Global Business Travel (GBTG) - 2024 Q3 - Quarterly Results

Financial Performance - Total Transaction Value (TTV) increased by 9% year over year to $7.8 billion[2] - Revenue grew by 5% year over year to$ 597 million, with Travel Revenue also increasing by 5% to $478 million[6][7] - Adjusted EBITDA rose by 23% year over year to$ 118 million, resulting in an Adjusted EBITDA margin expansion of 300 basis points to 20%[2][10] - The company reported a net loss of $128 million for Q3 2024, compared to a net loss of$ 8 million in the same period last year[9] - Net loss for the nine months ended September 30, 2024, was $120 million, compared to a net loss of$ 90 million for the same period in 2023[22] - Adjusted EBITDA for the same period was $118 million, reflecting an increase from$ 95 million year-over-year, with an Adjusted EBITDA margin of 20% compared to 17% in the prior year[42] Cash Flow and Guidance - Free Cash Flow for Q3 2024 was $59 million, a decrease of 45% compared to the previous year[11] - The company raised its full-year 2024 Free Cash Flow guidance to approximately$ 160 million, up from previous guidance of over $130 million[3][13] - Free Cash Flow for the three months ended September 30, 2024, was$ 59 million, down from $107 million in the same period of 2023[44] - Free Cash Flow guidance for the year ending December 31, 2024, is projected to exceed$ 260-280 million, after accounting for approximately $105-115 million in capital expenditures[48] - The company highlighted the importance of Free Cash Flow as a measure of liquidity, indicating its ability to generate cash to meet liquidity demands[38] Debt and Equity - Net Debt decreased to$ 860 million, with a leverage ratio of 1.9x as of September 30, 2024, down from 2.7x a year earlier[12] - As of September 30, 2024, the company's Net Debt stood at $860 million, a decrease from$ 927 million a year earlier, with a Net Debt to LTM Adjusted EBITDA ratio of 1.9x[44] - The company’s accumulated deficit increased to $(1,559) million as of September 30, 2024, from$ (1,437) million at December 31, 2023[21] - The company’s total shareholders' equity decreased to $1,106 million as of September 30, 2024, from$ 1,212 million at December 31, 2023, a decline of 8.8%[21] Operating Expenses - Total operating expenses decreased by 1% year over year to $570 million, driven by lower restructuring costs and productivity improvements[8] - Total operating expenses for the three months ended September 30, 2024, were$ 570 million, slightly down from $575 million in the same period of 2023[43] - The company anticipates restructuring costs of approximately$ 15-20 million and integration expenses related to mergers and acquisitions of about $65-70 million for the full year 2024[47] Customer Metrics - The company achieved a 97% customer retention rate over the last twelve months[3] Assets and Liabilities - Total current assets increased to$ 1,394 million as of September 30, 2024, compared to $1,360 million at December 31, 2023, reflecting a growth of 2.5%[21] - Total liabilities increased to$ 2,646 million as of September 30, 2024, from $2,539 million at December 31, 2023, marking a rise of 4.2%[21] - Cash and cash equivalents at the end of the period were$ 550 million, compared to $445 million at the end of September 30, 2023, indicating a year-over-year increase of 23.6%[22] Share Repurchase - The company repurchased 8 million shares for approximately$ 55 million in Q3 2024 and announced an additional share buyback authorization of up to $300 million[4] Loans and Financing - The company raised$ 1,397 million from senior secured term loans during the nine months ended September 30, 2024, compared to $131 million in the same period of 2023[22] Future Expectations - The company expects full-year 2024 Adjusted EBITDA to include approximately$ 115 million in interest expense and $60-75 million in income taxes[47] - The guidance does not include the impact of the CWT acquisition, expected to close in Q1 2025[46]