TCOM - Radical Transparency: A (Positive) Spin On Despegar's Q1 Earnings Call
On May 4th, 2020, Despegar (NYSE:DESP) reported a Q1 loss of $0.22 per share ($0.08 better than the consensus expectation for a -$0.30 loss) on revenues of $76M ($2M below the Street’s wild guess of $78M). Weak results were anticipated due to the coronavirus pandemic lockdown measures and international travel restrictions, rendering the headline earnings number irrelevant. Management chose to devote their time on the earnings call to a discussion of DESP’s liquidity and financial wherewithal to weather the ongoing pandemic and lockdown. Management’s refreshingly honest, though starkly bleak, commentary reinforced