GBTG - Earnings call transcript Q2 2024 | Global Business Travel Group, Inc.

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Operator

Good morning. And welcome to the American Express Global Business Travel Second Quarter 2024 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, Jennifer Thorington. Please go ahead.

Jennifer Thorington

Hello. everyone. morning, good And joining our for earnings quarter conference call. us you second for XXXX Thank issued press an available we morning, This earnings and website on release, our at investors.amexglobalbusinesstravel.com. sec.gov is which is acquisition including which our expectations today's and GBT presentation, cost beliefs among Relations like comments or that would industry about trends, advise webpage. We on savings statements contain slide A certain Investor prepared remarks, forward-looking and the others. also macroeconomic accompanies synergies Amex you our events, to future available that represent involve forward-looking cause call. All on the uncertainties actual results risks conference statements and statements that to today's from may differ materially made will More information financial measures presenting as in morning net contained issued free certain EBITDA, on is such this EBITDA and adjusted flow adjusted expenses, and debt. we these and operating our and filings. Throughout margin, be uncertainties earnings cash SEC adjusted release risks non-GAAP our other EBITDA, other call, today's today's to measures call financial to non-GAAP items. All certain references exclude during such adjusted been have Definitions Chief most measures of directly Paul Chief David reconciliations Karen this are materials today available supplemental with earnings these our non-GAAP me Technology and our presentation Executive and measures of Information release. Participating our the terms Williams, Officer. are for in comparable Financial the in GAAP Officer; Abbott, and and Thompson, Officer; the Chief over of the session Paul. Head I for M&A. With Global our the to and today Q-and-A Officer that, call joining now Chief Also is Eric Legal Bock, will turn Paul?

Paul Abbott

were track expansion and with Welcome free line XXXX expectations against adjusted quarter, put flow. strong Jennifer. and you, full and we you year deliver second earnings margin our line our us strong quarter bottom cash growth, Thank everyone, guidance. the second accelerated significant on results These EBITDA thank In to in joining for to call. our delivered

expenses EBITDA expansion we costs revenue basis and of significant is adjusted points year-over-year compared just results. our in QX EBITDA controlling clearly margin growth Adjusted drove Our X% growth. leverage operating And XX%. evidenced and increased adjusted driving operating X% on focus to XXX of

and in mentioned for our flow accelerating revolver our positive a to free refinance raise the services and our full year. Last providing Our continued shareholder our focus share invest resulted strong free an quarter, costs, gives progress which opportunity us an debt cash important to gains significantly debt, drive quarter our have July. flow demand to remains to second and continue us company, And lowered completed successfully cash balance returns. we growth to in our software guidance for we confidence strong with additional in our now extended We've opportunities and our on deleverage we maturities the a for sheet. Increased interest upsized and the foundation.

growth, reach have rate. Starting customer revenue for transactions, growth increased and the the Olympics same-store up services. Transactions demand for saw quarter, to wins TTV in slower second further our million We our impact increased professional driven our with and was sustained by sales X% quarter, and retention in the France. $XXX slowdown in X%. were up of importantly, and pace the primarily a of We new products revenue by driven

We expect the France fall. will bounce back in

grew higher rates. Excluding Again, transactions higher the of primarily growth France, quarter. in ahead by driven grew from France, were and in X%, well the as hotel room quarter. TTV transactions average X% X% the by just as transaction ticket up excluding average TTV prices

multinational basis resulted customers. expansion the expansion quarter, points. XX% focus of leverage our our here, of XXX see second with million on EBITDA operating in and strong Finally we with In growth continue $XXX performance to stronger margin to margin relative adjusted global

can into GMN; global categories, generally customers to this these or customer our use TTV SME. base and X measure a or We general annual small-medium As all into divide reminder, categories, need. We vary divide we of or find although multinational that prefer customer. customers and not tend We are one of solutions. to by may to products size that by do offered country customer sizes solely services different have enterprises

same-store approach, XXXX. more the account point prefer quarter, customers global total of X is Some out the top see to that growth double-digit over bespoke, pharma global some may for our a returning solution. Back industry larger which more we we very transactions cycle X% prefer to saw normalized important to growth technology a transactions. we saw the global while financial simpler high-touch, global up levels our It multinational verticals in We XX% sales multinational smaller were growth in did industries. as across over services ramp-up customers and may with multinational solid

the We the with most valuable industry. competitive comprehensive the BXB have and in the in travel most built content most marketplace

Our strong and experiences technology people combination resonate delivering proven at best continues to with scale of the customers.

segment. GMN also from XX% Our prices. very a customer XX with this customer multinational, benefit last rate the over the average growth high point global TTV transaction the was which in to X%, ticket strong, driven growth and the retention percentage by higher value quarter important that reached we bring demonstrates X up months,

within SME X% improvements and SME was growth expectations relatively as highlights by a our the oil within of model recent industries. versus in XXXX. And of X%. approximately performance increase the out in survey the of encouraging It stronger strength muted the be gas driven professional to GMN basis. services, most that full on the over mining an year-over-year the customer versus survey year. spend year now growth points at this GMN balance shows diversified QX percentage travel GMN XX% was Our previous XXX the is is The up customers as quarter look expect customers our in X we top transaction and for

have higher we described and tightened SME spending of quarter, customers in higher the last As sustained costs controls inflation. face interest

the beyond macro trend in broader the spend, businesses QX, SME call As we environment. discussed given is more this also on for travel a challenging

our customers outlook expect be survey, is growth. And new by top SME most supported this of We wins are SME to performance customer in recent grow this of macroeconomic SME confident our spend in the flat showed conditions that will improve, XXX strong. to XX% year. travel half or Meanwhile, continues as remain the our second so which

As very negative by in the we country impact a you've in related our France in Olympics. the Transactions X%. strong second travel were and volume. France second France from our in the on business travel rapidly industry, heard the quarter ended quarter are peers down actually transaction is to decelerated seeing largest first that

impact impact and a Clearly, QX. year-over-year The we to negative see is we return to expect So growth smaller. X it percentage our onwards. growth in temporary this is from to growth September a resulted total in TTV revenue believe in point of to transaction France impact and a

quarter. Finally, air consistent transactions versus here, hotel domestic growth in and was the our second in international versus

commercial turning So highlights. the to

We total wins of continue new over to share with billion last the value $X.X XX gain months.

to Importantly, even over increasingly is these retention, up enterprise an last of the level are customer foundation stronger impressive XX at share which gains XX% the on months.

which Our biggest growth of remains with $XXX spend. represents customers, approximately opportunity SME travel billion

are leader in is not But this in travel managed travel of a a already segment. currently program. managed We XX% in this opportunity

of services are and and demonstrates, more our travel new program. wins value the recognizing customers progress software our our As more and SME professionally-managed our

lead spend collaboration targeting acquired Neo came recent over customers Amex the billion. In and GBT's software the significant is most Amex us. The we of is quarter, wins digital with XX% differentiation NeoX GBT's our track XXXX. new year-over-year and segment. Amex on the pleasing the NeoX campaign Over platforms, Express came Egencia, through is believe XX% for continue transactions totaled digital from through progressing our marketing last second digital SME our competitive of grow American between channels. to result, a GBT large management well, area an own XX which in very on bookings As opportunity to Xx months digitally platform in results $X those SME of

the that NDC. in now we NDC We solutions are XX most and partners the marketplace continue changes on premium own and most to customers the software with to we sure industry lead our because the make the to our competitive required. to well-positioned way. We're invest in help are our in offer we our retail Neo content very comprehensive, in effective Egencia, And to most airlines working at

make business also travel sustainable. more to We continue

is sustainable America developing during second Avelia Google. Also And annual program, the Avelia our already world's of XX Bank our highlighted platforms of SAF. and future. sustainability, and we we corporations Our published to book-and-claim Aviation the governance for the new our first and like fuel. commitment ESG our than progress commitment blockchain-powered more customers the reinforces agreement workforce with have Shell including quarter, report that of in and one the airlines aviation in participating

to successfully get rapid to disaster provide continue and vulnerable travel organizations refugees safe to nongovernmental workers emergency relief response for zones. with We work

to continue groups Our inclusion thrive.

working the are thinking are portfolio incident. minority-owned take to businesses also the We make a for accessible the with travel to to CrowdStrike to impact supplier clear swift we of more business helped in all. I my thank and customers our that recent mitigate colleagues the of for action want moment number and growing

CWT helping first have you countless disruption for is quarter which to an last the finally, of thanking through expected close be. And acquisition, We saw support, to now our notes travelers needed received provided outstanding where service week, the from their the on team get customers update in they XXXX. to we as

create Department investigation believe its transaction. a clearly suppliers, work of with in receive collaboratively as show in that efficient a we will comprehensive environment to maintaining the continue continue transaction U.S. the the expect X of services more We continue intends to Phase business distribution choice and to the as review highly which CMA, will customers, approval of to transaction competitive while We the the for with Justice a well analysis full travel more for for

very call David detail, discuss CIO. pleased introduce and over to to I am results outlook in turning the our more our to Karen Thompson, Before

more previously automation and progress the expansion. to we gains And to pilot RPA, we're productivity our say, the the machine learning progress and are good previous to to of as to phase pleased making margin call, to making over our our better customers for initiatives implementation. And discussed now have and from productivity. potential you. drive David, move in investments here promised and is to speak as that about experiences further David earnings I improve I'm We create AI with AI on

David Thompson

everyone. hello, Thanks, Paul, and

call, intelligence As on program previously and on earnings AI GBT launched Amex QX driving artificial technologies. through existing innovation new our focused shared our

year. safe, increased our AI operational engineering capabilities. Through next-generation increased scaled fourth, streamline service across efficiencies our X workforce. this XX% AI $XXX will huge a initiatives, X delivering component are elaborate the our These to opportunities key for savings opportunity AI on, objectives: our through of efficiencies; already and in initiatives technologies of to are AI total expenses, adopting as focused and secure, adjusted velocity; driving And continue we we productivity total expect account processes; third, We operating are second, deliver approximately improvements. representing financial areas Karen and enabling a first, automation million

strategy broader generative than AI. Our is

SaaS large advantage are multiple natural third-party own language learning capabilities, We machine taking language processing, solutions, capabilities to proprietary our accomplish and these of including objectives. models,

labor-intensive. sits let challenge and channels them for thoughts behind common the these meet of firewalls a internally communication largest needs. To garner so are and to why to and own very of data gain AI the the some is proprietary SaaS utilizing and to develop Amex organizations. contacting that X are future to public power customer these technologies, harness The deployed and insights intent is own which to direct our massive most date. Dealing amount me internet. provide available we looking allows and exploit our insights, which a us self-service GBT data clients with data their GBT And to to supplementing opportunities. we in not to with to share language large turn identify demand understand Amex us, is from our GBT optimized efficient Amex models, LLM required complex progress is analyze By routing of third-party to channel effort

We our engineering focused increasing SaaS have third-party provider, also through on with partnering velocity GitHub.

have we documentation new copilot, in development. and a XX% creation, case development their measured story test code user With productivity increase

customer at conversational travel servicing business of or connecting approved and been for more identification, concepts to Data data assistant proof to collected intent process. our X provide throughout is the valuable IVA; process virtual exponentially and processes The counselor. start authentication to Finally, a prior expansion, intended is start a of IVA copilot. collected our have automating than intelligent to a

hand operating costs. I Karen stores. customer That Our our in to conversational to I'd without calls. And and experience provide investment enabled effort will outcome need and financial now customer. discuss and better over the of be reduction the material the copilot Karen? update data access They forward the to a detail. to spend servicing lower of for structured to on in pasting look to information client like will manual our initiatives is means time you time results and more for quick customer and servicing it expected less to outlook team. copying in The a progress more future XXXX continuing both

Karen Williams

are Thank testament we reported am seeing the the it free comes about flow in continued cash margin areas. everyone. talked I've in generation; X have long-term cash this, I really accelerating capacity the progress again, a made to financial in through in X creating second and accelerating The organically performance; to with expansion; managing all leverage priorities quarter, we spend. both to my importantly, and investment to quarter, our M&A. And significant and we addition expansion you, previously happy our growth, the second momentum hello, and in David, sustained and drive when operating key invest driving flow and strategic margin

So now was in turn TTV, delivered from adjusted which our strong our expectations Revenue flat financial X% revenue year-over-year. perspective. define the we X%, million, divided in that performance by year-over-year to EBITDA an reached line quarter. yield, We $XXX up detail. as in were more let's with results Revenue

operating total momentum I area when which the seeing comes to a key turn incredibly with us, it of pleased enterprise productivity. are for the we across are expenses, As increasing to we focus am

and expansion, drive technology are by cost software we Importantly, growth that delivering also AI. our in content, not drive including savings our only margin platforms and investing but

million to critically, adjusted of with resulted operating As these translated year-over-year revenue growth of with growth up net cash Adjusted expansion. operating XX-XX split to in generation in our $XX $XX when invest incremental of expect In expense the happy the momentum which of we reminder, to discussed grew And X% EBITDA Together, XXX call. quarter, actions, OpEx flow XXXX, the and million. I'm between a basis an XX% previously margin This CapEx. and on year-over-year. strong generation. impact we a adjusted by achieved leverage it was of points driven into million, very the versus X%. flow acceleration EBITDA continued $XXX cash comes free capital working our XXX% I've just

adjusted or June debt EBITDA as leverage Xx very by XXXX. XX, net Finally, step-down X.Xx ratio in our XXXX. represents months is the This of divided a last XX significant June from

moment interest company. significantly successful in the is debt costs. This July As we Paul a mentioned, executed refinancing that lowers our pivotal another for

In by refinancing we we $XX position XXX savings months, or strengthens achieved this are approximately financial annualized another debt to further our refinancing points term X our estimated over basis lowers savings priced the previously it the at Our way, reduced rate new refinancing margin XXXX. and maturities lowered recent cash have facility represents leverage, with our run-rate from XX% interest costs. When our our loan a total, the approximately million, by our debt SOFR extending plus significantly interest past X%. consider interest reduction. The put

appropriate be capacity revolver our to million to upsized level at $XX also We $XXX from million. a more

no the draw at this around revolver, longer importantly, previously and And million. on plans stood covenants liquidity financial no increases we there to our $XXX flexibility. are cash, minimum While have which

pending no CWT total already required And leverage Our is acquisition. continue X.Xx level reminder, remains the our debt the incremental as reached of of X.Xx financing ratio fund and unchanged. deleverage. there middle target to we expected to We've a to

investors lender performance. group investors. this our of high-quality XX blue-chip The while we our happy our in and am I twice high anchor with momentum note confidence terms target, base think debt to speaks significantly broadens bringing over outcome. our GBT incredibly and oversubscribed that in I to investor includes in it's we the important participating saw refinancing drive and to was continue the which demand

our I'd Now attention balance of to to like year. the turn

industry-leading previously of have We and powerful you all shared how our financial for it with model us positions returns.

we from demand customer above expect travel GDP. our to First, grow business base premium

value with proposition. to share Second, we our gains expect differentiated ahead driving by market grow of continue to the

Third is margin expansion.

are cost continued We structure a disciplined on growth. and margin laser-focused

presents shared forecasted free XX% accelerate the from accelerating our and incredibly is value opportunities. the acquisition. drive deployment, how optimizing seen in finally, growth M&A in significant And leverage flow already to you capital to creation pending positive cash focused adjusted operating to we important XXXX. Fourth, incremental we from fund XX% on opportunity a have an Our are growth have before performance our business, further strong CWT including EBITDA

And so in quarter close now expect let's XXXX turn incorporate guidance Please of which CWT, first the the does XXXX. of to guidance. the full impact we note, year our to not

HX Our strong our keep achieve were results targets. us XXXX on and to track

what expansion. can cost are we EBITDA significant margin We growth savings, on solid adjusted the growth, control strong revenue and delivering hitting mark and

seasonality. leverage. We confidence enabled year and driving XX% to our $XXX in I EBITDA margin and finally, marketing investments XXX The of guidance our macro engine, to the margin on range million as actions targeting while means significant strong of including for refinancing. I interest are million our regards the we've achieving free now billion generate already step-up working under carryover despite operating EBITDA. from of million software recent capital $X.XX our growth, is adjusted of raise of in expect of of initiative conversion free This EBITDA half XXXX, to in full just margin focused reinforce driven expense primarily the for in sales and benefit significant increase. detail to well a plus will more million, revenue expansion year us in in taken cash how representing cash Egencia to new points I now HX environment. And acceleration the the now delighted AI. Executing we remain David think seen a HX, X% these and for of more and now softer as expansion expectations revenue to from wins new to AI. about QX strong flow of performance in that performance, $XX making and with XXX the platforms year. continued we growth $XXX deliver HX am of we our a bounce light In savings our in flow of expect with guidance are back adjusted than this and by to in growth continued full $X.X with Olympics full midpoint guidance the automation and XX% midpoint and basis in X% the our XX%. We lower environment, year, for second future particularly to provide This cost reiterating an driving guidance phasing France. onetime range lower progress billion, factors the and to and to due expect the end from described our like guidance between $XXX productivity softer macro range continued HX year-over-year we XXXX This of means as adjusted improvements the Combined initiatives includes cost $XXX be savings from million QX

We revenue strategy. our due transactions basis non-TTV-driven the in components digital by to points with yield and expect of XX line shift to continued revenue to approximately decline

of absolute are with to a QX growth yield We QX of higher operating trend revenue sequentially to down expense prior expect on growth XXXX. QX adjusted X% to X% just of this in given half expect similar. also step versus carry we revenue basis. in QX we phasing perspective, is the consistent be expected Expenses second X% expect QX, to into expected to to X%. From and In years. seasonality an year, Revenue this be and growth over

allocation highly to a cash order which will adjusted is: and technology pursue flow priority deleveraging, of middle to of in cash to and synergistic cash longer-term policy to with to we as EBITDA; it our our of a end I cash second, on returns. The allocation we right and acceleration policy, target deleverage, already intend opportunities; investments to accretive, so capital focus And and XX% for focused M&A returning shareholders. X.X EBITDA debt generation, reminder to cash naturally of gives we continue deleverage; adjusted is X.Xx XX% growth continuing in first, flow see fourth, free to although the want are accelerating invest to generation capital our to with net organic us on optionality we third, continue growth; finally, target shareholder

Q-and-A. productivity, things with delivering flow So our continued for share and Eric Paul, up, remain margin confident to line. clearly Head acceleration, guidance. We performance ahead and by we full are growth of are our cash investing With can solid and Global our expansion, M&A. Operator, David, strong Officer focus quarter long-term was Chief performance. on bottom go the these please in into and and second wrap I line priorities who open year XXXX on our is now Bock, gains, joined Legal move

Operator

comes Deutsche question first Our Lee of Instructions] line with [Operator from the Horowitz Bank.

Lee Horowitz

of the macro slow on Can environment some for just obviously you down. seen expectations of sort and rest year? the maybe expand the things We've the your

hyper-volatile But SME, can a give You seeing at color guys in pressures that this are you the little pointed spend acceleration. some of you're in just seeing towards moment? on detail environment maybe or the any bit more macro you're more

Paul Abbott

Lee. for the in a it's question. Sure, of I Thanks would we say themes Yes. continuation QX. discussed the

ramp-up segment. stabilization. have that ramp-up We year, sales, sector sort second in year. particularly global grow would a to of in particularly more last SME from starting that last of a was over the the We're we steep On it's quarter in pretty say the saw tech seen I the multinational, same-store slowdown

a been the the points quite of same-store say quarter. on It's a again for global couple a of discussed would second last have that I pretty discussed So sales various trend earnings quarter. that's industries. the we a lot But calls stable. SME softened trend in actually outlook in that's across also multinational is

balance smaller expecting spending to relates of the the as is exposed acceleration the second moderate and of a year. signed start of costs. But sort There lending that tightening to in because half get that to companies SME we're are implemented the of see as of are of from of those I the of more in think expense we interest year, generally also a wins workdays midsized to seeing point half a in in already the benefit the sort new we've year. second net the to it

are points So X%, in But the Karen in of going X% give frankly, second on, I second comments growth of said we business we're the her guiding year. And of the half is underlying year. We're things X very half really of of control, the second the acceleration of for those combined in have the trends environment. And the a moderate we're sort think, not that there, in to X around as acceleration. things the pipeline, kind we based can X us seeing to that new which we're to implementation assuming half. the in that macro any assuming continue improvement the

Lee Horowitz

And proliferates? on then world. investors We content how a ecosystem Can one stable NDC elaborate sort you your an on NDC travel maybe your from expect NDC. to often you regarding of questions in within keep economics more as the bit see maybe business economics

Paul Abbott

[ more airlines ] personalized to there Yes, the and economics, technical to change mean NDC NDC. flexible sure. simply our standards. They EDIFACT comes their a no partners, different to and opportunity business in services a more way. is whether retail in I particular, products or our transaction a provides are

additional relationships gives versus that we're with those no we'll the X But services time, modern, should it just something business to over could and more I impact our really so services participate to personalized you offers, now think contractual One in to think as more today time. has stream actually different over us more opportunity think, because partners. We create that from starting and EDIFACT being over volumes ancillary start that's NDC don't standards. of our introduction technical time revenue we flexibility. underlying ancillary economics NDC build And actually really and see think build that or revenue could that we suppliers of being for

takeaway in difference today, no the to economics our opportunity but real future. the So potentially is some

Operator

of next with goes Evercore the Pfennigwerth Our question ISI. to line Duane

Duane Pfennigwerth

have then how Apologies I interesting XQ? you've already see was do France what if much pretty from this, France, a in particular, airlines down but the forward stats thought that of bookings away recovering? the business aligned kind other what, the rest you of were the said of and in travel saying. with how guess with been And side you or of see in Europe? we're comparing that. do France so for How And kind week

Paul Abbott

see impact QX on anticipated. was and to we Yes. a frankly, back actually did We Companies we earlier, little France. travel We Thanks, than actually had Paris out that anticipated. and Duane. pull strong earlier into really did an in start than impact a of

I up quarter second first XX% the actually in We were ended quarter. the X%. think we minus

actually significant France. Europe business September. was and is actually slower to QX it gives in we're July are that once particularly us get mean, months pretty So we rebound, for about strong think, going into a that in swing. But performance travel, in And as frankly, that particularly and confidence well see all I August it I really September.

our come excuse if quarter, third sales third quarter at me, our so in our XX% quarter, our XX% look of And second -- of you sales September.

September is recovery more demand we'll in we to that question and be see about to believe France we of in we we of really we Day post-Labor onwards. So of kind terms back see And from what will, do September solid going levels believe France? growth the are in

Duane Pfennigwerth

American claim execution makes companies. can of you wonder around travel that big That of but I the they that transpired push with side? quarter touch travel this called was just out the on NDC, you'd to on had lot Obviously, a partners They and if agreement management be what a you. with unhelpful And a supplier sense. new willing, travel management

what push are kind of were, change or new you're are like kind did at that How you if this willing, them? play role you unwinding? different I you American? to now So did get and doing of things And with where they their NDC, agreement to role you guess new which back does historically aggressive in

Paul Abbott

[ recognize Yes. Robert the they've think they they importance customers with of have of Look, we Amex very modern they welcome to into of They've the travel And the the ] in of several and much the the like I retailing of back their this they recognize of occasions announced. importance collaboratively said American and of from position GBT. And available think put the relationship on see American. has with management and distributors already kind we working clearly welcome with that importantly, would recognized drive and said also channel channels. content And importance terms certainly the introduction frankly I publicly the NDC. changes all that that changes that to

that have times certainly from best our said make is in to whatever do, forums center I occasions, work change many me in that the sure that trying in and to to delivering that and customers. And value many that as think certainly, we're to to bring industry I've way customer I with change. of on more Robert us critically, think change to I what And heard make drive hearing that's the collectively think we what we're that's we customers at that we sure the you're public you've from well. drive on is

from So we yes, welcome that certainly, in American. position change

Operator

Kaplan next the with Stanley. goes Morgan line to question Our of Toni

Hilary Lee

of could acquisition, if you wondering Lee pushed Toni. the into Hilary on was on like is was This details QX provide I why we CWT just it into go could possibly for any XXXX?

Paul Abbott

Yes.

maybe ask to Eric I'll So here. in come

Eric is know, M&A. and Legal Officer also runs you As our Chief

thoughts Eric, you'd like maybe your to here. So share

Eric Bock

II, of we which CMA the the is announced process That and XX on primarily during May approximately lasts Paul QX call. commented Phase into weeks. the reason Yes, we switched Sure. because

year that next into push our would So HX QX year. this original

So that's we into primarily QX. pushed it why

Hilary Lee

pretty And it any much just it. wasn't itself? regulatory process particular Got issue, the

Eric Bock

bar did focused CMA a -- lots from the be low a competitors and a X with continues to Phase publish you the move -- relatively and to they they to they able we X competitive environment, we is when on the X Phase Phase when which be is go a post-transaction. will show to of Well, decision on intense were believe

and So will favor we in in are out this facts very we believe will first the quarter. our close that the play confident

Hilary Lee

if I August? end But said months know And you get just CrowdStrike anything. of earlier, slower seen of a subject. they're just on follow-up, for just through did different wondering did July calls XQ into trends more what of as it. your lot wondering it if business? end? but provide any Got detail on and customer could typically the saw a had a there. you've you more if the you, like issue, lot effect cancellations how much, Just And you wondering regarding or guys any, the Like like you a service kind have

Paul Abbott

are consistent I as months the year. Yes. July, that gave to of we would July, for said, the factored mean, into those you Karen guidance second Obviously tends trends the I half rightly into be the HX earlier. Sure. for us. with Hilary, into for the the say quite July August trends softer guidance trends

we and CrowdStrike and to coming of I our quickly impact clear situation the CrowdStrike. APAC our very the We well. upgrade issues picked very responded the have CrowdStrike, to software up up of in terms was it from In extensively some were some say as that issues work teams that with business on that opened

the the we and so go -- stop of critically other upgrade into able that the in U.S. update And world, including parts were to [indiscernible]

extremely of to customers. disruption, we there's when because that and disruption And operational the that's so very very pleased actually of course, say were frankly managed to most. successfully and there significant the important And to to a amount was throughout. And need work customers our when us course, airline I'm was the industry of issues through we our

solution to call where reaches support cancellations. We they make proactively So them obviously volume. of Care them customers get and changes saw we advise and sure utilized to go. extensively, to cancellations increased Traveler out certainly saw increased they need changes, Proactive We which our to

busy And period. incredibly a was so it

to working have we're and that lot we've weekend is customers. But our notes period. our a outstanding. the And line through technology so many for absolutely the through bottom customers managed people our of support very ensure have process had our were there well. for overtime teams Both thanking teams from the servicing We through we very, that us

successfully. very it through managed we think I So

a quarter significant see to the expect a the was impact. I think the to disruption X-day of end I of come impact. Yes, to to that don't business, don't period. But that as when some the going material terms we're X- have look, In a impact over we or that there

Operator

waiting this other at questions registered at currently are questions are There time. this time. no There [Operator no Instructions]

to So I'll pass back remarks. closing the conference over you, for Paul,

Paul Abbott

to of across closing, strong for results the very first team just the delivered world thank our dedication Okay. much our half in the Well, their customers, you to in they've year. this

We for you. company. Thank are gains, all in expansion. us cash to interest you is of XXXX profitability, and margin to your very going strong growth continued continued confident that be the free joining year you today and another flow share of Thank and in

Operator

hope a That have participation. of for day. concludes Thank you I you call. your today's rest wonderful conference your

Global Business Travel (GBTG) 6 Aug 242024 Q2 Earnings call transcript