Global Business Travel Group (GBTG) Q2 2025 Earnings Call August 05, 2025 09:00 AM ET Company ParticipantsJennifer Thorington - VP - IRPaul Abbott - CEO & DirectorKaren Williams - CFOLee Horowitz - Co-Head - Internet Equity ResearchJacob Gunning - Equity Research Senior AssociateJames Goodall - Director & Head - Transport & LeisureConference Call ParticipantsYehuda Silverman - Equity Research AnalystOperatorGood morning, and welcome to the American Express Global Business Travel Second Quarter twenty twenty ...

Global Business Travel Group (GBTG) Q2 2025 Earnings Call August 05, 2025 09:00 AM ET Speaker0Good morning, and welcome to the American Express Global Business Travel Second Quarter twenty twenty five Earnings Conference Call. As a reminder, please note today's call is being recorded. I will now turn the call over to the Vice President of Investor Relations, Jennifer Tarrington, to begin.Please go ahead when you are ready.Speaker1Hello, and good morning, everyone. Thank you for joining us for our second qua ...

Global Business Travel Group, Inc. (GBTG) came out with quarterly earnings of $0.03 per share, beating the Zacks Consensus Estimate of $0.02 per share. This compares to earnings of $0.07 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +50.00%. A quarter ago, it was expected that this company would post earnings of $0.1 per share when it actually produced earnings of $0.16, delivering a surprise of +60%.Over the last four quart ...

Amex GBT Q2 2025 Earnings Presentation August 5, 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 Lice ...

American Express Global Business Travel Reports Q2 Results Ahead of Expectations; Confidence to Raise and Narrow Full-Year 2025 Guidance NEW YORK – August 5, 2025 – American Express Global Business Travel, which is operated by Global Business Travel Group, Inc. (NYSE: GBTG) ("Amex GBT" or the "Company"), a leading software and services company for travel, expense, and meetings & events, today announced financial results for the second quarter ended June 30, 2025. Second Quarter 2025 Highlights Delivered Fin ...

Global Business Travel Group Inc (GBTG) Q1 2025 Earnings Call May 06, 2025 09:00 AM ET Company Participants Jennifer Thorington - Director of Investor RelationsPaul Abbott - Chief Executive OfficerKaren Williams - Chief Financial OfficerPeter Christiansen - DirectorEric Bock - Chief Legal Officer, Global Head of M&A and Compliance and CorporateLee Horowitz - Co-Head Internet Equity ResearchDuane Pfennigwerth - Senior MD Conference Call Participants Stephen Ju - AnalystYehuda Silverman - Equity Research Anal ...

Group 1 - Global Business Travel Group, Inc. (GBTG) reported quarterly earnings of $0.16 per share, exceeding the Zacks Consensus Estimate of $0.10 per share, compared to break-even earnings per share a year ago, representing an earnings surprise of 60% [1] - The company posted revenues of $621 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 1.79%, and showing a slight increase from year-ago revenues of $610 million [2] - GBTG shares have declined approximately 25.8% since the beginning of the year, while the S&P 500 has decreased by 3.9% [3] Group 2 - The earnings outlook for GBTG is mixed, with the current consensus EPS estimate for the coming quarter at $0.11 on revenues of $654.02 million, and $0.39 on revenues of $2.52 billion for the current fiscal year [7] - The Zacks Industry Rank indicates that the Internet - Software sector is currently in the top 35% of over 250 Zacks industries, suggesting a favorable environment for stocks in this category [8]

Financial Data and Key Metrics Changes - The company reported a 15% growth in adjusted EBITDA, with a margin expansion of 260 basis points and a 9% increase in free cash flow [4][6][21] - Total transaction volume increased by 4%, while total transaction value (TTV) grew by 5% to reach €8.3 billion [9][10] - Revenue rose by 4% to €621 million, driven by solid transaction growth and increased demand for products and services [9][21] Business Line Data and Key Metrics Changes - Transaction growth was stronger with global multinational customers, up 6%, while small and medium enterprises (SME) saw slower growth at 2% [11][12] - Hotel transactions grew by 5%, outpacing air transactions which grew by 2% [13] - The company maintained a high customer retention rate of 96% over the last twelve months [15] Market Data and Key Metrics Changes - Transaction growth was 3% in The Americas, 4% in EMEA, and 7% in Asia Pacific [14] - The U.S. air TTV growth was 3%, consistent with major U.S. airlines' commentary on corporate spend growth [12] - The meetings and events business saw a 2% year-over-year increase in the number of meetings and an 8% increase in spend for full year 2025 [33][60] Company Strategy and Development Direction - The company is focused on maintaining strong earnings growth, margin expansion, and cash generation despite economic uncertainty [5][6] - Continued investment in technology transformation, including automation and AI, is aimed at improving customer experience and productivity [16][30] - The capital allocation strategy includes a $300 million share buyback authorization and a focus on M&A opportunities [43][44] Management's Comments on Operating Environment and Future Outlook - Management noted more economic uncertainty and less visibility for the full year but expressed confidence in the company's long-term growth prospects [6][25] - The company expects business travel demand from its premium customer base to grow above GDP, with a focus on share gains and operating efficiency [25][39] - Adjusted EBITDA is expected to grow faster than revenue, with a full-year midpoint adjusted EBITDA guidance of $510 million, representing a 7% growth [40][41] Other Important Information - The company received two credit rating upgrades during the quarter, reflecting strong momentum [24] - Adjusted operating expenses declined by 1% year-over-year, demonstrating effective cost control [19][23] - The merger agreement with CWT was amended to reduce the purchase price and the number of shares issued [19][43] Q&A Session Summary Question: Have you witnessed any trade down in accommodations by your underlying clients? - Management indicated that premium and international volumes held up better than domestic, with a slight increase in average ticket prices and hotel rates [47][48] Question: Can you comment on SME wins and transaction values? - Management noted that while SME wins rose, organic growth in the SME segment has been lower due to tightened spending controls [50][51] Question: What is the next milestone for the CWT merger process? - The fact discovery process will be complete in early June, with a trial set for September 8, aiming for closure by the end of 2025 [52] Question: How has the macro environment evolved intra-quarter? - Management observed a stable trend in transaction growth, with most customers in a wait-and-see mode regarding travel policies and budgets [58][60] Question: What steps can be taken to increase the value proposition to clients? - Management emphasized that the company helps customers save money and provides comprehensive content access, which strengthens its value proposition in a weaker economic environment [64]

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 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 License ...

[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Consolidated Financial Statements](index=3&type=section&id=Item%201.%20Consolidated%20Financial%20Statements) The company reported a **$75 million** net income in Q1 2025, a turnaround from a **$19 million** loss, with assets at **$3,785 million** and positive cash flow, while its CWT merger faces DOJ review Consolidated Balance Sheet Highlights (in $ millions) | Account | March 31, 2025 (Unaudited) | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$3,785** | **$3,624** | | Cash and cash equivalents | $552 | $536 | | Accounts receivable, net | $717 | $571 | | Goodwill | $1,217 | $1,201 | | **Total Liabilities** | **$2,658** | **$2,567** | | Long-term debt, net | $1,365 | $1,365 | | Earnout derivative liabilities | $59 | $133 | | **Total Shareholders' Equity** | **$1,127** | **$1,057** | Consolidated Statements of Operations Highlights (in $ millions, except per share data) | Account | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :--- | :--- | :--- | | Revenue | $621 | $610 | | Total operating expenses | $566 | $594 | | **Operating income** | **$55** | **$16** | | Fair value movement on earnout derivative liabilities | $74 | $18 | | **Net income (loss)** | **$75** | **($19)** | | Diluted income (loss) per share | $0.16 | ($0.04) | Consolidated Statements of Cash Flows Highlights (in $ millions) | Activity | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :--- | :--- | :--- | | Net cash from operating activities | $53 | $49 | | Net cash used in investing activities | ($18) | ($25) | | Net cash used in financing activities | ($25) | ($10) | | **Net increase in cash, cash equivalents and restricted cash** | **$16** | **$9** | - The company agreed to acquire CWT for approximately **$540 million** (cash and 50 million shares), with the U.S. Department of Justice filing a suit to block the merger, while the U.K. CMA approved the transaction[23](index=23&type=chunk)[24](index=24&type=chunk)[25](index=25&type=chunk) [Notes to the Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) Notes detail the pending CWT merger, disaggregated revenue, debt refinancing, and significant changes in derivative liabilities and share repurchases Disaggregated Revenue (in $ millions) | Revenue Type | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Travel revenue | $499 | $492 | | Product and professional services revenue | $122 | $118 | | **Total revenue** | **$621** | **$610** | - In February 2025, the company repriced its Initial Term Loans, reducing the interest rate margin by **0.50%** to **2.50%**, resulting in a **$2 million** loss on early extinguishment[49](index=49&type=chunk) - The fair value of earnout derivative liabilities decreased from **$133 million** at year-end 2024 to **$59 million** as of March 31, 2025, resulting in a **$74 million** recognized gain for Q1 2025[73](index=73&type=chunk)[101](index=101&type=chunk) - In Q1 2025, the company granted **6 million RSUs** and **774,644 PSUs**, incurring **$19 million** in equity-based compensation expense, with **$128 million** unrecognized compensation remaining[75](index=75&type=chunk)[79](index=79&type=chunk)[83](index=83&type=chunk) - The company repurchased **182,676 shares** of Class A common stock for **$2 million** in Q1 2025, with **$298 million** remaining under the repurchase program[85](index=85&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=25&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes **2%** revenue growth to increased transaction volume, with operating income surging to **$55 million** and Adjusted EBITDA rising **15%** to **$141 million**, while liquidity improved through debt repricing Key Operating and Financial Metrics (in $ millions, except percentages) | Metric | Q1 2025 | Q1 2024 | Change | Change % | | :--- | :--- | :--- | :--- | :--- | | TTV | $8,349 | $8,105 | $244 | 3% | | Transaction Growth | 6% | 3% | n/m | n/m | | Revenue | $621 | $610 | $11 | 2% | | Operating income | $55 | $16 | $39 | 251% | | Net income (loss) | $75 | ($19) | $94 | n/m | | Adjusted EBITDA | $141 | $123 | $18 | 15% | | Adjusted EBITDA margin | 23% | 20% | 260 bps | 13% | | Free Cash Flow | $26 | $24 | $2 | 9% | - Revenue growth was driven by a **3%** increase in Transaction Growth and TTV, partially offset by an **8bps** yield decline to **7.4%** and a **$7 million** adverse foreign exchange impact[157](index=157&type=chunk) - Operating expenses decreased **5%** year-over-year, primarily due to a **$14 million** reduction in cost of revenue from productivity and an **$18 million** decrease in G&A expenses from lower M&A costs[138](index=138&type=chunk)[159](index=159&type=chunk)[163](index=163&type=chunk) - The company repriced term loans in February 2025, reducing the interest rate margin by **50 bps** and expecting **$7 million** in annual interest savings, leading to credit rating upgrades by S&P to 'BB-' and Moody's to 'B1'[172](index=172&type=chunk)[188](index=188&type=chunk)[191](index=191&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=37&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company manages interest rate and foreign currency risks by fixing **$900 million** of notional debt at **4.2%** via swaps and hedging **$270 million** in intercompany balances with forward contracts - To manage interest rate risk, the company entered into new interest rate swaps, fixing the rate at approximately **4.2%** on a notional amount of **$900 million**[201](index=201&type=chunk) - To manage foreign currency risk, the company entered into foreign currency forward contracts with an aggregate notional value of approximately **$270 million** to hedge intercompany balances[202](index=202&type=chunk) [Item 4. Controls and Procedures](index=38&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting during the quarter - Management concluded that the company's disclosure controls and procedures were effective as of the end of the reporting period[204](index=204&type=chunk) - No material changes occurred to the company's internal control over financial reporting during the quarter[205](index=205&type=chunk) [PART II. OTHER INFORMATION](index=38&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=38&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in ordinary course litigation, but management believes no pending proceedings will materially affect its financial condition or results - Management believes no pending litigation will have a material adverse effect on the company's operations, financial condition, or cash flows[208](index=208&type=chunk) [Item 1A. Risk Factors](index=38&type=section&id=Item%201A.%20Risk%20Factors) No material changes occurred to the risk factors previously disclosed in the Annual Report on Form 10-K for the year ended December 31, 2024 - No material changes occurred to the risk factors previously presented in the Annual Report on Form 10-K for the three months ended March 31, 2025[209](index=209&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=38&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) In Q1 2025, the company repurchased **182,676 shares** of Class A common stock for approximately **$1.5 million**, with **$298.5 million** remaining under the repurchase program Share Repurchases for Q1 2025 | Period | Total Shares Purchased | Average Price Paid Per Share | Approximate Value Remaining Under Program | | :--- | :--- | :--- | :--- | | Jan 2025 | - | - | $300,000,000 | | Feb 2025 | 140,000 | $8.31 | $298,836,600 | | Mar 2025 | 42,676 | $7.98 | $298,496,046 | | **Total** | **182,676** | | **$298,496,046** | [Item 5. Other Information](index=39&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during Q1 2025 - No directors or officers adopted or terminated any Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement during the three months ended March 31, 2025[214](index=214&type=chunk)