Global Business Travel Q2 revenue beats expectations, raises guidance

Overview

• Global Business Travel Q2 revenue beats analyst expectations, rising 1% yr/yr

• Adjusted EBITDA for Q2 grows 4% yr/yr, margin expands 70 bps to 21%

• Co raises full-year 2025 guidance, CWT acquisition expected to close in Q3

Outlook

• Company raises full-year 2025 revenue growth guidance to 2%-4%

• Company expects 2025 revenue between $2.460 bln and $2.515 bln

• Company projects 2025 adjusted EBITDA of $505 mln to $540 mln

• CWT acquisition expected to close in Q3 2025

Result Drivers

• PRODUCT AND SERVICES REVENUE - Product and Professional Services Revenue rose 4%, contributing to overall increase

• EFFICIENCY GAINS - Adjusted EBITDA margin expanded due to efficiency gains and flat operating expenses

• CUSTOMER RETENTION - 95% customer retention rate and new wins valued at $3.2 bln supported financial results

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the online services peer group is "buy"

• Wall Street's median 12-month price target for Global Business Travel Group Inc is $9.90, about 37% above its August 4 closing price of $6.24

• The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 16 three months ago

Press Release: ID:nBw6yZZfja