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 +0.60% change in stock price 10 days leading up to the earnings, and a +2.69% change 10 days following the report. On the earnings day itself, the stock moves by +2.30%. 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
591.00M
7.65%
-1.01%
Gross Margin
52.96%
10.98%
-0.26%
Operating Margin
5.58%
179.00%
-33.41%
Net Margin
-2.37%
-71.72%
-88.95%
EPS
-0.03
-70.00%
-89.29%
No Data Available
GBTG Earnings Analysis
Global Business Travel Group Inc Corporation (GBTG.N) Earnings Conference Call
Positive
Strong Financial Performance: Adjusted EBITDA exceeded the midpoint of guidance, up 26% year-over-year, highlighting strong financial performance.
Record EBITDA and Revenue Growth: Record year for adjusted EBITDA and revenue, with adjusted EBITDA margin expansion of over 300 basis points, reaching 20%.
Customer Retention Success: Customer retention reached an impressive 99% for GMN customers, indicating strong customer satisfaction and loyalty.
Free Cash Flow Surge: Free cash flow more than tripled in 2024, ending well above original guidance, demonstrating effective cash management.
Transaction Volume Growth: Transaction volumes increased by 5% in 2024, driven by demand for business travel and share gains.
TTV Growth Analysis: Total TTV increased by 8%, reflecting growth in transaction volume and higher average ticket prices and hotel rates.
Revenue Increase Analysis: Revenue increased by 6% to $2.42 billion, driven by solid growth in transactions and TTV.
SME Customer Wins: New wins signed during 2024 totaled $2.8 billion, with a significant portion coming from SME customers, indicating strong market demand.
Leadership in Software Solutions: The company is recognized as a leader in software solutions and sustainability, enhancing its competitive position.
AI and Automation Investments: Investments in AI and automation are improving customer experience and productivity, positioning the company for future growth.
Leverage Ratio Improvement: The company has successfully lowered its leverage ratio below two times, enhancing financial stability and flexibility for future investments.
Negative
SME Transaction Growth Weakness: Transaction growth for small and medium enterprises (SME) was muted, with only a 2% increase compared to 8% for global multinational customers, indicating a potential weakness in this segment.
New Business Acquisition Decline: The total estimated value of new wins signed during 2024 decreased slightly to $2.8 billion, suggesting a slowdown in new business acquisition compared to previous periods.
Merger Challenge Setback: The U.S. Department of Justice's decision to challenge the merger with CWT is a significant setback, creating uncertainty around the acquisition's future.
Revenue Yield Decline: Revenue yield declined by 15 basis points year-over-year, reflecting challenges in maintaining pricing power amidst a shift to online transactions.
Revenue Yield Decline: The company expects a revenue yield decline of 15 to 20 basis points in 2025, indicating ongoing pressure on revenue generation.
Flat Free Cash Flow Outlook: Despite strong cash flow growth, the company anticipates that free cash flow will remain relatively flat in 2025 due to one-time M&A costs, which could limit reinvestment opportunities.
Currency Exchange Impact: The company faces a potential 2% headwind for revenue growth in 2025 due to currency exchange rates, which could impact overall financial performance.
GBTG FAQs
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GBTG Earning Call Sentiment
Global Business Travel Group, Inc. (GBTG) Q4 2024 Earnings Call Transcript
GBTG.N
2.53%Positive
The earnings call shows strong financial performance with a 6% revenue increase and a 26% rise in adjusted EBITDA. The company has also improved its leverage ratio and free cash flow significantly. Positive strategic moves include a share repurchase program and optimistic SME growth prospects. Despite some uncertainties in new business wins, the overall outlook is positive, further supported by a stable market sentiment post-election. Considering the company's market cap, the stock is likely to see a positive movement of 2% to 8%.
