[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)

American Express Global Business Travel Reports Strong Profit Growth and Margin Expansion in Q1 2025 and Issues Q2 and Updated Full-Year 2025 Guidance NEW YORK – May 6, 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 first quarter ended March 31, 2025. First Quarter 2025 Highlights Del ...

Financial Performance - For the year ended December 31, 2024, American Express Global Business Travel generated a total transaction value (TTV) of approximately $30.5 billion, resulting in revenues of $2.42 billion and a net loss of $134 million[19]. - Adjusted EBITDA for the same period was reported at $478 million, indicating a focus on operational efficiency despite the net loss[19]. - Travel Revenues accounted for 80% of total revenue in 2024, while Product and Professional Services Revenues comprised 20%[49]. - In 2024, travel revenues were primarily driven by transaction volumes, with Product and Professional Services revenues constituting 20% of total revenue, consistent with 2023, and down from 22% in 2022[87]. - The client retention rate was 97% in 2024, with an average tenure of approximately 15 years for the top 100 clients by TTV[65]. - Total New Wins Value for full year 2024 reached $2.8 billion, including $2.2 billion from SME clients, with an average win/loss ratio of 2.5x since 2015[65]. Market Focus and Growth Opportunities - The company estimates that SMEs represented approximately 49% of its TTV in 2024, highlighting a significant focus on this segment[38]. - The global SME total travel spend in 2024 was estimated at approximately $834 billion, with $625 billion representing unmanaged spend, indicating a significant growth opportunity[94]. - American Express Global Business Travel's marketplace is projected to benefit from the global business travel industry's estimated value of $1.5 trillion in 2024, with growth expected to continue exceeding GDP[29]. - The company is actively pursuing acquisition opportunities to drive growth, including a merger agreement with CWT Holdings, Inc. announced in March 2024[26]. - The company aims to strengthen its position globally by providing comprehensive solutions, including meetings and events planning, to enhance client relationships[93]. Technology and Innovation - The company has invested in AI and Machine Learning to improve service efficiency and traveler experience[55]. - The technology platform supports over 50 distinct technology-enabled products, enhancing the travel management experience for clients[56]. - The platform integrates seamlessly with over 250 third-party and proprietary customer solutions, providing flexibility and enhanced service delivery[56]. - The company offers a comprehensive suite of travel management software, including traveler care tools and travel spend analysis[46]. - The company has launched Neo1, a self-registered expense management tool, unlocking significant potential for new business development with unmanaged clients[96]. Employee and Operational Insights - As of December 31, 2024, American Express Global Business Travel employed over 18,000 people worldwide, with operations in 31 countries, representing approximately 88% of global business travel spend[26]. - The company achieved an overall employee engagement score of 76, matching the global high-performing benchmark[133]. - The company is committed to creating a globally inclusive workplace, offering various employee resource groups and wellness programs[135]. - The company is focused on driving operating leverage through productivity improvements, including automation and AI, to enhance margins and support long-term growth[90]. Financial Position and Debt Management - The company has a $1,400 million senior secured term loan facility and a $360 million senior secured revolving credit facility as of December 31, 2024, enhancing liquidity and financial flexibility[101]. - The company reported a loss on early extinguishment of debt of $38 million due to refinancing activities, with total costs of debt refinancing amounting to $25 million[104]. - The A&R Credit Agreement imposes significant operating and financial restrictions on the company, potentially limiting its ability to engage in beneficial transactions[186]. - The company's existing indebtedness may adversely affect its business and growth prospects, limiting its ability to respond to economic downturns and competitive pressures[183]. - Servicing the company's indebtedness requires significant cash flow, which is subject to various uncontrollable factors, potentially leading to reduced capital expenditures or asset sales if cash flow is insufficient[189]. Regulatory and Compliance Risks - The company is subject to regulation by the U.S. Department of Transportation and must comply with various travel product and service regulations, with potential penalties for non-compliance[140]. - The company is subject to privacy and data protection laws globally, including the GDPR, which imposes fines of up to 4% of total annual worldwide revenue for non-compliance[147]. - The company is involved in litigation that management believes will not have a material adverse effect on its financial condition or cash flows[138]. - The company is subject to banking regulations that limit its investments and acquisitions, requiring prior review and approval from the Federal Reserve in certain cases[145]. Competitive Landscape and Market Challenges - The travel industry is highly competitive, and the company competes with various travel-related service providers, including online travel agencies and direct travel suppliers, which may impact sales and financial performance[165]. - Macroeconomic conditions, such as economic downturns, higher unemployment, and inflation, can adversely affect travel expenditures and demand for the company's services[168]. - The company faces potential adverse effects on its business due to the widespread adoption of teleconference and virtual meeting technologies, which could reduce demand for in-person meetings and travel services[164]. - Relationships with travel suppliers are critical; adverse changes in these relationships could negatively impact the quality and pricing of travel services offered, affecting overall business performance[192]. Acquisition Strategy and Integration Risks - Acquisitions are expected to continue as part of the company's growth strategy, but there is no assurance regarding the timing or financial impact of potential transactions[214]. - Integration of acquired businesses may present challenges that could prevent the realization of anticipated benefits, such as synergies and economies of scale[215]. - The merger with CWT is subject to regulatory approvals and closing conditions, with potential delays or obstacles that could affect its completion[218]. - The U.S. Department of Justice has filed a lawsuit seeking to prevent the merger, which adds uncertainty to the transaction[218].

Core Viewpoint - Global Business Travel Group, Inc. (GBTG) has been upgraded to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][4]. Earnings Estimates and Ratings - The Zacks rating system is primarily driven by changes in a company's earnings picture, specifically the Zacks Consensus Estimate for EPS from sell-side analysts [2]. - The Zacks rating upgrade reflects a positive outlook on GBTG's earnings, which could lead to increased buying pressure and a rise in stock price [4][6]. Impact of Earnings Estimates on Stock Prices - There is a strong correlation between changes in earnings estimates and near-term stock price movements, with institutional investors playing a role in this relationship [5]. - Rising earnings estimates and the subsequent rating upgrade suggest an improvement in GBTG's underlying business, which should be recognized by investors through higher stock prices [6]. Importance of Earnings Estimate Revisions - Tracking earnings estimate revisions can be beneficial for investment decisions, and the Zacks Rank system effectively utilizes this information [7]. - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance for Zacks Rank 1 stocks, averaging a +25% annual return since 1988 [8]. Specific Earnings Estimates for GBTG - GBTG is projected to earn $0.32 per share for the fiscal year ending December 2025, reflecting a year-over-year increase of 268.4% [9]. - Over the past three months, the Zacks Consensus Estimate for GBTG has risen by 14.1% [9]. Conclusion on Zacks Rating System - The Zacks rating system maintains a balanced distribution of 'buy' and 'sell' ratings, with only the top 20% of stocks receiving favorable ratings based on earnings estimate revisions [10][11]. - GBTG's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating potential for market-beating returns in the near term [11].

Financial Data and Key Metrics Changes - Adjusted EBITDA for 2024 was $478 million, up 26% year over year, with a margin expansion of over 300 basis points, reaching 20% [8][10] - Revenue for the full year 2024 was $2.42 billion, an increase of 6% year over year [34] - Free cash flow more than tripled in 2024, reaching $165 million, which is 235% higher than 2023 [35][37] - The leverage ratio decreased to 1.8 times at the end of 2024, down from 2.3 times a year ago [36] Business Line Data and Key Metrics Changes - Full-year transaction volumes increased by 5%, with TGB up 8% driven by transaction growth and higher average ticket prices [13] - Air transaction growth was 4% in 2024, with total TTV growth for air at 8% [17] - Hotel transaction growth was 6%, reflecting efforts to increase hotel bookings [17] Market Data and Key Metrics Changes - Transaction growth was up 5% in the Americas, 2% in EMEA, and 12% in APAC [17] - Customer retention rates were impressive, with 99% for global multinational customers and 97% for TTB [20] Company Strategy and Development Direction - The company aims to deliver earnings growth ahead of revenue growth through technology-enabled productivity gains and a scalable cost base [7][11] - Investments in software and services are expected to drive top-line growth and customer retention [9] - The company is focused on M&A opportunities, particularly in a fragmented industry [41] Management's Comments on Operating Environment and Future Outlook - The demand outlook for 2025 remains solid, with 80% of top customers expecting travel spend to be flat or up [44] - The company anticipates continued growth in the business travel industry, expecting to grow faster than the industry average [47] - Management noted the importance of cost control and margin expansion as key drivers for future growth [48] Other Important Information - The company has cleared a significant milestone towards the approval of the CWT acquisition, with the UK's competition authority not identifying competition concerns [25][26] - The company is embracing AI and automation to improve customer experience and productivity [24] Q&A Session Summary Question: Can you expand on the slight downtick in new business wins? - Management noted that the majority of wins come from SME customers, and a slight uptick in SME wins was observed [75] Question: Have you seen any recent sentiment or budget changes in the small and midsize business space? - Management expects stable growth in SME and a slight improvement as 2025 progresses, despite pressures from higher prices and interest rates [78] Question: What is the expected closing quarter for the CWT acquisition? - The trial is scheduled to start on September 8, with a potential closing in the fourth quarter [83] Question: Are there notable trends in government travel? - Management indicated that government travel is not a large part of their business and does not disclose specific insights [87] Question: How does the CMA's positive decision impact the case in the US? - Management believes the CMA's findings are positive and will help their case with the DOJ [92] Question: What are the dynamics in SME retention and demand? - Management observed stable retention rates in SME and expects gradual improvement in growth rates as 2025 progresses [110]

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 License ...

Financial Data and Key Metrics Changes - The company achieved record adjusted EBITDA and revenue in 2024, with adjusted EBITDA up 26% year over year [7][24] - Revenue for the fourth quarter reached $591 million, an 8% increase year over year, while full year revenue was $2.42 billion, up 6% [22][24] - Free cash flow more than tripled in 2024, reaching $165 million, reflecting a 235% increase [25][27] - The leverage ratio improved to 1.8x at the end of 2024, down from 2.3x a year ago [25][28] Business Line Data and Key Metrics Changes - Transaction volumes increased by 5% in 2024, with total transaction value (TTV) rising by 8% [9][10] - The company reported a 39% increase in adjusted EBITDA for the fourth quarter, totaling $110 million [23][24] - Customer retention rates were impressive, with 99% for global multinational customers and 97% overall [14][33] Market Data and Key Metrics Changes - Transaction growth was 5% in The Americas, 2% in EMEA, and 12% in APAC [13] - The company noted that air transaction growth was 4%, with total TTV growth for air at 8% due to higher ticket prices [12] - The estimated value of new business wins in 2024 was $2.8 billion, with a notable increase in SME wins [13][32] Company Strategy and Development Direction - The company aims to deliver earnings growth ahead of revenue growth through technology-enabled productivity gains and a scalable cost base [6][9] - Investments in software and services are expected to drive top-line growth and enhance customer retention [7][9] - The company is focused on expanding its NDC content and enhancing customer experience through AI and automation [15][17][36] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving double-digit earnings growth in 2025, supported by strong commercial momentum and customer demand [9][31] - The outlook for business travel remains solid, with 80% of top customers expecting flat or increased travel spend in 2025 [31][32] - Management acknowledged the impact of higher prices and macroeconomic conditions on SME customers but expects gradual improvement in growth rates [52][80] Other Important Information - The company is pursuing the acquisition of CWT, with positive developments from the UK's Competition and Markets Authority [18][47] - The company has initiated a share repurchase program, with $300 million authorized for buybacks [8][30] - The company plans to invest $65 million in technology and organic growth initiatives in 2025 [29][46] Q&A Session Summary Question: Can you expand on the slight downtick in new business wins? - Management noted that the majority of wins come from SME customers and that fluctuations in large customer wins can affect quarterly results [50][51] Question: Have you seen any recent sentiment or budget changes in the SME space? - Management indicated stable growth in SME and expects a slight improvement as 2025 progresses, despite pressures from higher costs [52][53] Question: What is the expected closing timeline for the CWT acquisition? - The trial is scheduled for September 8, with a potential closing in the fourth quarter depending on the outcome [56][57] Question: Are there notable trends in government travel? - Management stated that government travel is not a significant part of their business and did not provide specific insights [61][62] Question: How does the CMA's decision impact the CWT deal in the U.S.? - Management confirmed that the CMA's positive finding is a favorable factor, but they continue to engage with the DOJ regarding the case [66][68] Question: What are the dynamics in SME retention and demand? - Management observed a slight uptick in SME growth rates and stable retention, with optimism for gradual improvement in 2025 [80][82]

Financial Performance - Q4 2024 revenue reached $591 million, an 8% increase year-over-year, with full-year revenue totaling $2,423 million, reflecting a 6% growth[4]. - Adjusted EBITDA for Q4 2024 was $110 million, up 39% year-over-year, while full-year Adjusted EBITDA was $478 million, a 26% increase[4]. - Revenue for the year ended December 31, 2024, increased to $2,423 million, up from $2,290 million in 2023, representing a growth of approximately 5.8%[29]. - Operating income improved to $115 million in 2024, compared to an operating loss of $8 million in 2023[29]. - Net loss attributable to the Company's Class A common stockholders was $138 million in 2024, compared to a net loss of $63 million in 2023[29]. - Basic loss per share attributable to the Company's Class A common stockholders was $0.30 in 2024, compared to $0.25 in 2023[29]. - Adjusted EBITDA for the year ended December 31, 2024, was $478 million, up from $380 million in 2023, reflecting a margin increase from 17% to 20%[53]. - Free Cash Flow for the year ended December 31, 2024, was $165 million, significantly higher than $49 million in 2023[57]. Guidance and Future Expectations - Full-year 2025 revenue guidance is set at $2.50 billion to $2.55 billion, indicating a 5%-7% growth in constant currency[21]. - The company expects Adjusted EBITDA for the year ending December 31, 2025, to include approximately $80 million in interest expense and $60-$80 million in income tax provision[61]. - Free Cash Flow guidance for the year ending December 31, 2025, anticipates net cash from operating activities exceeding $280 million, with capital expenditures over $120 million[62]. - The guidance for 2025 does not account for the potential impact of the proposed acquisition of CWT Holdings, LLC[60]. Customer Metrics - The company achieved a 97% customer retention rate, with 99% retention in GMN[4]. - Total New Wins Value for the full year was $2.8 billion, including $2.2 billion from SME[4]. Cash Flow and Debt Management - Free Cash Flow for full-year 2024 was $165 million, exceeding initial guidance of $100 million, and is expected to exceed $160 million in 2025[4][21]. - As of December 31, 2024, the company's Net Debt stood at $848 million, a decrease from $886 million in 2023, with a Net Debt to LTM Adjusted EBITDA ratio of 1.8x compared to 2.3x in the previous year[58]. - Cash and cash equivalents increased to $536 million in 2024, compared to $476 million in 2023[31]. - Net cash from operating activities for 2024 was $272 million, up from $162 million in 2023[33]. Operational Metrics - Total Transaction Value (TTV) for Q4 2024 was $6,896 million, a 10% increase year-over-year, with full-year TTV at $30,477 million, an 8% growth[7]. - Adjusted EBITDA margin expanded to 20% for the full year, up 310 basis points year-over-year[16]. - Total operating expenses for the three months ended December 31, 2024, were $561 million, slightly up from $546 million in the same period of 2023[54]. - The company incurred $110 million in Adjusted Operating Expenses for the three months ended December 31, 2024, compared to $80 million in 2023[53]. Risks and Challenges - The company faces risks related to achieving anticipated growth rates and maintaining relationships with customers and suppliers[65]. - Geopolitical conflicts, including the war in Ukraine, may impact the travel industry and global economy[65]. - The company is subject to legal proceedings related to its merger with CWT, including a lawsuit from the Department of Justice[65]. - There are uncertainties regarding the completion and benefits of the merger with CWT, including regulatory approvals[65]. - The company acknowledges the potential impact of prolonged decreases in global travel on its business[65]. - Changes in market conditions and macroeconomic factors could affect the company's financial performance[65]. - The company has outlined various risks that could lead to actual results differing materially from forward-looking statements[65]. - The company does not undertake any obligation to update forward-looking statements unless required by securities laws[65]. Investment and Responsibility - The investment in Global Business Travel Group, Inc. is distinct from an investment in American Express[66]. - American Express is not responsible for the statements made by Global Business Travel Group, Inc.[66].

Financial Data and Key Metrics Changes - Revenue reached $597 million, up 5% year-over-year, driven by solid growth in transactions and TTV [13][35] - Adjusted EBITDA grew 23% to $118 million, with an adjusted EBITDA margin of 20%, expanding by 300 basis points year-over-year [14][40] - Free cash flow generation was $59 million, exceeding expectations, driven by working capital optimization and lower CapEx spend [41][51] Business Line Data and Key Metrics Changes - Transaction growth was up 5%, with TTV growing by 9% to nearly $8 billion, driven by increased demand for business travel [12][13] - Global multinational customer transactions increased by 8%, while SME transaction growth was muted at 2% [14][15] - Hotel transactions grew by 6%, outpacing the 4% growth in air transactions, reflecting a focus on increasing hotel bookings [15][16] Market Data and Key Metrics Changes - Transaction growth was 6% in the Americas and 11% in Asia-Pacific, while EMEA growth was softer at 2% due to the Olympics in France [16] - The top 100 customers expect travel spend to increase by approximately 5% in the fourth quarter [21] - The company maintained a high customer retention rate of 98% for global multinational customers [18] Company Strategy and Development Direction - The company is focused on capital allocation, reducing debt interest, and strengthening the balance sheet while investing in growth and productivity [10][34] - Continued share gains with total new wins valued at $3 billion over the last 12 months, particularly in the SME segment [22][24] - The company aims to enhance its digital channels, with 80% of transactions now through digital platforms, and is investing in AI for operational efficiencies [25][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business model and strategy, anticipating continued growth and share gains in 2024 [44][84] - The macroeconomic environment is expected to improve, which could positively impact SME growth rates [63][75] - The company is optimistic about the CWT acquisition, expecting to close in the first quarter of 2025 [33][54] Other Important Information - The company executed its first share buyback, repurchasing 8 million shares for approximately $55 million, and announced a new share buyback authorization of up to $300 million [11][55] - The company achieved significant interest savings through debt refinancing, with expected run-rate cash interest savings of approximately $50 million [42][52] Q&A Session Summary Question: Free cash flow generation and its drivers - Management highlighted that cost savings and working capital efficiencies will contribute to free cash flow expansion [58][60] Question: SME growth activity and industry verticals - Management noted that SME growth rates have stabilized, with expectations for improvement as macro conditions become more favorable [62][64] Question: Spread between TTV growth and revenue growth - Management explained that the spread is influenced by customer mix and international pricing dynamics [66][67] Question: Drivers of improved free cash flow - Management indicated that lower interest expenses from refinancing are the primary driver of improved free cash flow [68][70] Question: Timing of transactions and business travel consumption - Management confirmed that Q3 transactions closely relate to travel activity within the same quarter [72] Question: Future SME growth and macroeconomic conditions - Management acknowledged that macroeconomic conditions will influence SME growth, but emphasized internal initiatives to drive productivity [76][77] Question: Leveraging generative AI for cost savings - Management discussed the potential for significant margin expansion through automation and AI, although quantifying specific savings remains challenging [79][80]

Core Insights - Global Business Travel Group, Inc. reported a quarterly loss of $0.22 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.08, marking an earnings surprise of -175% [1] - The company generated revenues of $597 million for the quarter ended September 2024, missing the Zacks Consensus Estimate by 2.43%, but showing an increase from $571 million year-over-year [2] - The stock has increased by approximately 19.1% since the beginning of the year, slightly underperforming the S&P 500's gain of 19.8% [3] Earnings Outlook - The earnings outlook for Global Business Travel Group, Inc. is uncertain, with current consensus EPS estimates at -$0.03 for the upcoming quarter and -$0.08 for the current fiscal year, with revenues expected to be $587.81 million and $2.43 billion respectively [7] - The estimate revisions trend is currently favorable, leading to a Zacks Rank 2 (Buy) for the stock, indicating expectations of outperforming the market in the near future [6] Industry Context - The Transportation - Services industry, to which Global Business Travel Group, Inc. belongs, is currently ranked in the bottom 28% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact the stock's performance [5]