UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549
FORM 6-K
REPORT OF FOREIGN ISSUER
PURSUANT TO RULE 13a-16 OR 15b-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
For the month of August 2018
Commission File Number 001-38209
DESPEGAR.COM, CORP.
(Exact name of registrant as specified in its charter)
British Virgin Islands
 (Jurisdiction of incorporation or organization)
Juana Manso 999
Ciudad Autónoma de Buenos Aires, Argentina C1107CBR
( Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
Form 20-F ____ X ___ Form 40-F _______
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): [ ]
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): [ ]
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes _______ No ___ X ____
If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): Not applicable.

Despegar.com Announces 2Q18 Year-over-Year Growth of 18% in Transactions and 12% in Gross Bookings
BUENOS AIRES, Argentina--(BUSINESS WIRE)--August 16, 2018--Despegar.com, Corp. (NYSE: DESP), (“Despegar” or the “Company”) a leading online travel company in Latin America, today announced unaudited results for the three- and six-month periods ended June 30, 2018. Financial results are expressed in U.S. dollars and are presented in accordance with U.S. generally accepted accounting principles.
Second Quarter 2018 Key Highlights
·	Transactions up 18% year-over-year
·	Gross bookings up 12% year-over-year
·	Revenue up 4% year-over-year
·	Packages, Hotels and Other Travel Products accounted for 59% of total revenue in 2Q18, up 704 basis points from second quarter 2017
·	Mobile transactions up 37% year-over-year, accounting for 33% of total transactions in 2Q18
·	Over 43 million cumulative mobile application downloads as of June 30, 2018, up 32% year-over-year
·	Adjusted EBITDA decreased 9% year-over-year
·	Operating cash flow of $0.3 million in 2Q18, compared to $7.3 million in 2Q17
Message from CEO
Commenting on the Company’s results, Damian Scokin, CEO stated, “ Against a challenging macro backdrop, we reported solid second quarter 2018 results, with gross bookings up 12% year-on-year. Although a good performance, currency volatility in Latin America hurt overall industry demand, and caused a mix-shift from international to domestic travel and impacted FX translation on gross bookings. In this context, we took advantage of our leading market position and financial strength, including lowest cost operating structure, to gain market share at an accelerated pace compared with past quarters. We also grew twice as fast as our main competitors in some markets. Additionally, we continued investing in enhancing customer satisfaction and in technology to provide new products and services for our customers. In the near-term, these actions put pressure on margins, but will drive benefits in the future, further differentiating us from the competition and expanding our market share.”

Mr. Scokin further commented, “With over two decades experience operating in the region, we have the expertise and resources to navigate through various economic cycles and a business model that provides flexibility. We are already well positioned with a large and stable customer base as we continue to see consumers shift their travel expenditures online and to mobile and believe we will be generating improved margins when macro conditions improve. We remain focused on our long-term strategic priorities. To that end, we have made significant progress as higher margin Packages, Hotels and Other Travel Products now account for 59% of revenue, over one-third of transactions are now via mobile and NPS after trip experience scores have improved 400 basis points year over year”.

Operating and Financial Metrics Highlights																	
(In millions, except as noted)																	
 	 	2Q18	 	Pro Forma 2Q17	 	Adj.	 	2Q17	 	% Chg		1H18	 	Pro Forma
1H17	 	% Chg	
Operating metrics														 			
Number of transactions	 	 	2.6	 	 	 	2.2	 	 	–	 	 	 	2.2	 	 	18	%		 	5.1	 	 	 	4.3	 	 	18	%	
Gross bookings	 	$	1,184.4	 	 	$	1,061.0	 	 	–	 	 	$	1,061.0	 	 	12	%		$	2,415.9	 	 	$	2,080.1	 	 	16	%	
Mix of mobile transactions	 	 	33	%	 	 	28	%	 	–	 	 	 	28	%	 	 		 	32	%	 	 	27	%	 	-	 	
Financial metrics	 	 	 	 	 	 	 	 	 	 		 	 	 	 	 	
Revenues	 	$	128.3	 	 	$	123.4	 	 	($0.1	)	 	$	123.5	 	 	4	%		$	276.8	 	 	$	245.1	 	 	13	%	
Air	 	 	53.2	 	 	 	59.9	 	 	(1.1	)	 	 	60.9	 	 	(11	%)		$	114.1	 	 	 	116.6	 	 	(2	%)	
Packages, Hotels & Other Travel Products	 	 	75.1	 	 	 	63.6	 	 	1.0	 	 	 	62.6	 	 	18	%		$	162.8	 	 	 	128.4	 	 	27	%	
Net income	 	 	1.2	 	 	 	2.9	 	 	(0.5	)	 	 	3.4	 	 	(57	%)		 	17.6	 	 	 	15.0	 	 	17	%	
Adjusted EBITDA	 	 	12.0	 	 	 	13.1	 	 	(0.1	)	 	 	13.2	 	 	(9	%)		 	39.3	 	 	 	37.8	 	 	4	%	
Note: For comparison purposes, the Company has presented Pro-forma 2Q17 figures which include the adjustments required under the new
revenue recognition standards adopted since the start of 2018. The YoY % change calculated against the adjusted figures.	
 	
Overview of Second Quarter 2018 Results
Operating Metrics
Transactions rose 18% to 2.6 million in 2Q18 from 2.2 million in the year-ago period, while gross bookings increased 12% to $1,184.4 million in 2Q18, from $1,061.0 million in the second quarter of 2017. Across key markets in which it operates, particularly Argentina, Despegar faced slower travel market growth and currency depreciation. Against this backdrop, the Company was focused on leveraging its strong competitive position and lowest cost operating structure to accelerate market share gains at a faster pace than historical, in the $100 billion Latin American travel market, and improve customer satisfaction levels, which contributed to higher transaction growth.

The Company’s business is organized into two segments: (1) Air, which consists of the sale of airline tickets, and (2) Packages, Hotels and Other Travel Products, which consists of travel packages (the bundling of two or more products together which can include airline tickets and hotel rooms), as well as stand-alone sales of accommodations (including hotels and vacation rentals), car rentals, bus tickets, cruise tickets, travel insurance and destination services.
Despegar’s focus on driving growth in the higher-margin Packages, Hotels and Other Travel Products segment maintains momentum, reaching 42% of transactions up from 40% in 2Q17. The average selling price (“ASP”) in 2Q18 decreased 5% year-over-year to $454 per transaction, mainly reflecting a mix-shift from international to domestic travel in Argentina impacted by the challenging economic environment, along with the effect from overall local currency depreciation, specifically, 30% in Argentina and 15% in Brazil. This more than offset the continued mix-shift to higher ASP packages and higher supplier local currency price increases within similar product segments.
Brazil remains the largest market by transactions for Despegar, accounting for 42% of total transactions and grew 21% year-over-year in 2Q18. Transactions increased 11% year-over-year in Argentina and 15% year-over-year in Mexico in the second quarter of 2018.
Despegar continues to make solid progress in driving mobile transaction growth. During 2Q18, the number of transactions via mobile rose 37% year-over-year, with 33% of all transactions completed on the mobile platform, up from 28% in 2Q17.

Key Operating Metrics											
(In millions, except as noted)											
		2Q18		2Q17		% Chg	
 	 	$	 	% of total	 	$	 	% of total	 		
Gross Bookings	 	$	1,184.4	 	 	 	$	1,061.0	 	 	 	12	%	
Average selling price (ASP) (in $)	 	$	454	 	 	 	$	480	 	 	 	(5	%)	
Number of Transactions by Segment & Total	 	 	 	 	 	 	 	 	 	 	
Air	 	 	1.5	 	58	%	 	 	1.3	 	60	%	 	14	%	
Packages, Hotels & Other Travel Products	 	 	1.1	 	42	%	 	 	0.9	 	40	%	 	23	%	
Total Number of Transactions	 	 	2.6	 	100	%	 	 	2.2	 	100	%	 	18	%	
										 	
Revenue
Total revenue increased 4% to $128.3 million in 2Q18, from pro forma $123.4 million in the year-ago period, reflecting solid growth in Packages, Hotels & Other Travel Products. Total revenue margin declined 80 basis points year-on-year, to 10.8% in 2Q18, due to reductions in customer fees and discounts in package transactions to gain market share during the current weaker demand environment and mix-shift from international to lower-margin domestic destinations.

·	Air segment revenue was $53.2 million in 2Q18, decreasing 11% year-over-year from pro forma $59.9 million in the year-ago period. Transactions were up 14% year-on-year resulting in market share gains despite increased competition, particularly from the supplier direct channel, and slower overall market growth. Higher volumes were offset by a 22% decrease in average revenue per transaction resulting from the Company’s strategy of lowering air customer fees in several markets to drive market share gains and provide additional cross-selling opportunities, along with a mix-shift from international to lower-margin domestic travel driven by local currency depreciation, particularly in Argentina.
·	Packages, Hotels & Other Travel Products segment revenue rose 18% in the second quarter of 2018 in 2Q18 to $75.1 million, from pro forma $63.6 million in 2Q17, driven by a 23% increase in the number of transactions, partially offset by a 4% decline in revenue per transaction resulting mainly from the slower macro backdrop and currency depreciation along with price discounts. The Packages, Hotels and Other Travel Products segment accounted for 59% of total revenue in 2Q18, up from 52% in the same period of the prior year.

Revenue Breakdown 1																	
																 	
		2Q18		Pro Forma 2Q17		Adj.		2Q17		% Chg 2	
 	 	$	 	% of total	 	$	 	% of total	 	$	 	$	 	% of total	 		
Revenue by business segment (in $Ms)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Air	 	 	53.2	 	 	41	%	 	 	59.9	 	 	48	%	 	(1.1	)	 	 	60.9	 	 	49	%	 	(11	%)	
Packages, Hotels & Other Travel Products	 	 	75.1	 	 	59	%	 	 	63.6	 	 	52	%	 	1.0	 	 	 	62.6	 	 	51	%	 	18	%	
Total revenue		$	128.3			100	%		$	123.4			100	%		($0.1	)		$	123.5			100	%		4	%	
Revenue per transaction (in $)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Air	 	 	35.1	 	 	 	 	 	45.2	 	 	 	 	(0.8	)	 	 	46.0	 	 	 	 	(22	%)	
Packages, Hotels & Other Travel Products	 	 	68.6	 	 	 	 	 	71.7	 	 	 	 	1.1	 	 	 	70.6	 	 	 	 	(4	%)	
Total revenue per transaction	 	$	49.2	 	 	 	 	$	55.8	 	 	 	 	($0.0	)	 	$	55.9	 	 	 	 	(12	%)	
																 	
Total revenue margin	 	 	10.8	%	 	 	 	 	11.6	%	 	 	 	 	 	 	11.6	%	 	 	 	(80) bps	
1. Net of sales tax																	
2. For comparison purposes, the Company has presented Pro-forma 2Q17 figures which include the adjustments required under the new revenue recognition
standards adopted since the start of 2018. The YoY % change calculated against the adjusted figures.	

Cost of Revenue and Gross Profit
Cost of revenue , which mainly consists of credit card processing fees, bank fees related to customer financing installment plans offered and fulfillment center expenses, was $42.1 million in 2Q18 compared to $35.1 million in 2Q17, an increase of 20%. As a percentage of revenue, cost of revenue rose by 438 basis points to 32.8% from 28.4% in the comparable period a year ago. The increase in cost of revenue was primarily driven by a higher mix of transactions completed on an installment plan, a marketing tool the Company uses to drive conversion, along with higher installment plan costs from the sharp interest rate hike primarily in Argentina. Incremental costs to operate the fulfillment center reflecting the Company’s increased focus on customer service also contributed to higher cost of revenues, partially offset by continued reduction in fraud and efficiency improvements in the fulfillment center.
Additionally, credit card merchant fee expense increased reflecting a higher mix of transactions where the Company was the credit card merchant of record rather than airline suppliers which allowed Despegar to offer more attractive customer financing options.
Gross Profit decreased 2% year-on-year to $86.2 million in 2Q18, reflecting lower revenue margins as a result of the Company’s initiatives to accelerate market share growth and investments in support of improving customer satisfaction levels.

Cost of Revenue and Gross Profit											
(In millions, except as noted)											
 	 	2Q18	 	Pro Forma
2Q17	 	Adj.	 	2Q17	 	% Chg 1	
Revenue	 	$	128.3	 	 	$	123.4	 	 	($0.1	)	 	$	123.5	 	 	4	%	
Cost of Revenue	 	$	42.1	 	 	$	35.1	 	 	 	 	$	35.1	 	 	20	%	
% of revenues	 	 	32.8	%	 	 	28.4	%	 	 	 	 	28.4	%	 	+438 bps	
Gross Profit	 	 	86.2	 	 	 	88.3	 	 	(0.1	)	 	 	88.4	 	 	(2	%)	
Gross Profit Margin	 	 	67.2	%	 	 	71.6	%	 	 	 	 	71.6	%	 	(438) bps	
1. For comparison purposes, the Company has presented Pro-forma 2Q17 figures which include the adjustments required under the new revenue
recognition standards adopted since the start of 2018. The YoY % change calculated against the adjusted figures.	
 	
Operating Expenses
Total operating expenses in 2Q18 decreased 0.5% to $79.2 million, from $79.6 million in 2Q17 mainly benefiting from the regional currency depreciation, principally in Argentina which accounts for approximately half of total operating expenses. As a percentage of revenue, total operating expenses declined 274 basis points to 61.7%, from 64.5% in the comparable period a year ago. Year-over-year declines of 120 basis points in selling and marketing as a percentage of revenue and 184 basis points in general and administrative, more than offset a 31 basis point increase in technology and product development expenses.

·	Selling and marketing expenses of $43.5 million were basically flat as compared to 2Q17. As a percentage of revenue, selling and marketing expenses in 2Q18 decreased to 33.9% from 35.1% in 2Q17, benefiting from the regional currency depreciation, a lower level of marketing investment and improving efficiencies.
·	General and administrative (G&A) expenses declined 9% year-over-year to $17.0 million, from $18.6 million in the second quarter of 2017, driven by currency depreciation in Argentina during the period and reduced bonus expense. Consequently, G&A as a percentage of revenues declined 184 basis points to 13.2% in 2Q18 from 15.1% in 2Q17.
·	Technology and product development expenses increased 6% year-over-year to $18.7 million in 2Q18, compared to $17.6 million in 2Q17 reflecting increased technology headcount partially offset by lower expenses from currency depreciation in Argentina where the majority of headcount is based. As a percentage of revenue, technology and product expenses increased by 31 basis points year-over-year to 14.6% as the Company continues to invest in its technology and product development platform.

Operating Expenses									
(In millions, except as noted)									
 	 	2Q18	 	Pro Forma
2Q17	 	2Q17	 	% Chg 1	
Selling and marketing	 	$	43.5	 	 	$	43.3	 	 	$	43.3	 	 	0.4	%	
% of revenues	 	 	33.9	%	 	 	35.1	%	 	 	35.1	%	 	-120 bps	
General and administrative	 	$	17.0	 	 	$	18.6	 	 	$	18.6	 	 	(9	%)	
% of revenues	 	 	13.2	%	 	 	15.1	%	 	 	15.1	%	 	(184) bps	
Technology and product development	 	$	18.7	 	 	$	17.6	 	 	$	17.6	 	 	6	%	
% of revenues	 	 	14.6	%	 	 	14.3	%	 	 	14.3	%	 	+31 bps	
Total operating expenses	 	$	79.2	 	 	$	79.6	 	 	$	79.6	 	 	(0.5	%)	
Total operating expenses as a % of revenues	 	 	61.7	%	 	 	64.5	%	 	 	64.4	%	 	(274) bps	
1. For comparison purposes, the Company has presented Pro-forma 2Q17 figures which include the adjustments required under the new revenue
recognition standards adopted since the start of 2018. The YoY % change calculated against the adjusted figures.	
 	
Financial Income/Expenses
In 2Q18, the Company reported a net financial expense of $5.3 million compared to a net financial expense of $1.6 million in 2Q17. The increase was mainly due to higher foreign exchange losses from currency fluctuations across the region and higher credit card receivable factoring expenses in Brazil as a result of the increase in gross bookings. This was partially offset by higher interest income from invested cash balances.
Income Taxes
The Company reported an income tax expense of $0.5 million in 2Q18, compared to $3.8 million in 2Q17. The effective tax rate in 2Q18 was 28%, compared to 59% in 2Q17. The lower rate in 2Q18 is primarily driven by the full recognition of deferred tax assets in certain subsidiaries that were reduced by a valuation allowance in previous years.

Adjusted EBITDA & Margin
Adjusted EBITDA was $12.0 million in 2Q18 compared to pro-forma $13.1 million in the comparable year-ago period, with the margin contracting 128 basis points to 9.3% from 10.6% in the prior year period. The reduction in margin is primarily related to lower customer fees in air and price discounts in packages, together with higher installment expense to support top line growth.

Adjusted EBITDA Reconciliation & Adjusted EBITDA Margin									
(In millions, except as noted)	 										
 	 	2Q18	 	Pro Forma
2Q17	 	Adj.	 	2Q17	 	% Chg 1	
Net income/ (loss)	 	$	1.2	 	 	$	2.9	 	 	($0.5	)	 	$	3.4	 	 	(57	%)	
Add (deduct):	 	 	 	 	 	 	 	 	 	 	
Financial expense, net	 	 	5.3	 	 	 	1.6	 	 	 	 	 	1.6	 	 	228	%	
Income tax expense	 	 	0.5	 	 	 	4.3	 	 	0.4	 	 	 	3.8	 	 	(89	%)	
Depreciation expense	 	 	1.5	 	 	 	1.4	 	 	-	 	 	 	1.4	 	 	8	%	
Amortization of intangible assets	 	 	2.2	 	 	 	2.0	 	 	-	 	 	 	2.0	 	 	9	%	
Share-based compensation expense	 	 	1.3	 	 	 	0.9	 	 	-	 	 	 	0.9	 	 	36	%	
Adjusted EBITDA		$	12.0			$	13.1			($0.1	)		$	13.2			(9	%)	
Adjusted EBITDA Margin	 	 	9.3	%	 	 	10.6	%	 	 	 	 	10.7	%	 	(128) bps	
1. For comparison purposes, the Company has presented Pro-forma 2Q17 figures which include the adjustments required under the new revenue
recognition standards adopted since the start of 2018. The YoY % change calculated against the adjusted figures.	
 	
Balance Sheet and Cash Flow
Unrestricted cash and cash equivalents at June 30, 2018 was $390.7 million, compared to $371.0 million at December 31, 2017, reflecting cash flow generated during the six-months ended June 30, 2018.
Despegar generated positive cash flow from operating activities of $0.3 million compared to $7.3 million in 2Q17. This reduction was mainly due to an increase in VAT credits, other tax credits related to a technology incentive program and a reduction in travel supplier payables.
During 2Q18, the Company’s capital expenditures were $7.8 million compared to $5.4 million during 2Q17. Funds were primarily used for technology hardware and office expansion.

Subsequent Events
Board of Directors Approves Share Repurchase Program
On August 9, 2018, the Company’s board of directors approved a share repurchase program that enables the Company to repurchase up to $75 million of its shares effective immediately and expiring in one year. Share repurchases may be made through a variety of methods, including in the open market, a 10b5-1 program and through privately negotiated transactions. The timing and number of shares repurchased will depend on a variety of factors, including price, general business and market conditions, and alternative investment opportunities.
The Company is not obligated to acquire any specific number of shares and the repurchase program may be suspended, terminated or modified at any time for any reason.
Files Registration Statement
We expect to file this week a registration statement with the Securities and Exchange Commission to register shares held by affiliates of Tiger Global. The primary purpose of this registration statement is to enable Tiger Global to distribute its shares to its limited partners as one of its funds nears its end of life. We expect a majority of the shares being registered will be distributed to Tiger’s LPs.
Argentina Considered Hyperinflationary Market
As of July 1, 2018, as a result of a three-year cumulative inflation rate greater than 100% and following the guidance of ASC 830 the U.S. dollar became the functional currency of the Company’s Argentine subsidiary. This change in functional currency is to be recognized prospectively in the financial statements. As a result, the impact of any change in currency exchange rate on the Company’s balance sheet accounts will be reported in the Net financial income/(expense) line of the income statement instead of Other comprehensive income.
2Q18 Earnings Conference Call

When:		8:00 a.m. Eastern time, August 16, 2018	
		 	
Who:		Mr. Damián Scokin, Chief Executive Officer	
		Mr. Michael Doyle, Chief Financial Officer	
		Mr. Javier Kelly, Investor Relations	
		 	
Dial-in:		1-866-270-1533 (U.S. domestic); 1-412-317-0797 (international)	
		 	
Webcast:		CLICK HERE	

Use of Non-GAAP Financial Measures
This announcement includes certain references to Adjusted EBITDA and non-GAAP financial measures. The Company defines:
Adjusted EBITDA is defined as net income/(loss) exclusive of financial income/(expense), income tax, depreciation, amortization and share-based compensation expense.
Free cash flow is defined as cash flow from operating activities less capital expenditures including capitalized software.
Adjusted EBITDA and Free cash flow are not measures recognized under U.S. GAAP. Accordingly, readers are cautioned not to place undue reliance on this information and should note that these measures as calculated by the Company, may differ materially from similarly titled measures reported by other companies, including its competitors. Adjusted EBITDA margin refers to Adjusted EBITDA as defined above divided by revenue.
Definitions and concepts
Average Selling Price (ASP): reflects gross bookings divided by the total number of transactions.
Gross Bookings: Gross bookings is an operating measure that represents the aggregate purchase price of all travel products booked by the Company’s customers through its platform during a given period. The Company generates substantially all of its revenue from commissions and other incentive payments paid by its suppliers and service fees paid by its customers for transactions through its platform, and, as a result, it monitors gross bookings as an important indicator of its ability to generate revenue.
Number of Transactions: The number of transactions for a period is an operating measure that represents the total number of customer orders completed on our platform in such period. The number of transactions is an important metric because it is an indicator of the level of engagement with the Company’s customers and the scale of its business from period to period but, unlike gross bookings, the number of transactions is independent of the average selling price of each transaction, which can be influenced by fluctuations in currency exchange rates among other factors.
Revenue: The Company reports its revenue on a net basis, deducting cancellations and amounts that it collects as sales taxes. Despegar derives substantially all of its revenue from commissions and other incentive payments paid by its suppliers and service fees paid by its customers for transactions through its platform. To a lesser extent, Despegar also derives revenue from the sale of third-party advertisements on its websites and from certain suppliers when their brands appears in the Company advertisements in mass media.

Revenue Margin: calculated as revenue divided by gross bookings.
Seasonality : Despegar’s financial results experience fluctuations due to seasonal variations in demand for travel services. Bookings for vacation and leisure travel are generally higher during the fourth quarter, although to date and prior to the revenue recognition change beginning in the second quarter of 2018, the Company has recognized more revenue associated with those bookings in the second quarter of each year. Latin American travelers, particularly leisure travelers, who are Despegar’s primary customers, tend to travel most frequently at the end of the fourth quarter and during the second quarter of each year.
About Despegar.com
Despegar is the leading online travel company in Latin America. Operating across 20 countries, Despegar provides a broad suite of travel products, including airline tickets, travel packages, hotel bookings and other travel products to over 17 million customers. With a mission “to make travel possible”, the Company’s one-stop marketplace enables millions of users to find, compare, plan and easily purchase travel services and products. Through Despegar’s websites and leading mobile apps, it offers products from over 300 airlines, more than 450,000 accommodation options, as well as approximately 1,000 car rental agencies and approximately 240 destination services suppliers with more than 7,700 activities throughout Latin America. The Company owns and operates two well-recognized brands, Despegar, its global brand, and Decolar, its Brazilian brand. Despegar is traded on the New York Stock Exchange (NYSE: DESP). For more information, please visit  www.despegar.com .
Forward-Looking Statements
This press release may include forward-looking statements. We base these forward-looking statements on our current beliefs, expectations and projections about future events and financial trends affecting our business and our market. Many important factors could cause our actual results to differ substantially from those anticipated in our forward-looking statements. Forward-looking statements are not guarantees of future performance. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update publicly or to revise any forward-looking statements.

-- Financial Tables Follow --

Unaudited Consolidated Statements of Operations for the three and six - month periods ended June
30, 2018 (in thousands U.S. dollars, except as noted)	
																 	
 	 	2Q18	 	Pro Forma
2Q17	 	Adj.	 	2Q17	 	% Chg 2		1H18	 	Pro Forma
1H17	 	% Chg	
Revenue	 	$	128,259	 	 	$	123,403	 	 	($59	)	 	$	123,462	 	 	4	%		$	276,852	 	 	$	245,082	 	 	13	%	
Cost of revenue	 	 	42,088	 	 	 	35,087	 	 	 	 	 	35,087	 	 	20	%		 	85,734	 	 	 	66,227	 	 	29	%	
Gross profit	 	 	86,171	 	 	 	88,316	 	 	(59	)	 	 	88,375	 	 	(2	%)		 	191,118	 	 	 	178,855	 	 	7	%	
Operating expenses																	
Selling and marketing	 	 	43,450	 	 	 	43,289	 	 	 	 	 	43,289	 	 	0	%		 	89,860	 	 	 	78,835	 	 	14	%	
General and administrative	 	 	16,986	 	 	 	18,618	 	 	 	 	 	18,618	 	 	(9	%)		 	32,874	 	 	 	37,487	 	 	(12	%)	
Technology and product development	 	 	18,732	 	 	 	17,644	 	 	 	 	 	17,644	 	 	6	%		 	37,957	 	 	 	33,052	 	 	15	%	
Total operating expenses			79,168				79,551						79,551			(0	%)			160,691				149,374			8	%	
 	 	 	 	 	 	 	 	 	 	 		 	 	 	 	 	
Operating income	 	 	7,003	 	 	 	8,765	 	 	(59	)	 	 	8,824	 	 	(20	%)		 	30,427	 	 	 	29,481	 	 	3	%	
Net financial income (expense)	 	 	(5,292	)	 	 	(1,611	)	 	 	 	 	(1,611	)	 	228	%		 	(8,123	)	 	 	(7,767	)	 	5	%	
Net income before income taxes	 	 	1,711	 	 	 	7,154	 	 	(59	)	 	 	7,213	 	 	(76	%)		 	22,304	 	 	 	21,714	 	 	3	%	
Income tax expense	 	 	471	 	 	 	4,254	 	 	448	 	 	 	3,806	 	 	(89	%)		 	4,706	 	 	 	6,672	 	 	(29	%)	
Net income	 	 	1,240	 	 	 	2,900	 	 	(507	)	 	 	3,407	 	 	(57	%)		 	17,598	 	 	 	15,041	 	 	17	%	
																 	
Basic EPS (in $)	 	 	0.02	 	 	 	0.05	 	 	 	 	 	0.06	 	 	(64	%)		 	0.25	 	 	 	0.26	 	 	(1	%)	
Diluted EPS (in $)	 	 	0.02	 	 	 	0.05	 	 	 	 	 	0.06	 	 	(64	%)		 	0.25	 	 	 	0.26	 	 	(1	%)	
																 	
Basic shares weighted average 1	 	 	69,179	 	 	 	58,518	 	 	 	 	 	58,518	 	 	 		 	69,142	 	 	 	58,518	 	 	 	
Diluted shares weighted average 1	 	 	69,189	 	 	 	58,609	 	 	 	 	 	58,609	 	 	 		 	69,152	 	 	 	58,609	 	 	 	
As a % of Revenues	 	 	 	 	 	 	 	 	 	 		 	 	 	 	 	
Cost of revenue	 	 	32.8	%	 	 	28.4	%	 	 	 	 	28.4	%	 	+438 bps		 	31.0	%	 	 	27.0	%	 	+395 bps	
Gross profit	 	 	67.2	%	 	 	71.6	%	 	 	 	 	71.6	%	 	(438) bps		 	69.0	%	 	 	73.0	%	 	(395) bps	
Operating expenses	 	 	 	 	 	 	 	 	 	 		 	 	 	 	 	
Selling and marketing	 	 	33.9	%	 	 	35.1	%	 	 	 	 	35.1	%	 	(120) bps		 	32.5	%	 	 	32.2	%	 	+29 bps	
General and administrative	 	 	13.2	%	 	 	15.1	%	 	 	 	 	15.1	%	 	(184) bps		 	11.9	%	 	 	15.3	%	 	(342) bps	
Technology and product development	 	 	14.6	%	 	 	14.3	%	 	 	 	 	14.3	%	 	+31 bps		 	13.7	%	 	 	13.5	%	 	+22 bps	
Total operating expenses	 	 	61.7	%	 	 	64.5	%	 	 	 	 	64.4	%	 	(274) bps		 	58.0	%	 	 	60.9	%	 	(291) bps	
Operating income	 	 	5.5	%	 	 	7.1	%	 	 	 	 	7.1	%	 	(164) bps		 	11.0	%	 	 	12.0	%	 	(104) bps	
Net income before income taxes	 	 	1.3	%	 	 	5.8	%	 	 	 	 	5.8	%	 	(446) bps		 	8.1	%	 	 	8.9	%	 	(80) bps	
Net income	 	 	1.0	%	 	 	2.4	%	 	 	 	 	2.8	%	 	(138) bps		 	6.4	%	 	 	6.1	%	 	+22 bps	
1. In thousands																	
2. For comparison purposes, the Company has presented Pro-forma 2Q17 figures which include the adjustments required under the new revenue recognition
standards adopted since the start of 2018. The YoY % change calculated against the adjusted figures.	

 	
Key Financial & Operating Trended Metrics (in thousands U.S. dollars, except as noted)	
 	
	 	Pro Forma	 		 		
 	 	1Q17	 	2Q17	 	3Q17	 	4Q17		1Q18	 	2Q18	
FINANCIAL RESULTS			 		 		 						
Revenue	 	$	124,999	 	 	$	123,462	 	 	$	131,468	 	 	$	144,011	 		$	148,593	 	 	$	128,259	 	
Revenue Recognition Adjustment	 	 	($3,321	)	 	 	($59	)	 	$	1,310	 	 	$	7,578	 		 	 	 	
Cost of revenue	 	 	31,140	 	 	 	35,087	 	 	 	37,869	 	 	 	38,383	 		 	43,646	 	 	 	42,088	 	
Gross profit			90,538				88,316				94,909				113,206				104,947				86,171		
Operating expenses													
Selling and marketing	 	 	35,546	 	 	 	43,289	 	 	 	41,097	 	 	 	46,356	 		 	46,410	 	 	 	43,450	 	
General and administrative	 	 	18,869	 	 	 	18,618	 	 	 	15,318	 	 	 	19,821	 		 	15,888	 	 	 	16,986	 	
Technology and product development	 	 	15,408	 	 	 	17,644	 	 	 	18,907	 	 	 	19,349	 		 	19,225	 	 	 	18,732	 	
Total operating expenses	 	 	69,823	 	 	 	79,551	 	 	 	75,322	 	 	 	85,526	 		 	81,523	 	 	 	79,168	 	
												 	
Operating income	 	 	20,715	 	 	 	8,765	 	 	 	19,587	 	 	 	27,680	 	 	 	23,424	 	 	 	7,003	 	
Net financial income (expense)	 	 	(6,156	)	 	 	(1,611	)	 	 	(2,880	)	 	 	(6,232	)		 	(2,831	)	 	 	(5,292	)	
Net income before income taxes	 	 	14,559	 	 	 	7,154	 	 	 	16,707	 	 	 	21,448	 		 	20,593	 	 	 	1,711	 	
Adj. Net Income tax expense	 	 	2,418	 	 	 	4,254	 	 	 	4,373	 	 	 	2,617	 		 	4,235	 	 	 	471	 	
Income tax expense	 	 	2,486	 	 	 	3,806	 	 	 	4,190	 	 	 	1,512	 		 	4,235	 	 	 	471	 	
Adjustment	 	$	68	 	 	 	($448	)	 	 	($183	)	 	 	($1,105	)		 	 	 	
Net income /(loss)	 	 	12,141	 	 	 	2,900	 	 	 	12,334	 	 	 	18,831	 		 	16,358	 	 	 	1,240	 	
												 	
KEY METRICS													
Operational													
Gross bookings	 	$	1,019,102	 	 	$	1,061,026	 	 	$	1,116,022	 	 	$	1,258,398	 		$	1,231,497	 	 	$	1,184,355	 	
- YoY growth	 	 	54	%	 	 	40	%	 	 	32	%	 	 	26	%		 	21	%	 	 	12	%	
Number of transactions	 	 	2,129	 	 	 	2,210	 	 	 	2,298	 	 	 	2,419	 		 	2,514	 	 	 	2,607	 	
- YoY growth	 	 	30	%	 	 	30	%	 	 	25	%	 	 	19	%		 	18	%	 	 	18	%	
Air	 	 	1,246	 	 	 	1,324	 	 	 	1,328	 	 	 	1,386	 		 	1,362	 	 	 	1,513	 	
- YoY growth	 	 	34	%	 	 	31	%	 	 	22	%	 	 	13	%		 	9	%	 	 	14	%	
Packages, Hotels & Other Travel Products	 	 	883	 	 	 	886	 	 	 	970	 	 	 	1,033	 		 	1,152	 	 	 	1,094	 	
- YoY growth	 	 	25	%	 	 	27	%	 	 	29	%	 	 	28	%		 	30	%	 	 	23	%	
Revenue per transaction	 	$	57.2	 	 	$	55.8	 	 	$	57.8	 	 	$	62.7	 		$	59.1	 	 	$	49.2	 	
- YoY growth	 	 	 	 	 	 	 	 		 	3	%	 	 	(12	%)	
Air	 	$	45.6	 	 	$	45.2	 	 	$	44.3	 	 	$	47.7	 		$	44.7	 	 	$	35.1	 	
- YoY growth	 	 	 	 	 	 	 	 		 	(2	%)	 	 	(22	%)	
Packages, Hotels & Other Travel Products	 	$	73.5	 	 	$	71.7	 	 	$	76.2	 	 	$	82.7	 		$	76.2	 	 	$	68.6	 	
- YoY growth	 	 	 	 	 	 	 	 		 	4	%	 	 	(4	%)	
ASPs	 	$	479	 	 	$	480	 	 	$	486	 	 	$	520	 		$	490	 	 	$	454	 	
- YoY growth	 	 	18	%	 	 	8	%	 	 	6	%	 	 	6	%		 	2	%	 	 	(5	%)	

Net income/ (loss)	 	$	12,141	 	 	$	2,900	 	 	$	12,334	 	 	$	18,831	 		$	16,358	 	 	$	1,240	 	
Add (deduct):	 	 	 	 	 	 	 	 		 	 	 	
Financial expense, net	 	 	6,156	 	 	 	1,611	 	 	 	2,880	 	 	 	6,232	 		 	2,831	 	 	 	5,292	 	
Income tax expense	 	 	2,418	 	 	 	4,254	 	 	 	4,373	 	 	 	2,617	 		 	4,235	 	 	 	471	 	
Depreciation expense	 	 	1,343	 	 	 	1,362	 	 	 	1,337	 	 	 	1,033	 		 	859	 	 	 	1,475	 	
Amortization of intangible assets	 	 	1,517	 	 	 	2,039	 	 	 	2,454	 	 	 	2,741	 		 	2,018	 	 	 	2,228	 	
Share-based compensation expense	 	 	1,176	 	 	 	930	 	 	 	959	 	 	 	1,224	 		 	983	 	 	 	1,266	 	
Adjusted EBITDA	 	$	24,751	 	 	$	13,096	 	 	$	24,337	 	 	$	32,678	 		$	27,284	 	 	$	11,972	 	

 	
Unaudited Consolidated Balance Sheets as of June 30, 2018	
(in thousands U.S. dollars, except as noted)	
	 	 	 	 	
		As of June 30, 2018		As of December 31, 2017	
ASSETS	 	 		 	
Current assets	 	 		 	
Cash and cash equivalents	 	$	390,716	 		$	371,013	 	
Restricted cash and cash equivalents	 	$	12,790	 		$	29,764	 	
Accounts receivable, net of allowances	 	$	195,472	 		$	198,273	 	
Related party receivable	 	 	6,004	 		 	5,253	 	
Other current assets and prepaid expenses	 	 	42,739	 		 	29,405	 	
Total current assets	 	 	647,721	 		 	633,708	 	
Non-current assets	 	 		 	
Other Assets	 	 	4,789	 		 	4,658	 	
Restricted cash and cash equivalents	 	 	10,000	 		 	10,000	 	
Property and equipment net	 	 	17,221	 		 	16,171	 	
Intangible assets, net	 	 	37,261	 		 	35,424	 	
Goodwill	 	 	36,108	 		 	38,733	 	
Total non-current assets	 	 	105,379	 		 	104,986	 	
TOTAL ASSETS	 	 	753,100	 		 	738,694	 	
LIABILITIES AND SHAREHOLDERS’ DEFICIT	 	 		 	
Current liabilities	 	 		 	
Accounts payable and accrued expenses	 	 	45,549	 		 	45,609	 	
Travel suppliers payable	 	 	153,961	 		 	174,817	 	
Related party payable	 	 	94,022	 		 	84,364	 	
Loans and other financial liabilities	 	 	23,479	 		 	8,220	 	
Deferred Revenue	 	 	1,178	 		 	30,113	 	
Other liabilities	 	 	33,336	 		 	39,751	 	
Contingent liabilities	 	 	4,061	 		 	4,732	 	
Total current liabilities	 	 	355,586	 		 	387,606	 	
Non-current liabilities	 	 		 	
Other liabilities	 	 	2,045	 		 	1,015	 	
Contingent liabilities	 	 	2,704	 		 	7,115	 	
Related party liability	 	 	125,000	 		 	125,000	 	
Total non-current liabilities	 	 	129,749	 		 	133,130	 	
TOTAL LIABILITIES	 	 	485,335	 		 	520,736	 	
				 	
SHAREHOLDERS’ EQUITY (DEFICIT)	 	 		 	
Common stock	 	 	253,535	 		 	253,535	 	
Additional paid-in capital	 	 	318,693	 		 	316,444	 	
Other reserves	 	 	(728	)		 	(728	)	
Accumulated other comprehensive income	 	 	3,681	 		 	16,323	 	
Accumulated losses	 	 	(307,416	)		 	(367,616	)	
Total Shareholders' Equity Attributable / (Deficit) to Despegar.com Corp	 	 	267,765	 		 	217,958	 	
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	 	 	753,100	 		 	738,694	 	

 	
 	
Unaudited Statements of Cash Flows for the three and six-month period ended June 30, 2018 and 2017	
 (in thousands U.S. dollars, except as noted)	
	 		 		 		 		
		3 months ended June 30,		6 months ended June 30,	
 	 	2018		2017	 	2018		2017	
Cash flows from operating activities	 	 	 	 	 	 	 	 	
Net income	 	$	1,240	 	 	$	3,407	 	 	$	17,598	 	 	$	18,801	 	
Adjustments to reconcile net income to net cash flow from operating activities	 	 	 	 	 	 	 	 	
Unrealized foreign currency translation losses	 	 	861	 	 	 	28	 	 	 	1,228	 	 	 	686	 	
Depreciation expense	 	 	1,475	 	 	 	1,362	 	 	 	2,334	 	 	 	2,705	 	
Amortization of intangible assets	 	 	2,228	 	 	 	2,039	 	 	 	4,246	 	 	 	3,556	 	
Stock based compensation expense	 	 	1,266	 	 	 	930	 	 	 	2,249	 	 	 	2,106	 	
Interest and penalties	 	 	(257	)	 	 	4	 	 	 	–	 	 	 	454	 	
Income taxes	 	 	142	 	 	 	1,623	 	 	 	3,007	 	 	 	2,795	 	
Allowance for doubtful accounts	 	 	(330	)	 	 	175	 	 	 	313	 	 	 	743	 	
Provision / (recovery) for contingencies	 	 	609	 	 	 	302	 	 	 	1,124	 	 	 	779	 	
Changes in assets and liabilities, net of non-cash transactions	 	 	 	 	 	 	 	 	
(Increase) / Decrease in accounts receivable, net of allowances	 	 	179	 	 	 	(27,399	)	 	 	(17,588	)	 	 	(40,544	)	
(Increase) / Decrease in related party receivables	 	 	68	 	 	 	(122	)	 	 	(757	)	 	 	(1,386	)	
(Increase) / Decrease in other assets and prepaid expenses	 	 	(16,871	)	 	 	(2,143	)	 	 	(27,191	)	 	 	430	 	
Increase / (Decrease) in accounts payable and accrued expenses	 	 	(1,970	)		 	5,523	 	 	 	7,627	 	 	 	13,621	 	
Increase / (Decrease) in travel suppliers payable	 	 	5,427	 	 	 	20,482	 	 	 	9,461	 	 	 	14,251	 	
Increase / (Decrease) in other liabilities	 	 	7,134	 	 	 	3,534	 	 	 	2,507	 	 	 	2,528	 	
Increase / (Decrease) in contingencies	 	 	(3,780	)	 	 	(152	)	 	 	(4,383	)	 	 	(637	)	
Increase / (Decrease) in related party liabilities	 	 	3,688	 		 	(1,864	)	 	 	14,230	 	 	 	10,208	 	
Increase / (Decrease) in deferred revenue	 	 	(818	)	 	 	(434	)	 	 	(1,480	)	 	 	(5,815	)	
Net cash flows provided by / (used in) operating activities	 	 	291	 	 	 	7,295	 	 	 	14,525	 	 	 	25,281	 	
Cash flows from investing activities	 	 	 	 	 	 	 	 	
Payments for short-term investments	 	 	–	 	 	 	(238	)	 	 	–	 	 	 	(238	)	
Acquisition of property and equipment	 	 	(3,851	)	 	 	(1,970	)	 	 	(7,264	)	 	 	(4,122	)	
Increase of intangible assets including internal-use software and
website development	 	 	(3,987	)	 	 	(3,381	)	 	 	(6,632	)	 	 	(6,157	)	
Net cash (used in) /provided by investing activities	 	 	(7,838	)	 	 	(5,589	)	 	 	(13,896	)	 	 	(10,517	)	
Cash flows from financing activities	 	 	 	 	 	 	 	 	
Increase / (Decrease) in loans and other financial liabilities	 	 	9,357	 	 	 	5,318	 	 	 	16,376	 	 	 	6,676	 	
Net cash (used in) / provided by financing activities	 	 	9,357	 	 	 	5,318	 	 	 	16,376	 	 	 	6,676	 	
Effect of exchange rate changes on cash, cash equivalents and
restricted cash	 	 	(13,653	)	 	 	(556	)	 	 	(14,276	)	 	 	689	 	
Net increase / (decrease) in cash, cash equivalents
and restricted cash	 	 	(11,843	)	 	 	6,468	 	 	 	2,729	 	 	 	22,129	 	
Cash, cash equivalents and restricted cash as of beginning of the
period	 	 	425,349	 	 	 	134,826	 	 	 	410,777	 	 	 	119,165	 	
Cash, cash equivalents and restricted cash as of end of the period	 	 	413,506	 	 	 	141,294	 	 	 	413,506	 	 	 	141,294	 	

CONTACT:
Despegar.com, Corp.
Investor Relations
Javier Kelly, (+5411) 5173 3501
investorelations@despegar.com

Signature
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

DESPEGAR.COM, CORP.

By: /s/ Juan Pablo Alvarado
Name: Juan Pablo Alvarado
Title: General Counsel - Secretary

Date: August 16, 2018