Global Business Travel's Q1 revenue beats estimates

Global Business Travel Group, Inc. Class A

Global Business Travel Group, Inc. Class A

GBTG

0.00


Overview

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

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

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


Result Drivers

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

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

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


Company press release: ID:nBw2vDkrJa


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q1 Revenue

Beat

$840 mln

$815.98 mln (4 Analysts)

Q1 Net Income

$54 mln

Q1 Operating Expenses

$837 mln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the online services peer group is "buy"

  • Wall Street's median 12-month price target for Global Business Travel Group Inc is $9.00, about 51.8% above its May 1 closing price of $5.93

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


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