NEW YORK - Shares of Global Business Travel Group, Inc. (NYSE:GBTG) fell sharply by 11.82% despite the company reporting a revenue beat for the fourth quarter. The company, a leading B2B software and services provider for travel and expense, announced a quarterly revenue of $549 million, surpassing the analyst consensus estimate of $541.12 million.
In the fourth quarter of 2023, GBTG achieved a revenue increase of 4% year-over-year (YoY), primarily driven by growth in Total Transaction Value due to continued expansion in business travel and growth in Product & Professional Services revenue. However, the company reported a net loss of $46 million, which was an improvement from the $63 million loss in the same period last year. Adjusted EBITDA for the quarter was significant, at $80 million, marking an 83% increase YoY.
For the full year, Global Business Travel Group posted a 24% revenue growth, with Adjusted EBITDA surging by 269% to $380 million, indicating a strong performance above the initial guidance. The company also highlighted a positive full-year Free Cash Flow of $49 million and a substantial decline in its leverage ratio to 2.3x, which led to a two-notch credit rating upgrade from S&P Global.
Looking ahead to 2024, GBTG expects to continue its momentum with a revenue growth guidance of 6-9%, driven by stable growth in business travel and the company's ongoing market share gains. Adjusted EBITDA is projected to grow by 18-32% to $450-$500 million, reflecting the company's focus on margin expansion and operational efficiency through automation and artificial intelligence (AI).
Paul Abbott, CEO of Amex GBT, expressed confidence in the company's scalable model and its ability to generate robust Adjusted EBITDA growth in 2024 as the industry settles into a more stable growth level. He anticipates another year of share gains, strong growth in profits and cash flow, and continued margin expansion.
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