$GBTG reports strong 2022 revenue and profitability growth in SME segment.
Mar 9th 2023, 1:10 pm
Analyst Summary: American Express Global Business Travel Group announced its Q4 and full-year 2022 financial results, with revenue and Adjusted EBITDA ahead of the full-year 2022 guidance. The company reported a continued momentum in the SME (small and medium-sized enterprises) segment, positioning it well for continued strong growth in revenue, profitability, and cash flow in 2023 and beyond. The CEO of Amex GBT, Paul Abbott, mentioned that record new wins, high customer retention, and strong momentum in the SME segment delivered results ahead of the company's guidance for the year. The acquisition of Egencia, Ovation, and DER contributed to the company's revenue growth, with Travel Revenue increasing $998 million, or 224%, due to incremental revenue of $343 million resulting from Egencia's consolidation and $655 million primarily resulting from Transaction Growth driven by the continued recovery in business travel. The company's total operating expense increased $726 million, or 55%, primarily due to the inclusion of Egencia's operating expenses, increased sales and marketing costs, and higher technology and content expenses. The net loss improved $246 million, primarily due to a decrease in operating loss partially offset by a lower benefit from income taxes, and the Adjusted EBITDA improved by $443 million, primarily due to revenue growth, partially offset by increased Adjusted Operating Expenses. The net debt increased to $919 million compared to $507 million as of December 31, 2021.