Global Business Travel Group, Inc. Q3 FY2025 earnings call

• Delivered outstanding Q3 results with TTV up 23%, revenue up 13%, adjusted gross profit margin 60%, adjusted EBITDA up 9%, and $38 million free cash flow.
• Acquired CWT, which immediately grew top line, and executing on $155 million synergy target. Reaffirmed core business guidance and provided preliminary 2026 expectations.
• Long-term strategic alliance with SAP Concur to strengthen value proposition, accelerate growth, and develop expense revenue stream. Launch next-gen Egencia Travel and Expense solution in Q1 2026.
• Strong SME space with $2.2 billion new wins over 12 months excluding CWT, unmanaged SME opportunity of $625 billion, and AI driving revenue, conversion, and productivity gains. Digital transactions at 82%.

In the third quarter, total transaction value (TTV) grew 23% to $9.5 billion. Revenue increased 13% to $674 million. Adjusted gross profit margin was 60%. Adjusted EBITDA grew 9% to $128 million. Free cash flow was $38 million. Total new wins value over the last 12 months was $3.2 billion. The acquisition of CWT contributed to growth, with TTV growth driven by CWT and 9% growth in the core business. Core growth was from higher average ticket prices, hotel room rates, transaction growth, and favorable FX impact. Excluding CWT, revenue growth was 3%, and underlying adjusted EBITDA growth was 5%.

• Raised full-year 2025 guidance to $2.705 billion to $2.725 billion revenue and $523 million to $533 million adjusted EBITDA, driven by CWT acquisition.
• Expect free cash flow of $90 million to $110 million for 2025.
• Preliminary 2026 expectations: 19%-21% revenue growth and $615 million to $645 million adjusted EBITDA.

• Forward-looking statements involve risks and uncertainties that may cause actual results to differ. Macroeconomic trends and operational risks could impact performance.

Q: Two questions, one on 2026 outlook and customer expectations on corporate spending, and one on new SAP Concur partnership and unlocking unmanaged SME segment.

A: On 2026, recent survey shows moderate improvement in travel budgets, cautiously optimistic on organic growth. On SAP Concur, 80% of SAP customers are SMEs, co-developing flagship solution to accelerate SME growth.

Q: Comment on business travel demand trends versus trough period.

A: Expected improvement in demand into Q3 and Q4, seen in numbers shared.

Q: On CWT technology advantage and software solutions.

A: Some areas in hotel and traveler care, core software solutions are Egencia, Neo suite, and co-developed product with SAP Concur.

Q: Key metrics for SAP Complete and Egencia T&E rollout.

A: Track growth, customer retention, savings, digital transactions percentage.

Q: On synergy number $155 million and incremental synergies.

A: Confident in $155 million net cost synergies, $55 million already identified, $100 million still ahead, no revenue synergies baked in yet.

Q: On Egencia TTV recovery and SME retention.

A: Egencia TTV trailing 12 months $8 billion, still room to grow in SME segment with high retention rates and improving organic performance.

Q: On AI platforms and SME market.

A: AI is tailwind for revenue, conversion, and cost reduction, integrated into various channels, orchestrated by Amex GBT's technology stack.