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
(in millions, except percentages;
unaudited)
Three Months Ended
% Increase/
(Decrease)
Year Ended
% Increase/
(Decrease)
December 31,
December 31,
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 Adjusted EBITDA
1.8x
2.3x
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
Full-Year 2025
Guidance
Year-over-Year Growth
Constant Currency
Year-over-Year Growth
Revenue
$2.50B – $2.55B
+ 5% – 7%
+ 3% – 5%
Adjusted EBITDA
$530M – $560M
+ 11% – 17%
+ 11% – 17%
Adjusted EBITDA Margin
21% – 22%
> +120 bps
> +150 bps
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
Total assets
$
3,624
$
3,751
Liabilities and shareholders’
equity
Current liabilities:
Accounts payable
$
263
$
302
Due to affiliates
22
39
Accrued expenses and other current
liabilities
461
466
Current portion of operating lease
liabilities
15
17
Current portion of long-term debt
19
7
Total current liabilities
780
831
Long-term debt, net of unamortized debt
discount and debt issuance costs
1,365
1,355
Deferred tax liabilities
36
5
Pension liabilities
156
183
Long-term operating lease liabilities
63
55
Earnout derivative liabilities
133
77
Other non-current liabilities
34
33
Total liabilities
2,567
2,539
Commitments and Contingencies
Shareholders’ equity:
Class A common stock (par value $0.0001;
3,000,000,000 shares authorized; 478,904,677 and 467,092,817 shares
issued, 470,904,677 and 467,092,817 shares outstanding as of
December 31, 2024 and December 31, 2023, respectively)
—
—
Additional paid-in-capital
2,827
2,748
Accumulated deficit
(1,575
)
(1,437
)
Accumulated other comprehensive loss
(146
)
(103
)
Treasury shares, at cost (8,000,000 shares
and 0 shares as of December 31, 2024 and December 31, 2023,
respectively)
(55
)
—
Total equity of the Company’s
shareholders
1,051
1,208
Equity attributable to non-controlling
interest in subsidiaries
6
4
Total shareholders’ equity
1,057
1,212
Total liabilities and shareholders’
equity
$
3,624
$
3,751
GLOBAL BUSINESS TRAVEL GROUP,
INC.
CONSOLIDATED STATEMENTS OF
CASH FLOWS
(Unaudited)
Year ended December
31,
(in $ millions)
2024
2023
Operating activities:
Net loss
$
(134
)
$
(136
)
Adjustments to reconcile net loss to net
cash from operating activities:
Depreciation and amortization
178
194
Deferred tax charge (benefit)
34
(30
)
Equity-based compensation
77
75
Allowance for credit losses
9
9
Loss on early extinguishment of debt
38
—
Fair value movements on earnout derivative
liabilities
56
(13
)
Other, net
(23
)
17
Changes in working capital:
Accounts receivable
123
49
Prepaid expenses and other current
assets
(28
)
9
Due from affiliates
(5
)
(4
)
Due to affiliates
(17
)
(5
)
Accounts payable, accrued expenses and
other current liabilities
(5
)
26
Defined benefit pension funding
(27
)
(29
)
Payment for termination of interest rate
swap contracts
(4
)
—
Net cash from operating activities
272
162
Investing activities:
Purchase of property and equipment
(107
)
(113
)
Other
5
(6
)
Net cash used in investing activities
(102
)
(119
)
Financing activities:
Proceeds from senior secured term loans,
net of debt discount
1,397
131
Repayment of senior secured term loans
(1,372
)
(3
)
Repurchase of common shares
(55
)
—
Contributions for ESPP and proceeds from
exercise of stock options
29
7
Payment of taxes withheld on vesting of
equity awards
(28
)
(14
)
Payment of debt financing costs
(25
)
(2
)
Prepayment penalty and other costs related
to early extinguishment of debt
(26
)
—
Other
(5
)
1
Net cash (used in) from financing
activities
(85
)
120
Effect of exchange rates changes on cash,
cash equivalents and restricted cash
(13
)
10
Net increase in cash, cash equivalents and
restricted cash
72
173
Cash, cash equivalents and restricted
cash, beginning of year
489
316
Cash, cash equivalents and restricted
cash, end of year
$
561
$
489
Supplemental cash flow information:
Cash paid for income taxes, net
$
14
$
2
Cash paid for interest (net of interest
received)
$
99
$
142
Issuance of shares to settle liability
$
—
$
4
Glossary of Terms
Constant Currency is calculated by retranslating current
and prior-period amounts at a consistent exchange rate rather than
the actual exchange rates in effect during the respective periods.
A portion of the Company’s revenue is derived from international
operations. As a result, the Company’s revenue has been and will
continue to be affected by changes in the U.S. dollar against major
international currencies. The Company refers to revenue growth
rates in constant currency or on a constant currency basis so that
the business results can be viewed without the impact of
fluctuations in foreign currency exchange rates to facilitate
comparisons of the Company’s business performance from one period
to another.
Customer retention rate is calculated based on Total
Transaction Value (TTV).
GMN refers to Global & Multinational Enterprises and
SME refers to Small and Medium-sized Enterprises. For
organizational management purposes, Amex GBT divides the customer
base into these two general categories, generally on the basis of
annual TTV, although this measure can vary by country and by
customer preference. Amex GBT offers all products and services to
all sizes of customer, as customers of all sizes may prefer
different solutions.
LTM refers to the last twelve months.
SME New Wins Value is calculated using expected annual
average TTV from SME client wins over the last twelve months.
Total New Wins Value is calculated using expected annual
average TTV from all new client wins over the last twelve
months.
Total Transaction Value or TTV refers to the sum of the
total price paid by travelers for air, hotel, rail, car rental and
cruise bookings, including taxes and other charges applied by
suppliers at point of sale, less cancellations and refunds.
Transaction Growth represents year-over-year increase or
decrease as a percentage of the total
transactions, including air, hotel, car rental, rail or other
travel-related transactions, recorded at the time of booking, and
is calculated on a net basis to exclude cancellations, refunds and
exchanges. To calculate year-over-year growth or decline, we
compare the total number of transactions in the comparative
previous period/ year to the total number of transactions in the
current period/year in percentage terms. We have presented
Transaction Growth on a net basis to exclude cancellations, refunds
and exchanges as management believes this better aligns Transaction
Growth with the way we measure TTV and earn revenue. Prior period
Transaction Growth percentages have been recalculated and
represented to conform to current period presentation.
Non-GAAP Financial Measures
We report our financial results in accordance with GAAP. Our
non-GAAP financial measures are provided in addition to, and should
not be considered as an alternative to, other performance or
liquidity measures derived in accordance with GAAP. Non-GAAP
financial measures have limitations as analytical tools, and you
should not consider them either in isolation or as a substitute for
analyzing our results as reported under GAAP. In addition, because
not all companies use identical calculations, the presentations of
our non-GAAP financial measures may not be comparable to similarly
titled measures of other companies and can differ significantly
from company to company.
Management believes that these non-GAAP financial measures
provide users of our financial information with useful supplemental
information that enables a better comparison of our performance or
liquidity across periods. We use EBITDA, Adjusted EBITDA, Adjusted
EBITDA Margin and Adjusted Operating Expenses as performance
measures as they are important metrics used by management to
evaluate and understand the underlying operations and business
trends, forecast future results and determine future capital
investment allocations. We use Free Cash Flow and Net Debt as
liquidity measures and as indicators of our ability to generate
cash to meet our liquidity needs and to assist our management in
evaluating our financial flexibility, capital structure and
leverage. These non-GAAP financial measures supplement comparable
GAAP measures in the evaluation of the effectiveness of our
business strategies, to make budgeting decisions, and/or to compare
our performance and liquidity against that of other peer companies
using similar measures.
We define EBITDA as net income (loss) before interest income,
interest expense, gain (loss) on early extinguishment of debt,
benefit from (provision for) income taxes and depreciation and
amortization.
We define Adjusted EBITDA as net income (loss) before interest
income, interest expense, gain (loss) on early extinguishment of
debt, benefit from (provision for) income taxes and depreciation
and amortization and as further adjusted to exclude costs that
management believes are non-core to the underlying business of the
Company, consisting of restructuring, exit and related charges,
integration costs, costs related to mergers and acquisitions,
non-cash equity-based compensation and related employer taxes, fair
value movements on earnout derivative liabilities, long-term
incentive plan costs, certain corporate costs, foreign currency
gains (losses), non-service components of net periodic pension
benefit (costs) and gains (losses) on disposal of businesses.
We define Adjusted EBITDA Margin as Adjusted EBITDA divided by
revenue.
We define Adjusted Operating Expenses as total operating
expenses excluding depreciation and amortization and costs that
management believes are non-core to the underlying business of the
Company, consisting of restructuring, exit and related charges,
integration costs, costs related to mergers and acquisitions,
non-cash equity-based compensation and related employer taxes,
long-term incentive plan costs and certain corporate costs.
EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted
Operating Expenses are supplemental non-GAAP financial measures of
operating performance that do not represent and should not be
considered as alternatives to net income (loss) or total operating
expenses, as determined under GAAP. In addition, these measures may
not be comparable to similarly titled measures used by other
companies. These non-GAAP measures have limitations as analytical
tools, and these measures should not be considered in isolation or
as a substitute for analysis of the Company’s results or expenses
as reported under GAAP. Some of these limitations are that these
measures do not reflect:
- changes in, or cash requirements for, our working capital needs
or contractual commitments;
- our interest expense, or the cash requirements to service
interest or principal payments on our indebtedness;
- our tax expense, or the cash requirements to pay our
taxes;
- recurring, non-cash expenses of depreciation and amortization
of property and equipment and definite-lived intangible assets and,
although these are non-cash expenses, the assets being depreciated
and amortized may have to be replaced in the future;
- the non-cash expense of stock-based compensation, which has
been, and will continue to be for the foreseeable future, an
important part of how we attract and retain our employees and a
significant recurring expense in our business;
- restructuring, mergers and acquisition and integration costs,
all of which are intrinsic of our acquisitive business model;
and
- impact on earnings or changes resulting from matters that are
non-core to our underlying business, as we believe they are not
indicative of our underlying operations.
EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted
Operating Expenses should not be considered as measures of
liquidity or as measures determining discretionary cash available
to us to reinvest in the growth of our business or as measures of
cash that will be available to us to meet our obligations. We
believe that the adjustments applied in presenting EBITDA, Adjusted
EBITDA, Adjusted EBITDA Margin and Adjusted Operating Expenses are
appropriate to provide additional information to investors about
certain material non-cash and other items that management believes
are non-core to our underlying business.
We use these measures as performance measures as they are
important metrics used by management to evaluate and understand the
underlying operations and business trends, forecast future results
and determine future capital investment allocations. These non-GAAP
measures supplement comparable GAAP measures in the evaluation of
the effectiveness of our business strategies, to make budgeting
decisions, and to compare our performance against that of other
peer companies using similar measures. We also believe that EBITDA,
Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted Operating
Expenses are helpful supplemental measures to assist potential
investors and analysts in evaluating our operating results across
reporting periods on a consistent basis.
We define Free Cash Flow as net cash from (used in) operating
activities, less cash used for additions to property and
equipment.
We believe Free Cash Flow is an important measure of our
liquidity. This measure is a useful indicator of our ability to
generate cash to meet our liquidity demands. We use this measure to
conduct and evaluate our operating liquidity. We believe it
typically presents an alternate measure of cash flows since
purchases of property and equipment are a necessary component of
our ongoing operations and it provides useful information regarding
how cash provided by operating activities compares to the property
and equipment investments required to maintain and grow our
platform. We believe Free Cash Flow provides investors with an
understanding of how assets are performing and measures
management’s effectiveness in managing cash.
Free Cash Flow is a non-GAAP measure and may not be comparable
to similarly named measures used by other companies. This measure
has limitations in that it does not represent the total increase or
decrease in the cash balance for the period, nor does it represent
cash flow for discretionary expenditures. This measure should not
be considered as a measure of liquidity or cash flows from
operations as determined under GAAP. This measure is not a
measurement of our financial performance under GAAP and should not
be considered in isolation or as an alternative to net income
(loss) or any other performance measures derived in accordance with
GAAP or as an alternative to cash flows from operating activities
as a measure of liquidity.
We define Net Debt as total debt outstanding consisting of
current and non-current portion of long-term debt, net of
unamortized debt discount and unamortized debt issuance costs,
minus cash and cash equivalents.
Net Debt is a non-GAAP measure and may not be comparable to
similarly named measures used by other companies. This measure is
not a measurement of our indebtedness as determined under GAAP and
should not be considered in isolation or as an alternative to
assess our total debt or any other measures derived in accordance
with GAAP or as an alternative to total debt. Management uses Net
Debt to review our overall liquidity, financial flexibility,
capital structure and leverage. Further, we believe that certain
debt rating agencies, creditors and credit analysts monitor our Net
Debt as part of their assessment of our business.
Tabular Reconciliations for Non-GAAP Measures
Reconciliation of net loss to EBITDA and Adjusted EBITDA:
Three Months Ended
December 31,
Year Ended December
31,
(in $ millions)
2024
2023
2024
2023
Net loss
$
(14
)
$
(46
)
$
(134
)
$
(136
)
Interest income
(2
)
(1
)
(6
)
(1
)
Interest expense
22
36
115
141
Loss on early extinguishment of debt
—
—
38
—
Provision for (benefit from) income
taxes
11
3
66
(9
)
Depreciation and amortization
40
49
178
194
EBITDA
57
41
257
189
Restructuring, exit and related
charges(a)
3
—
17
49
Integration costs(b)
4
7
24
35
Mergers and acquisitions(c)
8
1
45
2
Equity-based compensation and related
employer taxes(d)
19
15
83
75
Fair value movements on earnout derivative
liabilities(e)
42
10
56
(13
)
Other adjustments, net(f)
(23
)
6
(4
)
43
Adjusted EBITDA
$
110
$
80
$
478
$
380
Net loss Margin
(3
)%
(8
)%
(6
)%
(6
)%
Adjusted EBITDA Margin
19
%
15
%
20
%
17
%
Reconciliation of total operating expenses to Adjusted Operating
Expenses:
Three Months Ended
December 31,
Year Ended December
31,
(in $ millions)
2024
2023
2024
2023
Total operating expenses
$
561
$
546
$
2,308
$
2,298
Adjustments:
Depreciation and amortization
(40
)
(49
)
(178
)
(194
)
Restructuring, exit and related
charges(a)
(3
)
—
(17
)
(49
)
Integration costs(b)
(4
)
(7
)
(24
)
(35
)
Mergers and acquisitions(c)
(8
)
(1
)
(45
)
(2
)
Equity-based compensation and related
employer taxes(d)
(19
)
(15
)
(83
)
(75
)
Other adjustments, net(f)
(3
)
(5
)
(13
)
(33
)
Adjusted Operating Expenses
$
484
$
469
$
1,948
$
1,910
a)
Includes (i) employee severance
costs/(reversals) of $3 million and $(1) million for the three
months ended December 31, 2024 and 2023, respectively, and $11
million and $39 million for the years ended December 31, 2024 and
2023, respectively, (ii) accelerated amortization of operating
lease ROU assets of $4 million and $7 million for the years ended
December 31, 2024 and 2023, respectively, and (iii) contract costs
related to leased facilities abandonment of $0 and $1 million for
three months ended December 31, 2024 and 2023, respectively, and $2
million and $3 million for the years ended December 31, 2024 and
2023, respectively.
b)
Represents expenses related to the
integration of businesses acquired.
c)
Represents expenses related to business
acquisitions, including potential business acquisitions, and
includes pre-acquisition due diligence and related activities
costs.
d)
Represents non-cash equity-based
compensation expense and employer taxes paid related to equity
incentive awards to certain employees.
e)
Represents fair value movements on earnout
derivative liabilities during the periods.
f)
Adjusted Operating Expenses excludes (i)
long-term incentive plan expense of $2 million and $3 million for
the three months ended December 31, 2024 and 2023, respectively,
and $8 million and $19 million for the years ended December 31,
2024 and 2023, respectively, and (ii) legal and professional
services costs of $1 million and $2 million for the three months
ended December 31, 2024 and 2023, respectively, and $5 million and
$14 million for the years ended December 31, 2024 and 2023,
respectively. Adjusted EBITDA additionally excludes (i) unrealized
foreign exchange gains (losses) of $27 million and $1 million for
the three months ended December 31, 2024 and 2023, respectively,
and $22 million and $(5) million for the years ended December 31,
2024 and 2023, respectively, and (ii) non-service component of our
net periodic pension cost related to our defined benefit pension
plans of $1 million and $2 million for the three months ended
December 31, 2024 and 2023, respectively, and $5 million and $5
million for the years ended December 31, 2024 and 2023,
respectively.
Reconciliation of net cash from operating activities to Free
Cash Flow:
Three Months Ended
December 31,
Year Ended December
31,
(in $ millions)
2024
2023
2024
2023
Net cash from operating
activities
$
65
$
58
$
272
$
162
Less: Purchase of property and
equipment
(32
)
(26
)
(107
)
(113
)
Free Cash Flow
$
33
$
32
$
165
$
49
Reconciliation of Net Debt:
As of December 31,
(in $ millions)
2024
2023
Current portion of long-term debt
$
19
$
7
Long-term debt, net of unamortized debt
discount and debt issuance costs
1,365
1,355
Total debt, net of unamortized debt
discount and debt issuance costs
1,384
1,362
Less: Cash and cash equivalents
(536
)
(476
)
Net Debt
$
848
$
886
LTM Adjusted EBITDA
$
478
$
380
Net Debt / LTM Adjusted EBITDA
1.8x
2.3x
Reconciliation of Full-Year 2025 Adjusted EBITDA and Free
Cash Flow Guidance
The Company’s full-year 2025 guidance considers various material
assumptions. Because the guidance is forward-looking and reflects
numerous estimates and assumptions with respect to future industry
performance under various scenarios as well as assumptions for
competition, general business, economic, market and financial
conditions and matters specific to the business of Amex GBT, all of
which are difficult to predict and many of which are beyond the
control of Amex GBT, actual results may differ materially from the
guidance due to a number of factors, including the ultimate
inaccuracy of any of the assumptions described above and the risks
and other factors discussed in the section entitled
“Forward-Looking Statements” below and the risk factors in the
Company’s SEC filings.
The Company’s guidance does not incorporate the impact of the
proposed acquisition of CWT Holdings, LLC.
Adjusted EBITDA guidance for the year ending December 31, 2025
consists of expected net income (loss) for the year ending December
31, 2025, adjusted for: (i) interest expense, net, of approximately
$80 million; (ii) provision for income taxes of approximately
$60-$80 million; (iii) depreciation and amortization of property
and equipment of approximately $165 million; (iv) restructuring
costs of approximately $20-$35 million; (v) integration expenses
and costs related to mergers and acquisitions of approximately $60
million; (vi) non-cash equity-based compensation and related
employer taxes of approximately $85 million, and; (vii) other
adjustments, including long-term incentive plan costs, litigation
and professional services costs and non-service component of our
net periodic pension benefit related to our defined benefit pension
plans of approximately $10 million. We are unable to reconcile
Adjusted EBITDA to net income (loss) determined under U.S. GAAP due
to the unavailability of information required to reasonably predict
certain reconciling items such as impairment of long-lived assets
and right-of-use assets, fair value movement on earnout derivative
liabilities, foreign exchange gains (loss) and/or loss on early
extinguishment of debt and the related tax impact of these
adjustments. The exact amount of these adjustments is not currently
determinable but may be significant.
Free Cash Flow guidance for the year ending December 31, 2025
consists of expected net cash from operating activities of greater
than $280 million less purchase of property and equipment of
greater than $120 million.
Forward-Looking Statements
This communication contains statements that are forward-looking
and as such are not historical facts. This includes, without
limitation, statements regarding our financial position, business
strategy, and the plans and objectives of management for future
operations and full-year guidance. These statements constitute
projections, forecasts and forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
The words “anticipate,” “believe,” “continue,” “could,” “estimate,”
“expect,” “intend,” “may,” “might,” “plan,” “possible,”
“potential,” “predict,” “project,” “should,” “will,” “would” and
similar expressions may identify forward-looking statements, but
the absence of these words does not mean that a statement is not
forward-looking.
The forward-looking statements contained in this communication
are based on our current expectations and beliefs concerning future
developments and their potential effects on us. There can be no
assurance that future developments affecting us will be those that
we have anticipated. These forward-looking statements involve a
number of risks, uncertainties (some of which are beyond our
control) or other assumptions that may cause actual results or
performance to be materially different from those expressed or
implied by these forward-looking statements. These risks and
uncertainties include, but are not limited to, the following risks,
uncertainties and other factors: (1) changes to projected financial
information or our ability to achieve our anticipated growth rate
and execute on industry opportunities; (2) our ability to maintain
our existing relationships with customers and suppliers and to
compete with existing and new competitors; (3) various conflicts of
interest that could arise among us, affiliates and investors; (4)
our success in retaining or recruiting, or changes required in, our
officers, key employees or directors; (5) factors relating to our
business, operations and financial performance, including market
conditions and global and economic factors beyond our control; (6)
the impact of geopolitical conflicts, including the war in Ukraine
and the conflicts in the Middle East, as well as related changes in
base interest rates, inflation and significant market volatility on
our business, the travel industry, travel trends and the global
economy generally; (7) the sufficiency of our cash, cash
equivalents and investments to meet our liquidity needs; (8) the
effect of a prolonged or substantial decrease in global travel on
the global travel industry; (9) political, social and macroeconomic
conditions (including the widespread adoption of teleconference and
virtual meeting technologies which could reduce the number of
in-person business meetings and demand for travel and our
services); (10) the effect of legal, tax and regulatory changes;
(11) the impact of any future acquisitions including the
integration of any acquisition; (12) the decisions of market data
providers, indices and individual investors; (13) the outcome of
any legal proceedings that have been or may be instituted against
the Company or CWT Holdings, Inc. (“CWT”) in connection with our
merger with CWT (the “Merger”), including the lawsuit filed by the
Department of Justice against us and CWT related to the Merger;
(14) delays in obtaining, adverse conditions contained in, or the
inability to obtain necessary regulatory approvals or complete
regulatory reviews required to complete the Merger; (15) the
inability to complete, costs related to, or the inability to
recognize the anticipated benefits of, the Merger; and (16) other
risks and uncertainties described in the Company’s Form 10-K, filed
with the SEC on March 13, 2024, and in the Company’s other SEC
filings. Should one or more of these risks or uncertainties
materialize, or should any of our assumptions prove incorrect,
actual results may vary in material respects from those projected
in these forward-looking statements. We undertake no obligation to
update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise, except as
may be required under applicable securities laws.
Disclaimer
An investment in Global Business Travel Group, Inc. is not an
investment in American Express. American Express shall not be
responsible in any manner whatsoever for, and in respect of, the
statements herein, all of which are made solely by Global Business
Travel Group, Inc.
_________________ 1 Full-Year 2024 Outlook provided on 5th March
2024. 2 Leverage ratio is calculated as Net Debt / LTM Adjusted
EBITDA and is different than leverage ratio defined in our senior
secured credit agreement. *A reconciliation of non-GAAP financial
measures to the most directly comparable GAAP financial measures
are provided at the end of this release
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250227881651/en/
Media: Megan Kat Senior Director Global Communications and
Public Affairs megan.kat@amexgbt.com
Investors: George Anderson-Brown Vice President of Finance
investor@amexgbt.com
Global Business Travel (NYSE:GBTG)
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