Global Business Travel Group, Inc. · NYSE:GBTG
Global Business Travel — Q3 2024 Earnings Presentation
25 slides from Global Business Travel's earnings presentation, Nov 5, 2024
Slide 1: Amex GBT Q3 2024 Earnings Report
Amex GBT Q3 2024 Earnings Report November 5, 2024 GBT Travel Services UK Limited (GBT UK) and its authorized sublicensees (including Ovation Travel Group and Egencia) use certain trademarks and service marks of American Express Company or its subsidiaries (American Express) in the “American Express
Slide 2: Legal Disclaimer: Forward-Looking Statements
Legal Disclaimer Forward-Looking Statements This communication contains statements that are forward-looking and as such are not historical facts. This includes, without limitation, statements regarding our financial position, business strategy, and the plans and objectives of management for future o
Slide 3: Legal Disclaimer: Industry Data and Financial Measures
Legal Disclaimer Industry and Market Data This presentation also contains information, estimates and other statistical data derived from third party sources, including research, surveys or studies, some of which are preliminary drafts, conducted by third parties, information provided by customers an
Slide 4: Today's Presenters
Today’s Presenters PAUL ABBOTT KAREN WILLIAMS Chief Executive Officer Chief Financial Officer This document contains unpublished, confidential, and proprietary information of American Express Global Business Travel (Amex GBT). No disclosure or use of any portion of these materials may be made withou
Slide 5: Continued to Drive Strong Momentum in Q3 2024
Continued to Drive Strong Momentum in Q3 2024 Q3 2024 Highlights Proof Points ✓ TTV growth of 9% YOY Continued to drive strong financial ✓ Revenue growth of 5% YOY results ✓ Adj. EBITDA of $118M, up 23% YOY ✓ Strong Free Cash Flow generation of $59M ✓ 5% revenue growth vs. 1% Adj. Operating Expense
Slide 6: Strong Financial Results with Significant Adj. EBITDA Growth in Q3 2024
Continued to Execute Strategy and Deliver Strong Financial Results with Significant Adj. EBITDA Growth in Q3 2024 Transactions TTV $7.8B +5% $7.1B +9% Q3'23 Q3'24 Q3'23 Q3'24 Revenue Adjusted EBITDA $118M $597M $571M +5% +23% 20% $95M Margin 17% Margin Q3'23 Q3'24 Q3'23 Q3'24 See Supplemental Materi
Slide 7: Transaction Growth in Q3 2024 Highlights Diversified Model
Transaction Growth in Q3 2024 Highlights the Benefit of Our Diversified Model Customer Set Air Route 8% 4% 3% 2% GMN SME Domestic Regional & International Booking Type Region of Sale 11% 6% 4% 6% 2% Air Hotel Americas EMEA APAC This document contains unpublished, confidential, and proprietary inform
Slide 8: Strong Global Multinational (GMN) Performance in Q3'24
Strong Global Multinational (GMN) Performance in Q3’24 Total GMN Transaction Growth By Top Industry Vertical Q3’24 19% 13% 13% 8% 8% 5% 5% 5% Pharma & Automotive Finance Services Industrial & Business & Mining, Oil, Tech & Other Total GMN Healthcare & Manufacturing Professional Energy & Utilities In
Slide 9: TTV Growth in Q3 2024 Outpaced Transaction Growth
TTV Growth in Q3 2024 Outpaced Transaction Growth Customer Set Air Route 13% 9% 8% 5% GMN SME Domestic Regional & International Booking Type Region of Sale 9% 9% 12% 9% 8% Air Hotel Americas EMEA APAC This document contains unpublished, confidential, and proprietary information of American Express G
Slide 10: Commercial Success with Strong Share Gains and Customer Retention
Commercial Success in Q3 2024 with Strong Share Gains and 97% Customer Retention Continued Share Gains Driven by Technology, Content & Sustainability Leadership • 80% of transactions through digital channels, with >60% of $3.0B bookings through our own platforms LTM Total New Wins Value • 18% growth
Slide 11: Competitive Differentiation Through Continuous Innovation
Competitive Differentiation Through Continuous Innovation Corporate Customer Traveler AI ✓ New benchmarking dashboards More intuitive experiences Piloting proprietary integrated into Insights product email servicing AI ✓ Updated Egencia mobile app ✓ New Egencia group trip solution ✓ Improved Neo che
Slide 12: Financial Priorities Deliver Strong Performance
Financial Priorities Deliver Strong Performance, Through Revenue and Adj. EBITDA Growth 1 Focus on accelerating cash flow generation 2 Drive operating leverage and continued margin expansion 3 Invest to drive long-term, sustained growth This document contains unpublished, confidential, and proprieta
Slide 13: Strong Financial Results in Q3 2024
Strong Financial Results in Q3 2024 Q3 2024 YOY Change ($M) Results B/(W) Total Revenue $597 5% Revenue Yield 7.7% (30bps) Adjusted Operating Expenses $479 (1%) Operating income $27 $31 Adjusted EBITDA $118 23% Adjusted EBITDA Margin 20% 300bps Net cash from operating activities $85 (37%) Free Cash
Slide 14: Positioned for Industry-Leading Returns in FY 2024
Positioned for Industry-Leading Returns in a Stable Growth Environment in FY 2024 24% - 26% Adj. EBITDA Growth Forecast + Capital Deployment of Accelerating Free Cash Flow Capital Deployment 2pts TSR from Accelerating capital Free Margin Expansion Cash Flow enables deployment organic and inorganic S
Slide 15: Raising FY 2024 Free Cash Flow Guidance and Narrowing Other Ranges
Raising FY 2024 Free Cash Flow Guidance and Narrowing Revenue & Adj. EBITDA Guidance Ranges Full-Year YOY Growth 2024 Guidance Revenue $2.415B – $2.435B + 5.5% – 6.5% Adjusted EBITDA $470M – $480M + 24% – 26% Adjusted EBITDA Margin 19% – 20% + 290bps – 310bps ~ $160M Free Cash Flow (vs. prior guidan
Slide 16: Capital Allocation Priorities; New $300M Share Buyback Authorization
Accomplishing Our Capital Allocation Priorities; Announced New $300M Share Buyback Authorization Accelerate cash ✓ Raised FY 2024 FCF guidance for the second time this year generation Continue to deleverage ✓ Q3’24 leverage ratio of 1.9x1 Targeting range of 1.5x – 2.5x ✓ Significant run-rate interes
Slide 17: Q&A
Q&A PAUL KAREN ERIC ABBOTT WILLIAMS BOCK Chief Executive Chief Financial Chief Legal Officer, Officer Officer Corporate Secretary & Global Head of M&A This document contains unpublished, confidential, and proprietary information of American Express Global Business Travel (Amex GBT). No disclosure or
Slide 18: Supplemental Materials
Supplemental Materials This document contains unpublished, confidential, and proprietary information of American Express Global Business Travel (Amex GBT). No disclosure or use of any portion of these materials may be made without the express written consent of Amex GBT. © 2024 GBT Travel Services U
Slide 19: Glossary of Terms
Glossary of Terms Customer retention rate is calculated based on Total Transaction Value (TTV). CWT refers to CWT Holdings, LLC. GMN refers to Global & Multinational Enterprises and SME refers to Small and Medium-sized Enterprises. For organizational management purposes, Amex GBT divides the custome
Slide 20: Non-GAAP Financial Measures
Non-GAAP Financial Measures We report our financial results in accordance with GAAP. Our non-GAAP financial measures are provided in addition, and should not be considered as an alternative, to other performance or liquidity measures derived in accordance with GAAP. Non-GAAP financial measures have
Slide 21: Non-GAAP Financial Measures, Continued
Non-GAAP Financial Measures, Continued EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted Operating Expenses should not be considered as a measure of liquidity or as a measure determining discretionary cash available to us to reinvest in the growth of our business or as measures of cash th
Slide 22: Reconciliation of net loss to EBITDA and Adjusted EBITDA
Reconciliation of net loss to EBITDA and Adjusted EBITDA Three months ended September 30, (in $ millions) 2024 2023 Net loss $ (128) $ (8) Interest income (2) — Interest expense 28 36 Loss on early extinguishment of debt 38 — Provision for (benefit from) income taxes 54 (2) Depreciation and amortiza
Slide 23: Reconciliation of total operating expenses to Adjusted Operating Expenses
Reconciliation of total operating expenses to Adjusted Operating Expenses Three months ended September 30, (in $ millions) 2024 2023 Total operating expenses $ 570 $ 575 Adjustments: Depreciation and amortization (43) (50) Restructuring, exit and related charges (a) (8) (13) Integration costs (b) (7
Slide 24: Reconciliation of Operating Cash Flow to Free Cash Flow and Net Debt
Reconciliation of net cash from operating activities to Free Cash Flow and Reconciliation of Net Debt Three months ended September 30, ($ in millions) 2024 2023 Net cash from operating activities $ 85 $ 135 Less: Purchase of property and equipment (26) (28) Free Cash Flow $ 59 $ 107 As of (in $ mill
Slide 25: Reconciliation of FY 2024 Adjusted EBITDA and Free Cash Flow Guidance
Reconciliation of FY 2024 Adjusted EBITDA and Free Cash Flow Guidance The guidance below does not incorporate the impact of the CWT acquisition, which is expected to close in the first quarter of 2025. Adjusted EBITDA guidance for the year ending December 31, 2024 consists of expected net loss for t
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