Global Business Travel Group, Inc. · NYSE:GBTG
Global Business Travel — Q4 2024 Earnings Presentation
31 slides from Global Business Travel's earnings presentation, Feb 27, 2025
Slide 1: Amex GBT Q4 2024 Earnings Report
Amex GBT Q4 2024 Earnings Report February 27, 2025 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 Non-GAAP 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Today’s Presenters PAUL ABBOTT KAREN WILLIAMS Chief Executive Officer Chief Financial Officer This document contains unpublished, confidential, and proprietary information of American Express Global Business Travel (Amex GBT).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: Strong Finish to 2024 with Continued Momentum
Strong Finish to 2024 with Continued Momentum 2024 Highlights Proof Points ✓ FY24 was highest Adj. EBITDA and Revenue for GBT as a company Achieved strong financial results ✓ Adj. EBITDA of $478M, up 26% YOY, Revenue growth of 6% ✓ Adj. EBITDA margin expansion of 310bps to 20% Significant margin exp
Slide 6: Powerful Financial Algorithm Driving Efficient Growth in FY24
Powerful Financial Algorithm Driving Efficient Growth in FY24 Transactions TTV $30.5B +5% $28.2B +8% 2023 2024 2023 2024 Revenue Adjusted EBITDA $2,423M $478M $2,290M +6% $380M +26% 20% 17% Margin Margin 2023 2024 2023 2024 See Supplemental Materials section for information on our use of certain Non
Slide 7: Consistent Transaction Growth Trends in FY24
Consistent Transaction Growth Trends in FY24 Continue to Highlight Benefits of Diversified Model Customer Set Air Route 8% 4% 3% 2% GMN SME Domestic Regional & International Booking Type Region of Sale 12% 6% 4% 5% 2% Air Hotel Americas EMEA APAC This document contains unpublished, confidential, and
Slide 8: Commercial Success and Share Gains built on Strong Fundamentals
Commercial Success and Share Gains built on Strong Fundamentals Underpinned by strengthening value of GBT Marketplace for Commercial Success customers and suppliers and Share Gains • Partnered with >20 airlines on NDC and processed almost 1m NDC tickets $2.8B FY 24 Total New Wins Value • Launching n
Slide 9: Consistent Financial Priorities Deliver High Returns
Consistent Financial Priorities Deliver High Returns 1 Focus on accelerating cash flow generation 2 Drive operating leverage and continued margin expansion 3 Invest to drive long-term, sustained growth This document contains unpublished, confidential, and proprietary information of American Express
Slide 10: Strong Financial Results in Q4 & FY 2024
Strong Financial Results in Q4 & FY 2024 Q4 2024 YOY Change FY 2024 YOY Change ($M) Results B/(W) Results B/(W) Total Revenue $591 8% $2,423 6% Revenue Yield 8.6% (15bps) 8.0% (17bps) Adjusted Operating Expenses $484 3% $1,948 2% Operating income $30 $27 $115 $123 Adjusted EBITDA $110 39% $478 26% A
Slide 11: Accomplishing Our Capital Allocation Priorities in 2024
Accomplishing Our Capital Allocation Priorities in 2024 Continued cash ✓ FY 2024 Free Cash Flow of $165M, 235% improvement on 2023 generation Maintain strong balance ✓ Leverage ratio(1) of 1.8x in Q4’24, down from 2.3x in Q4’23 sheet ✓ $60M of run-rate net interest savings achieved Target leverage o
Slide 12: Continued Momentum for 2025, Delivering Hyper-Efficient Growth
Continued Momentum for 2025, Delivering Hyper-Efficient Growth External Business Environment GBTG Continued Momentum • Muted but stable GDP growth • Exited 2024 with solid commercial success: • New Wins of $2.8B, $2.2B from SME • Strengthening US dollar • Retention of 97%, 99% for GMN • 80% of Top 1
Slide 13: Powerful Financial Model Continues Hyper-Efficient Growth in FY 2025
Powerful Financial Model Continues Hyper-Efficient Growth in FY 2025 Double digit Adj. EBITDA Growth Forecast + Capital Deployment of Accelerating Free Cash Flow Capital Deployment 2pts TSR from Freecapital Cash Flow Margin Expansion enables organic and deployment inorganic investment (to Strong ope
Slide 14: Significant Runway for Cost Transformation and Margin Expansion in 2025
Significant Runway for Cost Transformation, Creating Investment Capacity & Driving Margin Expansion in 2025 $95M Expense Reduction $65M Incremental Investment Spend Efficiency Growth Marketplace Experience • Process Improvement • Investing in demand • More content from • Refreshed user generation an
Slide 15: Targeting Attractive Growth In Our FY 2025 Guidance
Targeting Attractive Growth In Our FY 2025 Guidance Full-Year Year-over-Year Growth 2025 Guidance Constant Currency Reported Revenue $2.50B – $2.55B + 5% – 7% + 3% – 5% Adjusted EBITDA $530M – $560M + 11% – 17% + 11% – 17% Adjusted EBITDA Margin 21% – 22% > 120bps > 150bps Free Cash Flow > $160M Cur
Slide 16: FY25 Improvement in underlying Free Cash Flow
FY25 Improvement in underlying Free Cash Flow Guidance $530-560M ~$30M ~$80-85M 5% - 6% $210M ~$25M Underlying Revenue > $160M ~$60-70m Guidance ~$60-70M ~$50M Adj. EBITDA Net Cash Interest Capex Pension Cash Tax NWC, Underlying M&A Free Cash Interest Rate Restructuring, Free Cash Flow Swap and othe
Slide 17: Capital Allocation Priorities to Drive Shareholder Value
Capital Allocation Priorities to Drive Shareholder Value Continued cash ✓ FY 2025 Free Cash Flow guidance of > $160M generation Maintain strong balance ✓ Leverage ratio(1) without M&A at the low end of target range sheet ✓ Net interest costs of $80-85M in FY25 (down ~$60M vs. 2023) Target leverage o
Slide 18: 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 19: 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. © 2025 GBT Travel Services U
Slide 20: Continued Sales and Adj. EBITDA Growth in Q4'24
Executing our Strategy and Delivering Strong Financial Results – Continued Sales and Adj. EBITDA Growth in Q4’24 Transactions TTV $6.9B 3% +10% $6.3B Q4'23 Q4'24 Q4'23 Q4'24 Revenue Adjusted EBITDA $591M $110M $549M +8% $80M +39% 19% Margin 15% Margin Q4'23 Q4'24 Q4'23 Q4'24 See Supplemental Materia
Slide 21: Consistent Transaction Growth Trends in Q4'24
Consistent Transaction Growth Trends in Q4’24 Customer Set Air Route 3% 6% 2% 1% GMN SME Domestic Regional & International Booking Type Region of Sale 11% 5% 3% 4% 1% Air Hotel Americas EMEA APAC This document contains unpublished, confidential, and proprietary information of American Express Global
Slide 22: TTV Growth in Q4 Outpaced Transaction Growth
TTV Growth in Q4 Outpaced Transaction Growth Customer Set Air Route 13% 12% 7% 6% GMN SME Domestic Regional & International Booking Type Region of Sale 11% 15% 11% 6% 10% Air Hotel Americas EMEA APAC This document contains unpublished, confidential, and proprietary information of American Express Gl
Slide 23: Revenues and Cost by Currency
Revenues and Cost by Currency REVENUE BY CURRENCY ADJUSTED OPERATING EXPENSES BY CURRENCY USD USD EUR EUR GBP GBP 15% 19% Other Other 6% $2,423M 12% $1,948M 51% FY 2024 FY 2024 17% 62% 18% 2025 Guidance Assumptions: EUR:USD 1.04, GBP:USD 1.25 See Supplemental Materials section for information on our
Slide 24: TTV, Revenue and Adjusted EBITDA Seasonality by Quarter
TTV, Revenue and Adjusted EBITDA Seasonality by Quarter TTV ($M) TTV by Quarter (% of Full Year) 8,105 7,724 7,752 22% 23% 25% 25% 7,422 6,896 7,349 7,123 26% 25% 6,298 26% 27% Q1 Q2 Q3 Q4 2023A 2024A 2023A 2024A Q1 Q2 Q3 Q4 Revenue by Quarter (% of Full Year) Adj. EBITDA by Quarter (% of Full Year)
Slide 25: Glossary of Terms
Glossary of Terms Constant Currency is calculated by retranslating current and prior-period amounts at a consistent exchange rate rather than the actual exchange rates in effect during the respective periods. A portion of the Company’s revenue is derived from international operations. As a result, t
Slide 26: 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 27: 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 28: Reconciliation of net loss to EBITDA and Adjusted EBITDA
Reconciliation of net loss to EBITDA and Adjusted EBITDA Three Months Ended Year Ended December 31, December 31, (in $ millions) 2024 2023 2024 2023 Net loss $ (14) $ (46) $ (134) $ (136) Interest income (2) (1) (6) (1) Interest expense 22 36 115 141 Loss on early extinguishment of debt — — 38 — Pro
Slide 29: Reconciliation of total operating expenses to Adjusted Operating Expenses
Reconciliation of total operating expenses to Adjusted Operating Expenses Three Months Ended Year Ended December 31, December 31, (in $ millions) 2024 2023 2024 2023 Total operating expenses $ 561 $ 546 $ 2,308 $ 2,298 Adjustments: Depreciation and amortization (40) (49) (178) (194) Restructuring, e
Slide 30: 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 Year Ended December 31, December 31, (in $ millions) 2024 2023 2024 2023 Net cash from operating activities $ 65 $ 58 $ 272 $ 162 Less: Purchase of property and equipment (32) (26
Slide 31: Reconciliation of FY 2025 Adjusted EBITDA and Free Cash Flow Guidance
Reconciliation of FY 2025 Adjusted EBITDA and Free Cash Flow Guidance The Company’s full-year 2025 guidance considers various material assumptions. Because the guidance is forward-looking and reflects numerous estimates and assumptions with respect to future industry performance under various scenar
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