Global Business Travel Group, Inc. Q1 FY2025 earnings call

• Delivered strong adjusted EBITDA and cash flow growth with 260 basis points of margin expansion despite slower demand. - Diverse, resilient revenue streams with high customer retention and share gains. - Strong operating model allows adaptation to economic conditions. - Invested in technology transformation, including AI and automation. - Amended CWT merger agreement with extended deadline and revised transaction value.

Total transaction volume was up 4%, driven by increased demand for business travel and share gains. Total transaction value (TTV) grew 5% to reach $8.3 billion. Revenue was up 4% to $621 million. Adjusted EBITDA grew 15% to $141 million. Transaction growth by customer type: Global multinational (GMN) up 6%, small and medium enterprises (SME) up 2%. Air transactions up 2%, hotel transactions up 5%. Regional growth: Americas 3%, EMEA 4%, Asia Pacific 7%. Revenue yield was 7.4%, down 8 basis points year-on-year.

• Q2 midpoint: Revenue $625 million, adjusted EBITDA $130 million. - Full year 2025: Revenue down 4%, adjusted EBITDA down 6% midpoint but still 7% growth, free cash flow midpoint $140 million. - Focus on cash generation, deleveraging, investment in growth initiatives, and share buybacks.

• Macroeconomic uncertainty impacting organic transaction growth. - Potential impact of tariffs on certain sectors. - Legal risks related to the CWT merger lawsuit by the DOJ.

Q: Have you witnessed trade down and accommodations by underlying clients?

A: Not really at this stage, but premium and international volume held up better than domestic. Moderate price increase in average ticket and hotel rates.

Q: SME new wins rose but transactions lower. Comment?

A: SME new wins are up, but organic growth in SME is lower due to tighter spending controls.

Q: Next milestone for CWT merger process?

A: Fact discovery complete in early June, trial September 8, hope to close by end of 2025.

Q: How is the macro environment evolving?

A: Most customers in wait-and-see mode, very moderate changes in travel policies or budgets. Meetings and Events business shows stable growth.

Q: Scenarios impacting guide ranges?

A: If macro stabilizes, could reach upper end of guidance; current base is weaker but stable.