Global Business Travel Group (GBTG) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue rose 6% year-over-year to $625 million, with Adjusted EBITDA up 20% to $127 million and net income of $27 million, reversing a $55 million loss last year.

• Free Cash Flow reached $49 million in Q2, up 148% year-over-year, and full-year 2024 Free Cash Flow guidance was raised to over $130 million.

• Operating leverage improved, with Adjusted Operating Expenses up only 2% versus 6% revenue growth, driving a 240bps Adjusted EBITDA margin expansion to 20%.

• Debt refinancing in July lowered interest costs by 180 basis points, extended maturities to 2031, and reduced the leverage ratio to 2.0x from 3.5x a year ago.

• Customer retention remained strong at 97% LTM, with $3.3 billion in new wins, including $2.0 billion from SME clients.

Financial highlights

• Q2 2024 revenue: $625 million (+6% year-over-year); Adjusted EBITDA: $127 million (20% margin, +20% year-over-year); net income: $27 million (vs. $-55 million prior year).

• Free cash flow for Q2 2024: $49 million (+148% year-over-year); H1 2024: $73 million (vs. -$90 million prior year).

• Net debt as of June 30, 2024: $850 million, leverage ratio at 2.0x, down from 3.5x a year ago.

• Cash and cash equivalents at quarter-end: $515 million.

• Adjusted Operating Expenses grew 2% to $498 million, supporting operating leverage.

Outlook and guidance

• Full-year 2024 revenue guidance reiterated at $2.43–$2.50 billion, with Adjusted EBITDA of $450–$500 million (18–32% growth) and margin expansion of 150–350bps.

• Free Cash Flow guidance raised to over $130 million for 2024, up from prior guidance of over $100 million.

• H2 revenue growth expected at 6–7% year-over-year, with acceleration from new wins and recovery in France.

• Guidance excludes impact from the pending CWT acquisition, expected to close in Q1 2025.

• Management expects adequate liquidity for at least the next twelve months, supported by increased revolving credit capacity and positive business volume trends.