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 ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 _____________________________________________________________ FORM 10-Q _______________________________________________________________________________________ (Mark One) (State or other jurisdiction of incorporation or organization) Delaware 98-0598290 (I.R.S. Employer Identification No.) 666 3rd Avenue, 4th Floor New York, NY 10017 (Address of principal executive offices) (Zip Code) x QUARTERLY REPORT PURSUANT TO SEC ...

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 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].