Global Business Travel : American Express Global Business Travel Announces Fourth Quarter 2024 Earnings

Published: 2025-02-27 08:04:05 ET GBTG

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 Global Business Travel" and "American Express GBT Meetings & Events" brands and in connection with its business for permitted uses only under a limited license from American Express (Licensed Marks). The Licensed Marks are trademarks or service marks of, and the property of, American Express. GBT UK is a subsidiary of Global Business Travel Group, Inc. (NYSE: GBTG). American Express holds a minority interest in GBTG, which operates as a separate company from American Express.

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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 and/or industry or general publications. Such information involves a number of assumptions and limitations and due to the nature of the techniques and methodologies used in market research, none of Amex GBT or the third party can guarantee the accuracy of such information. You are cautioned not to give undue weight on such estimates. Amex GBT has not independently verified any, and makes no representation as to the accuracy of, such third-party information.

Financial Statements and Certain Non-GAAP Financial Measures

Some of the financial information and data contained in this presentation, such as EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Operating Expenses, Free Cash Flow and Net Debt have not been prepared in accordance with United States generally accepted accounting principles ("GAAP"). Please refer to the "Supplemental Materials" section of this presentation for additional details. Amex GBT believes these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to Amex GBT's financial condition, results of operations and cash flows. Amex GBT's management uses these non-GAAP measures for trend analyses, for purposes of determining management incentive compensation and for budgeting and planning purposes. Amex GBT believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating projected operating results and trends and in comparing Amex GBT's financial measures with other similar companies, many of which present similar non-GAAP financial measures to investors. These non-GAAP financial measures should not be considered in isolation from, or as an alternative to, financial measures determined in accordance with GAAP. The principal limitation of these non-GAAP financial measures is that they exclude significant expenses and income and cash flows that are required by GAAP to be recorded in Amex GBT's financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgments by management about which expense and income and cash flows are excluded or included in determining these non-GAAP financial measures. In order to compensate for these limitations, management presents non-GAAP financial measures in connection with GAAP results and reconciliations to the most directly comparable GAAP measure are provided in the Supplemental Materials section of this presentation.

Trademarks, Service Marks and Trade Names

Amex GBT owns or has rights to various trademarks, service marks and trade names that they use in connection with the operation of their respective businesses. This presentation also contains trademarks, service marks and trade names of third parties, which are the property of their respective owners. The use or display of third parties' trademarks, service marks, trade names or products in this presentation is not intended to, and does not imply, a relationship with Amex GBT, or an endorsement or sponsorship by or of Amex GBT. Solely for convenience, the trademarks, service marks and trade names referred to in this presentation may appear without the ®, TM or SM symbols, but such references are not intended to indicate, in any way, that Amex GBT will not assert, to the fullest extent under applicable law, their rights or the right of the applicable licensor to these trademarks, service marks and trade names.

Disclaimer

An investment in Global Business Travel Group, Inc. is not an investment in American Express. American Express shall not be responsible in any manner whatsoever for, and in respect of, the statements herein, all of which are made solely by Global Business Travel Group, Inc.

This document contains unpublished, confidential, and proprietary information of American Express Global Business Travel (Amex GBT).

P.3

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).

P.4

Strong Finish to 2024 with Continued Momentum

2024 Highlights

Proof Points

Achieved strong financial results

✓ FY24 was highest Adj. EBITDA and Revenue for GBT as a company

✓ Adj. EBITDA of $478M, up 26% YOY, Revenue growth of 6%

✓ Adj. EBITDA margin expansion of 310bps to 20%

Significant margin expansion

✓ Significant operating leverage with 6% Revenue growth and 2% Adj. Operating

Expense growth

Continued share gains and strong

✓ FY24 Total New Wins Value of $2.8B, including $2.2B from SME

customer retention

✓ FY24 record customer retention rate of 99% for GMN and 97% overall

✓ Free Cash Flow generation of $165M, 235% improvement on 2023

Accelerating cashflow generation

✓ Leverage Ratio(1) of 1.8x, 0.5x improvement YOY, and $60m of run rate net interest

expense savings achieved

Capital allocation to optimize

✓ Reinvested in growth and additional margin expansion

✓ Announced $300m share buyback authorization and repurchased 8m shares in private

shareholder returns

buyback

See Supplemental Materials section for information on our use of certain Non-GAAP Financial Metrics and related reconciliations.

1. Leverage ratio is calculated as Net Debt / LTM Adjusted EBITDA and is different than the leverage ratio defined in our amended and restated senior secured credit agreement.

This document contains unpublished, confidential, and proprietary information of American Express Global Business Travel (Amex GBT).

P.5

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%

17%

20%

Margin

2023

2024

2023

2024

See Supplemental Materials section for information on our use of certain Non-GAAP Financial Metrics and related reconciliations.

This document contains unpublished, confidential, and proprietary information of American Express Global Business Travel (Amex GBT).

P.6

Consistent Transaction Growth Trends in FY24 Continue to

Highlight Benefits of Diversified Model

Customer Set

Air Route

GMN

SME

Domestic

Regional & International

Booking Type

Region of Sale

12%

Air

Hotel

Americas

EMEA

APAC

This document contains unpublished, confidential, and proprietary information of American Express Global Business Travel (Amex GBT).

P.7

Commercial Success and Share Gains built on Strong

Fundamentals

Commercial Success

and Share Gains

$2.8B

FY 24 Total New Wins Value

$2.2B

FY 24 SME New Wins Value

97%

FY 24 Customer Retention

Rate

Underpinned by strengthening value of GBT Marketplace for customers and suppliers

… recognized leadership in technology solutions

… and technology enabled transformation

This document contains unpublished, confidential, and proprietary information of American Express Global Business Travel (Amex GBT).

P.8

Consistent Financial Priorities Deliver High Returns

Focus on accelerating cash flow generation

Drive operating leverage and continued margin expansion

Invest to drive long-term, sustained growth

This document contains unpublished, confidential, and proprietary information of American Express Global Business Travel (Amex GBT).

P.9

Strong Financial Results in Q4 & FY 2024

($M)

Q4 2024

YOY Change

FY 2024

YOY Change

Results

B/(W)

Results

B/(W)

Total Revenue

$591

$2,423

Revenue Yield

8.6%

(15bps)

8.0%

(17bps)

Adjusted Operating Expenses

$484

$1,948

Operating income

$30

$27

$115

$123

Adjusted EBITDA

$110

39%

$478

26%

Adjusted EBITDA Margin

19%

420bps

20%

310bps

Net cash from operating activities

$65

12%

$272

68%

Free Cash Flow

$33

$165

235%

Leverage ratio1

1.8x

0.5x

1.8x

0.5x

See Supplemental Materials section for information on our use of certain Non-GAAP Financial Metrics and related reconciliations.

1. Leverage ratio is calculated as Net Debt / LTM Adjusted EBITDA and is different than the leverage ratio defined in our amended and restated senior secured credit agreement.

This document contains unpublished, confidential, and proprietary information of American Express Global Business Travel (Amex GBT).

P.10

Disclaimer

Global Business Travel Group Inc. published this content on February 27, 2025, and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on February 27, 2025 at 13:03:06.663.