Global Business Travel's Q1 revenue beats estimates

Overview

• US travel software and services firm's Q1 revenue rose 35%, beating analyst expectations

• Net income for Q1 fell 28% as operating expenses increased from acquisitions and restructuring

• Company reported adjusted gross profit margin fell to 58% from 63% yr/yr

Result Drivers

• ACQUISITIONS AND BUSINESS TRAVEL DEMAND - Revenue growth was driven by acquisitions, increased business travel demand, share gains, and favorable foreign exchange

• OPERATING EXPENSES - Operating expenses rose 48%, mainly due to acquisitions, higher cost of revenue to support travel demand, and increased investments in technology, content, and sales and marketing

• RESTRUCTURING AND INTEGRATION COSTS - Higher restructuring costs related to achieving CWT synergies and broader cost transformation initiatives weighed on profitability

Company press release: ID:nBw2vDkrJa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 2 "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 $9.00, about 51.8% above its May 1 closing price of $5.93

• The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 25 three months ago

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