Earnings call transcript Q4 2022

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning. And welcome to the American Express Global Business Travel Fourth Quarter and Full Year 2022 Earnings Conference Call.

As a reminder, please note today’s call is being recorded.

I will now turn the call over to the Vice President of Investor Relations, Barry Sievert. Please go ahead, sir.

Barry Sievert

everyone. morning, good and Hello, Thank you conference fourth earnings for joining us call. our quarter for we press investors.amexglobalbusinesstravel.com. This available an issued morning earnings SEC our on release, and website at the is which remarks, A which Amex Investor web slide Relations available accompanies prepared GBT presentation, page. on is today’s the also

others. would advise industry duration the among our acquisition and of COVID-XX, you We cost comments that savings statements synergies, including forward-looking like future beliefs our events, to trends, and represent or that contain expectations about effects

All risks materially other cause the conference forward involve uncertainties actual in earnings results these statements today’s is may looking uncertainties that and our on release statements and on other filings. information to from call. our issued SEC risks contained and and this differ More made morning

be debt. non-GAAP expenses, will measures, EBITDA Throughout financial as EBITDA, net we operating margin, EBITDA, adjusted today’s and call, presenting flow certain adjusted adjusted cash also free such

today’s to are comparable presentation measures and the call the most in financial directly for to GAAP non-GAAP items. All of materials supplemental terms in the earnings and these measures non-GAAP certain references of reconciliations exclude release. during and such adjusted available measures been this have Definitions

Martine Abbott, joining and the Head our Financial Chief our with Officer Legal session Global Bock, are Chief the Participating Officer; today and of me Q&A call Also today Gerow, for Chief on Paul our Executive Officer. is M&A. Eric

Paul. over With I that, to Paul? now call the turn will

Paul Abbott

to off take earnings highlights reviewing through quarter Barry. Martine I’d you, the Thank and kick over financials. for us turning fourth thank Welcome by to it the before call. our you like to joining quarter fourth

guidance go then XXXX. through for We our outlook and will

we take over take Williams, QX the Tuesday. in address the Xst. our effective position I filed of of to will outside Gerow, down company. role process CFO year CFO, from earnings, to our a like succession I would for cover step planning will Amex CFO GBT Deputy May joined as on of as role, before her the Karen who last Martine So part X-K July

from at leadership part joined to with has IAG end Express, well Martin series as us financial senior prior is as is American and which Karen going of that also working Karen be of of roles. us held until IHG, to June. the a Avios,

plenty and So we for transition. have very time of a thoughtful orderly

to CFO. I helped do as her leadership of impact you also global want financial pandemic, of navigate to her a the the leading years thank business extend of significant and successful and Martine to course, in in Martine the her through the sincere my and our five listing company. was contribution for half organization the instrumental

to congratulations and of and Karen, welcome course, So Martine.

strong margin to back fourth we to record XXXX, new driven recovery, expansion. reported finish continued the by wins turning quarter, and So a

at revenue were and year full guidance Our of both billion adjusted and ahead respectively. $X.XX $XXX million, EBITDA

Revenue recovery and XXXX from forma of up for the fourth XX% levels pro the that quarter quarter. in reached third XX% was

EBITDA fourth EBITDA an was $XX adjusted with adjusted million quarter margin. X% Our

fourth free quarter. toward we’re million. to cash usage declined significantly significantly usage the Free flow with cash on say to Pleased reduced quarter path positive flow in the also in the cash $XX

has and unconsolidated We segment, choice a in the rates also a Amex segment and of offering the the market-leading highest in our benefit we is growth SME. and from GBT large and continue The margins very fastest SME to space, accelerate Egencia solutions, in industry. momentum a Ovation, that what

in XX% recovery that Our in from up SME QX. transaction was QX and reached XX%

the XXXX totaled billion $X.X value and at SME that in new wins full recovery current is the Our year levels.

to note XXXX our of the the that overall for make impact have and levels previous current those investors new And of wins for the travel we are it recovery, that current model is on reporting reached easier using our instead meaningful recovery that’s SME a volumes. to the in Now what wins we new analysts please point pre-COVID and levels.

SME in demonstrates highs, satisfaction I strong our both technology to So are savings. addition the that at new am value levels really wins which and momentum, and the also value think service I pleased all-time report of software industry-leading and and customer to

fourth well Our up from in of was strong strong and importantly, forma in for recovery momentum pro positions up XX growth year-over-year. us ahead. XXXX XX% Transaction continued reached QX, XX% That the points quarter.

on XXXX that new we was Our Total significant momentum, we think, the current I opportunity that’s full value billion. Again, recovery new wins year $X.X deliver growth levels. at organic the continue shows have. it to wins that for

And importantly, and stable for obviously, at remains year full the equally rate finally, our retention customer XX%.

and exceeded So, on adjusted revenue share that from exceeded We guidance EBITDA. the gains had million XXXX synergy acquisition. we the the on our acceleration target both SME $XX for Egencia we and delivered overall,

look we ahead growth. for as XXXX, are to so And we continued strong well feel that positioned

continued a performance and our improve the look XXXX. continuing Transaction the in take up sequentially was was closer XX% on point recovery So X points versus just QX. quarter. six, at slide to at recovery That XX throughout let’s where

XX% And compares at clearly found and XX%. at business January transaction that domestic we’re international recovery the outpacing the XX% GBTA survey travel the recovery to of broader market.

in recovery clearly our recovery quarter, to the XX% XX% So market. fourth outpacing that transaction the and broader compares revenue

but for And transaction we QX, in of the strong. was XXXX outlook rebound business softer December demand a going January remains more detail in I’m have in expected as discuss the volumes to significant and seen at industry, travel Looking across than February.

XX QX. recovery the quarter. was versus QX reached with in consistent XX% TTV That fourth up was it and points

XX% And points quarter. finally, up first QX, and the from in XX from QX points recovery up X was revenue

trends we detail. a the just here, in look take more So recovery at

segment, global customer First the fourth third recovery. continued multinational the customers you’ll to pretty remained versus by SME customer all, in while see quarter, of steady recovery the quarter lead

by transactions our by SME also and but significant XX% reached obviously above the multinational a XXXX, that gains percentage XX points in recovery in share were QX segment, of faster global segment. driven

quarter is an in Hotel important at recovery QX. up fourth X points Air for stable hotel this and above recovery the versus points in recovery and strategic fourth XX% priority air quarter us. transaction percentage XX was was the

We’re and hotel ratio hotel and that and improved in platforms. content doing of our air hotel Neo making displays software good bookings we’re Egencia to increasing both that progress through

regional here basis, the on improve EMEA finally, And Americas and a QX. both continued to in

quarter. the U.S. you in actually fourth recovery Within if unpack Americas, little the slower was that, to reached a XX% Canada recover.

and And points QX now percentage additional removed certainly XXXX. reached either in Asia in Singapore, it X by versus recovered and and the growth China Kong restrictions or XX% that have provides XXXX Hong travel opportunity of EMEA levels. relaxed been and in recovery for

to quarter. highlights further record people delivered wins. fourth commercial the turn ESG, our recognition new our for let’s and leadership. So of technology We received We

in in on trillion industry, for and retention recovery and XXXX, a significant we leader based are We strong total growth levels, the XX%. new with to again, course, gain continue wins of runway of billion $X.X a the $X.X value customer share clear of with by current supported

our as represents opportunity spend. is $XXX biggest course, a travel This I total growth Of customers. SME with mentioned, of billion opportunity of

growth SME in $XXX providing We XX% with are significant managed, opportunity. managed one future is of billion customers, travel only but us the actually already that a for number player

the SME signed in you whose $X.X from XX% of number And customers wins travel we’re unmanaged. value programs new progress, here companies value actually can good of Approximately of we previously see were billion XXXX. of is that making that

demonstrates think more spend we I converting into So and gaining unmanaged managed this it customer traction are more spend. travel

think the recognized in Status. as the X% our customers top We This us assessed across demonstrates ESG it quarter. are are independently and in awarded Platinum also we their leader actually sustainability an the companies helping partners places and achieve EcoVadis how industry I goals. in We world were our of

consistently that travelers and actually carbon Egencia, carbon of be and across can integrated allows sale our more travel their Neo. emissions data us data. with of accurately present voice, We tech. carbon whether all channels, channels all to it’s Another whether our example, emissions and across so integrate point both at climate sustainability emission track we’ve managers it’s of This CHOOOSE aware the data

categories most It the more XX leadership, many using number XXX their it Winter best GX It peer-to-peer companies inform decisions. So to supporting report, largest site. ranked in million trusted and implementable GX XXXX has has most software two results. of than the Fortune is was viewing. technology people and solution review our one Egencia

In study. addition, GX Egencia also the in ranked leader in as XX categories a

it’s think just an and providing validation I that excellent So customers. software solutions our we’re experience to excellent

the Egencia evaluates travel our buying quarter, user to was independent IDC and process. a the machine experience quote again, solutions, in over important applications into I and it’s embed tech Additionally, ability IDC BXB AI influence MarketScape. that travel data-led learning and an specifically in product is experience. corporate recognized here, IDC and by intuitive the voice our named an Leader

Large And this Forbes’ to the company you for sincere of leadership possible. Business valuable Employers February my report extend finally, to like commitment makes that world year. thank recognition of in their would this Services the one voted Best and all we here, in And around a were colleagues number their I America’s

these strong public to delivering we priorities on creating When we it’s our momentum moving say we So strategic on pleased and and shared priorities clearly strategic XXXX. priorities. are company, for a became these I’m to

QX from First a XX%, from of XXXX. business the points recovery improvement continues. of revenue start travel X reached dramatic and QX all, recovery up

$X.X new to Second, the our value industry recovery due is significantly billion current gains, ahead at levels. of continued recovery share wins

year, on focus SME winning SME from our segment billion growth XX%. those results recovery that. reported value wins of would We our in and the $X.X coming full reached QX we the XX% Third, show wins transaction SME set of unmanaged accelerate exactly customers. for approximately with new

the clearly we’re here, Fourth synergies. Egencia delivering on

In exceeded We we million. opportunity $XX target of from of XXXX, Egencia million continue approximately to the million acquisition, synergies of synergies. total $XX which year XXX achieved expect our full

is we growth revenue adjusted XX% operating Fifth, significant only model clearly in fourth operating the our leverage. growth, In delivered business quarter, with expenses. delivering XX%

finally, combined of and results deliver the fourth X% XX% fall-through quarter, significant and financial guidance. to these In reported an we And margin EBITDA ahead delivering expansion. all adjusted of margin EBITDA adjusted results

continued sum our and think, financial of performance fourth provides quarter yet progress. So and it commercial I to point up, proof another our strategic

to completes QX highlights. discuss review my Martine to move to to outlook. results on that financial I’d hand the the XXXX our like more of before So in we detail it

Martine Gerow

morning, Paul, good everyone. you, and afternoon, Thank good

financial on priorities, our continue finish and we from as So XX, strong and did deliver you XXXX Paul, I’m on note. a on heard we strategic page to

Our of X and quarter points fourth above quarter, the forma, revenue XX%. points above pro recovery the in was transaction was X is the XXXX which is was third where XX% it recovery which

driven Our over transaction sequentially Professional by and solid Products is air Services TTV, from quarter, benefited the value and and total was and particularly XX% up across Events. We Management yield, fourth were yields is in revenue improved which X.X% quarter, versus Meeting quarter. growth Fees as those in which fourth In measured revenue the hotels. meaning third actually

Our in percentage recovery TTV with basis, of currency recovery XX% was point an transaction a in On the reached quarter. quarter. Transaction versus X XX%. constant the line recover third actually was recovery. TTV improvement That’s fourth

we a the period, of trends we report And rebound while going into very of are in January noted year. seeing with holiday we volumes, pleased for the a is strong to did which expectation this in and first the quarter softening February line are our that

Now pro year-over-year fourth billion. XX% on results TTV looking up at was $X.X quarter basis, to forma reach a

now value recovery strong prior international Our year. largely that’s the in XX%, up by versus average transaction bookings was driven

to quarter fourth revenue total million. $X.X increased Our XX%

strong other our was performance quarters quarter incentives or XXX% Again, Now hotel outperformed strongest of yield certain travel year yield traditionally, end this, air QX And measurement. revenue within very is in up due and as annual to QX. performance. an revenue

year-over-year. on this was we Services line from the more protected Professional demand as shared it XX% limited And because in previous calls, and reduction growth XXXX. to revenue in component Product XXXX when in the you is this compare relatively increased

which the only an a million $XX is increased of Our quarter, in favorably fourth quarter. to million expenses adjusted $XXX XX% which of increase a we adjusted the the compares result, EBITDA quarter, revenue operating XX% year-over-year. in And in delivered improvement as positive in

year-over-year. improved margin adjusted which was EBITDA X%, XX% Our is

XX, page full the to turning On year.

results came guidance. XXXX our mentioned, ahead Paul As of

our on our of which range, top Our to million. guidance to revenue -- range, $X.X was in million guidance $X.XX full billion above $XXX which our $XX the billion and adjusted was was came year revenue EBITDA

XXX% $XX TTV pro versus was Now approximately forma, up to our billion. XXXX

in was in XXX% revenue increased billion, and Again, within because up Services this to XX%. again revenue more growth changes XXXX. Our was component Product Professional increased little relatively travel XXX%. demand $X.XX revenue that, in line and protected more the from revenue

adjusted of and growth beginning to operating quarter full stayed the of result, up adjusted EBITDA for and on Our XXXX. turned our were the revenue expenses reached an the XXX%. point second year, in positive XX% And compared inflection

the $XXX our That improvement significant X% percentage XXXX. is increased of year, of million million. EBITDA as For very XX adjusted EBITDA a to again compared margin was and year-over-year adjusted full $XXX points

fall-through very delivering as XX% maintained well level a our on demonstrates savings fall-through our which execution of strong with high We an EBITDA Egencia year, very of for operating in the full as adjusted program of leverage, synergies. the cost

page heard cash in Now Paul, turning you expected, On with the just as you eased flow. and significantly consumption we as quarter. XX, on fourth we calls previous cash to and as had from our shared

million by the quarter cash an free a million in the quarter. it build working flow usage improvement was $XX lower in from is Our capital. driven was $XX That third and

as expect meaningfully continue do a capital working EBITDA XXXX positive As we cash as during to to and calls, reach normalize. shared we flow build recover will free to on previous continue

XX, had balance $XX of was we million unrestricted an our of cash and net As XXXX, December debt million. $XXX

in have in strong additional available position, of we purposes, which and expansion, the general used growth term we the our Finally, loan total completed include completing for the which revolver is efficiency. forma million. rates SME very further is And year. this approximately integration, liquidity the pro will liquidity That a proceeds $XXX financing be January Egencia driving corporate and additional for accelerating

thinking how XXXX. turn And now I back Paul will we it to to share are about

Paul Abbott

Thank Martine. Okay. you,

about talk XXXX. Let’s

in up are As XXXX. that we there for tailwinds said quarter, set last several growth us

with customers. Industry predict positive experts continues continue First supporting outlook all spend continue will to will continued XXXX. and capacity remains the the business and grow business travel to travel in our increase growth of recovery all,

business creating distributed and and Event we Meetings new see Secondly, particularly this, as Meetings predicted, results. teams our demand, hybrid Events clearly and and are work in travel, we

throughout demand. supply XXXX expected improve increased of this course, incremental will, airline Third, capacity to is support and

in be our with specifically segment. ahead us sales leads continued continued the gains share pipeline And fourth, in momentum to year the confident in SME

all, in in for in all growth results earnings I expectations think, revenue these So, and strong XXXX.

our the data from of tailwinds October. Travel Business industry. and XX% XXXX January. Outlook the GBTA’s XXXX Now year these international XX% Poll, this published customers was and and up According importantly, by expectations I suppliers supported to data are from end and and at XX% at is from Domestic XX% and are at levels the think in from currently for bookings data QX across and ahead this

see So industry we that with can momentum continues recovery the at clearly and industry are revenue outpacing you QX XX%.

strongest or Turning other finance, are XX% more to XXXX XXXX. customers, sectors seeing ahead. XX% of travel in managers improvement lot in expect from a services, the travel suppliers for the an consulting in and that’s insurance, XX% expecting spending versus more trips customers survey trends October, where XXXX of versus higher we’re year growth the in corporate professional

expects $X region. met supply. globally. by to This IATA little growth capacity reach So will looks GBTA increased increase over spending grow to This XX% in a total expects be different business expected demand in XXXX travel by XX% trillion. by of

and increase X.X% Europe capacity opening got driven in in North X.X% America, XX% of the then in China. by You’ve largely growth Asia-Pacific, in

our from that these supporting So very industry-leading further solid And gains strong is you growth for can share services. augment from here industry to industry driven customers, and from by our expect confidence experts, see course, tailwinds there in the suppliers, we importantly, year of with ahead. evidence software

again are So positioning to let’s and just strong strategic growth in they really through deliver us our priorities go highlight XXXX. how

more travel all I in XXXX I XX% business capacity continues. and of travel more survey expect trips as So, recovery managers GBTA expect regions. said, across business also just found

to strong a continue have total strong XXXX, that this in reported we growth. $X.X support XXXX to and new We and expect billion gains. growth Share we wins pipeline in of

going moved and SME focus acceleration, SME for we the global intensify structure model the have around the to new is business company a operating segment-driven our on that and scaling world. to

largest represents taking to far by this a addressable much even the are with segment the and highest around approach and the margins opportunity greater and Our and consistent world. now the us more for opportunity fastest we focused growth capturing

additional additional savings. plan we through XXXX, technology real deliver in to realizing synergies, Egencia additional estate synergies On and exiting TSAs,

And focus business on going our continue leverage, with to leverage. to we are strong on operating operating operate really

We XXXX And XX% expansion growth going these that operating expect of efficiencies, to revenue to strong single-digit expense in continued in finally, drive margin is and ahead. XX% lead to expansion growth. with margin course, the year strong

So this will result expectations. XXXX in full year

XX As growth, to EBITDA EBITDA of XXX% with points XX% approximately adjusted percentage you here, XX% growth, margin can adjusted revenue expansion. see to XXX%

track commercial on adjusted approximately the Importantly, in or the $XXX XXXX, when revenue of pre-COVID recovery at at EBITDA deliver level of remain achievement we as XX% we drivers growth look million and revenue. billion to continues business, the financial of beyond $X.X

now go it So detail. guidance XXXX going Martine Martine, more over our in over to to to I’m to you. turn over

Martine Gerow

Paul. you, Thank

we target on expect revenue So the page XX, EBITDA. of expansion to we and project net positive leverage actually our within during growth XXXX, and year free come cash adjusted and in flow times X turn to times to double-digit deliver X margin

Now Let the me you assume are our what of in guidance drivers which macro this XXXX a the for with measured year. view key environment review we

to growth. XX% points to quarter the project growth an share revenue carrying in project is of the gains revenue components to we growth where come our That’s So of XXXX. above We overall forward X of about expected XX from recovery another combination XX% X and really starting to recovery. from run organic results XX% points a fourth transaction expected and additional rate points that growth, of X points with XX% of

as realized and announced expenses reorganization synergies efficiencies, operating side, we the On January. expect growth improve fully heard achieve we from benefits cost as cost from in we you in single-digit the Paul, operational

well, half of in fourth challenges. disruptions productivity agents as having of travel consequence a was operational the -- agents, recruit travel of and facing as to the impacted a in our similar the Now consequence and train very a negatively was number second number impacted, that quarter XXXX, the really new industry significant particularly and of

to improve as expect result, deliver XXXX, continue XX% the they with in XX XXXX significant gains in we expansion EBITDA of a an leverage points. points to in we margin our fall-through quarter. expect Now operating to we as adjusted fourth about productivity from to achieve And a of where X high metrics operating and were

anticipate reaching year. we mentioned, previously during As free the flow positive cash

the the seasonality We of take working our second given of to the expect place this year half in capital.

we And XXXX ratio target. with leverage that of end our at to finally, expect execute X times high a to the will long-term X times be leverage

following The the XXXX just assumption shared with results guidance. in full I you year

So to million. XXXX. growth and a of $X.XX margin equates XX between XX% XX% That $XXX adjusted EBITDA to percentage revenue $X.XX to That of percentage points between and comprised X revenue billion. compared billion adjusted of to and expansion to points million EBITDA to as equates $XXX margin an XX% XX% year-over-year to

let’s key is the turn driver the Now quarter this underlying and guidance. our first guidance first to quarter

anticipate as quarter recovery of in growth expect, we Omicron. overlap because of which the would first you had quarter As a rate XXXX, lower much higher we the of a first

the below Before in being the is recovery transaction quarter-to-date transaction a January consistent in and through to February expectation recovery expect mid-XX%s in And for TTV our be quarter. we of with first the have seen what line the points with a recovery and our quarter, we recovery, previous quarters. very trend transaction couple

is full phasing revenue in to and on be weeks our a volume recovery first this project of quarter, is We the by which recovery we quarterly ahead really in of a what if what largely revenue basis full driven six year revenue different our above the actually quarter to yield, our Because think XXXX revenue expected year the is from in baseline, you about line expectations. our be we in yield, in sorry, with first which XXXX. is expect

much more our of the a trend. So baseline function XXXX than

our fourth the we flat productivity volume the the operation as as quarter we mentioned. cost expenses, to I the in year Moving to of as last quarter quarter expenses to and first be up really support anticipate achieve higher fourth ramps to in of XXXX operating

in we points very a XX Finally, to improvement adjusted in points and EBITDA was margin leverage expect result significant operating to about year-over-year. XX

So $XXX growth guidance between is XXXX million our $XXX quarter of year-over-year. That’s first a revenue million. comprised and XX% XX% has to a revenue that

in million year. We of expect and percentage points of XX% points adjusted EBITDA to percentage $XX to margin margin XX a EBITDA $XX to prior million. versus XX adjusted between to be That’s XX% growth

summary, so The and And momentum. in strategy, in travel delivering our commitments and we adjusted recovery growth revenue we’re shareholders, are we beyond. business strong for positioned are to EBITDA XXXX We and has our XXXX on our and exceeded strong guidance. delivering customers

are on We SME acceleration. gains delivering our and share

leverage. Egencia and We are high delivering executing synergies operating on the

EBITDA in are XX%, positioned and approximately an EBITDA for We billion of to on we equates million, revenue $X.X recovery with adjusted to revenue $XXX which growth in of strong a track approximately revenue. XXXX remain and adjusted deliver

committed we are So we’re delivering and confident we on continued momentum to what for in ahead. position our

So interest now very we and for your open much thank questions. will you Operator? for

Operator

ISI. you. We of Pfennigwerth from Thank first Evercore Duane have [Operator a question Instructions]

You may proceed.

Duane Pfennigwerth

Hey. Thank you.

of Just levels you where the transaction your the about month January recovery, that the March geographies you’re biggest and mark quarter? with hottest the maybe outlook maybe respect are regions kind understand where fourth we in the can volume the the versus month? improvement maybe in wasn’t seeing you to sequential But of or talk for saw

Martine Gerow

take want you Do one? to that me

Paul Abbott

Sure.

Martine Gerow

that. take will take will that, I I Duane. Sure.

there So recovery the be Southeast so countries in market. higher a Canada another terms to the the more the geographies, some expect would in slowest we say, open, I’d somewhat of of is were, Asia, that

Europe and the don’t Outside steady small we China a China. of target of China, we Outside relatively the both is impact, consolidate, geographies, recovery particular those U.S. fairly a we in those don’t expect because in

was saw is in what an based expected we of I and we which seeing actually terms recovery, quarter. first on the as with in the we’re -- what consistent January trends, we improvement in in indicating, And February,

So a very strong rebound after season. the holiday

Duane Pfennigwerth

and terms strongest where thoughts kind quarter U.S. you March that recovery. in Any phenomenon, fourth stands of would quarter level month get corporate a of that March of but detail be of relative It is on if into? of the to may to I no travel more not problem that’s a the guess want

Martine Gerow

because is February, fourth which fourth is in January, to And saw particularly with we quarter, exciting what of industry just quarter the where what as holiday. we we’re improvement March very term with the over we on comment starting. saw -- the again, encouraged which the I’ll saw in impacted the were February, an

So very…

Duane Pfennigwerth

Thanks. And then…

Martine Gerow

Yeah.

Duane Pfennigwerth

you. Thank you. And… Thank

Martine Gerow

And we are -- okay.

Duane Pfennigwerth

Just the about the that the follow-up, working for on balance working line that capital can for of improvement of my seasonality build in XXXX. build XXXX? nice But questions. of of the over capital, think And bookings you help here kind around us taking into seasonality the thanks

Martine Gerow

Sure.

into to So quarter. is. working first third capital, going very quarter capital. have the capital as working low capital we because result tend usually tend volume working We And quarter, the in seasonality to the let’s well that’s the, and the back the say, in quarter. is then down fourth where build second get That’s favorable from of working terms quarter most of the usually

So we up then come going use the quarter. to the expect it and first half into fourth in the

Duane Pfennigwerth

much. very Thank Okay. you

Operator

of Thank And you. we now have [inaudible] Stanley. [Operator Instructions] Morgan

Unidentified Analyst

XX%s the the to returned you the Hi. permanent remaining kind around are guys in XX% I nearing cost you come on past just know back it savings Thanks expect want for taking of to in of XXXX. said volumes on. you high come as waiting back the to and to recovery XXX% I question.

kind of would versus give you say, realizing if much in could approximation kind of and realize X% at, cadence wondering could those expect savings for give pro you you you of to what XX%? expect forma of Just how

Martine Gerow

Sure.

would right, recovery be and high linear realizing standpoint. you XX%s -- of XXXX recovery would we hear the about So that is the -- recovery what be $XX obviously that the We start going very this the in into that year, level a from to XX%, volume to remaining expect some pretty million. to And remaining expect we’re is. then of to higher the XXXX, as which

Unidentified Analyst

and much about wins. of could statement? $X.X kind for it And one the guys question turn guess me idea you Thanks. an talked into billion and your to Great. wins for new takes on guys of income more that in just give you revenue ramp those Okay. how I just

Martine Gerow

Sure.

So it three to think years takes about on depending it to customers. the two years is,

XXX% that that You and not is don’t of is so we a partner leakage. necessarily of the partner market some but contribution, up prior what of our volumes, have conversion market some to call

So conversion that we conversion a have place and XX% third all have converted. a majority by broadly a two-year year, over of period, XX% takes as that and we around typically the volume

Unidentified Analyst

Okay. Great. Thank you.

Operator

[Operator Instructions] now of Deutsche Bank. Thank you. Lee have Horowitz We

Your may proceed.

Lee Horowitz

if full the Two, dig into year I’d guide. to may. I like Great. XXXX

year. spend Can highlighted or XX% for it, better end just degree guidance guys in XX% the driving at points incremental revenue the this those year. share of you contrast You It seems GBTA of points high a that us X discount high help gains of expectation to sort growth of stand in understand between share and your to two? plus suggests, organic what the X growth call is it and to growth confidence

Paul Abbott

travel I and TTV sort it’s the is as look also spend. think our that’s I’ll plan, point, And a maybe Martine, the for plan that start XXXX Look, Yeah. on is well. also of of our that actually you prediction but mid-XXs at to at if somewhere this GBTA one. TTV equivalent low in prediction

So is GBTA plan pretty outlook. consistent with our kind TTV that of

Lee Horowitz

maybe and distributed maybe thinking event maybe to incremental take XXXX terms teams us a you teams. And And step is what out from Can question around from quantify volume? get you you. look XXXX? about in often regarding saw what you’re investors in of then driving to help expectations XXXX we as a Helpful. get back, you’re the distributed outlook seeing Thank we

Paul Abbott

didn’t I sorry I’m Yeah. the quite catch question.

out. was just I -- don’t cut end. know Do it You if it repeating you was just my that? know I mind apologies

Lee Horowitz

We this distributed due in and How lot. of teams. It’s uplift of regards zero to of compression demand from had question worries. proliferation those the distributed seeing No offsetting the from incremental meeting a sorts degree industry investors much from things. across to is you’re teams some

saw in you that have sustain incremental super XXXX out would for that volume can helpful? expectations from maybe coming we as distributed you what if us XXXX, and/or and look to your what are in So XXXX regards to better workforces to be understand

Paul Abbott

Yeah. Sure. Thank you. No.

we actually you managing so Events were as look that fourth exited number so And Meetings of above levels. XXXX, and quarter, at was the we XXXX the

So of the you level a of sense gives demand. that

it mix. different slightly But have does a

a XX We fastest-growing with of division that meetings smaller under part have to business. for and the that the deals meetings is people

has as smaller number the is of midsized mix moved exited. meetings. to So towards larger levels we meetings of But the number XXXX at more a

look out Meetings in Events. where EBITDA how we year and one booking from XXXX. much ahead. and Events it’s or because view frankly, to will we are That’s the see we XXXX, we advance better of of see As windows of so the have, the kind adjusted future, And that at the businesses further a above for our division, our Meetings

confident we’re outlook in So for for XXXX the Events. Meetings pretty and

Lee Horowitz

Thank Helpful. you.

Operator

we now Thank Stephen you. of have Instructions] Ju [Operator Suisse. And Credit

Your is line open.

Stephen Ju

Okay. Thank you.

So the focus segment. little SME just bit switching a to

is level to fragmentation there, yourself consolidate others like wide still the as for but feel open share what there Given well. high looks for a -- only of very not look the to

continues type and the step-up sector any is in on And is booking seeing be disclosed this the guys if seven. terms industry competitive second, intensity So the to I’m you slide in recover? you wondering may of in think there have that I as

charging behavior point? of ahead seems like among hotel error at dollar the recovery Just to clients, wondering why be Thank the level about you. the this

Paul Abbott

Yes.

but mean, of hit I I landscape, increased points any there, think, entrants there’s yes, the significant gained think, both there share have on scale. SME competitive you new terms very and some are few activity, or competitive Stephen. I in

the size of alongside And don’t change. that the look opportunity, see of any you at sort we when

In the in a rate our we at had win segment. confident fact, a XXXX, looking pipeline loss we’ll if at record the look you for SME record. ahead, new And year by set

range there’s it’s we And single ability offer. that our of major activity, not grow one solutions but we in that segment the one aggressively It’s yes, one I think impacting the needs. not So, have set homogenous segment. that of advantages with of certainly to is

experience both includes a white looking for them business a looking they’re access travel innovation. and for touch, with If access turnkey that regional or glove that a if sophisticated leisure, outsourcing Egencia. on basis solution end-to-end, Amex-GBT have that to of really for looking high for intuitive to we solution content, a customer customer fit tends global with perhaps And an premium service we fantastic fantastic more. is then more SaaS to If a they’re have travel

advantages the and different that have of think in customers, is one choice into offer So we the that out to SME solutions sub-segments uniquely have space are this that very to being because I needs there. segment is major the positioned we we’re large able there of with different going

I mean, priority elements rates. I’d is say, strategic recovery us hotel one of content for driving to has attachment call been a the increased we increase that’s that it and key the what

to able of our air we and hotel the in do increase supply relation which APIs, through bookings are into bookings content to Neo we we number through So to the for through management platform, example, that in platform. all platform of bring our from present Egencia and our bringing Expedia, content it

improving before one There’s and a I displays driven. and often that rate. recovery content, lot increasing the conversion air seen across and Meetings So above trend attachment what are a of small we which that But have is Events, than broader where and localized hotel and of definitely the it supporting the demand is is the think for terms in as hotel-driven increasing in industry improving well talked trends about we air a more Events. more Meetings more

the those I’d key So are two say trends.

Stephen Ju

you. Thank

Paul Abbott

growth One is rail so look there’s dynamic obviously more other think significant increased in a and of efficiency perhaps specific in to we that seeing there’s and when frequency And routes, at I Europe where is certain factor on specifically you rail. that certain are is trend Europe Europe

Operator

Thank [Operator you. questions time. at Instructions] no There’s this

So team. the management I’d hand to like it to back

Paul Abbott

delivered. Great. Well, your the to In you dedication thank our and I for across they’ve much our for customers want strong very closing, team GBT questions. look, results thank just their Amex to

the and our growth year outlook confident very about for our excited position ahead in in are XXXX. We and

the very So much. company. your interest Thank continued thanks us for joining in and you

Global Business Travel (GBTG) 9 Mar 232022 Q4 Earnings call transcript