Global Business Travel Group, Inc. · NYSE:GBTG
Global Business Travel — Q1 2025 Earnings Presentation
29 slides from Global Business Travel's earnings presentation, May 6, 2025
Slide 1: Amex GBT Q1 2025 Earnings Presentation
Amex GBT Q1 2025 Earnings Presentation May 6, 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 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Today’s Presenters PAUL ABBOTT KAREN WILLIAMS Chief Executive Officer Chief Financial Officer This document contains unpublished, confidential, and proprietary information of American Express Global Business Travel (Amex GBT).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: Key Takeaways
Key Takeaways Strong Q1’25 results – 15% growth in Adj. EBITDA, 260bp margin expansion, 9% increase 1 in FCF 2 Resilient business model – high customer retention and consistent share gains Strong and flexible operating model – proven track record of cost control and margin 3 expansion 4 Continuing t
Slide 6: Continued Momentum for Solid Start to 2025
Continued Momentum for Solid Start to 2025 Q1 2025 Highlights Proof Points ✓ Revenue grew 4% YOY on a constant currency, WDA basis1 (2% reported) Delivered strong financial ✓ Adj. EBITDA grew 15% YOY to $141M results ✓ Free Cash Flow grew 9% YOY to $26M ✓ Adj. Operating Expenses decreased 1% Signifi
Slide 7: Powerful Financial Model Drives Efficient Growth
Powerful Financial Model Drives Efficient Growth Transactions TTV $8.3B $8.1B +4% +5% on a WDA basis1 on a constant currency, WDA basis1 +3% reported +3% reported Q1'24 Q1'25 Q1'24 Q1'25 Revenue Adjusted EBITDA $621M $141M $610M +4% on a constant +15% 23% currency, WDA $123M Margin basis1 20% +2% re
Slide 8: Solid Transaction Growth Trends Highlight Benefits of Our Diversified Model
Solid Transaction Growth Trends Highlight Benefits of Our Diversified Model Q1’25 vs. Q1’24 WDA Transaction Growth1 Customer Set Air Route 6% 2% 2% 2% GMN SME Domestic Regional & International Booking Type Region of Sale 5% 7% 4% 2% 3% Air Hotel Americas EMEA APAC . 1. WDA = Workday Adjusted. There
Slide 9: Positioned to Win with Leading Value Proposition
Positioned to Win with Leading Value Proposition During Times of Macroeconomic Uncertainty Q1’25 Commercial Successes: $3.2B $2.3B 96% LTM Total New LTM SME New LTM Customer Wins Value Wins Value Retention Rate Customers benefit from savings, visibility and control over travel spend; Suppliers benef
Slide 10: Strong and Flexible Operating Model With Focus on Productivity and Margin Expansion
Strong and Flexible Operating Model With Focus on Productivity and Margin Expansion Q1’25 Productivity Metrics: 81% +5% 1% 260 [97%] bps Of transactions Growth in Decline in LTM Adj.Customer EBITDA through digital digital Adj. Operating Retention MarginRate channels transactions Expenses expansion I
Slide 11: Consistent Financial Priorities Deliver Strong Results
Consistent Financial Priorities Deliver Strong Results 1 Focus on accelerating cash flow generation 2 Drive operating leverage and continued margin expansion 3 Invest to drive long-term, sustained growth This document contains unpublished, confidential, and proprietary information of American Expres
Slide 12: Strong Financial Results in Q1 2025
Strong Financial Results in Q1 2025 Q1 2025 YOY Change ($M) Results B/(W) + 4% Total Revenue $621 on a constant currency, WDA basis1 (+ 2% reported) Revenue Yield 7.4% (8 bps) Adjusted Operating Expenses $480 + 1% Operating income $55 + 251% Adjusted EBITDA $141 + 15% Adjusted EBITDA Margin 23% + 26
Slide 13: Powerful Financial Model Delivers Efficient Growth in 2025
Powerful Financial Model Delivers Efficient Growth in 2025, Even in an Uncertain Macro Environment Adj. EBITDA Grows Faster Than Revenue + Capital Deployment of Strong Free Cash Flow Capital Deployment 2pts TSR from Freecapital Cash Flow Margin Expansion enables organic and deployment inorganic inve
Slide 14: Confidence & Stability to Navigate Through Uncertainty
Confidence & Stability to Navigate Through Uncertainty Resilient Revenue Operating Efficiency Value Creation • Diversified customers & • Shift to digital transactions • Strong cash balance & suppliers is more profitable generation • ~70% driven by volume + • ~65% Adj. EBITDA fall- • Investing for gr
Slide 15: Current Transaction Growth Trends & Customer Outlook
Current Transaction Growth Trends & Customer Outlook Top 5 GMN industry verticals, which account for 70% of GMN transactions, have grown or are broadly flat from Feb to Mar/Apr – less exposed to tariff uncertainty Sequential declines in sectors more exposed to tariffs – including consumer and automo
Slide 16: Q2 2025 Guidance Reflects Current Conditions
Q2 2025 Guidance Reflects Current Conditions Q2 2025 Guidance Fact Base & Assumptions Midpoint assumes current Low Midpoint High conditions continue: $615M $625M $635M • Flat WDA total Transaction Revenue (2%) YOY 0% YOY + 2% YOY Growth • Modest organic Transaction $125M $130M $135M Decline offset b
Slide 17: Updated FY 2025 Guidance Midpoint Reflects Latest Trends
Updated FY 2025 Guidance Midpoint Reflects Latest Trends Updating guidance to reflect softening in current conditions and its impact on organic Transaction Growth → Adj. EBITDA midpoint is 6% lower than the previous midpoint and upper end largely in line with previous midpoint Full-Year 2025 Guidanc
Slide 18: Capital Allocation Priorities to Drive Shareholder Value
Capital Allocation Priorities to Drive Shareholder Value Continued cash ✓ FY FCF guidance midpoint of $140M ($190M excl. M&A) generation ✓ Cash conversion ratio of 37%1 Strong balance sheet ✓ Q1’25 leverage ratio of 1.7x2 Targeting range of 1.5x – 2.5x ✓ > $900M in liquidity as of March 31, 2025 Inv
Slide 19: 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 20: 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 21: FY25 Improvement in underlying Free Cash Flow
FY25 Improvement in underlying Free Cash Flow $510M Guidance Midpoint ~$30M ~$80-85M 5%of Revenue ~$25M $190M Underlying $140M ~$60M Guidance Midpoint ~$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 an
Slide 22: 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 23: 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 24: 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 25: Reconciliation of net income to EBITDA and Adjusted EBITDA
Reconciliation of net income (loss) to EBITDA and Adjusted EBITDA Three months ended March 31, (in $ millions) 2025 2024 Net income (loss) $ 75 $ (19) Interest income (2) — Interest expense 24 33 Loss on early extinguishment of debt 2 — Provision for income taxes 21 27 Depreciation and amortization
Slide 26: 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) 2025 2024 Total operating expenses $ 566 $ 594 Adjustments: Depreciation and amortization (40) (47) Restructuring, exit and related charges (a) (4) (9) Integration costs (b) (5) (6)
Slide 27: Reconciliation of revenue growth to Constant Currency Workday Adjusted Revenue growth
Reconciliation of revenue growth to Constant Currency Workday Adjusted Revenue growth Three months ended March 31, (in percentages) 2025 Revenue growth 2% Impact of workday adjustment 1% Impact of constant currency adjustment 1% Constant Currency Workday Adjusted Revenue growth 4% This document cont
Slide 28: Reconciliation of net cash from operating activities 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 March 31, ($ in millions) 2025 2024 Net cash from operating activities $ 53 $ 49 Less: Purchase of property and equipment (27) (25) Free Cash Flow $ 26 $ 24 As of (in $ millions)
Slide 29: Reconciliation of Q2 and FY 2025 Adjusted EBITDA Guidance
Reconciliation of Q2 and FY 2025 Adjusted EBITDA Guidance and FY 2025 Free Cash Flow Guidance The Company’s second quarter and full-year 2025 guidance considers various material assumptions. Because the guidance is forward-looking and reflects numerous estimates and assumptions with respect to futur
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