Despegar.com, Corp. DESP NYSE

Despegar.com, Corp. (DESP) has shown exceptional revenue growth over the past 3 years, expanding from $323M to $774M (average +35.8%/yr). Net income reached $28M, reflecting exceptional earnings expansion at +61.2%/yr on average. The net profit margin is 3.6%, which is thin. the company was profitable in 2 out of the last 4 years tracked. The gross margin is 73.1% (high), with a +21.7pp trend over the period. With a $2B market cap and MOAT composite score of 70/100, the company has a strong competitive position.

Criteria proven by this page:

• GROWTH (100/100, Pass) — proving strong growth momentum
• PAST (50/100, Fail) — the company has frequently reported losses. Looking at the full 10-year history, the company was profitable in 5 of 10 years — a mixed long-term record
• INCOME (30/100, Partial) — the company is profitable but margin is below 15%
• MOAT (70/100, Pass) — strong gross margins and market scale prove a durable competitive advantage

Overall SharesGrow Score: 44/100 with 2/7 criteria passed.