Global Business Travel Group, Inc. · NYSE:GBTG
Global Business Travel — Q2 2024 Earnings Presentation
26 slides from Global Business Travel's earnings presentation, Aug 6, 2024
Slide 1: Amex GBT Q2 2024 Earnings Report
Amex GBT Q2 2024 Earnings Report August 6, 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 Gl
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 DAVID THOMPSON Chief Executive Officer Chief Financial Officer Chief Information Technology Officer This document contains unpublished, confidential, and proprietary information of American Express Global Business Travel (Amex GBT). No disclosure or use
Slide 5: Amex GBT Delivered Strong Performance in Q2 2024
Amex GBT Delivered Strong Performance in Q2 2024 Q2 2024 Highlights Proof Points ✓ Revenue growth of 6% YOY Delivered strong financial results ✓ Adj. EBITDA of $127M, up 20% YOY ✓ Strong Free Cash Flow generation of $49M Controlled our costs & ✓ 6% revenue growth vs. 2% Adj. Operating Expense growth
Slide 6: Continued to Execute Strategy and Deliver Strong Financial Results in Q2 2024
Continued to Execute Strategy and Deliver Strong Financial Results in Q2 2024 Transactions TTV $7.7B $7.3B +4% +5% 5% 6% Ex. France Ex. France (Olympics impact) (Olympics impact) Q2'23 Q2'24 Q2'23 Q2'24 Revenue Adjusted EBITDA $625M $127M $592M +6% +20% $106M 20% Margin 18% Margin Q2'23 Q2'24 Q2'23
Slide 7: Strong Global Multinational (GMN) Performance in Q2'24
Strong Global Multinational (GMN) Performance in Q2’24 GMN Transaction Growth by Top Industry Vertical Q2’24 13% 12% 9% 7% 7% 6% 4% Financial Services & Pharma & IT Mining, Oil, Energy & Business & Other Total GMN Insurance Healthcare Utilities Professional Services This document contains unpublishe
Slide 8: Transaction Growth in Q2 2024 Highlights Benefit of Our Diversified Model
Transaction Growth in Q2 2024 Highlights Benefit of Our Diversified Model Customer Set Air Route 7% 4% 4% 1% GMN SME Domestic International Booking Type Region of Sale 17% 4% 4% 3% Ex. France (Olympics impact) 5% 1% Air Hotel Americas EMEA APAC This document contains unpublished, confidential, and p
Slide 9: Commercial Success in Q2 2024 with Strong Share Gains
Commercial Success in Q2 2024 with Strong Share Gains on an Even Stronger Foundation Continued Share Gains Driven By… Technology & Sustainability Leadership • 79% of transactions through digital channels, with >60% $3.3B of bookings through our own platforms LTM Total New Wins Value • Neo1 customers
Slide 10: Investments in AI Target Savings Across Our Cost Structure
Investments in AI Target Savings Across Our Cost Structure Machine Learning Increase Service Increase Efficiencies Engineering Velocity Generative AI and LLMs Natural Language Processing Streamline Our Enable Financial Processes Our Workforce Robotic Process Automation ~70% of Total Adj. OpEx Autom
Slide 11: Production AI
AI Proof of Concept Progress Email Intent & Routing Production AI Accuracy of intent Email intent classification for automated routing ~90% classification Voice Transcription & Analytics Accuracy of intent Call intent analysis for routing and self-service opportunity identification ~90% classificati
Slide 12: Financial Priorities Deliver Strong Financial Performance
Financial Priorities Deliver Strong Financial Performance, Through Revenue and Adj. EBITDA Growth 1 Focus on accelerating cash flow generation 2 Drive operating leverage and continued margin expansion 3 Invest to drive long-term, sustained growth This document contains unpublished, confidential, and
Slide 13: Strong Financial Results in Q2 2024
Strong Financial Results in Q2 2024 Q2 2024 YOY ($M) Results Increase / (Decrease) Total Revenue $625 6% Adjusted Operating Expenses $498 2% Adjusted EBITDA $127 20% Adjusted EBITDA Margin 20% 240bps Net cash from operating activities $73 57% Free Cash Flow $49 148% Leverage ratio1 2.0x (1.5x) See S
Slide 14: Successful Debt Refinancing Lowers Interest Costs
Successful Debt Refinancing Lowers Interest Costs Significant Interest Rate Margin Reduction Highlights • Expect total annualized run-rate cash interest savings SOFR1+4.78% of ~$40M, or ~30% in 2025 versus 2023, including (Blended) previously achieved savings from improvement in ~180bps leverage rat
Slide 15: 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 16: Raising FY 2024 Free Cash Flow Guidance and Reiterating Revenue & Adj. EBITDA Guidance
Raising FY 2024 Free Cash Flow Guidance and Reiterating Revenue & Adj. EBITDA Guidance Note: The guidance below does not incorporate the impact of the CWT acquisition, which is expected to close in Q1 2025. Full-Year YOY Growth 2024 Guidance Revenue $2.43B – $2.50B + 6% – 9% Adjusted EBITDA $450M –
Slide 17: Our Capital Allocation Priorities
Our Capital Allocation Priorities Focus on Cash Generation, Deleveraging, Growth Investments & Shareholder Returns 1 Accelerate cash generation 2 Continue to deleverage, targeting range of 1.5 – 2.5x Net Debt / Adj. EBITDA 3 Invest in technology and organic growth 4 Pursue accretive, highly synergis
Slide 18: Q&A
Q&A PAUL KAREN DAVID ERIC ABBOTT WILLIAMS THOMPSON BOCK Chief Executive Chief Financial Chief Information Chief Legal Officer, Officer Officer Technology Officer Corporate Secretary & Global Head of M&A This document contains unpublished, confidential, and proprietary information of American Express
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. © 2024 GBT Travel Services U
Slide 20: 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 21: 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 22: 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 23: Reconciliation of net income (loss) to EBITDA and Adjusted EBITDA
Reconciliation of net income (loss) to EBITDA and Adjusted EBITDA Three months ended June 30, (in $ millions) 2024 2023 Net income (loss) $ 27 $ (55) Interest income (2) — Interest expense 32 35 (Benefit from) provision for income taxes (26) (2) Depreciation and amortization 48 49 EBITDA 79 27 Restr
Slide 24: Reconciliation of total operating expenses to Adjusted Operating Expenses
Reconciliation of total operating expenses to Adjusted Operating Expenses Three months ended June 30, (in $ millions) 2024 2023 Total operating expenses $ 583 $ 590 Adjustments: Depreciation and amortization (48) (49) Restructuring, exit and related reversals (charges) (a) 3 (13) Integration costs (
Slide 25: Reconciliation of 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 June 30, ($ in millions) 2024 2023 Net cash from (used in) operating activities $ 73 $ 46 Less: Purchase of property and equipment (24) (27) Free Cash Flow $ 49 $ 19 As of (in $ m
Slide 26: 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
Global Business Travel Group — Q2 2024 Earnings Presentation on 6ix