,529 | [1] | $ 267,593 | |
Selling Shareholders' [Member] | |||||
Organization And Nature Of Business [Line Items] | |||||
Number of common shares issued | 4,106,569 | ||||
[1] | Net of issuance costs paid of $ 21,530 and $ 2,470 as of December 31, 2017 and 2015, respectively. See note 14 |
Basis of Consolidation - Summar
Basis of Consolidation - Summary of Company's Main Operating Subsidiaries (Detail) | 12 Months Ended |
Dec. 31, 2017 | |
Despegar.com.ar S.A. [Member] | |
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |
Country of Incorporation | Argentina |
Decolar.com LTDA. [Member] | |
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |
Country of Incorporation | Brazil |
Despegar.com Chile SpA [Member] | |
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |
Country of Incorporation | Chile |
Despegar Colombia S.A.S. [Member] | |
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |
Country of Incorporation | Colombia |
DespegarEcuador S.A. [Member] | |
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |
Country of Incorporation | Ecuador |
Despegar.com Mexico S.A. de C.V. [Member] | |
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |
Country of Incorporation | Mexico |
Despegar.com Peru S.A.C. [Member] | |
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |
Country of Incorporation | Peru |
Despegar.com USA, Inc. [Member] | |
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |
Country of Incorporation | United States |
Travel Reservations S.R.L. [Member] | |
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |
Country of Incorporation | Uruguay |
Summary of Significant Accoun52
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) | Mar. 03, 2015 | Mar. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Significant Accounting Policies [Line Items] | ||||||
Intangible assets amortization period | 10 years | |||||
Impairment of intangible assets | $ 0 | |||||
Advertising expense | 144,777,000 | $ 102,770,000 | $ 149,814,000 | |||
Valuation allowance | 42,584,000 | 45,526,000 | 46,189,000 | $ 45,969,000 | ||
Payment for liquidated damages | $ 125,000,000 | |||||
Minimum agreement term | 7 years | |||||
Stock issuance costs | $ 21,530,000 | $ 0 | $ 2,470,000 | |||
Expedia [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Security deposit | 10,000,000 | |||||
Sale of common stock | $ 270,000,000 | $ 270,000,000 | ||||
Termination fee | 125,000,000 | 125,000,000 | ||||
Refund amount on termination of agreement | $ 125,000,000 | |||||
Fair value of the equity issued | $ 145,000,000 | |||||
Software Development [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Software internally developed amortization period | 3 years | |||||
Accounting Standards Update 2014-09 [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Cumulative effect of change in accounting principle | $ 37,800,000 | |||||
Effect of change on net revenue | $ 43,900,000 | |||||
Merchant Model [Member] | Customer Concentration Risk [Member] | Sales Revenue [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Customer concentration risk | 80.00% | |||||
Agency Model [Member] | Customer Concentration Risk [Member] | Sales Revenue [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Customer concentration risk | 5.00% | |||||
Advertising Revenue [Member] | Customer Concentration Risk [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Customer concentration risk | 15.00% |
Summary of Significant Accoun53
Summary of Significant Accounting Policies - Summary Estimated Useful Lives of Property and Equipment (Detail) | 12 Months Ended |
Dec. 31, 2017 | |
Computer Hardware [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 years |
Office Furniture and Fixture [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 10 years |
Buildings [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 50 years |
Summary of Significant Accoun54
Summary of Significant Accounting Policies - Summary of Derivative Position (Detail) | 12 Months Ended | |
Dec. 31, 2017USD ($)$ / Derivative | Dec. 31, 2016USD ($)$ / Derivative | |
Argentine Pesos [Member] | ||
Derivative [Line Items] | ||
Notional amount | $ 2,000,000 | $ 5,000,000 |
Type | Purchase | Purchase |
Due | Jan18 | Jan17 |
Avg Price | $ / Derivative | 17.835 | 16.170 |
Fair value | $ 115,000 | $ (49,000) |
Chile Pesos [Member] | ||
Derivative [Line Items] | ||
Notional amount | $ 8,500,000 | |
Type | Purchase | |
Due | Jan18 | |
Avg Price | $ / Derivative | 634.490 | |
Fair value | $ (260,000) | |
Mexican Pesos [Member] | ||
Derivative [Line Items] | ||
Notional amount | $ 7,000,000 | |
Type | Sell | |
Due | Jan / Feb-18 | |
Avg Price | $ / Derivative | 19.270 | |
Fair value | $ (214,000) | |
Brazil, Brazil Real | ||
Derivative [Line Items] | ||
Notional amount | $ 15,000,000 | |
Type | Sell | |
Due | Jan17 | |
Avg Price | $ / Derivative | 3.370 | |
Fair value | $ 457,000 |
Cash and Cash Equivalents - Sch
Cash and Cash Equivalents - Schedule of Cash and Cash Equivalents (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Cash and Cash Equivalents [Abstract] | ||||
Cash | $ 12 | $ 10 | ||
Banks | 344,809 | 22,681 | ||
Time deposits | 50,000 | |||
Money market funds | 26,192 | 3,277 | ||
Cash and cash equivalents | $ 371,013 | $ 75,968 | $ 102,116 | $ 21,036 |
Accounts Receivable, Net of A56
Accounts Receivable, Net of Allowances - Summary of Accounts Receivable, Net of Allowances (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Receivables [Abstract] | ||
Accounts receivable | $ 197,389 | $ 123,267 |
Others | 4,048 | 1,344 |
Allowance for doubtful accounts | (3,164) | (3,513) |
Accounts receivable, net of allowances | $ 198,273 | $ 121,098 |
Other Assets and Prepaid Expe57
Other Assets and Prepaid Expenses - Summary of Other Current Assets and Prepaid Expenses (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Prepaid Expense and Other Assets, Current [Abstract] | ||
Tax credits | $ 23,866 | $ 16,985 |
Cash managed by third parties | 3,473 | 4,337 |
Advertising paid in advance | 383 | 715 |
Others | 1,683 | 1,550 |
Total prepaid expense and other assets | $ 29,405 | $ 23,587 |
Other Assets and Prepaid Expe58
Other Assets and Prepaid Expenses - Summary of Other Current Assets and Prepaid Expenses (Parenthetical) (Detail) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Prepaid Expenses and Other Current Assets [Line Items] | ||
Tax credits | $ 23,866,000 | $ 16,985,000 |
VAT credits [Member] | ||
Prepaid Expenses and Other Current Assets [Line Items] | ||
Tax credits | 10,833 | 3,093 |
Income Tax Credits [Member] | ||
Prepaid Expenses and Other Current Assets [Line Items] | ||
Tax credits | 7,394 | 7,835 |
Sales Tax Credits [Member] | ||
Prepaid Expenses and Other Current Assets [Line Items] | ||
Tax credits | 2,965 | 4,581 |
Other Tax Credits [Member] | ||
Prepaid Expenses and Other Current Assets [Line Items] | ||
Tax credits | $ 2,674 | $ 1,476 |
Other Assets and Prepaid Expe59
Other Assets and Prepaid Expenses - Summary of Other Assets, Non-current (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Other Assets, Noncurrent [Abstract] | ||
Deferred tax assets | $ 4,658 | $ 3,597 |
Other assets | $ 4,658 | $ 3,597 |
Property and Equipment, Net - S
Property and Equipment, Net - Summary of Property and Equipment, Net (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 40,770 | $ 33,778 |
Accumulated depreciation | (24,599) | (20,061) |
Total property and equipment, net | 16,171 | 13,717 |
Computer Hardware and Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 26,001 | 22,334 |
Office Furniture and Fixture [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 11,915 | 9,071 |
Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 2,790 | 2,298 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 64 | $ 75 |
Property and Equipment, Net - A
Property and Equipment, Net - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 5,075 | $ 5,089 | $ 5,152 |
Goodwill and intangible asset62
Goodwill and intangible assets, net - Summary of Goodwill and Intangible Assets, Net (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill | $ 38,733 | $ 38,894 | $ 38,554 |
Intangible assets with indefinite lives Brands and domains | 13,882 | 13,882 | |
Amortizable Intangible assets Internal-use software and site internally developed | 47,980 | 35,217 | |
Total intangible assets | 61,862 | 49,099 | |
Accumulated amortization | (26,438) | (17,687) | |
Total intangible assets, net | $ 35,424 | $ 31,412 |
Goodwill and intangible asset63
Goodwill and intangible assets, net - Schedule of Breakdown of Goodwill Per Reporting Unit (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Indefinite-lived Intangible Assets [Line Items] | ||
Balance of beginning of period | $ 38,894 | $ 38,554 |
Other comprehensive Income / (Loss) | (161) | 340 |
Balance at end of period | 38,733 | 38,894 |
Argentina [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Balance of beginning of period | 2,187 | 2,665 |
Other comprehensive Income / (Loss) | (321) | (478) |
Balance at end of period | 1,866 | 2,187 |
Brazil [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Balance of beginning of period | 12,959 | 10,816 |
Other comprehensive Income / (Loss) | (193) | 2,143 |
Balance at end of period | 12,766 | 12,959 |
Mexico [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Balance of beginning of period | 6,909 | 8,234 |
Other comprehensive Income / (Loss) | 353 | (1,325) |
Balance at end of period | 7,262 | 6,909 |
Uruguay [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Balance of beginning of period | 16,839 | 16,839 |
Balance at end of period | $ (16,839) | $ 16,839 |
Goodwill and Intangible Asset64
Goodwill and Intangible Assets, Net - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Intangible Liability Disclosure [Abstract] | |||
Total amortization expense | $ 8,751 | $ 7,835 | $ 9,287 |
Goodwill and intangible asset65
Goodwill and intangible assets, net - Summary of Estimated Future Amortization Expense of Intangible Assets with Definite Lives (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2,018 | $ 5,986 |
2,019 | 5,986 |
2,020 | 5,986 |
2,021 | 717 |
2022 and beyond | 2,867 |
Total | $ 21,542 |
Accounts payable and accrued 66
Accounts payable and accrued expenses - Summary of Accounts Payable and Accrued Expenses (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Accounts Payable And Accrued Expenses [Line Items] | ||
Accounts payable and accrued expenses | $ 45,609 | $ 25,335 |
Marketing Suppliers [Member] | ||
Accounts Payable And Accrued Expenses [Line Items] | ||
Accounts payable and accrued expenses | 28,301 | 15,723 |
Provision for Invoices to be Received [Member] | ||
Accounts Payable And Accrued Expenses [Line Items] | ||
Accounts payable and accrued expenses | 6,285 | 3,353 |
Affiliated Agencies [Member] | ||
Accounts Payable And Accrued Expenses [Line Items] | ||
Accounts payable and accrued expenses | 977 | 690 |
Other Suppliers [Member] | ||
Accounts Payable And Accrued Expenses [Line Items] | ||
Accounts payable and accrued expenses | $ 10,046 | $ 5,569 |
Travel Suppliers Payable - Sche
Travel Suppliers Payable - Schedule of Travel Supplier Payables (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Accounts Payable And Accrued Expenses [Line Items] | ||
Travel suppliers payable | $ 174,817 | $ 102,237 |
Hotels and Other Travel Service Suppliers [Member] | ||
Accounts Payable And Accrued Expenses [Line Items] | ||
Travel suppliers payable | 151,023 | 96,357 |
Airlines [Member] | ||
Accounts Payable And Accrued Expenses [Line Items] | ||
Travel suppliers payable | $ 23,794 | $ 5,880 |
Travel Suppliers Payable - Sc68
Travel Suppliers Payable - Schedule of Travel Supplier Payables (Parenthetical) (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Payables and Accruals [Abstract] | ||
Deferred merchant bookings | $ 137,396 | $ 84,477 |
Other Liabilities - Summary of
Other Liabilities - Summary of Other Current Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Other Liabilities, Current [Abstract] | ||
Salaries payable | $ 31,141 | $ 33,266 |
Taxes payable | 5,517 | 13,912 |
Others | 3,093 | 1,506 |
Other current liabilities | $ 39,751 | $ 48,684 |
Other Liabilities - Summary o70
Other Liabilities - Summary of Other Non-current Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Other Liabilities, Noncurrent [Abstract] | ||
Taxes payable | $ 1,015 | $ 1,411 |
Other non-current liabilities | $ 1,015 | $ 1,411 |
Income Taxes - Summary of Incom
Income Taxes - Summary of Income Tax Expense Components (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current: | |||
Foreign | $ (7,682) | $ (4,459) | $ (9,879) |
Federal | (36) | (50) | 14 |
Deferred: | |||
Foreign | 2,063 | 663 | (220) |
Withholding: | |||
Foreign | (6,339) | (6,692) | (7,919) |
Income tax expense | $ (11,994) | $ (10,538) | $ (18,004) |
Income Taxes - Summary of Class
Income Taxes - Summary of Classification of Deferred Tax Assets Liabilities by Current and Non-current (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Components of Deferred Tax Assets and Liabilities [Abstract] | ||||
Non-Current deferred tax assets | $ 47,242 | $ 49,123 | ||
Total deferred tax assets | 47,242 | 49,123 | ||
Less valuation allowance | (42,584) | (45,526) | $ (46,189) | $ (45,969) |
Net deferred tax assets | 4,658 | 3,597 | ||
Non-Current deferred tax liabilities | (1,002) | |||
Total deferred tax liabilities | (1,002) | |||
Total deferred tax | $ 4,658 | $ 2,595 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax [Line Items] | |||
Loss carryforwards for income tax purposes | $ 88,041 | ||
Undistributed earnings of foreign subsidiaries | $ 1,847 | ||
Weighted average income tax rate | 30.00% | 30.00% | 30.00% |
Brazil [Member] | |||
Income Tax [Line Items] | |||
Loss carryforwards for income tax purposes | $ 66,802 | ||
Percentage of taxable income | 30.00% | ||
NOLs carryforwards expiration description | No expiration but offset limitation of 30% of the taxable income by fiscal year. | ||
USA [Member] | |||
Income Tax [Line Items] | |||
Loss carryforwards for income tax purposes | $ 6,388 | ||
Percentage of taxable income | 90.00% | ||
NOLs carryforwards expiration description | Expiration after 20 years, but offset limitation of 90% of the taxable income by fiscal year. | ||
Net operating loss carryforward expiration period | 20 years | ||
Argentina [Member] | |||
Income Tax [Line Items] | |||
Loss carryforwards for income tax purposes | $ 1,200 | ||
NOLs carryforwards expiration description | Five fiscal years expiration. | ||
Net operating loss carryforward expiration period | 5 years | ||
Colombia [Member] | |||
Income Tax [Line Items] | |||
Loss carryforwards for income tax purposes | $ 2,917 | ||
NOLs carryforwards expiration description | Three fiscal years expiration. | ||
Net operating loss carryforward expiration period | 3 years | ||
Venezuela [Member] | |||
Income Tax [Line Items] | |||
Loss carryforwards for income tax purposes | $ 6,989 | ||
Percentage of taxable income | 25.00% | ||
NOLs carryforwards expiration description | Three fiscal years expiration, but offset limitation of 25% of the taxable income by fiscal year. | ||
Net operating loss carryforward expiration period | 3 years | ||
Peru [Member] | |||
Income Tax [Line Items] | |||
Loss carryforwards for income tax purposes | $ 261 | ||
Percentage of taxable income | 50.00% | ||
NOLs carryforwards expiration description | No expiration, but offset limitation of 50% of the taxable income by fiscal year. | ||
Mexico [Member] | |||
Income Tax [Line Items] | |||
Loss carryforwards for income tax purposes | $ 3,500 | ||
NOLs carryforwards expiration description | Ten fiscal years expiration. | ||
Net operating loss carryforward expiration period | 10 years |
Income Taxes - Summary of Tax L
Income Taxes - Summary of Tax Loss Carryforwards Expiration (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Operating Loss Carryforwards [Line Items] | |
NOLs Amount | $ 88,041 |
Without expiration dates | 66,803 |
TOTAL | 88,041 |
Expires 2020 [Member] | |
Operating Loss Carryforwards [Line Items] | |
NOLs Amount | 6,990 |
Thereafter [Member] | |
Operating Loss Carryforwards [Line Items] | |
NOLs Amount | $ 14,248 |
Income Taxes - Summary of Compo
Income Taxes - Summary of Composition of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Components of Deferred Tax Assets and Liabilities [Abstract] | ||||
Tax loss carryforwards | $ 33,067 | $ 39,950 | ||
Allowance for doubtful accounts | 322 | 515 | ||
Royalties | 1,379 | 1,249 | ||
Provisions and other assets | 12,474 | 7,409 | ||
Total Deferred Tax Assets | 47,242 | 49,123 | ||
Less valuation allowance | (42,584) | (45,526) | $ (46,189) | $ (45,969) |
Total Deferred Tax Assets, net | 4,658 | 3,597 | ||
Property and equipment | (54) | |||
Others | (948) | |||
Total Deferred Tax Liabilities | (1,002) | |||
Total Deferred Tax | $ 4,658 | $ 2,595 |
Income Taxes - Summary of Recon
Income Taxes - Summary of Reconciliation of Difference between Actual Provision for Income Taxes and Provision Computed by Applying Weighted Average Income Tax Rate (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Net Income / (Loss) before Income Tax | $ 54,360 | $ 28,335 | $ (67,272) |
Weighted average income tax rate | 33.00% | 30.00% | 30.00% |
Income tax expense at weighted average income tax rate | $ 17,740 | $ 8,501 | $ (20,182) |
Permanent differences: | |||
(Non-Taxable Income) / Non-Deductible Losses | (10,714) | (6,826) | 2,151 |
Foreign non-creditable withholding tax | 6,339 | 6,692 | 7,919 |
Non-deductible expenses | 2,223 | 2,928 | 26,698 |
Others | (651) | (94) | 1,198 |
Change in Valuation allowance | (2,943) | (663) | 220 |
Income Tax expense | $ 11,994 | $ 10,538 | $ 18,004 |
Income Taxes - Summary of Chang
Income Taxes - Summary of Changes in Valuation Allowance (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Balance of beginning of period | $ 45,526 | $ 46,189 | $ 45,969 |
Increase | 4,716 | 1,897 | 9,039 |
(Decrease) | (7,658) | (2,560) | (8,819) |
Balance at end of period | $ 42,584 | $ 45,526 | $ 46,189 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands | Sep. 12, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 04, 2015 | Mar. 31, 2013 |
Other Commitments [Line Items] | |||||
Rent expense | $ 4,413 | $ 2,348 | |||
Tax liability settlement agreement | This program offers two alternatives for paying this tax liability (adjusted by interest and penalties through the date the company applies to the program):(i) a single installment with a 85% reduction in the interest due and 75% reduction in the penalties; or(ii) payments in 120 monthly installments. Under this alternative, the interest and penalties through the date of application will be reduced by 60% and 50%, respectively. Each installment accrues interest at the monthly Sistema Especial de Liquidação e Custódia (Special Clearance and Escrow System or SELIC) interest rate plus 1%. | ||||
Sao Paulo Tax Authority [Member] | |||||
Other Commitments [Line Items] | |||||
Accrued liabilities | $ 9,928 | ||||
Asserted taxes and fines arising from examination | $ 21,500 | ||||
Tax contingency settlement amount | $ 8,900 | ||||
Unasserted Claim [Member] | |||||
Other Commitments [Line Items] | |||||
Accrued liabilities | $ 7,910 | ||||
Possible unasserted losses | $ 23,100 | ||||
Minimum [Member] | |||||
Other Commitments [Line Items] | |||||
Operating lease term | 2 years | ||||
Maximum [Member] | |||||
Other Commitments [Line Items] | |||||
Operating lease term | 5 years |
Commitments and Contingencies79
Commitments and Contingencies - Summary of Lease Obligations Under Non-cancellable Operating Leases (Detail) | Dec. 31, 2017USD ($) |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
Within 1 year | $ 4,036 |
2 - 3 years | 7,023 |
4 - 5 years | 2,171 |
Total | $ 13,230 |
Related Party Transaction - Add
Related Party Transaction - Additional Information (Detail) - USD ($) | Mar. 03, 2015 | Mar. 31, 2015 | Feb. 28, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2013 | |
Related Party Transaction [Line Items] | ||||||||
Repay certain Loans furnished by the shareholders | $ 50,000,000 | |||||||
Repurchase shares from all shareholders | 45,000,000 | |||||||
Proceeds from general corporate purposes | 175,000,000 | |||||||
Related party receivable | $ 5,253,000 | $ 2,240,000 | ||||||
Related party payable | 84,364,000 | 71,006,000 | ||||||
Net related party transactions | 37,000,000 | 27,008,000 | $ 22,911,000 | |||||
Restricted cash and cash equivalents | $ 10,000,000 | 20,459,000 | ||||||
Loans received | [1] | 25,000,000 | ||||||
Decolar.com LTDA. [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Loans received | $ 25,000,000 | $ 25,000,000 | ||||||
Interest accrue or be payable | $ 0 | |||||||
Minimum [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Percentage of voting or economic power of the securities | 50.00% | |||||||
Expedia [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Sale of common stock | $ 270,000,000 | $ 270,000,000 | ||||||
Sale of common stock, Shares | 9,590,623 | |||||||
Percentage of issued and outstanding shares | 16.36% | |||||||
Number of shares repurchased | 1,598,434 | |||||||
Termination fee | $ 125,000,000 | $ 125,000,000 | ||||||
Related party receivable | 5,253,000 | 2,240,000 | ||||||
Related party payable | 84,364,000 | 71,006,000 | ||||||
Net related party transactions | 37,000,000 | 27,008,000 | 22,911,000 | |||||
Restricted cash and cash equivalents | $ 10,000,000 | |||||||
Management Stockholders [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Related party transaction, amount payable to management stockholders | $ 5,800,000 | $ 5,400,000 | ||||||
Description of settlement agreement with terminated employees | The settlement agreements includes a payable cash amount of $ 5,800, as a result of an employee relationship benefit and non competition and non disclosure agreement, out of which 50% was payable on July 1, 2018 or upon the occurrence of a liquidity event, which may result from the consummation of an initial public offering, or a capital injection among other conditions. As in September 20, 2017, the Company issued the initial public offering, the settlement was fully paid in December 2017. | |||||||
[1] | See note 14. |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - Fair Value, Measurements, Recurring [Member] - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency forward contract | $ 408 | |
Foreign currency forward contract | $ (359) | |
Total financial assets | (359) | 408 |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency forward contract | 408 | |
Foreign currency forward contract | (359) | |
Total financial assets | $ (359) | $ 408 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value Disclosures [Abstract] | ||
Cash and cash equivalents, short-term investments and restricted cash and cash equivalents | $ 39,764 | $ 93,197 |
Earnings Per Share - Basic and
Earnings Per Share - Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |||
Net income / (loss) attributable to Despegar.com Corp. | $ 42,366 | $ 17,797 | $ (85,276) |
Earnings per share attributable to Despegar.com Corp. Basic | $ 0.69 | $ 0.30 | $ (1.49) |
Diluted | $ 0.69 | $ 0.30 | $ (1.49) |
Weighted average number of shares outstanding | |||
Basic | 61,457 | 58,518 | 57,078 |
Dilutive effect of restricted stock units | $ 90 | $ 90 |
Stock Based Compensation - 2015
Stock Based Compensation - 2015 Restricted Stock Unit Plan - Additional Information (Detail) - Restricted Stock Units (RSUs) [Member] - shares | Jul. 01, 2018 | Jan. 01, 2018 | Jan. 01, 2017 | Jan. 01, 2016 | Mar. 06, 2015 | Dec. 31, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of restricted stock units, granted | 90,626 | |||||
2015 Restricted Stock Unit Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of restricted stock units, granted | 90,626 | |||||
Restricted stock units vested | 20,000 | 40,626 | ||||
2015 Restricted Stock Unit Plan [Member] | Subsequent Event [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Restricted stock units vested | 20,000 | |||||
2015 Restricted Stock Unit Plan [Member] | Scenario, Forecast [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Restricted stock units vested | 10,000 |
Stock Based Compensation - Summ
Stock Based Compensation - Summary of Weighted Average Assumptions of Black-Scholes and Monte Carlo Option-Pricing Models (Detail) - Restricted Stock Units (RSUs) [Member] | 12 Months Ended |
Dec. 31, 2015$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected volatility | 41.69% |
Expected life (in years) | 10 years |
Weighted-average estimated fair value of options granted during the year | $ 7.47 |
Stock Based Compensation - Addi
Stock Based Compensation - Additional Information (Detail) - USD ($) $ in Thousands | Aug. 10, 2017 | Apr. 01, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Nov. 01, 2016 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized stock-based compensation expense | $ 24,600 | ||||
Unrecognized stock-based compensation expense, expected weighted average period for recognition | 4 years 9 months 18 days | ||||
Number of options granted | 600,000 | 3,175,000 | |||
Number of options outstanding | 3,775,000 | 3,175,000 | |||
Subsequent Event [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of options granted | 375,000 | ||||
Number of options forfeited | 250,000 | ||||
Number of options outstanding | 3,900,000 | ||||
Restricted Stock Units (RSUs) [Member] | Subsequent Event [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares approved for issuance under the plan | 465,518 | ||||
2016 Stock Option Plan [Member] | Employee Stock Option [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Remaining vesting period | 59 months | ||||
Number of shares approved for issuance under the plan | 4,000,000 | ||||
Amended and Restated 2016 Stock Incentive Plan [Member] | Employee Stock Option [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Additional shares approved under the plan | 861,777 | ||||
Number of shares approved for issuance under the plan | 4,861,777 | ||||
2015 Restricted Stock Unit Plan [Member] | Restricted Stock Units (RSUs) [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Remaining vesting period | 6 months |
Stock Based Compensation - Sche
Stock Based Compensation - Schedule of Share Based Compensation Restricted Stock Units Award Activity (Detail) - Restricted Stock Units (RSUs) [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Beginning balance | $ 7.47 | $ 7.47 | |
Granted | $ 7.47 | ||
Vested / (Cancelled) | 0 | 0 | |
Ending balance | $ 7.47 | $ 7.47 | $ 7.47 |
Beginning balance | 90,626 | 90,626 | |
Granted | 90,626 | ||
Vested / (Cancelled) | 0 | 0 | |
Ending balance | 90,626 | 90,626 | 90,626 |
Stock Based Compensation - 2016
Stock Based Compensation - 2016 Stock Option Plan - Additional Information (Detail) - shares | Dec. 01, 2022 | Dec. 01, 2021 | Dec. 01, 2020 | Dec. 01, 2019 | Dec. 01, 2018 | Dec. 01, 2017 | Nov. 01, 2016 | Dec. 31, 2017 | Dec. 31, 2016 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of stock options granted | 600,000 | 3,175,000 | |||||||
2016 Stock Option Plan [Member] | Employee Stock Option [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of shares approved for issuance under the plan | 4,000,000 | ||||||||
2016 Stock Option Plan [Member] | Employee Stock Option [Member] | Officer [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of stock options granted | 3,175,000 | ||||||||
2016 Stock Option Plan [Member] | Employee Stock Option [Member] | Share-based Compensation Award, Tranche One [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Stock option vesting percentage | 5.00% | ||||||||
2016 Stock Option Plan [Member] | Employee Stock Option [Member] | Share-based Compensation Award, Tranche Two [Member] | Scenario, Forecast [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Stock option vesting percentage | 10.00% | ||||||||
2016 Stock Option Plan [Member] | Employee Stock Option [Member] | Share-based Compensation Award, Tranche Three [Member] | Scenario, Forecast [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Stock option vesting percentage | 15.00% | ||||||||
2016 Stock Option Plan [Member] | Employee Stock Option [Member] | Sharebased Compensation Award Tranche Four [Member] | Scenario, Forecast [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Stock option vesting percentage | 20.00% | ||||||||
2016 Stock Option Plan [Member] | Employee Stock Option [Member] | Sharebased Compensation Award Tranche Five [Member] | Scenario, Forecast [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Stock option vesting percentage | 25.00% | ||||||||
2016 Stock Option Plan [Member] | Employee Stock Option [Member] | Sharebased Compensation Award Tranche Six [Member] | Scenario, Forecast [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Stock option vesting percentage | 25.00% |
Stock Based Compensation - Sc89
Stock Based Compensation - Schedule of Fair Value of Stock Options Granted with Weighted Average Assumptions of Black-Scholes and Monte Carlo Option-Pricing Models (Detail) - Employee Stock Option [Member] - $ / shares | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk-free interest rate | 1.49% | 1.84% |
Expected volatility | 40.10% | 39.90% |
Expected life (in years) | 10 years | 10 years |
Weighted-average estimated fair value of options granted during the year | $ 10.737 | $ 6.90 |
Stock Based Compensation - Su90
Stock Based Compensation - Summary of Stock Option Activity (Detail) - $ / shares | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Number of options, beginning balance | 3,175,000 | |
Number of options, granted | 600,000 | 3,175,000 |
Number of options, ending balance | 3,775,000 | 3,175,000 |
Weighted Average Exercise Price, granted | $ 26.02 | $ 26.02 |
Weighted Average Exercise Price, balance | $ 26.02 | $ 26.02 |
Remaining Contractual Life, outstanding | 5 years | 6 years |
Guarantees - Additional Informa
Guarantees - Additional Information (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Guarantees [Abstract] | |
Guarantor obligations and purpose | The Company is required to be accredited by the International Air Transport Association (“IATA”) to be permitted to sell international airlines tickets of airlines affiliated with IATA. |
Guarantee for the benefit of the IATA | $ 39,764 |
Valuation and Qualifying Acco92
Valuation and Qualifying Accounts - Schedule of Changes in Valuation and Qualifying Accounts (Detail) - Allowance for Doubtful Accounts [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance of beginning of period | $ 3,513 | $ 3,401 | $ 7,493 |
Increase / (Decrease) | 818 | 2,548 | 2,142 |
Utilization | (984) | (2,515) | (5,388) |
Other comprehensive Income / (Loss) | (183) | 79 | (846) |
Balance at end of period | $ 3,164 | $ 3,513 | $ 3,401 |
Initial Public Offering - Addit
Initial Public Offering - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2015 | [1] | Dec. 31, 2016 | ||
Subsidiary, Sale of Stock [Line Items] | ||||||
Common stock shares issued | 12,770,000 | 58,518,000 | 58,518,000 | |||
Share issued price per share | $ 26 | $ 26 | ||||
Underwriting discount | 5.75% | |||||
Additional shares purchase under underwriting | 10,578,931 | |||||
Proceeds from issuance of shares | $ 253,529 | $ 253,529 | [1] | $ 267,593 | ||
IPO [Member] | ||||||
Subsidiary, Sale of Stock [Line Items] | ||||||
Additional shares purchase under underwriting | 8,663,431 | |||||
Proceeds from issuance of shares | $ 253,529 | |||||
Selling Shareholders' [Member] | ||||||
Subsidiary, Sale of Stock [Line Items] | ||||||
Additional shares purchase under underwriting | 4,106,569 | |||||
Over-Allotment Option [Member] | ||||||
Subsidiary, Sale of Stock [Line Items] | ||||||
Additional shares purchase under underwriting | 1,915,500 | |||||
Underwriters option, exercisable period | 30 days | |||||
[1] | Net of issuance costs paid of $ 21,530 and $ 2,470 as of December 31, 2017 and 2015, respectively. See note 14 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2017SegmentCustomer | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||
Number of operating segments | Segment | 2 | ||
Number of customers amounting 10% or more of revenues | Customer | 0 | ||
Sales Revenue [Member] | Geographic Concentration Risk [Member] | Argentina [Member] | |||
Segment Reporting Information [Line Items] | |||
Percentage of revenue generated by subsidiary | 26.00% | 27.00% | 32.00% |
Sales Revenue [Member] | Geographic Concentration Risk [Member] | Brazil [Member] | |||
Segment Reporting Information [Line Items] | |||
Percentage of revenue generated by subsidiary | 29.00% | 28.00% | 30.00% |
Sales Revenue [Member] | Geographic Concentration Risk [Member] | Uruguay [Member] | |||
Segment Reporting Information [Line Items] | |||
Percentage of revenue generated by subsidiary | 28.00% | 27.00% | 19.00% |
Segment Information - Schedule
Segment Information - Schedule of Segment Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Segment Reporting Information [Line Items] | ||||
Revenue | [1] | $ 523,940 | $ 411,162 | $ 421,711 |
Adjusted EBITDA | 89,354 | 48,585 | (39,067) | |
Depreciation and amortization | (13,826) | (12,924) | (14,439) | |
Stock-based compensation | (4,289) | (574) | (861) | |
Operating income / (loss) | 71,239 | 35,087 | (54,367) | |
Financial income | 2,389 | 8,327 | 10,797 | |
Financial expense | [2] | (19,268) | (15,079) | (23,702) |
Income / (loss) before income tax | 54,360 | 28,335 | (67,272) | |
Income tax expense | (11,994) | (10,538) | (18,004) | |
Net income | 42,366 | 17,797 | (85,276) | |
Operating Segments [Member] | Air [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 241,015 | 205,721 | 219,817 | |
Adjusted EBITDA | 58,397 | 27,940 | 8,259 | |
Depreciation and amortization | (1,865) | (4,099) | (6,350) | |
Operating income / (loss) | 56,532 | 23,841 | 1,909 | |
Operating Segments [Member] | Packages, Hotels and Other Travel Products [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 282,925 | 205,441 | 201,894 | |
Adjusted EBITDA | 31,341 | 20,643 | (34,383) | |
Depreciation and amortization | (2,556) | (3,842) | (1,872) | |
Operating income / (loss) | 28,785 | 16,801 | (36,255) | |
Unallocated [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Adjusted EBITDA | (384) | 2 | (12,943) | |
Depreciation and amortization | (9,405) | (4,983) | (6,217) | |
Stock-based compensation | (4,289) | (574) | (861) | |
Operating income / (loss) | $ (14,078) | $ (5,555) | $ (20,021) | |
[1] | Includes $37,000, $27,008 and $22,911 for related party transactions for the years 2017, 2016 and 2015, respectively. See note 14. | |||
[2] | Includes $8,601, $10,516 and $17,218 for factoring of credit card receivables for the years ended 2017, 2016 and 2015, respectively. |