NEW YORK - Global Business Travel Group, Inc. (NYSE: GBTG), a leading B2B software and services company for travel and expense, announced its financial results for the first quarter ended March 31, 2024.
The company reported a net loss of $0.04 per share, which fell short of the analyst consensus estimate of $0.04 earnings per share. Despite this, revenue saw an increase, reaching $610 million, though it also missed the consensus estimate of $624.49 million.
Compared to the same quarter last year, revenue grew by 6%, with travel revenue up 5% and product and professional services revenue increasing by 7%. This growth is attributed to transaction growth and increased management fees, despite a modest decline in total revenue yield due to a mix of non-TTV-driven revenue and higher digital transactions.
The company's adjusted EBITDA for the quarter was a record $123 million, marking a 24% increase from the previous year, with adjusted EBITDA margin expanding by 300 basis points to 20%. Operating leverage, driven by 6% revenue growth versus a 2% increase in adjusted operating expenses, contributed to this significant margin expansion.
Amex GBT's CEO, Paul Abbott, commented on the results, "In the first quarter, we delivered strong financial results with share gains, significant margin expansion, and meaningful adjusted EBITDA growth to reach the highest first quarter adjusted EBITDA in our company's history. This puts us well on track to deliver against our full-year guidance."
Looking ahead, GBTG reiterated its full-year 2024 guidance, expecting revenue between $2.43 billion and $2.50 billion, which aligns with the analyst consensus of $2.47 billion. The company anticipates adjusted EBITDA growth between 18% and 32% and free cash flow generation in excess of $100 million for the year.
CFO Karen Williams expressed confidence in the company's trajectory, stating, "First quarter performance was in line with our expectations, and we remain confident in delivering the strong profitability growth we have guided to for the full year."
Despite the earnings per share miss, the company's overall financial health appears robust, with a positive cash flow of $24 million and a reduced leverage ratio to 2.2x. The company also announced an agreement to acquire CWT, a global business travel and meetings solutions provider, for $570 million, a move expected to be earnings-neutral in the first year post-transaction and accretive thereafter.
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