GBTG Earnings Prediction
The chart below shows how GBTG performed 10 days before and after its earnings report, based on data from the past quarters. Typically, GBTG sees a -0.25% change in stock price 10 days leading up to the earnings, and a +2.43% change 10 days following the report. On the earnings day itself, the stock moves by +3.21%. This data can give you a slight idea of what to expect for the next quarter's release.
GBTG Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
597.00M
4.55%
-4.48%
Gross Margin
53.10%
6.76%
0.57%
Operating Margin
8.38%
151.65%
0.72%
Net Margin
-21.44%
1431.43%
-596.30%
EPS
-0.28
--
-566.67%
No Data Available
GBTG Earnings Analysis
Global Business Travel Group, Inc. Corporation (GBTG.N) Earnings Conference Call
Positive
Revenue Increase Analysis: 1. Strong Revenue Growth: Revenue increased by 5% year-over-year, reaching $597 million, driven by solid growth in transactions and increased demand for products and services.
Adjusted EBITDA Surge: 2. Significant Adjusted EBITDA Growth: Adjusted EBITDA grew by 23% to $118 million, with a strong margin expansion of 300 basis points, reflecting effective cost management and operational leverage.
Free Cash Flow Surge: 3. Free Cash Flow Acceleration: Free cash flow generation reached $59 million in the quarter, exceeding expectations and contributing to a raised full-year guidance of approximately $160 million, more than tripling from the previous year.
Customer Loyalty Success: 4. High Customer Retention Rate: The company maintained a very high customer retention rate of 98% over the last 12 months, demonstrating strong customer loyalty and satisfaction.
Share Buyback Initiative: 5. Successful Share Buyback Program: The company executed its first share buyback of 8 million shares for approximately $55 million and announced a new authorization for an additional $300 million in share repurchases, reflecting confidence in its financial position.
Negative
Revenue Yield Decline: 1. Declining Revenue Yield: Revenue yield decreased by 30 basis points year-over-year to 7.7%, with expectations of a further decline of 15 to 20 basis points for the full year due to a shift towards digital transactions.
SME Transaction Challenges: 2. Muted SME Growth: Small and medium enterprise (SME) transaction growth was only 2%, which is still below the 1% growth reported in the previous quarter, indicating ongoing challenges in this segment.
Revenue Guidance Adjustment: 3. Lower Revenue Growth Guidance: The company narrowed its full year revenue guidance to $2.415 billion to $2.435 billion, reflecting a year-over-year growth of approximately 5.5% to 6.5%, consistent with the lower end of the prior range.
EMEA Transaction Growth Challenges: 4. Soft EMEA Growth: Transaction growth in the EMEA region was only 2%, significantly impacted by external factors such as the Olympics in France, indicating regional weaknesses.
Operating Expense Concerns: 5. Increased Operating Expenses: Despite a focus on cost control, adjusted operating expenses grew by 1% year-over-year, which is concerning given the revenue growth of 5%, suggesting potential inefficiencies.
GBTG FAQs
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GBTG Earning Call Sentiment
Global Business Travel Group, Inc. (GBTG) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
GBTG.N
0.33%Positive
The earnings call reveals strong financial performance with 5% revenue growth and 23% EBITDA growth, alongside significant cost savings and improved leverage ratio. The company's optimistic guidance, increased free cash flow, and substantial share buyback program further bolster investor confidence. Despite some macroeconomic concerns and competitive pressures, the overall sentiment remains positive, especially with the stabilization in SME activity and strategic cost management. With a market cap of approximately $3.1 billion, the stock is likely to see a positive reaction in the range of 2% to 8% over the next two weeks.