American Express Global Business Travel Reports Strong Fourth Quarter and Full-Year 2024 Financial Results; With Continued Momentum in 2025
NEW YORK--(BUSINESS WIRE)--February 27, 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 fourth quarter and full year ended December 31, 2024.
Fourth Quarter and Full-Year 2024 Highlights
Continued to Deliver Strong Financial Results
--
In Q4 2024, delivered $591 million of revenue, up 8% year over year,
and $110 million of Adjusted EBITDA, up 39% year over year.
--
Full-year Revenue of $2,423 million, 6% growth year over year.
--
Full-year Adjusted EBITDA of $478 million, representing growth of 26%
year over year, exceeding the midpoint of initial1 guidance.
Significant Margin Expansion
--
In Q4 2024, Adjusted EBITDA margin of 19%, expansion of 420 bps year
over year.
--
Full-year Adjusted EBITDA margin expansion of 310 bps to 20%, Revenue
grew 6%, while Adjusted Operating Expenses only increased 2%.
Continued Share Gains and Strong Customer Retention
--
Full-year Total New Wins Value of $2.8 billion, including $2.2 billion
in SME.
--
97% customer retention rate, including 99% in GMN.
Free Cash Flow Acceleration
--
Full-year Free Cash Flow of $165 million, exceeding initial guidance of
$100 million.
--
Significant decline in leverage ratio, to 1.8x2, and reduction in
interest expense.
Capital Allocation to Optimize Shareholder Returns
--
Reinvested in growth and additional margin expansion.
--
Board of Directors authorized additional share buyback of up to $300
million and repurchased 8 million shares in private buyback.
Full-Year 2025 Outlook
Revenue Growth.
--
Guiding to 5%-7% Constant Currency revenue growth driven by consistent
growth in business travel and continued share gains from new wins and
high customer retention.
Operating Leverage and Margin Expansion.
--
Continued productivity gains balanced with additional technology
investment to drive future growth expected to generate Adjusted EBITDA
growth of 11%-17%, to $530-$560 million and 150 bps of Adjusted EBITDA
margin expansion at mid-point.
Strong Cash Flow.
--
Free Cash Flow expected to exceed $160 million, with underlying
increase driven by earnings growth and lower cash interest, offset by
costs associated with M&A.
Paul Abbott, Amex GBT's Chief Executive Officer, stated: "We delivered on our financial targets for 2024 with a strong finish in the fourth quarter, thanks to consistent execution of our commercial strategy and focus on cost control. Our efficient financial model is demonstrating its ability to generate attractive double-digit earnings growth, by adding share gains on top of stable industry growth and then expanding margins with a scalable cost base. In 2025, we expect this model to generate 11-17% growth for Adjusted EBITDA on 5%-7% Constant Currency revenue growth at the top line, while also continuing to invest to drive revenue growth, margin expansion and earnings growth in the years ahead."
Fourth Quarter & Full-Year 2024 Financial Summary
% %
Three Months Increase/ Increase/
Ended (Decrease) Year Ended (Decrease)
---------------- ---------- ----------
December 31, December 31,
--------------- ---------- ---------------- ----------
(in millions,
except
percentages;
unaudited) 2024 2023 2024 2023
---------------- ------ ------- ---------- ------- ------- ----------
Total
Transaction
Value (TTV) $6,896 $ 6,298 10% $30,477 $28,192 8%
---------------- ----- ------ ---------- ------ ------ ----------
Transaction
Growth 3% 6% 5% 18%
---------------- ----- ------ ---------- ------ ------ ----------
Revenue $ 591 $ 549 8% $ 2,423 $ 2,290 6%
---------------- ----- ------ ---------- ------ ------ ----------
Travel
Revenue $ 456 $ 426 7% $ 1,932 $ 1,827 6%
---------------- ----- ------ ---------- ------ ------ ----------
Products &
Professional
Services
Revenue $ 135 $ 123 10% $ 491 $ 463 6%
---------------- ----- ------ ---------- ------ ------ ----------
Total operating
expenses $ 561 $ 546 3% $ 2,308 $ 2,298 --%
---------------- ----- ------ ---------- ------ ------ ----------
Adjusted
Operating
Expenses $ 484 $ 469 3% $ 1,948 $ 1,910 2%
---------------- ----- ------ ---------- ------ ------ ----------
Operating
income (loss) $ 30 $ 3 n/m $ 115 $ (8) n/m
---------------- ----- ------ ---------- ------ ------ ----------
Net loss $ (14) $ (46) 67% $ (134) $ (136) 1%
---------------- ----- ------ ---------- ------ ------ ----------
Net loss margin (3)% (8)% 590 bps (6)% (6)% 40 bps
---------------- ----- ------ ---------- ------ ------ ----------
EBITDA $ 57 $ 41 41% $ 257 $ 189 36%
---------------- ----- ------ ---------- ------ ------ ----------
Adjusted EBITDA $ 110 $ 80 39% $ 478 $ 380 26%
---------------- ----- ------ ---------- ------ ------ ----------
Adjusted EBITDA
Margin 19% 15% 420 bps 20% 17% 310 bps
---------------- ----- ------ ---------- ------ ------ ----------
Net cash
provided by
operating
activities $ 65 $ 58 12% $ 272 $ 162 68%
---------------- ----- ------ ---------- ------ ------ ----------
Free Cash Flow $ 33 $ 32 1% $ 165 $ 49 235%
---------------- ----- ------ ---------- ------ ------ ----------
Net Debt $ 848 $ 886
---------------- ------ ------- ---------- ------ ------ ----------
Net Debt / LTM 1.8x 2.3x
Adjusted
EBITDA
---------------- ------ ------- ---------- ------- ------- ----------
n/m = Not
Meaningful
Fourth Quarter 2024 Financial Highlights
(Changes compared to prior year period unless otherwise noted)
Revenue totaled $591 million, an increase of $42 million, or 8%, primarily due to growth in Total Transaction Value driven by continued growth in business travel and growth in Product & Professional Services revenue, partially offset by lower yield due to continued shift to digital transactions and recurring elements of revenue in line with prior quarter trend. Yield is calculated as total revenue divided by TTV for the same period.
Total operating expenses totaled $561 million, an increase of $15 million, or 3%, primarily due to continued investments in technology & content, associated with higher sales & marketing, and general & administrative costs, partially offset by cost saving initiatives, productivity improvements and lower depreciation & amortization.
Adjusted Operating Expenses totaled $484 million, an increase of $15 million, or 3%.
Net loss totaled $14 million, an improvement of $32 million, primarily due to the increase in operating income, lower interest expense and higher other income, partially offset by fair value movements on earnout derivative liabilities.
Adjusted EBITDA totaled $110 million, an increase of $30 million, or 39%. Revenue growth and operating leverage resulted in Adjusted EBITDA margin expansion to 19%, up 420 bps.
Net cash provided by operating activities totaled $65 million, an improvement of $7 million versus $58 million in net cash provided by operating activities in the same period in 2023.
Free Cash Flow totaled $33 million, improving marginally by $1 million versus Free Cash Flow of $32 million in the same period in 2023.
Full-Year 2024 Financial Highlights
(Changes compared to prior year period unless otherwise noted)
Revenue totaled $2,423 million, an increase of $133 million, or 6%, primarily due to growth in Total Transaction Value and growth in Product and Professional Services revenue. The increase in total revenue was driven by 5% Transaction Growth, offset by a modest decline of 17 bps in yield to 8% due to mix of non-TTV driven revenue and higher digital transactions. Yield is calculated as total revenue divided by TTV for the same period.
Total operating expenses totaled $2,308 million, an increase of $10 million. Increases in general & administrative costs and investments in technology and content were offset by higher productivity and other cost savings, lower depreciation & amortization, and restructuring costs.
Adjusted Operating Expenses totaled $1,948 million, an increase of $38 million, or 2%.
Net loss totaled $134 million, an improvement of $2 million. Increase in operating income, other income and benefit from lower interest expense was more than offset by unfavorable fair value movement on earnout derivative liabilities, loss on early extinguishment of debt and higher provision for income taxes.
Adjusted EBITDA totaled $478 million, an increase of $98 million, or 26%. Strong revenue growth and operating leverage resulted in Adjusted EBITDA margin expansion to 20%, up 310 bps.
Net cash provided by operating activities totaled $272 million, an improvement of $110 million versus $162 million in net cash provided by operating activities in 2023, primarily due to (i) an increase in operating income and working capital movements (that was driven by lower benefit from the Egencia working capital optimization actions as the program nears completion) before considered non-cash charges or credits and (ii) lower cash interest payments partially offset by (iii) higher cash income taxes.
Free Cash Flow totaled $165 million, an improvement versus Free Cash Flow of $49 million in 2023, due to the increase in net cash provided by operating activities and a decrease in cash for the purchase of property and equipment.
Net Debt: As of December 31, 2024, total debt, net of unamortized debt discount and debt issuance cost, was $1,384 million, compared to $1,362 million as of December 31, 2023. Net Debt was $848 million as of December 31, 2024, compared to $886 million as of December 31, 2023. The leverage ratio was 1.8x as of December 31, 2024. The cash balance at the end of 2024 was $536 million, compared to $476 million at the end of 2023.
Full-Year 2025 Guidance
Year-over-Year
Full-Year 2025 Growth Constant Year-over-Year
Guidance Currency Growth
------------------- ---------------- ------------------ -------------------
Revenue $2.50B -- $2.55B + 5% -- 7% + 3% -- 5%
------------------- ---------------- ------------------ -------------------
Adjusted EBITDA $530M -- $560M + 11% -- 17% + 11% -- 17%
------------------- ---------------- ------------------ -------------------
Adjusted EBITDA 21% -- 22% > +120 bps > +150 bps
Margin
------------------- ---------------- ------------------ -------------------
Free Cash Flow > $160M
------------------- ---------------- ------------------ -------------------
Karen Williams, Amex GBT's Chief Financial Officer, stated: "We exited 2024 with strong momentum and are well-positioned to deliver another year of significant margin expansion and double-digit Adjusted EBITDA growth in 2025. Importantly, currency exchange has a neutral impact on our Adjusted EBITDA, and any headwind at the top line from rate fluctuations will be naturally offset by Adjusted Operating Expenses. Although we expect costs associated with M&A to offset the underlying growth in our Free Cash Flow this year, we are on track to generate higher conversion rates on higher levels of Adjusted EBITDA in the years ahead. And we retain the flexibility and capacity to pursue our clear capital allocation strategy that supports organic and inorganic investments for long-term, sustained growth."
Please refer to the section below titled "Reconciliation of Full-Year 2025 Adjusted EBITDA and Free Cash Flow Guidance" for a description of certain assumptions and risks associated with this guidance and reconciliation to GAAP measures.
Webcast Information
Amex GBT will host its fourth quarter and full-year 2024 investor conference call today at 9:00 a.m. E.T. The live webcast and accompanying slide presentation can be accessed on the Amex GBT Investor Relations website at investors.amexglobalbusinesstravel.com. A replay of the event will be available on the website for at least 90 days following the event.
Glossary of Terms
See the "Glossary of Terms" for the definitions of certain terms used within this press release.
Non-GAAP Financial Measures
The Company refers to certain financial measures that are not recognized under GAAP in this press release, including EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Operating Expenses, Free Cash Flow and Net Debt. See "Non-GAAP Financial Measures" below for an explanation of these non-GAAP financial measures and "Tabular Reconciliations for Non-GAAP Financial Measures" below for reconciliations of the non-GAAP financial measures to the comparable GAAP measures.
About American Express Global Business Travel
American Express Global Business Travel (Amex GBT) is a leading software and services company for travel, expense, and meetings & events. We have built the most valuable marketplace in travel with the most comprehensive and competitive content. A choice of solutions brought to you through a strong combination of technology and people, delivering the best experiences, proven at scale. With travel professionals and business partners in more than 140 countries, our solutions deliver savings, flexibility, and service from a brand you can trust - Amex GBT.
Visit amexglobalbusinesstravel.com for more information about Amex GBT. Follow @amexgbt on X (formerly known as Twitter), LinkedIn and Instagram.
GLOBAL BUSINESS TRAVEL GROUP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Year ended
December 31,
------------------------------
(in $ millions, except share and
per share data) 2024 2023
----------------------------------- ------------- ---------------
Revenue $ 2,423 $ 2,290
Costs and expenses:
Cost of revenue (excluding
depreciation and amortization
shown separately below) 967 961
Sales and marketing 400 394
Technology and content 442 413
General and administrative 308 294
Restructuring and other exit
charges 13 42
Depreciation and amortization 178 194
----------- -----------
Total operating expenses 2,308 2,298
----------- -----------
Operating income (loss) 115 (8)
Interest income 6 1
Interest expense (115) (141)
Loss on early extinguishment of
debt (38) --
Fair value movement on earnout
derivative liabilities (56) 13
Other income (loss), net 17 (10)
----------- -----------
Loss before income taxes and share
of income (losses) from equity
method investments (71) (145)
(Provision for) benefit from
income taxes (66) 9
Share of income from equity
method investments 3 --
----------- -----------
Net loss (134) (136)
Less: net income (loss)
attributable to non-controlling
interests in subsidiaries 4 (73)
----------- -----------
Net loss attributable to the
Company's Class A common
stockholders $ (138) $ (63)
=========== ===========
Basic loss per share attributable to
the Company's Class A common
stockholders $ (0.30) $ (0.25)
=========== ===========
Weighted average number of shares
outstanding -- Basic 462,695,229 251,645,498
=========== ===========
Diluted loss per share attributable
to the Company's Class A common
stockholders $ (0.30) $ (0.30)
=========== ===========
Weighted average number of shares
outstanding -- Diluted 462,695,229 458,055,525
=========== ===========
GLOBAL BUSINESS TRAVEL GROUP, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
As of December 31,
(in $ millions except share and per share
data) 2024 2023
------------------------------------------- ------------ ----------
Assets
Current assets:
Cash and cash equivalents $ 536 $ 476
Accounts receivable (net of allowance
for credit losses of $10 and $12 as
of December 31, 2024 and 2023,
respectively) 571 726
Due from affiliates 46 42
Prepaid expenses and other current
assets 128 116
------- ------
Total current assets 1,281 1,360
Property and equipment, net 232 232
Equity method investments 14 14
Goodwill 1,201 1,212
Other intangible assets, net 480 552
Operating lease right-of-use assets 59 50
Deferred tax assets 268 281
Other non-current assets 89 50
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