Global Business Travel Group, Inc. · NYSE:GBTG
Global Business Travel — Q1 2024 Earnings Presentation
24 slides from Global Business Travel's earnings presentation, May 7, 2024
Slide 1: Amex GBT Q1 2024 Earnings Report
Amex GBT Q1 2024 Earnings Report May 7, 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 Globa
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 and Market Data
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Today’s Presenters PAUL ABBOTT KAREN WILLIAMS Chief Executive Officer Chief Financial Officer This document contains unpublished, confidential, and proprietary information of American Express Global Business Travel (Amex GBT).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: Amex GBT Delivered Strong Performance in Q1 2024
Amex GBT Delivered Strong Performance in Q1 2024 Q1 2024 Highlights Proof Points ✓ Revenue growth of 6% YOY (7% workday adjusted1) ✓ TTV growth of 9% YOY (10% workday adjusted1) Strong financial results ✓ Record first quarter Adj. EBITDA of $123M, up 24% YOY ✓ On track to achieve FY 2024 guidance ✓
Slide 6: Continued to Execute Strategy and Deliver Strong Financial Results
Continued to Execute Strategy and Deliver Strong Financial Results Transactions TTV $8.1B $7.4B +6% +9% 7% 10% Workday Workday Adj.1 Adj.1 Q1'23 Q1'24 Q1'23 Q1'24 Revenue Adjusted EBITDA $610M $123M 20% $578M +6% Margin +24% $99M 7% Workday 17% Adj.1 Margin Q1'23 Q1'24 Q1'23 Q1'24 1. There were 62.5
Slide 7: Solid Transaction Growth in Q1 2024 (Workday Adjusted)
Solid Transaction Growth in Q1 2024 (Workday Adjusted1) Customer Set Air Route 11% 5% 5% 5% GMN SME Domestic International Booking Type Region of Sale 9% 13% 5% 7% 7% Air Hotel Americas EMEA APAC 1. There were 62.5 average workdays in Q1 2024 compared to 63.2 average workdays in Q1 2023; percentages
Slide 8: Commercial Success in Q1 2024 with Strong New Wins and High Customer Retention Rate
Commercial Success in Q1 2024 with Strong New Wins and High Customer Retention Rate Commercial Leadership Technology Leadership Continued share gains driven by… • 79% of transactions through digital channels $3.3B • >60% of bookings through our own technology LTM Total New Wins Value platforms, Egen
Slide 9: Agreement to Acquire CWT Delivers on our M&A Priorities
Agreement to Acquire CWT Delivers on our M&A Priorities M&A Priorities CWT Acquisition Proof Points ✓ TTV of ~$14B and revenue of ~$850M expected for CWT in 2024 Growth ✓ Increases our TTV by ~45% and revenue by ~34% ✓ Diverse set of customers by industry, geography and size ✓ Identified ~$155M tota
Slide 10: Financial Priorities Deliver Strong Financial Performance
Financial Priorities Deliver Strong Financial Performance, Through Revenue and Adj. EBITDA Growth 1 Focus on accelerating cash flow generation 2 Drive operating leverage and continued margin expansion 3 Invest to drive long-term, sustained growth This document contains unpublished, confidential, and
Slide 11: Strong Financial Results in Q1 2024, Including Record Q1 Adjusted EBITDA
Strong Financial Results in Q1 2024, Including Record Q1 Adjusted EBITDA Note: Figures below are not workday adjusted Q1 2024 ($M) YOY Results Total Revenue $610 6% Adjusted Operating Expenses $487 2% Adjusted EBITDA $123 24% Adjusted EBITDA Margin 20% 300bps Net cash provided by operating activitie
Slide 12: Significant Reduction in Net Debt and Leverage Ratio
Significant Reduction in Net Debt and Leverage Ratio • Reduction in leverage drove 75bps stepdown in term loan rate in Q1’24; total reduction of 150bps (including 75bps already achieved in Q4’23) • Opportunity to refinance debt in H2 2024 Leverage Ratio (Net Debt/LTM Adjusted EBITDA) 4.5x 3.5x 2.7x
Slide 13: Positioned for Industry-Leading Returns in a Stable Growth Environment in FY 2024
Positioned for Industry-Leading Returns in a Stable Growth Environment in FY 2024 18% - 32% 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 14: Reiterating Guidance and Expectations for Strong Financial Performance in FY 2024
Reiterating Guidance and Expectations for Strong Financial Performance in FY 2024 Note: The guidance below does not incorporate the impact of the CWT acquisition, which is expected to close in H2 2024. Full-Year YOY Growth 2024 Guidance Revenue $2.43B – $2.50B + 6% – 9% Adjusted EBITDA $450M – $500M
Slide 15: Our Capital Allocation Framework Focuses on Growth, Cash Generation & Reinvestment
Our Capital Allocation Framework Focuses on Growth, Cash Generation & Reinvestment to Drive Shareholder Returns 1 Accelerating cash generation 2 Continue to deleverage, lowering target range to 1.5 – 2.5x Net Debt / Adj. EBITDA 3 Invest in growth and return cash to shareholders This document contain
Slide 16: 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 17: 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 18: Glossary of Terms
Glossary of Terms B2B refers to business-to-business. Customer retention rate is calculated based on Total Transaction Value (TTV). CWT refers to CWT Holdings, LLC. GMN represents Global & Multinational Enterprises. LTM refers to the last twelve months ended March 31, 2024. Revenue Yield is defined
Slide 19: 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 20: 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 21: Reconciliation of net loss to EBITDA and Adjusted EBITDA
Reconciliation of net loss to EBITDA and Adjusted EBITDA Three months ended March 31, (in $ millions) 2024 2023 Net loss $ (19) $ (27) Interest expense 33 34 Provision for (benefit from) income taxes 27 (8) Depreciation and amortization 47 46 EBITDA 88 45 Restructuring, exit and related charges (a)
Slide 22: Reconciliation of total operating expenses to Adjusted Operating Expenses
Reconciliation of total operating expenses to Adjusted Operating Expenses Three months ended March 31, (in $ millions) 2024 2023 Total operating expenses $ 594 $ 587 Adjustments: Depreciation and amortization (47) (46) Restructuring, exit and related charges (a) (9) (23) Integration costs (b) (6) (8
Slide 23: Reconciliation of operating cash flow to Free Cash Flow and Net Debt
Reconciliation of net cash from (used in) operating activities to Free Cash Flow and Reconciliation of Net Debt Three months ended March 31, ($ in millions) 2024 2023 Net cash from (used in) operating activities $ 49 $ (77) Less: Purchase of property and equipment (25) (32) Free Cash Flow $ 24 $ (10
Slide 24: Reconciliation of FY 2024 Adjusted EBITDA and Free Cash Flow Guidance
Reconciliation of FY 2024 Adjusted EBITDA and Free Cash Flow Guidance The Company’s full-year 2024 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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