Earnings call transcript Q1 2023

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 First Quarter 2023 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 first 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. other risks and would advise and differ industry information made conference duration the uncertainties in morning among our that involve acquisition actual SEC risks results and our of release COVID-XX, More you is uncertainties We cost statements may comments that savings on filings. materially statements synergies, to including cause forward-looking like earnings future forward on beliefs call. other our events, to this our statements from trends, and contained these and the represent or that issued today’s looking contain All expectations about effects and

to today’s materials Throughout EBITDA, presenting certain non-GAAP today’s references and during free as financial such will non-GAAP the such expenses, debt. operating been All non-GAAP adjusted cash and measures, earnings are for adjusted adjusted terms financial be the comparable GAAP exclude most presentation have items. measures reconciliations these Definitions measures in call, available call we and to of margin, net and measures this flow the EBITDA, supplemental of certain directly release. adjusted also EBITDA in

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

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

Paul Abbott

joining quarter to Barry you thank call. our and you, and everyone Thank first earnings welcome for

Chief I'd begin, business. her Officer, for contribution our leadership Financial to Before sincere Gerow, to extend and you our significant like strong a Martine thank I to

the CFO previous to as us our of end she role this from June on CFO. is with at call join quarter's as Martine's steps last mentioned earnings down the call, I Accor As actually Group

been year with working is has effective CFO on with Karen joined Karen over last last very of Williams, Amex over the the take and call Martine here X to course, she CFO closely as going who us today. is July GBT as May, Deputy since

Just finance successful American have and from She to leadership as very Karen reminder, a several smooth IHG. held worked are we joined senior confident I also and Avios transition. where us roles at she Express, and that am going a

turning who to our financials. going then I'm XXXX. things then will reviewing to over by for before us kick So through take Martine, guidance and quarterly our go it off the outlook highlights through the will Karen

and continued a segment reported in we continued new the in to in SME expansion. business quarter, significant driven growth margin XXXX So the momentum first strong start wins, by travel, significant

remain adjusted quarter reaching growth. totaled revenue both QX were million, up very nearly of $XXX delivered for of showed million, we and Our adjusted with these guidance. and guidance confident Revenue EBITDA quarter first year-over-year. in our totaled margin adjusted strong first $XX delivering ahead and an And year XX%. we adjusted EBITDA of EBITDA strong our year-over-year XX% full total all XXXX, results, EBITDA

XXXX XX% unconsolidated the in a segment In continued customer fastest transactions GBT, demonstrate the choice customer customers. year-over-year, of we with also and results SME from very benefit market-leading the growth in SME a the large Ovation and grew SME with reaching highest Egencia a margins segment, Our momentum segment, levels. Amex XX% offering industry. solutions, of and

SME value approximately months recovery of last the levels. unmanaged now Within XX XX% is that's Our value the over our months wins new from wins XX new annual last reached $X.X based on billion category. and SME of TTV this, current the

from value versus unmanaged wins new XXXX. SME months the quarter XX share fourth last coming our customers total increased the both So in of and

transactions On clearly basis, levels, management workday ahead XX% the of total of adjusted broader year-over-year industry. travel XXXX XX% actually a XX%. Total grew transaction reach to recovery was

Now additional versus by the reported benefited about which the X.X XXXX points. X workdays previous quarter XXXX QX had of XXXX, quarters, unlike recovery first

position Our on clearly significant significant well ahead for of new opportunity X continued ahead billion. growth organic wins us continue we growth to that strong have demonstrate deliver and the we

customer remains months our XX%. last And XX finally, the stable retention at rate very over

share XXXX revenue and confidence as So and operating momentum and leverage growth proven delivered gives look travel, business adjusted with strong we beyond. ahead the EBITDA, balance we overall, continued of gains, in combined us SME to

strong take a X, Slide our So closer at growth. look let's year-over-year on

XX% the and is quarter first fourth previous consistent with we in strong transactions represents transaction guided a I in XX% from quarter recovery That QX what or benefited X-point As year-over-year basis. transaction XXXX, XX have which or day recovery increased mentioned, of increased increase reach XX% versus XX% TTV work international growth sequential discussions. year-over-year. in XXXX adjusted the to of really

XX% of the grew to reach XXXX year-over-year revenues levels. in XX% Finally, quarter

On next growth to the look page, at in detail. more going I'm trends

growth SME XX% global You'll growth, as International year-over-year. year-over-year. customer multinational segment both growth just I with transactions International up XX% in customer in see very quarter. by was with level quarter transaction the mentioned, up transaction strong here, the

results, And are restrictions international clearly particularly strong that in world said travel our we're previous listed, We our have in growth follows. around recovery. in calls the that seeing

XX%, proprietary in air the air We've the very achieved both to outpaced transactions Egencia Neo. the hotel making And are by hotel previously, by platforms, X mentioned in ratio this percentage good progress, content we improve and continuing points, our bookings. software and up Growth respectively. displays as of increasing to XX% hotel and

Hong were in China, Kong can clear by segment note, quarter On year-over-year standout XXXX the quarter. important Pacific particular restrictions XXX% removal of the in in you growth was of XXX% and Asia and first to the SME levels Egencia relaxation the in travel the with regional seeing driven that hotel a basis, Singapore. We're strength and transactions see in

France, that negative place a approximately point EMEA that percentage had Germany, We Spain, March. transactions estimate increased recovery transaction global XX%. on industrial the Belgium, across impact X took actions in

Americas the XX%. Finally, up was

We the strong leadership. and product our quarter. So to highlights let's technology wins now our delivered turn our progress and to for new commercial continue

are industry for leader with clear a runway trillion a significant growth. We the $X.X in

We value gain retention continue XX%. new last months, wins by over to the of customer total $X.X supported, of billion strong XX with share of course, very

growth opportunity, spend. biggest SME Our This a the segment. travel billion of opportunity remains of of course, $XXX in total represents

growth player you see Within can in good the and XX% travel. is segment. of the $XXX But SME memos managed significant number in in segment, making the actually And billion we progress. X customer managed a we're that unmanaged managed today, opportunity the providing only opportunity are

of XX% wins billion the whose XX% to of demonstrates customer $X.X continue that gain managed companies signed the think of programs from that value this traction, converting of and into previously We billion, we and we're travel approximately Of really last this, SME $X.X were unmanaged, I spend. customers of value new opportunity unmanaged travel over XX which months. the travel

Also of NDC way through announced supporting content of that across customer and the the fully leadership, new technology needs NEO be pilots Amadeus software Egencia. will booking for rollouts Air This our successful in enabled can platforms, of and a corporate content recently a standard a we our proprietary meets that content France-KLM customers. And set needs and milestone launch our way managed the clients. that the we an in it's NDC travel used scalable have by be meets ensure fully here important industry of because corporate a to NDC

to customers advance technology our sustainability continue their our help We to goals. reach to

locate Travelers emission for carbon content, details a online and across This Egencia, routes traveler with new they'll environmental arrangers certifications. into now partnership a and and available platform book effortlessly through quarter, of see sustainable travelers now searches client company we hotels carbon in choices. moment also data sort, added rail that we for to can help with emission example, our NEO, more leading expense the tech all make And proprietary choose. travel additional have

number record the we own transactions the first travel digital And to Neo margins of increases improves and because now to volumes. our and the come on expense Egencia. the in quarter. reported I'm pleased was this very through Increasing important is software experience it Neo really terms in and business. all proprietary customer all our channels. QX NEO it platforms the time highest quarter of transactions, volume our continue on that own of both in software of transaction say our productivity coming share through software platform transactions solutions, of the XX% increase and We of

for our I delivering am on the XX, later creating on one strong very we were are company, a going priorities towards we these that So shared strategic pleased we nearly to year becoming momentum future. to public month. when say clearly and this the on since public commitments path Slide

we're XX%, was year travel transaction gives to XX%. business on achieve that indeed momentum confidence full all, us our year-over-year of QX track Strong guidance. continues. year growth revenue that to start the growth, First

wins, pipeline, new strong continued gains sales future. growth position the new strong continued us our Secondly, share in for

new based Our billion over recovery the the last reached months value on XX $X.X wins levels. current

wins. strong value Third, unmanaged QX wins in would new accelerate transaction unmanaged SME this also growth higher And the billion new $X.X XX% we winning segment, $XXX from the the unmanaged quarter. is billion the segment SME of the and million and up than quarter focus over SME the clearly of the $XXX new We coming from $X.X in results from from XX%. accelerated of we segment, wins XX fourth said new of reported progress our on fourth the new was million announced recovery our that wins show area. last wins in months, XX% reached it segment in

Egencia from some deliver already on recovery in Fourth, at the the year on level. million XXXX of expected the Egencia completed approximately $XX on track synergies we've delivering actions based full we of are We're synergies full Egencia synergies. to

model Last support year, adjusted volumes said first to heading Meaning, EBITDA we costs the exceeded business that the quarter this fall-through delivering sequentially QX. of QX, delivered incremental committed adjusted actually clearly reported our actually XXX% Fifth, we over to. incremental operating quarter, incremental QX. versus In we leverage added EBITDA into we versus is revenue. we

first these structural adoption operating significant adjusted And In combined results a margin EBITDA deliver expansion. the volume higher finally, reported all and with online efficiencies. we XX% to creating quarter, growth, margin changes

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

it hand now Martine? detail. discuss to the of over So I'd financial my in to the highlights, that QX more results will review who Martine, like completes

Martine Gerow

Paul, you, everyone. and Thank hello,

a our and financial heard and started from deliver we Paul, to you strategic with As we in continue on quarter. XXXX strong first priorities,

is value, the Our international quarter. million, our transaction or billion. volume supplier XX% the Revenue in year-over-year the $XXX this is transaction in growth by total in TTV $X.X driven and volume first reach And to in stronger-than-expected increased quarter results. XX% to by XX% driven well increased above growth XX%

guidance quarter million first by our of end supplier in a carryover top the revenue. $XX driven above million $X was Revenue favorable

followed Our the full in measured quarter, reached revenue as this line with TTV yield, different than year is is for second which XXXX. and our and it over a in X.X% QX, the expectation seasonality in and

reporting XXXX. This we revenue are timely seeing seasonality. supply We of volume makes our with better now performance to earlier aligned can our a recognize compared seasonality and as realized revenue

When XXXX professional comparing quarter a XX%, to due and professional fees services increased in advance growth. yield primarily that over growth component impacted was and and favorably by increased volume with and meeting line revenue is to depressed results, revenue product Travel of in of first Omicron. year-over-year due XX% base our do driven higher Product remember which demand. broadly the services revenue management a fixed TTV strengthened increased revenue by

which expenses favorably model. and operating XX% the adjusted highlights in operating to the quarter, XX% revenue in increase in compares leverage the Our increased the

were QX higher compared flat QX of were As quarter as up our in advance incremental XX% first ramped expected as base volume. to our as in expenses QX, cost to compared quarter expected, volumes the we but last

result, which in a million $XX is an $XXX of quarter, adjusted delivered EBITDA improvement million As we year-over-year. first of the

Egencia execution demonstrates Our and percentage cost adjusted XX%, synergies. which and a well XX as operating year-over-year was margin savings points of as the strong is EBITDA up this leverage

centered is As and segment January, global to and for customer drive moved we have deliver multinational operating increase position in accelerating our better model, us SME global we customers to our to around consistency, unrivaled which announced value growth, a customers. efficiencies

$XX in an onwards a year second the we in when we which European quarter, million acceleration restructuring complete the quarter start charge with our delivering benefits second actions. Associated first will restructuring the half with from booked of this,

flow. Let's turn cash now to

quarter well of recovery, $XXX As expected, cash [indiscernible]. usage our continued first increased the and totaled in million, by of and as capital timing annual volume working seasonality XXXX the incentive employee driven as

first the to volume balances AR build quarter. capital Our working are driving correlated AP the and in

TTV our quarter. quarter an quarter in with million the versus XXXX. working in first the seasonality, of is in sequentially strongest was up of quarter payment resulted fourth Solar's of incentives, Our the which business TTV no travel fourth lowest XX% first in in demand combined $XXX the first the the increase This capital in quarter. and

cash to to our you insights and seasonality, be with resource to flow I we while adjusted call would revenue, presentation, they outlining slides this the review section supplemental historical of not the to And materials for our into EBITDA TTV, our a will working I your slides And more modeling. today, point included are intended capital like have seasonality. on help where

of balance million. have March an And cash unrestricted $XX is total billion. debt million of we XX, $XXX net available As of our liquidity and $X.XXX

a capital balance generation year, material over benefits program of in the optimization we next drive launched working will expect have flow cash XX To accelerate months. the we that the

looking matter second breakeven cash a and the generate expect free year, to third cash of fourth free fact, the at positive the in to quarter. we balance of approach flow and As quarter flow in

global taking for have ahead. hand worked work past successfully confident six And CFO seamless as role effective pandemic I Paul, have I Xst at grateful AMXGBT that off her we the company welcome are Karen before and will I'm a to July. years it want strong very well and new the care for we to to smooth, positioned a with of confident navigating through I I nearly side-by-side transition. and public, year, successful a am for and

I now Karen our it quarter full outlook year will to XXXX our for and to second And back and Paul review share turn guidance.

Paul Abbott

Thank Martine. you,

strong the that demonstrate year, I to wanted of Before for recovery, through significant for year it set in travel and including think balance up hand I demand. continued here to gains improved I us go ahead, meetings Karen capacity, points events airline outlook our just that growth share the some and increasing tailwinds the business our share guidance to and several data continued the

here pole of outlook you What shared travel this that business page was the the the at on published GBTA in end you April. we've see past, is with

international at approximately survey, XX% between XXXX from the in we point XX% and You'll that GBTA levels, XX% respectively, or up to you improvement combined. the see domestic so January XX% and outlook April. shared January and bookings X in is with This a

we QX and share can transaction So it's you clear that industry outpacing driven by clearly momentum the continues, XX%, recovery our industry that gains. also of with see are our

meetings creating We've talked in the new business past how distributed teams and in the certainly with hybrid the type work a travel is model traction. events and distributed, workforces gaining events increase meetings demand are and increasingly of predicted

of investment is team, demand Our types for growing and area services of small our in these meetings meetings companies division events seeing we're fastest-growing our increase their the meetings. as and

and already by increase Drilling The broader first over XXXX events levels 'XX down the of and the in and destinations of trending inflation. outpacing therefore, course, of larger recovery number levels, at first on in our about in meetings an projects in of the recovery. and for half pipeline, this has year XXX% is travel events this of XX% meeting year events, half driven international reached price an spend increase corporate of the

So beyond. of growth points we that our experts balance expectations XXXX from and the overall, from believe customers continued in data for and industry support these

hand more through to over you. detail. it to go going So now to XXXX guidance our in I'm to over Karen Karen,

Karen Williams

Thank you, Paul.

you into headlines. me details, jump let we Before the give the

full reaffirming guidance. are We year our

to free back We the year. expansion of to deliver flow year-over-year cash return and strong margin positive the half significant to revenue importantly, expect growth in

XXXX a key drivers figures guidance. the look take and review closer at So our the for let's

expect which to $X.XX growth. to billion, billion represents to We between continue XX% $X.XX revenue and XX% revenue

for As said, better revenue our have in volume guidance our HX implied now seasonality Martine is and reflected with which we HX. aligned seasonality, revenue

yield with revenue the at be line expect in to We year for full QX X.X%.

operational we improved have January. side, On we which cost from operating reorganization, efficiencies, growth in synergies announced expenses the cost we as and realize achieve our in the expect benefits single-digit

first second We to expect projection million. year, half a in savings in of compared the accelerate to reduction the driving half expenses the of $XXX

to productivity of and points deliver leverage expansion high with Our adjusted XX%. X a expected year are still XX full margin margin XX% of gains operating EBITDA to to

could if of We restructuring reach which of the our current plan, of with may rate we But may upper trends expectations, the cost guidance. impact our delayed our continue, at that same our end line time, acknowledge expense execution phasing some exit the in revenue our previous whilst perhaps European reductions. is we

of frankly, million. which of year. QX the to incremental advantage quarter several investments, guidance EBITDA into balance And a Additionally, $XXX are technology the we full for and choose we we our was have adjusted opportunities the year take in may just reaffirm attractive recognize quarter, we strong million to product of Therefore, whilst we one $XXX year.

As previously mentioned, an milestone. the during flow year, we anticipate reaching which positive important free is cash

to in flow and expect approach free quarter QX. QX positive XXXX to We free in of flow and generate the cash second breakeven cash

deliver given into working in We plan, are ability our optimization as we them initiated working outlined materials of capital integrate capital, confident we continue relation in business. this supplementary seasonality of is to in this to presentation our have Egencia to and specifically our which the the recently the

leverage continue line leverage exit a XXXX our target with to two to ratio we target times with of three Finally, in of long-term times.

for to let's turn key XXXX. the and quarter second So drivers of guidance now

built revenue for XX% and TTV line XX%. in We revenue of $XXX first with and to This double-digit deliver expect $XXX representing the growth to quarter. million, is largely expectations on a yield low of million growth between our

net COGS. focus $XX driven million relating in quarter to which expansion as This efficiencies X second We we expect announced EBITDA $XXX salary result results a reorganization, continued XX% adjusted sequentially is of operating trending EBITDA operational to XX%, create our with year-over-year margin the changes EBITDA representing adjusted and adjusted down expectations in start January points. our on of will by of expenses million in in the margin to for of an percentage This to to inflation. X

are half be gains first mentioned, the continues, a will and positive expect we delivering QX EBITDA. flow year. adjusted free as travel In on pivotal delivered Finally, as flow, free share previously we the to cash point strong turning back revenue breakeven cash in moving quarter recovery we momentum. SME approach summary, to business and and The of

We to cost Egencia continue leverage. savings drive on execute synergies operating and to

positioned deliver and expansion second to margin well growth are quarter We revenue in strong XXXX. significant and

delivering are and years on into we continued on momentum and confident ahead. So the CFO to the July forward said you what to are know would do role we X getting and we of in months stepping all I in look ahead.

and So Eric Corporate joined Secretary. Bock, now and Q&A. Paul, Legal are our Martine who move can of Head is into Global I by and Chief Compliance M&A Officer, we

line. Operator, please and ahead go open the

Operator

[Operator Ju Instructions] The from Stephen Suisse. with comes question first Credit we have

Stephen Ju

Okay. so Thank much. you

Paul, know recovery may you regional comparisons? the but stands growing Thank you year-over-year So the Asia if XX% I I can as overall for the where at region your, highest the data be about have Pacific don't be you regional guess, seems transaction amongst is still recovery you. guys. talk to handy, that

Paul Abbott

don't the rates front hi. Yes, Stephen, of the Yes, I got regional Maybe have those thanks question. there? you in handy recovery Martine, me. for have

Martine Gerow

was a to by [indiscernible]. of you'd So adjust That's have recovery that reported XX%. Asia that couple for APAC transaction a was points

Stephen Ju

you. Thank

Paul Abbott

as challenges we're to obviously the we more go ago through sometimes we Stephen, focus quarter-over-quarter rates and from start trying was saw XXXX, forward run versus reporting on analysis. now with and you away recovery XXXX some going years to four year-over-year into probably performance move the presentation, as

and more going So on forward. rates you will focus see year-over-year rates growth growth the quarter-over-quarter us

Stephen Ju

bit versus thank recovery APAC thinking, little what region Understood, because rate odds for Yes, you at higher the is traction I was the growing highest now. given right that you. a is

regions in front the so I still potentially Is there's that but recovery, that guess lot So lagging in a are news correct of other the [indiscernible] here recovery. still -- more is characterization? of some a larger the the good

Paul Abbott

volumes Pacific for market. because Asia remembering, worth consolidate it's joint we region that the don't us, a though, it's domestic What venture China

Asia. look when the recovery and very so in they And are strong driven actually recovery Asia actually you been at has Pacific ahead primarily the will been the from in we're terms the those point that's more actually curve of rates What of results, in and the origin. markets pretty volumes in by is India of Australia but seeing register China, of our recently recovery other and international to

So registered it's trip U.S. the the that from to China the Europe trip booked where China booked in it in then Europe, is to from Europe from registered is or is ticketed, or that U.S. U.S. or

Stephen Ju

Thank you.

Operator

Horowitz have We Lee of Deutsche Bank. now

Lee Horowitz

one be of did macro so thanks Hi half sort acquisition help why I the revenue expecting versus should the year. you understand the you second growth year you can your revenue growth growth outlook QX then could. the much. maybe And us of to follow-up is if in the better help range given the of down one revenue of materially we slow in great, half understand full by Can sort front assumption to some half a half? second I the in second the the us guidance? Maybe and of underpinning guess, year low the in XX%

Paul Abbott

as I reach upper think, continue, we're there, of her that mentioned the revenue acknowledge in we comments likely the trends Look, Yes, the end sure. guidance. Karen current to if

that I previous per think recovery expecting points are sequentially. see of in to we quarter we've guided calls couple a

that saw made in and QX, points we statement in think of couple QX. I a we recovery

per QX, in upper recovery that seen made couple in of revenue we've recovery the in we we're We then points work the a balance year. guidance. X of be $XX it adjust gone if $XX from that end When they million of are statement you at recovery. yes, million continuing out, the quarter to also plays points of level the to And out model to we've likely essentially so QX, and

an in rate potentially investments our expense in is trigger won't I attractive have affect standpoint. the also restructuring and think of Karen what have in or year. operating to Europe we we from that also the may that not exit do balance delays may we though, And which choose some said the

So that's trend current the that feel the are EBITDA acknowledging adjusted still revenue we current would why for side. us end take on whilst that revenues appropriate, the range higher to actually and the

Lee Horowitz

you. in as maybe without thank conference this it the helpful, as then goes touching the they quarter And Great, are. call year, where [indiscernible]

Paul, thinking talk So to bit operations? how cutting-edge impacting near see your power harness about medium you the you're technology these investments to And term maybe about [indiscernible]? you putting how can to order a business this is of work in say the in

Paul Abbott

question. great more through tremendous customers. online consistently it of a been channel, are demand it that, adoption, to still if Neo, that's our we travel in of transactions And steadily cases, out were do and take we call, you have channel. what opportunity. see do look and better a Yes, we as voice and And automate when sort big we through has percentage in as increasing for data margins a Egencia experience a We creates self-serve voice many previously of counselors. I increases the it's XX%. year-over-year, that opportunity our we mean in But the now that to actually at

exciting. are So in just advancements well making even scale changes those and company and speed it's developments a we've is, more the AI AI that that and look and muscle frankly, the got the developed the doing what of

And for and can automate as team ahead. see we but to what AI definitely to yes, on data do us, years significant focused do we big using I are not a our have processes opportunity in a generative that see just months And the that more so models effectively.

Lee Horowitz

thank Helpful, you.

Operator

ISI. Duane of now Thank you. Pfennigwerth We Evercore have

Duane Pfennigwerth

in bit you? Could a could relative of regions to March upside exit did speak kind broadly about to Which a guidance? I thank if month. performance quarter your like or Hey, January? on the drivers March you relative of you looked recovery by you. little And just then talk wonder rate initial the to segments What surprised

Paul Abbott

a give just performance. be come to you'd like QX May sure. you drivers Martine, perspective and in the on Yes, of

Martine Gerow

Sure.

I supply So we -- favorable presentation. actually had revenue in on $XX shared million you came we as of earnings the with carryover

out high basis. If end by stands not this kind really really And versus actually seeing high is of you was. year the And the that month-by-month progressive volume quarter adjust at on the growth through across at all we're we there's regions, for saw the region guidance. the that, driven the guidance one particular end or of recovery of a and of better

see followed tend do period as bit year-end and holiday is the around in and holiday pattern seeing dip the around as we a and recovery a well. saw We Christmas a we of similar around the period, have which what a -- strong that we're holiday to by summer for in holiday, then the Easter

Duane Pfennigwerth

exaggerated the work back XXXX that. segue underlying baseline to, What led weakness see differing a kind you going second year, but maybe look the and just on some changes for and year Thanks, on you could into you maybe structural was -- where periods the do my of behavior? on as remote periods exaggerated a was this expand around good say -- strength in my you that last seasonality, mentioned follow-up just to early maybe of part be seasonality, of relative maybe you and of based half of and

Paul Abbott

Yes. Maybe comment and I'll on Martine just come in expand made. the

in We then so Easter we really seen holidays run and also the period. up August to across the three holiday holidays summer have December over now periods, and

of peak. a extended of period more that, period is we are now, trough we've taking We think have that holidays seen sort for of destination of perhaps from and new and the seen normal a that having more holiday And working probably we and extended the do over impact a it think seen across do periods, three maybe that holiday time. holiday people an

Easter. see that then expecting, much we saw bounce what a we're a dip And as we the Easter, a back, we post in in mentioned, but see Day. of really We is Martine a saw more But little September up run strong in stronger Labor than saw January. bit post saw recovery we to which we

think the is new are one that's I as something trend I that looking now. the So at think we normal that key

Duane Pfennigwerth

you. Okay, thank

Operator

Toni you. Thank of now Morgan have Kaplan We Stanley.

Hilary Lee

Hilary you Lee talked down wanted the Like this looks is it to XX%. XXX%. it just obviously, through. guys adjusted Hi, EBITDA ask like flow about on Toni. Year-over-year to I it for was around was about well over quarter-over-quarter,

how of you could think we about would guys forward. should it cadence kind provide Any helpful. wondering going be Just

Paul Abbott

like that you one? would Martine, to take

Martine Gerow

Sure.

of I That going useful near right, quickly what travel. going XX% a So were XX%, we've you our guidance recovery through the driver, real said, and flow I kind [indiscernible] basis be being a business we as territory. you always and forward, very shared on through expected we if of think think with wish, longer-term to

As starts normalizing. and normalizing the that start growth recovery

the useful at than Looking through, going more be the the more stability lot margin saw business in quarter-over-quarter. expansion margin forward you because as you quarter-over-quarter overall margin a just and of in you driver fall see first the quarter, a will would will in

said, costs that not end of and we with come quarter answer the first obviously versus recall XXXX, in last very question your first being to quarter you the on That volume depressed more of the obviously specifically the was Omicron. our year, of first quarter, which base And quickly volumes very volume ramped and quickly our the as we as first quarter, the up the -- back. we did had at not may

have a you And compare fourth some quarter. in quarter, first to the could sense, quarter quarter you cost So overstaffing as which fall-through ramp exactly the the you to fourth you want in little the you year. the the reverse of last up to had compared when first in have a

excellent you So an through flow QX over have QX.

Hilary Lee

just would BPM split on for to be between of of the the And in a revenue wondering TTV able could bit, kind if transactions, touch Great, and SMEs little number give terms SMEs of thank and you. you we quarter?

Paul Abbott

level by that provide don't We quarter. of detail

I wins previously over SME which the we of segment other we quarter, of our think that course, information, have by our details guided do. we new provide revenues business a higher our share and by But profits. is the than XX% don't of

Hilary Lee

Thanks.

Operator

Thank confirm, have had further you. we can questions. [Operator Instructions] I no

to hand it to like Paul any I'd CEO final So for back remarks. Abbott,

Paul Abbott

to like team quarter. for our thank for extend and much to thank delivered the a they've their sincere customers you that again, the joining. Well, all Amex would Great. GBT you results look, very to I of across once strong dedication in our

outlook We and continued are interest in success you the XXXX. company. joining and our for in in confident continued our your very for position Thank

Operator

I joining. today's that for can all confirm conclude call. does you Thank

may rest now please lines, and your disconnect day. enjoy the You of your

Global Business Travel (GBTG) 9 May 232023 Q1 Earnings call transcript