Q4 2023 Global Business Travel Group Inc Earnings Call

March 5, 2024

Operator: Good morning and welcome to the American Express Global Business Travel 4th quarter and Full Year 2023 Earnings Conference Call. As a reminder, please note today's call is being recorded. I'll now turn the call over to the Director of Investor Relations, Jennifer Thorington. Please go ahead.

Operator: Good morning and welcome to the American Express Global Business Travel 4th Quarter and Full Year 2023 Earnings Conference Call. As a reminder, please note today's call is being recorded. I'll now turn the call over to the Director of Investor Relations, Jennifer Thorington. Please go ahead.

As a reminder, please note today's call is being recorded.

I'll turn the call over to the director of Investor Relations Jennifer Thorington. Please go ahead.

Jennifer Thorington: Hello and good morning, everyone. Thank you for joining us for our 4th quarter and Full Year 2023 Earnings Conference Call. This morning, we issued an earnings press release which is available on sec.gov and our website, at investors.amexglobalbusinesstravel.com. A slide presentation, which accompanies today's prepared remarks, is also available on the Amex GBT Investor Relations web page. We would like to advise you that our comments contain certain forward-looking statements that represent our beliefs or expectations about future events, including industry and macroeconomic trend, cost-saving and acquisition synergies, among others. All forward-looking statements involve risks and uncertainties that may cause actual results to differ materially from the statements made on today's conference call. More information on these and other risks and uncertainties is contained in our earnings release issued this morning and our other SEC filings. Throughout today's call, we will also be presenting certain non-GAAP financial measures such as EBITDA, adjusted EBITDA, adjusted EBITDA margin, adjusted operating expenses, free cash flow and net debt. All references during today's call to such non-GAAP financial measures have been adjusted to exclude certain items. Definitions of these trends and the most directly comparable GAAP measures and reconciliations for non-GAAP measures are available in the supplemental materials of this presentation and in the earnings release.

Jennifer Thorrington: Hello, and good morning, everyone. Thank you for joining us for our fourth quarter and full year 2023 Earnings Conference call. This morning, we issued an earnings press release, which is available on sec.gov and our website at investors.amexglobalbusinesstravel.com. A slide presentation, which accompanies today's prepared remarks, is also available on the Amex GBT Investor Relations webpage. We would like to advise you that our comments contain certain forward-looking statements that represent our beliefs or expectations about future events, including industry and macroeconomic trends, cost savings and acquisition synergies, among others. All forward-looking statements involve risks and uncertainties that may cause actual results to differ materially from the statements made on today's conference call.

Jennifer Thorington: Hello and good morning, everyone. Thank you for joining us for our 4th Quarter and Full Year 2023 Earnings Conference Call. This morning, we issued an earnings press release, which is available on sec.gov and our website at investors.amexglobalbusinesstravel.com. A slide presentation, which accompanies today's prepared remarks, is also available on the Amex GBT Investor Relations webpage.

Jennifer Thorington: We issued an earnings press release, which is available on <unk> Dot Gov, and our website, an investor has done well look business travel dot com.

Jennifer Thorington: Slide presentation, which accompanies today's prepared remarks is also available on the Amex GBT Investor Relations Web page, we would like to advise you that our comments contain certain forward looking statements that represent our beliefs or expectations about future events.

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

Jennifer Thorington: <unk> industry, and macroeconomic trend cost saving and acquisition synergies among others.

Jennifer Thorington: All forward looking statements involve risks and uncertainties that may cause actual results to differ materially from those statements. On today's conference call or information on these and other risks and uncertainties is contained in our earnings release issued this morning, and our other SEC filings. Throughout today's call. We will also be presenting certain non-GAAP financial measures such as EBITDA adjusted EBITDA adjusted EBITDA margin adjusted operating expenses free cash flow and net debt. All references during today's call to such non-GAAP financial measures have been adjusted to exclude certain items. Definitions of these trends and the most directly comparable GAAP measures and reconciliations for non-GAAP measures are available in the supplemental materials that this presentation and in the earnings release.

Jennifer Thorington: On today's conference call or information on these and other risks and uncertainties is contained in our earnings release issued this morning, and our other SEC filings.

Jennifer Thorrington: More information on these and other risks and uncertainties is contained in our earnings release issued this morning and our other SEC filings. Throughout today's call, we will also be presenting certain non-GAAP financial measures such as EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Operating Expenses, Free Cash Flow, and Net Debt. All references during today's call to such non-GAAP financial measures have been adjusted to exclude certain items.

More information on these and other risks and uncertainties is contained in our earnings release issued this morning and our other SEC filings.

Jennifer Thorington: Throughout today's call. We will also be presenting certain non-GAAP financial measures such as EBITDA adjusted EBITDA adjusted EBITDA margin adjusted operating expenses free cash flow and net debt.

Throughout today's call, we will also be presenting certain non-GAAP financial measures such as EBITDA, adjusted EBITDA, adjusted EBITDA margin, adjusted operating expenses, free cash flow and net debt. All references during today's call to such non-GAAP financial measures have been adjusted to exclude certain items. Definitions of these terms in the most directly comparable GAAP measures and reconciliations for non-GAAP measures are available in the supplemented materials of this presentation and in the earnings release. Participating with me today are Paul Abbott, our Chief Executive Officer and Karen Williams, our Chief Financial Officer. Also joining for the Q&A session today is Eric Bock, our Chief Legal Officer and Head of Global M&A. With that, I will now turn the call over to Paul. Paul?

Jennifer Thorington: All references during today's call to such non-GAAP financial measures have been adjusted to exclude certain items. Definitions of these trends and the most directly comparable GAAP measures and reconciliations for non-GAAP measures are available in the supplemental materials that this presentation and in the earnings release.

Jennifer Thorrington: Definitions of these terms in the most directly comparable GAAP measures and reconciliations for non-GAAP measures are available in the supplemented materials of this presentation and in the earnings, Participating with me today are Paul Abbott, our chief executive officer, and Karen Williams, our chief financial officer. Also joining for the Q&A session today is Eric Bock, our chief legal officer and head of Global M&A. With that, I will now turn the call over to Paul. Paul?

Jennifer Thorington: Definitions of these trends and the most directly comparable GAAP measures and reconciliations for non-GAAP measures are available in the supplemental materials that this presentation and in the earnings release.

Participating with me today are all <unk>, our Chief Executive Officer, and Karen Williams, Our Chief Financial Officer also joining for the Q&A session today's Eric Buck, our Chief legal officer, and head of global M&A with that I will now turn the call over to Paul Paul.

Participating with me today are Paul Abbott, our Chief Executive Officer and Karen Williams, our Chief Financial Officer. Also joining for the Q&A session today is Eric Bock, our Chief Legal Officer and Head of Global M&A. With that, I will now turn the call over to Paul. Paul?

Paul: Thank you Jennifer welcome to everyone and thank you for joining our fourth quarter and full year 2023 earnings call. We once again delivered outstanding financial results driven by continued share gains and our focus on margin expansion. In the fourth quarter, we generated revenue of $549 million and adjusted EBITDA of $80 million, which nearly doubled year over year.

Paul Abbott: Thank you, Jennifer. Welcome to everyone and thank you for joining our 4th Quarter and Full Year 2023 Earnings Call. We once again delivered outstanding financial results driven by continued share gains and our focus on margin expansion. In the 4th quarter, we generated revenue of $549 million and adjusted EBITDA of $80 million, which nearly doubled year-over-year.

Paul Abbott: Thank you, Jennifer. Welcome to everyone and thank you for joining our 4th Quarter and Full Year 2023 Earnings Call.

Paul: We once again delivered outstanding financial results driven by continued share gains and our focus on margin expansion.

Paul Abbott: We once again delivered outstanding financial results driven by continued share gains and our focus on margin expansion. In the 4th quarter, we generated revenue of $549 million and adjusted EBITDA of $80 million, which nearly doubled year-over-year. Our strong full-year results finished above the guidance we issued at the start of the year, with revenue up 24% year-over-year and adjusted EBITDA up nearly four times year-over-year, to a total of $380 million. Strong demand for our leading software and services resulted in continued share gains. We reported a record new wins value of $3.5 billion in 2023. This includes a record $2.2 billion of SME new wins, demonstrating continued progress with this large, profitable customer segment. Our focus on driving operating leverage is clearly evidenced in our 2023 financial results.

Paul: In the fourth quarter, we generated revenue of $549 million and adjusted EBITDA of $80 million, which nearly doubled year over year.

Paul: Our strong full year results finished above the guidance, we issued at the start of the year with revenue up 24% year over year and adjusted EBITDA up nearly four times year over year to a total of $380 million.

Paul Abbott: Our strong full-year results finished above the guidance we issued at the start of the year, with revenue up 24% year-over-year and adjusted EBITDA up nearly four times year-over-year, to a total of $380 million. Strong demand for our leading software and services resulted in continued share gains. We reported a record new wins value of $3.5 billion in 2023. This includes a record $2.2 billion of SME new wins, demonstrating continued progress with this large, profitable customer segment. Our focus on driving operating leverage is clearly evidenced in our 2023 financial results.

Paul: Strong demand for our leading software and services resulted in continued share gains.

Paul Abbott: Strong demand for our leading software and services resulted in continued share gains. We reported a record new wins value of $3.5 billion in 2023. This includes a record $2.2 billion of SME new wins, demonstrating continued progress with this large, profitable customer segment. Our focus on driving operating leverage is clearly evidenced in our 2023 financial results.

Paul: We reported a record new wins value of $3 5 billion. In 2023. This includes a record $2 2 billion of SME, new wins, demonstrating continued progress with this large profitable customer segment.

Paul Abbott: This includes a record $2.2 billion of SME new wins, demonstrating continued progress with this large, profitable customer segment. Our focus on driving operating leverage is clearly evidenced in our 2023 financial results. For the full year, adjusted operating expenses increased just 9% compared to 24% revenue growth.

This includes a record $2.2 billion of SME new wins, demonstrating continued progress with this large, profitable customer segment. Our focus on driving operating leverage is clearly evidenced in our 2023 financial results.

Paul: Our focus on driving operating leverage is clearly evidenced in our 2023 <unk> financial results for the full year adjusted operating expenses increased <unk>, 9% compared to 24% revenue growth.

For the full year, adjusted operating expenses increased just 9% compared to 24% revenue growth. And we drove significant adjusted EBITDA margin expansion of 11 percentage points year-over-year. Finally, our evolution to positive free cash flow is an important milestone for the company that provides us with additional opportunities to invest in our growth and drive shareholder returns. We are rapidly deleveraging, resulting in reduced interest expense and a two-notch credit rating upgrade from S&P Global.

Paul Abbott: And we drove significant adjusted EBITDA margin expansion of 11 percentage points year over year. Finally, our evolution to positive free cash flow is an important milestone for the company that provides us with additional opportunities to invest in our growth and drive shareholder return. We are rapidly deleveraging, resulting in reduced interest expense and a two notch credit rating upgrade from S&P Global.

Paul: And we drove significant adjusted EBITDA margin expansion of 11 percentage points year over year.

Paul: Finally, our evolution to positive free cash flow is an important milestone for the company that provides us with additional opportunities to invest in our growth and drive shareholder returns. We are rapidly deleveraging, resulting in reduced interest expense and a $2.

Paul: <unk> credit rating upgrade from S&P global.

Paul: In 2023, we continue to execute our strategy and deliver outstanding financial results. Our strong momentum is clearly evidenced by all key operational and financial metrics.

Paul Abbott: In 2023, we continued to execute our strategy and deliver outstanding financial results. Our strong momentum is clearly evidenced by our key operational and financial metrics. Starting with transaction growth, full year '23 transactions were up 19%, driven by increased demand for business travel and our share gains. TTV grew by 23%, driven by the strong transaction growth and an increased mix of international bookings. Revenue was up 24% to reach $2.29 billion for the full year, driven by strong growth in transactions, TTV and increased demand for our products and professional services.

Paul: Starting with transaction growth full year 'twenty three transactions were up 19% driven by increased demand for business travel and our share gains.

Paul: CTV group by 23% driven by strong transaction growth and an increased mix of international bookings.

Paul: Revenue was up 24% to reach 229 billion for the full year driven by strong growth in transactions CTV and increased demand for our products and professional services.

Paul Abbott: Revenue was up 24% to reach $2.29 billion for the full year, driven by strong growth in transactions, TTV, and increased demand for our products and professional services. Finally, our focus on margin expansion and driving strong operating leverage resulted in adjusted EBITDA growth of 269% to $380 million. So looking at our trends in more detail, we saw relatively faster growth from SME customers supporting our increased focus on this attractive customer segment, full year 23 SME transactions were up 20%, global multinational transactions were up 17%. Domestic transactions were up 13% while international growth was even stronger at 21%.

Revenue was up 24% to reach $2.29 billion for the full year, driven by strong growth in transactions, TTV, and increased demand for our products and professional services.

Paul: Finally, our focus on margin expansion and driving strong operating leverage resulted in adjusted EBITDA growth of 269% to $380 million.

Finally, our focus on margin expansion and driving strong operating leverage resulted in adjusted EBITDA growth of 269% to $380 million. So, looking at our trends in more detail, we saw relatively faster growth from SME customers, supporting our increased focus on this attractive customer segment; full year '23 SME transactions were up 20%, global multinational transactions were up 17%. Domestic transactions were up 13%,while international growth was even stronger at 21%. Growth in hotel transactions were up 20%, which outpaced the 16% growth in air transactions.

Paul: So looking at our trends in more detail, we saw relatively foster growth from SME customers supporting our increased focus on this attractive customer segments.

Paul: Year twenty-three SMA transactions were up 20% global multinational transactions were up 17%.

Paul: Domestic transactions were up 13%, while international growth was even stronger at 21%.

Paul: Growth in hotel transactions were up 20%, which outpaced the 16% growth in air transactions.

Paul Abbott: Growth in hotel transactions were up 20% which outpaced the 16% growth in air transactions. This reflects industry trends as well as our intentional focus, on increasing our volume of hotel bookings as we continue to strengthen our hotel content and display, providing customers with more value and more choice. Finally, here on a regional basis, transaction growth was 16% in the Americas, 20% in EMEA. Asia-Pacific growth was significantly higher at 29% as we saw the benefit from a delayed recovery in this region.

Growth in hotel transactions were up 20% which outpaced the 16% growth in air transactions.

This reflects industry trends as well as our intentional focus on increasing our volume of hotel bookings as we continue to strengthen our hotel content and display, providing customers with more value and more choice. Finally, here on a regional basis, transaction growth was 16% in the Americas, 20% in EMEA. Asia-Pacific growth was significantly higher at 29%, as we saw the benefit from a delayed recovery in this region. And so, Amex GBT continues to grow and to gain share. Our revenue performance versus our major business services and travel peers is very favorable. This is driven by two factors. First, our strong new winds performance and second, the increased demand for business travel, meetings and events from our diverse and premium customer base.

Paul: This reflects industry trends as well as our intentional focus on increasing our volume of hotel bookings as we continue to strengthen our hotel content and display providing customers with more value and more choice.

Paul: Finally here on a regional basis transaction growth was 16% in the Americas, 20% in EMEA Asia Pacific growth was significantly higher at 29% as we saw the benefit from a delayed recovery in this region.

Paul: And so amex GBT continues to grow and to gain share our revenue performance versus our major business services and travel peers is very favorable.

Paul Abbott: And so, Amex GBT continues to grow and to gain share. Our revenue performance versus our major business services and travel peers is very favorable. This is driven by two factors. First, our strong new winds performance and second, the increased demand for business travel, meetings and events from our diverse and premium customer base. So, turning to the commercial highlights.

And so, Amex GBT continues to grow and to gain share. Our revenue performance versus our major business services and travel peers is very favorable. This is driven by two factors. First, our strong new winds performance and second, the increased demand for business travel, meetings and events from our diverse and premium customer base.

Paul: This is driven by two factors first our strong new wins performance and second the increased demand for business travel meetings and events from all diverse and premium customer base.

Paul: So turning to the commercial highlights.

So, turning to the commercial highlights. We continue to gain share and reported record total new wins of $3.5 billion in 2023. Importantly, our customer retention rate was 96%, one percentage point higher than the previous year. Our biggest growth opportunity remains in the SME customer segment, which represents approximately $950 billion of travel spend. We are already a leader in managed travel in this segment but 70% of this opportunity is not currently in a managed travel program. As our progress clearly demonstrates, more and more SME customers are recognizing the value of our leading software and services and a professionally-managed travel program. As a result, SME new wins for 2023 totaled $2.2 billion, a record for our business that is up $100 million year-over-year. Of this, approximately 30% has come from previously unmanaged customers who are looking for the service, savings and control that our solutions provide. This is five percentage points higher than our mix of unmanaged new wins in 2022.

Paul: We continue to gain share and reported record total new wins of $3 5 billion in 2023.

Paul Abbott: We continue to gain share and reported record total new wins of $3.5 billion in 2023. Importantly, our customer retention rate was 96%, one percentage point higher than the previous year. Our biggest growth opportunity remains in the SME customer segment, which represents approximately $950 billion of travel spend. We are already a leader in managed travel in this segment, but 70% of this opportunity is not currently in a managed travel program, as our progress clearly demonstrates. More and more SME customers are recognizing the value of our leading software and services, and a professionally managed travel program. As a result, SME new wins for 2023 totaled $2.2 billion, a record for our business that is up $100 million year over year. Of this, approximately 30% has come from previously unmanaged customers who are looking for the service, savings and control that our solutions provide. This is five percentage points higher than our mix of unmanaged new wins in 2020.

Paul: Importantly, our customer retention rate was 96% one percentage point higher than the previous year.

Paul: Our biggest growth opportunity remains in the SME customer segment, which represents approximately 950 billion of travel spend.

Paul: We are already a leader in managed travel in this segment, but 70% of this opportunity is not currently in our managed travel program.

Paul: As our progress clearly demonstrates.

As our progress clearly demonstrates, more and more SME customers are recognizing the value of our leading software and services and a professionally-managed travel program. As a result, SME new wins for 2023 totaled $2.2 billion, a record for our business that is up $100 million year-over-year. Of this, approximately 30% has come from previously unmanaged customers who are looking for the service, savings and control that our solutions provide. This is five percentage points higher than our mix of unmanaged new wins in 2022.

Paul: More and more SME customers are recognizing the value of our leading software and services.

Paul: On a professionally managed travel program.

Paul: As a result, SME new wins for 2023 totaled $2 2 billion a record for all business that is up $100 million year over year.

Paul: Of this approximately 30% has come from previously unmanaged customers, who were looking for the service savings and control the our solutions provide.

Paul: This is five percentage points higher than a mix of unmanaged new wins in 2022.

Paul: Moving on to our product and technology highlights.

Paul Abbott: Moving on to our product and technology highlights. Developing our own software platforms, the Egencia and Neo, enables us to improve the end-to-end customer experience and to leverage automation, machine learning and AI to drive cost savings. We exited '23 with 78% of our transactions coming through digital channels. Over 60% of the digital bookings now come through our own software platforms, Neo and Egencia. In fact, in 2023, we have 40% transaction growth on Neo and 24% transaction growth on Egencia. We firmly believe that companies like ours stand to create significant value through automation and AI. As a leading software and services company for both travel and expense, we have the opportunity and we have the expertise to increase automation, improve the customer experience and reduce cost. And to further accelerate our progress, we recently announced the creation of a new AI initiative and dedicated team focused on increasing productivity through the adoption of next generation AI.

Moving on to our product and technology highlights. Developing our own software platforms, the Egencia and Neo, enables us to improve the end-to-end customer experience and to leverage automation, machine learning and AI to drive cost savings. We exited '23 with 78% of our transactions coming through digital channels. Over 60% of the digital bookings now come through our own software platforms, Neo and Egencia. In fact, in 2023, we have 40% transaction growth on Neo and 24% transaction growth on Egencia.

Paul: Developing our own software platforms.

Paul: The Genocea El Nino.

Paul: Enables us to improve the end to end customer experience.

Paul: And to leverage automation machine learning and AI to drive cost savings.

Paul: We exited 23 with 78% of all transactions coming through digital channels.

Paul: Over 60% of the digital bookings now come through our own software platforms Neo at Genocea.

Paul Abbott: Over 60% of the digital bookings now come through our own software platforms, Neo and Agenda. In fact, in 2023, we have 40% transaction growth on NEO and 24% transaction growth on Agenda. We firmly believe that companies like ours stand to create significant value through automation and AI, as a leading software and services company for both travel and expense. We have the opportunity and we have the expertise, to increase automation, improve the customer experience and reduce cost. And to further accelerate our progress, we recently announced the creation of a new AI initiative and dedicated team focused on increasing productivity through the adoption of next generation AI.

Paul: In fact in 2023, we had 40% transaction growth on neo at 24% transaction growth on Egencia.

We firmly believe that companies like ours stand to create significant value through automation and AI. As a leading software and services company for both travel and expense, we have the opportunity and we have the expertise to increase automation, improve the customer experience and reduce cost. And to further accelerate our progress, we recently announced the creation of a new AI initiative and dedicated team focused on increasing productivity through the adoption of next generation AI.

Paul: We firmly believe that companies like ours stand to create significant value through automation and AI.

Paul: As a leading software and services company for both travel and expense.

Paul: We have the opportunity and we have the expertise.

Paul: To increase automation.

Paul: Improve the customer experience and reduce cost.

And to further accelerate our progress we recently announced the creation of a new AI initiative, a dedicated team focused on increasing productivity through the adoption of next generation AI.

Paul: The focus is in four areas across our organization customer service finance engineering and the broader workplace.

Paul Abbott: The focus is in four areas across our organization: customer service, finance, engineering and the broader workplace. This new team will play an important role delivering cost savings and improving the customer experience. And finally, here yesterday, we announced an important new integration with American Express to help SME businesses control their indirect spend, manage their expenses and book travel. We are seamlessly integrating American Express' virtual cards into our Neo1 spend management platform.

Paul: This new team will play an important role delivering cost savings and improving the customer experience.

Paul: And finally here yesterday, we announced an important new integration with American Express to helped SME businesses control the indirect spend manage their expenses and book travel. We are seamlessly integrating American express is virtual cards into our neo one spend management.

Paul: Platform.

Paul: We are combining procurement expense management online travel and payments.

Paul Abbott: We're combining procurement, expense management, online travel and payments into a single software solution. And by combining these typically disconnected processes, we are delivering unique control and savings to businesses. And we're also extending our software and services beyond travel to include procurements, expense management and payment. We are excited about this opportunity to bring the value of Neo1 to more businesses through our partnership with American Express, a global leader in small business payments. And now, I'd like to hand it over to Karen to discuss the financial results in more detail before we move on to our 2024 outlook. Thank you Paul and hello everyone.

We're combining procurement, expense management, online travel and payments into a single software solution. And by combining these typically disconnected processes, we are delivering unique control and savings to businesses. And we're also extending our software and services beyond travel to include procurements, expense management and payment. We are excited about this opportunity to bring the value of Neo1 to more businesses through our partnership with American Express, a global leader in small business payments. And now, I'd like to hand it over to Karen to discuss the financial results in more detail before we move on to our 2024 outlook.

Paul: Into a single software solution.

Paul: By combining these typically disconnected processes, we are delivering unique control and savings to businesses.

Paul: And we're also extending our software and services beyond travel to include procurement expense management and payment.

Paul: We are excited about this opportunity to bring the value of neo one to more businesses through our partnership with American Express a global leader in small business payments.

And now, I'd like to hand it over to Karen to discuss the financial results in more detail before we move on to our 2024 outlook.

Paul: And now I'd like to hand, it over to Karen to discuss the financial results in more detail before we move on to our 2020 for outlook.

Karen Williams: Thank you Paul and hello everyone. I've previously talked about my focus on achieving outstanding financial performance by growing revenue and adjusted EBITDA. Specifically, this translates into three key priorities when it comes to managing our financial performance, which are focused on accelerating cash flow generation, driving operating leverage and continued margin expansion and, importantly, creating capacity to invest and drive long-term sustained growth, both organically and through strategic M&A. I am really happy with the progress we made in Q4 and full year 2023 in all of these areas. Our strong revenue growth, substantially higher earnings, significant margin expansion and positive free cash flow are testament to this, in addition to us triggering $30 million of incremental investments as we focus on driving long-term sustained growth. So, now, let's turn to our financial performance in more detail. We delivered strong results in the 4th quarter. Revenue reached $549 million, which was at the top end of our guidance.

Karen: Thank you Paul and Hello, everyone.

Karen Williams: I've previously talked about my focus on achieving outstanding financial performance by growing revenue and adjusting EBITDA. Specifically, this translates into three key priorities when it comes to managing our financial performance, which are focused on accelerating cash flow generation, driving operating leverage and continued margin expansion, and importantly creating capacity to invest and drive long-term sustained growth, both organically and through strategic M&A. I am really happy with the progress we made in Q4 and full year 2023 in all of these areas, are strong revenue growth, substantially higher earnings. Significant margin expansion and positive free cash flow a testament to this, in addition to us triggering 30 million of incremental investments as we focus on driving long-term sustained growth. So now let's turn to our financial performance in more detail. We delivered strong results in the fourth quarter. Revenue reached $549 million, which was at the top end of our guidance.

Karen: I've previously talked about my focus on achieving outstanding financial performance by growing revenue and adjusted EBITDA.

Karen: Specifically this translates into three key priorities when it comes to managing our financial performance, which is focused on.

Karen: Accelerate in cash flow generation, driving operating leverage and continued margin expansion.

Karen: And importantly, creating capacity to invest and drive long term sustained growth.

Karen: Both organically and through strategic M&A.

Karen Williams: I am really happy with the progress we made in Q4 and full year 2023 in all of these areas. Our strong revenue growth, substantially higher earnings, significant margin expansion and positive free cash flow are testament to this, in addition to us triggering $30 million of incremental investments as we focus on driving long-term sustained growth.

Karen: I am really happy with the progress we made in Q4 and full year 2023 in all of these areas.

Karen: Our strong revenue growth.

Karen: Substantially higher earnings significant margin expansion and positive free cash flow a testament to that.

Karen: In addition to its triggering 30 million of incremental investment as we focus on driving long term sustained growth.

So, now, let's turn to our financial performance in more detail. We delivered strong results in the 4th quarter. Revenue reached $549 million, which was at the top end of our guidance. Solid transaction growth and continued momentum on our yields drove our revenue growth. As a reminder, our revenue model is driven by volume, sales and recurring revenue. In Q4, our revenue yield, which is measured as revenue over TTV, reached 8.7%. This was up 70 basis points versus Q3 2023, driven by our continued focus on revenue optimization, the impact of our mix -- specifically, international growth and then, the typical Q4 seasonality due to timing of annual performance incentives and triggers. We grew revenue by 4% year-over-year but I encourage you to look at Q3 and Q4 together, as we had different phasing of supplier revenue in 2022. H2 revenue growth was 10%.

Speaker Change: So now, let's turn to our financial performance in more detail.

Speaker Change: We delivered strong results in the fourth quarter.

Speaker Change: Revenue reached $549 million, which was at the top end of our guidance.

Karen Williams: Solid transaction growth and continued momentum on our yields drove our revenue growth. As a reminder, our revenue model is driven by volume, sales and recurring revenue. In Q4, our revenue yield, which is measured as revenue over TTV, reached 8.7%.

Speaker Change: Solid transaction growth and continued momentum on our yields drove our revenue growth.

Speaker Change: As a reminder of revenue model was driven by volume sales and recurring revenue.

Speaker Change: In Q4, our revenue yield which is measured as revenue over T. T V reached eight 7%.

In Q4, our revenue yield, which is measured as revenue over TTV, reached 8.7%. This was up 70 basis points versus Q3 2023, driven by our continued focus on revenue optimization, the impact of our mix -- specifically, international growth and then, the typical Q4 seasonality due to timing of annual performance incentives and triggers. We grew revenue by 4% year-over-year but I encourage you to look at Q3 and Q4 together, as we had different phasing of supplier revenue in 2022. H2 revenue growth was 10%.

Karen Williams: This was up 70 basis points versus Q3 2023. Driven by our continued focus on revenue optimization, the impact of our mix, specifically international growth, and then the typical Q4 seasonality due to timing of annual performance incentives and triggers. We grew revenue by 4% year over year, but I encourage you to look at Q3 and Q4 together as we had different phasing of supplier revenue in 2022. H2 revenue growth was 10%.

Speaker Change: This was up 70 basis points versus Q3 2023, driven by our continued focus on revenue optimization the impact of all mix specifically international growth.

Speaker Change: Then the typical Q4 seasonality due to timing of annual performance incentive and triggers.

Speaker Change: We grew revenue by 4% year over year, but I encourage you to look at Q3 and Q4 together as we have different phasing of supplier revenue in 2022.

Speaker Change: H two revenue growth was 10%.

Speaker Change: Before we talk about adjusted EBITDA, let's talk about expenses, which are a key area of focus for us.

Karen Williams: Before we talk about adjusted EBITDA, let's talk about expenses -- which are a key area of focus for us. Operational efficiencies, cost-saving initiatives and lower incentive costs more than offset the investments we are making in our sales and marketing engine, software platforms and AI. This resulted in a net reduction of $15 million or 3% in adjusted operating expenses year-over-year and a reduction of $7 million quarter-over-quarter. This strong operating leverage translated into $18 million of adjusted EBITDA in the 4th quarter, up $37 million or 83% year-over-year, as adjusted EBITDA margin expanded by six percentage points to reach 15%. We achieved free cash flow generation of $32 million in the 4th quarter, continuing the momentum we have seen in 2023 on generating positive free cash flow. This was driven primarily by our Working Capital Action, which I've discussed on previous calls. On a full year basis, transactions grew 19%, driven by strong travel demand and net new wins as we continue to gain market share. TTV grew 23% aided by stronger international mix.

Before we talk about adjusted EBITDA, let's talk about expenses -- which are a key area of focus for us. Operational efficiencies, cost-saving initiatives and lower incentive costs more than offset the investments we are making in our sales and marketing engine, software platforms and AI. This resulted in a net reduction of $15 million or 3% in adjusted operating expenses year-over-year and a reduction of $7 million quarter-over-quarter. This strong operating leverage translated into $18 million of adjusted EBITDA in the 4th quarter, up $37 million or 83% year-over-year, as adjusted EBITDA margin expanded by six percentage points to reach 15%. We achieved free cash flow generation of $32 million in the 4th quarter, continuing the momentum we have seen in 2023 on generating positive free cash flow. This was driven primarily by our Working Capital Action, which I've discussed on previous calls. On a full year basis, transactions grew 19%, driven by strong travel demand and net new wins as we continue to gain market share.

Speaker Change: Operational efficiencies.

Speaker Change: Cost saving initiatives and lower incentive costs more than offset the investments we are making in our sales and marketing engine.

Speaker Change: Web platforms and AI.

Speaker Change: This resulted in a net reduction of $15 million or 3% and adjusted operating expenses year over year, and a reduction of 7 million quarter over quarter.

Speaker Change: This strong operating leverage translated into $18 billion of adjusted EBITDA in the fourth quarter.

Karen Williams: This strong operating leverage translated into $18 million of adjusted EBITDA in the fourth quarter, up $37 million or 83% year-over-year, as adjusted EBITDA margin expanded by six percentage points to reach 15%. We achieved free cash flow generation of 32 million in the fourth quarter, continuing the momentum we have seen in 2023 on generating positive free cash flow. This was driven primarily by our Working Capital Action, which I've discussed on previous calls. On a four-year basis, transactions grew 19%, driven by strong travel demand and net new wins as we continue to gain market share. TTV grew 23% aided by stronger international news.

This strong operating leverage translated into $18 million of adjusted EBITDA in the 4th quarter, up $37 million or 83% year-over-year, as adjusted EBITDA margin expanded by six percentage points to reach 15%. We achieved free cash flow generation of $32 million in the 4th quarter, continuing the momentum we have seen in 2023 on generating positive free cash flow. This was driven primarily by our Working Capital Action, which I've discussed on previous calls. On a full year basis, transactions grew 19%, driven by strong travel demand and net new wins as we continue to gain market share. TTV grew 23% aided by stronger international mix. This resulted in revenue of $2.3 billion, up 24% year over year and at the high-end of our most recent guidance update and above the initial guidance provided coming into 2023.

Speaker Change: Up 37 million or 83% year over year as adjusted EBIDTA margin expanded by six percentage points to reach 15%.

Speaker Change: We achieved free cash flow generation of 32 million in the fourth quarter continuing the momentum we have seen in 2023 on generating positive free cash flow.

Speaker Change: This was driven primarily by our working capital action, which as discussed on previous calls.

This was driven primarily by our Working Capital Action, which I've discussed on previous calls. On a full year basis, transactions grew 19%, driven by strong travel demand and net new wins as we continue to gain market share. TTV grew 23% aided by stronger international mix. This resulted in revenue of $2.3 billion, up 24% year over year and at the high-end of our most recent guidance update and above the initial guidance provided coming into 2023.

This was driven primarily by our Working Capital Action, which I've discussed on previous calls.

Speaker Change: On a full year basis transactions grew 19%.

On a full year basis, transactions grew 19%, driven by strong travel demand and net new wins as we continue to gain market share. TTV grew 23% aided by stronger international mix. This resulted in revenue of $2.3 billion, up 24% year over year and at the high-end of our most recent guidance update and above the initial guidance provided coming into 2023. Our focus on driving operating leverage resulted in adjusted operating expense growth of 9%, well below our revenue growth. And to specifically call this out, we saw a 15 percentage point difference between our top line growth and expense growth in 2023.

Speaker Change: And by strong travel demand and net new win as we continue to gain market share.

Speaker Change: T TV grew 23% aided by stronger international mix.

TTV grew 23% aided by stronger international mix. This resulted in revenue of $2.3 billion, up 24% year over year and at the high-end of our most recent guidance update and above the initial guidance provided coming into 2023. Our focus on driving operating leverage resulted in adjusted operating expense growth of 9%, well below our revenue growth. And to specifically call this out, we saw a 15 percentage point difference between our top line growth and expense growth in 2023. We increased our adjusted EBITDA margin 11 percentage points above the prior year to reach a 17% margin. And very importantly, on a full year basis, we generated positive full year free cash flow of $49 million.

Speaker Change: This resulted in revenue of $2 3 billion up 24% year over year and at the high end of our nice recent guidance update and above the initial guidance provided coming in to 2023.

Karen Williams: This resulted in revenue of 2.3 billion, up 24% year over year, and at the high end of our most recent guidance update, and above the initial guidance provided coming in to 2023. Our focus on driving operating leverage resulted in adjusted operating expense growth of 9% well below our revenue growth and to specifically call this out we saw a 15 percentage point difference between our top line growth and expense growth in 2023. We increased our adjusted EBITDA margin 11 percentage points above the prior year to reach a 17% margin. And very importantly, on a four-year basis, we generated positive four-year free cash flow of 49 million.

Speaker Change: Our focus on driving operating leverage resulted in adjusted operating expense growth of 9%.

Our focus on driving operating leverage resulted in adjusted operating expense growth of 9%, well below our revenue growth. And to specifically call this out, we saw a 15 percentage point difference between our top line growth and expense growth in 2023. We increased our adjusted EBITDA margin 11 percentage points above the prior year to reach a 17% margin. And very importantly, on a full year basis, we generated positive full year free cash flow of $49 million. This evolution to positive free cash flow is a pivotal turning point for the company, driven by adjusted EBITDA growth and prudent working capital management -- including our critical Egencia working capital initiative. Our leverage ratio or net debt, divided by last 12 months adjusted EBITDA, is now 2.3 times as of December 31, 2023. This represents a very significant step down for us as a company. In December 2022, this stood at 8.9 times.

Speaker Change: Well below our revenue growth and.

Speaker Change: And to specifically call. This out we saw.

Speaker Change: <unk> percentage point difference between our top line growth and expense growth in 2023.

Speaker Change: We increased our adjusted EBITA margin 11 percentage points above the prior year to reach a 17% margin.

We increased our adjusted EBITDA margin 11 percentage points above the prior year to reach a 17% margin. And very importantly, on a full year basis, we generated positive full year free cash flow of $49 million. This evolution to positive free cash flow is a pivotal turning point for the company, driven by adjusted EBITDA growth and prudent working capital management -- including our critical Egencia working capital initiative. Our leverage ratio or net debt, divided by last 12 months adjusted EBITDA, is now 2.3 times as of December 31, 2023. This represents a very significant step down for us as a company. In December 2022, this stood at 8.9 times.

Speaker Change: And very importantly on a full year basis, we generated positive full year free cash flow of $49 million.

Karen Williams: This evolution to positive free cash flow is a pivotal turning point for the company, driven by adjusted EBITDA growth and prudent working capital management, including our critical Agencia working capital initiative. Our leverage ratio or net debt divided by last 12 months adjusted EBITDA is now 2.3 times as of December 31st 2023. This represents a very significant step down for us as a company. In December 2022, this stood at 8.9 times.

Speaker Change: This evolution to positive free cash flow to turning point for the company driven by adjusted EBITDA growth and prudent working capital management, including a critical again see us working capital initiatives.

This evolution to positive free cash flow is a pivotal turning point for the company, driven by adjusted EBITDA growth and prudent working capital management -- including our critical Egencia working capital initiative. Our leverage ratio or net debt, divided by last 12 months adjusted EBITDA, is now 2.3 times as of December 31, 2023. This represents a very significant step down for us as a company. In December 2022, this stood at 8.9 times.

Speaker Change: Our leverage ratio net debt divided by last 12 months adjusted EBITDA is now two three times as of December 31st 2023.

Our leverage ratio or net debt, divided by last 12 months adjusted EBITDA, is now 2.3 times as of December 31, 2023. This represents a very significant step down for us as a company. In December 2022, this stood at 8.9 times. As you can see from the chart on this slide, the momentum we saw in 2023 is a critical proof point that demonstrates our discipline on the balance sheet. And as you will hear from me later, very importantly, we are lowering our leverage ratio target range from 2 to 3 times down to 1.5 to 2.5 times. The reduction in our leverage ratio in Q4 drove 75 basis points of interest rate reduction on our outstanding term loan.

Speaker Change: <unk> represents a very significant step down for us as a company.

Speaker Change: In December 2022, they stood at eight nine times.

Speaker Change: As you can see from the chart on this slide the momentum we saw in 2023 is a critical proof point that demonstrates our discipline on the balance sheet.

Karen Williams: As you can see from the chart on this slide, the momentum we saw in 2023 is a critical proof point that demonstrates our discipline on the balance sheet. And as you will hear from me later, very importantly, we are lowering our leverage ratio target range from 2 to 3 times down to 1.5 to 2.5 times. The reduction in our leverage ratio in Q4 drove 75 basis points of interest rate reduction on our outstanding term loan.

Speaker Change: And as you will hear from me later, Barry Importantly, we are lowering our leverage ratio target range from two to three times down to one five to two five times the.

Speaker Change: The reduction in our leverage ratio in Q4 drove 75 basis points of interest rate reduction.

Speaker Change: Outstanding term loan.

Karen Williams: And based upon our latest performance, we have now triggered a further step down which drives an additional 75 basis points of interest rate reduction. And so, in total, this 150 basis points reduction results in approximately $25 million of annual interest expense savings. And as our non-core option rolls off in July 2024, we have the opportunity to refinance our debt and further reduce our interest expense. This momentum was recognised recently by S&P Global Ratings, who gave us a two-notch credit upgrade rating to B+, based upon our rapidly leveraging and positive cash flow. I am now going to turn back to Paul to speak to how this momentum is continuing into 2024 before wrapping up with our 2024 guidance. Thank you, Karen.

And based upon our latest performance, we have now triggered a further step down which drives an additional 75 basis points of interest rate reduction. And so, in total, this 150 basis points reduction results in approximately $25 million of annual interest expense savings. And as our non-core option rolls off in July 2024, we have the opportunity to refinance our debt and further reduce our interest expense. This momentum was recognised recently by S&P Global Ratings, who gave us a two-notch credit upgrade rating to B+, based upon our rapidly leveraging and positive cash flow. I am now going to turn back to Paul to speak to how this momentum is continuing into 2024 before wrapping up with our 2024 guidance.

Speaker Change: Based upon our latest performance we have now treated a further step down which drive an additional 75 basis point interest rate reduction.

Speaker Change: And so in total 150 basis point reduction results in approximately 25 million of annual interest expense savings.

Speaker Change: And as our noncore option rolls off in July 2024, we have the opportunity to refinance our debt and further reduce our interest expense.

Speaker Change: This momentum was recognized recently by S&P Global ratings, who gave us a two notch upgrade rating to B plus based upon our rapid deleveraging and positive cash flow.

I am now going to turn back to Paul to speak to how this momentum is continuing into 2024 before wrapping up with our 2024 guidance.

Speaker Change: I am now going to turn back to Paul to speak to how this momentum is continuing into 2024 before wrapping up with our 2020 full guidance.

Paul: Thank you Karen.

Paul Abbott: Thank you, Karen. Now, I'd like to turn our attention to the year ahead. I want to start by sharing how we think about our financial model in 2024 and beyond, how our financial model can deliver industry-leading returns in a more stable growth environment. You've already heard from the airlines, hotels, OTAs that the industry is now settling into a more stable level of growth. The powerful financial model that we have built, positions us for industry-leading returns in this more stable growth environment in 2024 and beyond. We expect to deliver 18% to 32% adjusted EBITDA growth in this stable growth environment in 2024. And let me take you through the bill.

Paul Abbott: Now I'd like to turn our attention to the year ahead. I want to start by sharing how we think about our financial model in 2024 and beyond, how our financial model can deliver industry-leading returns, in a more stable growth environment. You've already heard from the airlines, hotels, OTAs, that the industry is now settling into a more stable level of growth. The powerful financial model that we have built positions us, for Industry-Leading Returns, in this more stable growth environment in 2024 and beyond. We expect to deliver 18.., to 32% adjusted EBITDA growth in this stable growth environment in 2024. And let me take you through the bill.

Paul: Now I'd like to turn our attention to the year ahead.

Paul: I want to start by sharing how we think about our financial model in 2024 and beyond.

Paul: How our financial model can deliver industry leading returns.

Paul: In a more stable growth environment.

Paul: You've already heard from the airlines hotels Otas that the industry is now settling into a more stable level of growth.

Paul: The powerful financial model that we have built positions us for industry leading returns.

Paul: In this more stable growth environment in 2024 and beyond.

Paul: We expect to deliver 18.

Paul: The 32% adjusted EBITDA growth.

Paul: In this stable growth environment in 2024.

Paul Abbott: And let me take you through the bill. First, we expect business travel demand from our premium customer base to grow above GDP, as it has done consistently for several decades prior to the pandemic. Second, we have a significant runway for growth in a very large fragmented market and we expect to continue to gain share and deliver revenue growth ahead of the industry. Third, margin expansion. Operating leverage is expected to drive 18% to 32% adjusted EBITDA growth, benefiting from increased productivity and scale. We're focused on a disciplined cost structure and margin expansion. We continue to shift more and more transactions to digital channels, making further investments in automation and AI and delivering on the synergies from the Egencia acquisition. Now that we've reached a more stable growth environment, we can shift even more of our focus towards driving productivity and efficiency gains after two years of significant hiring and training in response to industry recovery. Fourth is capital deployment.

Speaker Change: Let me take you through the build.

First we expect business travel demand from our premium customer base.

Paul Abbott: First, we expect business travel demand from our premium customer base to grow above GDP, as it has done consistently for several decades prior to the pandemic. Second, we have a significant runway for growth in a very large fragmented market. And we expect to continue to gain share and deliver revenue growth ahead of the industry. Third Margin Expansion.

Speaker Change: To grow above GDP as it has done consistently for several decades prior to the pandemic.

Speaker Change: Second we have a significant runway for growth in a very large fragmented market and we expect to continue to gain share and deliver revenue growth ahead of the industry.

Speaker Change: Third margin expansion.

Speaker Change: Operating leverage is expected to drive 18% to 32% adjusted EBITDA growth benefiting from increased productivity and scale.

Paul Abbott: Operating leverage is expected to drive 18 to 32% adjusted EBITDA growth, benefiting from increased productivity and scale. We're focused on a disciplined cost structure and margin expansion. We continue to shift more and more transactions to digital channels, making further investments in automation and AI and delivering on the synergies from the Agencia acquisition. Now that we've reached a more stable growth environment, we can shift even more of our focus, towards driving productivity and efficiency gain, after two years of significant hiring and training in response to industry recovery. Fourth is capital deployment.

Paul Abbott: Third, margin expansion. Operating leverage is expected to drive 18% to 32% adjusted EBITDA growth, benefiting from increased productivity and scale. We're focused on a disciplined cost structure and margin expansion. We continue to shift more and more transactions to digital channels, making further investments in automation and AI and delivering on the synergies from the Egencia acquisition. Now that we've reached a more stable growth environment, we can shift even more of our focus towards driving productivity and efficiency gains after two years of significant hiring and training in response to industry recovery.

Speaker Change: We are focused on a disciplined cost structure and margin expansion, we continue to shift more and more transactions to digital channels, making further investments in automation and AI and delivering on the synergies from the Egencia acquisition.

Speaker Change: Now that we've reached the most stable growth environment, we can shift even more of a focus.

Speaker Change: Awards, driving productivity and efficiency gains.

Speaker Change: After two years of significant hiring and training in response to industry recovery.

Speaker Change: Fourth is capital deployment.

Fourth is capital deployment. We have reached a pivotal moment in the business where our free cash flow can now fund incremental growth opportunities. Our free cash flow is accelerating thanks to our EBITDA growth, a significant reduction in restructuring expenses, lower interest expense from deleveraging and prudent working capital management. Now that we are firmly free cash flow positive and growing, we can shift more focus to organic and inorganic growth investments. And finally, as part of our financial model, we have a proven track record of accretive M&A and delivering on the synergies that can further accelerate our financial model. M&A remains a significant and attractive opportunity in a large, fragmented market where scale is becoming even more important.

Speaker Change: We have reached a pivotal moment in the business, where all free cash flow can now fund incremental growth opportunities.

Paul Abbott: We have reached a pivotal moment in the business where our free cash flow can now fund incremental growth opportunities. Our free cash flow is accelerating thanks to our EBITDA growth, a significant reduction in restructuring expenses, lower interest expense from deleveraging, and prudent working capital management. Now that we are firmly free cash flow positive and growing, we can shift more focus to organic and inorganic growth investment. And finally, as part of our financial model, we have a proven track record of accretive M&A, and delivering on the synergy, that can further accelerate our financial model. M&A remains a significant and attractive opportunity in a large fragmented market where scale is becoming even more important.

Speaker Change: Our free cash flow is accelerating thanks to our EBITDA growth a significant reduction in restructuring expenses lower interest expense from deleveraging and prudent working capital management.

Speaker Change: Now that we all firmly free cash flow positive and growing we can shift more focus to organic and inorganic growth investments.

Now that we are firmly free cash flow positive and growing, we can shift more focus to organic and inorganic growth investments. And finally, as part of our financial model, we have a proven track record of accretive M&A and delivering on the synergies that can further accelerate our financial model. M&A remains a significant and attractive opportunity in a large, fragmented market where scale is becoming even more important.

Now that we are firmly free cash flow positive and growing, we can shift more focus to organic and inorganic growth investments.

Speaker Change: And finally as part of our financial model, we have a proven track record of accretive M&A.

And finally, as part of our financial model, we have a proven track record of accretive M&A and delivering on the synergies that can further accelerate our financial model. M&A remains a significant and attractive opportunity in a large, fragmented market where scale is becoming even more important. So, looking to the year ahead, we feel the ground beneath us is more stable and the demand outlook is robust. There are a few external data points I want to draw your attention to here, that show our customers and industry experts also expect business travel demand to remain robust. First, our own most recent customer survey shows that our top 100 customers expect travel spend to be up approximately 4% in 2024. Client sentiment has improved since the previous quarter survey, with a six percentage point increase in positive sentiment and the percentage of clients expecting to spend more on travel has increased by three points.

Speaker Change: And delivering on the synergies.

Speaker Change: That can further accelerate our financial model.

Speaker Change: M&A remains a significant an attractive opportunity in a large fragmented market where scale is becoming even more important.

So, looking to the year ahead, we feel the ground beneath us is more stable and the demand outlook is robust. There are a few external data points I want to draw your attention to here, that show our customers and industry experts also expect business travel demand to remain robust. First, our own most recent customer survey shows that our top 100 customers expect travel spend to be up approximately 4% in 2024. Client sentiment has improved since the previous quarter survey, with a six percentage point increase in positive sentiment and the percentage of clients expecting to spend more on travel has increased by three points.

Speaker Change: So looking to the year ahead.

Paul Abbott: So, looking to the year ahead, we feel the ground beneath us is more stable and the demand outlook is robust. There are a few external data points I want to draw your attention to here, that show our customers and industry experts also expect business travel demand to remain robust. First, our own most recent customer survey shows that our top 100 customers expect travel spend to be up approximately 4% in 2024. Client sentiment has improved since the previous quarter survey, with a six percentage point increase in positive sentiment and the percentage of clients expecting to spend more on travel has increased by three points. With many organizations embracing hybrid and remote work, bringing distributed teams together regularly for face-to-face interactions at meetings and events is a growing necessity.

Speaker Change: We feel the ground beneath us is more stable and the demand outlook is robust there are a few external data points I want to draw your attention to here that show our customers and industry experts also expect business travel demand to remain robust.

Speaker Change: First our own most recent customer survey shows that our top 100 customers expect travel spend to be up approximately 4% in 2024.

Speaker Change: Client sentiment has improved since the previous quarter survey with a six percentage point increase in positive sentiment.

Speaker Change: And the percentage of clients expecting to spend more on travel.

Speaker Change: Has increased by three points.

Speaker Change: With many organizations embracing hybrid and remote work, bringing distributed teams together regularly for face to face interactions at meetings and events is a growing necessity.

With many organizations embracing hybrid and remote work, bringing distributed teams together regularly for face-to-face interactions at meetings and events is a growing necessity. According to our Meetings and Events 2024 Global Forecast -- it's surveyed over 500 meetings and events professionals from around the world -- 67% of respondents say corporate meetings and events budgets are increasing through 2024. Forward-looking spend in our own meetings and events business supports this trend, currently up 10% versus the same period in 2023. GBTA's most recent poll shows that 87% of travel buyers expect travel budgets to increase or hold steady in 2024; Morgan Stanley's corporate travel survey shows 8% expected growth in business travel in 2024.

Paul Abbott: According to our meetings and events 2024 global forecast, it surveyed over 500 meetings and events professionals from around the world. 67% of respondents say corporate meetings and events budgets are increasing through 2024. Forward-looking spend in our own meetings and events business supports this trend, currently up 10% versus the same period in 2023. TBTA's most recent poll shows that 87% of travel buyers expect travel budgets to increase or hold steady in 2024. Morgan Stanley's corporate travel survey shows 8% expected growth in business travel in 2024.

According to our meetings and events 2024 global forecast.

Speaker Change: Over 500 meetings and events professionals from around the world, 67% of respondents say corporate meetings and events budgets are increasing through 2024.

Speaker Change: Okay.

Speaker Change: Forward looking spend in our own meetings and events business supports this trend currently up 10% versus the same period in 2023.

Forward-looking spend in our own meetings and events business supports this trend, currently up 10% versus the same period in 2023. GBTA's most recent poll shows that 87% of travel buyers expect travel budgets to increase or hold steady in 2024; Morgan Stanley's corporate travel survey shows 8% expected growth in business travel in 2024.

GBTA's most recent poll shows that 87% of travel buyers expect travel budgets to increase or hold steady in 2024; Morgan Stanley's corporate travel survey shows 8% expected growth in business travel in 2024. Finally here, one of the largest U.S. airlines issued guidance for 3% to 5% capacity growth in 2024. So, in summary, I am more positive than ever for our future. We are confident that 2024 will be another year of share gains, strong growth in profits and cash flow and continued margin expansion.

Speaker Change: <unk>. Most recent poll shows that 87% of travel buyers expect travel budgets to increase or hold steady in 2020 for Morgan Stanley's corporate travel survey shows, 8% expected growth and business travel in 2024.

Paul Abbott: Finally here, one of the largest US airlines issued guidance for 3 to 5% capacity growth in 2024. So in summary, I am more positive than ever for our future. We are confident that 2024 will be another year of share gains, strong growth in profits and cash flow, and continued margin expansion. I'll now turn it over once again to Karen to provide our 2024 guidance and our capital allocation framework. Thanks Paul.

Finally here, one of the largest U.S. airlines issued guidance for 3% to 5% capacity growth in 2024. So, in summary, I am more positive than ever for our future. We are confident that 2024 will be another year of share gains, strong growth in profits and cash flow and continued margin expansion. I'll now turn it over once again to Karen to provide our 2024 guidance and our capital allocation framework.

Speaker Change: Finally here one of the largest U S Airlines issued guidance for 3% to 5% capacity growth in 2024, so in summary.

Speaker Change: I am more positive than ever for our future.

Speaker Change: We are confident that 2024 will be.

Speaker Change: Another year of share gains.

Speaker Change: Strong growth in profits and cash flow.

Speaker Change: And continued margin expansion.

I'll now turn it over once again to Karen to provide our 2024 guidance and our capital allocation framework.

Speaker Change: I'll now turn it over once again to Karen to provide our 2020 for guidance and capital allocation framework.

Karen: Thanks, Paul.

Karen Williams: Thanks Paul. And so, let's turn to 2024 guidance. We believe our operating leverage can accelerate above industry revenue growth into even higher adjusted EBITDA growth and free cash flow generation. We are guiding to four-year revenue of $2.43 billion to $2.5 billion, which represents growth of 6% to 9%. As Paul described, the travel demand environment has reached a point of stability. As such, we expect same-store sales to contribute 2 to 5 percentage points of revenue growth in 2024. On top of this, as we continue to gain share, we expect our net new win to contribute approximately four percentage points of additional growth. As discussed, we are very focused on driving operating leverage and margin expansion, which scales single-digit revenue growth to significant adjusted EBITDA growth of 18% to 32% in our 2024 guidance, to a range of $450 to $500 million. This reflects expected margin expansion of 150 to 350 basis points to reach a full year 2024 adjusted EBITDA margin of 18% to 20%.

Karen Williams: And so let's turn to 2024 guidance. We believe our operating leverage can accelerate above industry revenue growth into even higher adjusted EBITDA growth and free cash flow generation. We are guiding to four-year revenue of $2.43 billion to $2.5 billion, which represents growth of 6% to 9%. As Paul described, the travel demand environment has reached a point of stability.

Karen: So, let's turn to 2020 for guidance.

Karen: We believe our operating leverage can accelerate above industry revenue growth into even higher adjusted EBITDA growth and free cash flow generation.

Karen: We are guiding to full year revenue of $2 43 to $2 5 billion, which represents growth of 6% to 9%.

Karen: As Paul described the travel demand environment has reached a point of stability.

Karen Williams: As such, we expect same-store sales to contribute 2 to 5 percentage points of revenue growth in 2024. On top of this, as we continue to gain share, we expect our net new win to contribute approximately four percentage points of additional growth. As discussed, we are very focused on driving operating leverage and margin expenses, which scales single digit revenue growth to significant adjusted EBITDA growth of 18 to 32% in our 2024 guidance to a range of $450 to $500 million. This reflects expected margin expansion of 150 to 350 basis points to reach a full year 2024 adjusted EBITDA margin of 18 to 20 percent.

Karen: As such we expect same store sales to contribute two to five percentage points of revenue growth in 2024.

Karen: On top of this as we continue to gain share we expect our net new wins to contribute approximately four percentage points of additional growth.

Karen Williams: On top of this, as we continue to gain share, we expect our net new win to contribute approximately four percentage points of additional growth. As discussed, we are very focused on driving operating leverage and margin expansion, which scales single-digit revenue growth to significant adjusted EBITDA growth of 18% to 32% in our 2024 guidance, to a range of $450 to $500 million. This reflects expected margin expansion of 150 to 350 basis points to reach a full year 2024 adjusted EBITDA margin of 18% to 20%.

Karen: As discussed we are very focused on driving operating leverage and margin expansion, which scale single digit revenue growth to significant adjusted EBITDA growth of 18% to 32% in our 2024 guidance to a range of 450 to 500.

Karen: Many of them.

Karen: This reflects expected margin expansion of 160 360 basis points to reach our full year 2024, adjusted EBITDA margin of 18% to 20%.

Karen: And it is important to note. This strong margin expansion is net of significant investments in future growth.

Karen Williams: And it is important to note that this strong margin expansion is net of significant investments in future growth, particularly in driving our sales and marketing engine, our software platform and AI. In 2024, we will benefit from the carryover of some of our cost transformation initiatives and we'll additionally realize incremental benefits from our continued focus on productivity within the enterprise. Finally, and critically, we expect our strong, positive free cash flow generation to continue to accelerate in 2024. We are targeting free cash flow conversion of approximately 25% of adjusted EBITDA. This means we expect to generate more than $100 million of free cash flow in 2024 or more than double our 2023 free cash flow. This significant step up is driven by [inaudible] EBITDA growth, the reduction of integration and restructuring costs, lower interest expense as we deleverage and the continued benefit from the Egencia working capital initiative. While I'm not going to walk through it on this call, I encourage you to review the free cash flow details provided in the appendix of our earnings presentation. Now that we have reached a stabilized level of travel demand growth in the industry, we will no longer be providing quarterly guidance. However, we have also provided historical quarterly seasonality details in the appendix of our earnings presentation to help you with your model.

And it is important to note that this strong margin expansion is net of significant investments in future growth, particularly in driving our sales and marketing engine, our software platform and AI. In 2024, we will benefit from the carryover of some of our cost transformation initiatives and we'll additionally realize incremental benefits from our continued focus on productivity within the enterprise.

Karen: Take Kelly in driving our sales and marketing engine.

Karen: Web platform and AI.

Karen: In 'twenty 'twenty four we will benefit from the carry over some of our cost transformation initiative.

Karen: Additionally, realized incremental benefits from our continued focus on productivity within the enterprise.

Finally, and critically, we expect our strong, positive free cash flow generation to continue to accelerate in 2024. We are targeting free cash flow conversion of approximately 25% of adjusted EBITDA. This means we expect to generate more than $100 million of free cash flow in 2024 or more than double our 2023 free cash flow. This significant step up is driven by [inaudible] EBITDA growth, the reduction of integration and restructuring costs, lower interest expense as we deleverage and the continued benefit from the Egencia working capital initiative. While I'm not going to walk through it on this call, I encourage you to review the free cash flow details provided in the appendix of our earnings presentation. Now that we have reached a stabilized level of travel demand growth in the industry, we will no longer be providing quarterly guidance. However, we have also provided historical quarterly seasonality details in the appendix of our earnings presentation to help you with your model.

Karen: Finally, and critically we expect a strong positive free cash flow generation to continue to accelerate in 2024.

Karen: We are targeting free cash flow conversion of approximately 25% of adjusted EBITDA. This means we expect to generate more than 100 million of free cash flow in 2024 or more than double our 2023 free cash flow.

Karen: This significant step up is driven by strong adjusted EBITDA growth.

Karen: The reduction of integration and restructuring costs lower interest expense as we deleverage and the continued benefit from the Egencia working capital initiatives.

Karen Williams: The reduction of integration and restructuring costs, lower interest expense as we deleverage and the continued benefit from the Agencia Working Capital Initiative. While I'm not going to walk through it on this call, I encourage you to review the free cash flow details provided in the appendix of our earnings presentation. Now that we have reached a stabilized level of travel demand growth in the industry, we will no longer be providing quarterly guidance. However, we have also provided historical quarterly seasonality details in the appendix of our earnings presentation to help you with your models.

While I'm not going to walk through it on this call, I encourage you to review the free cash flow details provided in the appendix of our earnings presentation. Now that we have reached a stabilized level of travel demand growth in the industry, we will no longer be providing quarterly guidance. However, we have also provided historical quarterly seasonality details in the appendix of our earnings presentation to help you with your model.

Karen: While I'm not going to walk through it on this call I encourage you to review the free cash flow details provided in the appendix of our earnings presentation.

Karen: Now that we have raised the stabilized level of travel demand growth in the industry, we will no longer be providing quarterly guidance. However, we have also provided historical quarterly seasonality details in the appendix of our earnings presentation to help you with your model.

Karen: We expect the seasonality of revenue and adjusted EBITDA This year to be similar to last year.

Karen Williams: We expect the seasonality of revenue and adjusted EBITDA this year to be similar to last year. And so, thinking about capital allocation, 2023 was a pivotal moment for us as a company, as we turned free cash flow positive. And this accelerates in 2024. Our capital allocation framework is now very much focused on growth, cash generation and reinvestment to drive shareholder returns. Our first priority is accelerating cash generation with a longer-term free cash flow target of 45%-50% of adjusted EBITDA. Second, we continue to deleverage, now targeting a range of 1.5 to 2.5 times net debt to adjusted EBITDA over the long-term. And as I said earlier, this new target leverage is lower than our previous range, reflecting our strong focus on the balance sheet.

We expect the seasonality of revenue and adjusted EBITDA this year to be similar to last year. And so, thinking about capital allocation, 2023 was a pivotal moment for us as a company, as we turned free cash flow positive. And this accelerates in 2024. Our capital allocation framework is now very much focused on growth, cash generation and reinvestment to drive shareholder returns. Our first priority is accelerating cash generation with a longer-term free cash flow target of 45%-50% of adjusted EBITDA.

Karen: And so thinking about capital allocation 2023, with a pivotal time for us as a company as we turn free cash flow positive and this accelerates in 2024.

Karen: Our capital allocation framework is now very much focused on growth.

Karen: Cash generation and reinvestment to drive shareholder returns.

Karen: Our first priority is accelerating cash generation with a longer term free cash flow target of 45% to 50% of adjusted EBITDA.

Second, we continue to deleverage, now targeting a range of 1.5 to 2.5 times net debt to adjusted EBITDA over the long-term. And as I said earlier, this new target leverage is lower than our previous range, reflecting our strong focus on the balance sheet. And third, we will look to invest in high-return organic growth and accretive M&A. So, to wrap things up, why should investors be excited about Amex GBT in 2024 and beyond? First, we expect revenue outperformance as business travel stabilizes at or above GDP growth and Amex GBT continues to win and gain share. Second, operating leverage, focus on productivity and leveraging AI and automation is expected to deliver 18% to 32% adjusted EBITDA growth in 2024. And as we look over the medium to long-term, we expect further opportunity to expand our margins. Third, we are accelerating free cash flow after last year's positive inflection. On top of this, we have an opportunity to refinance our debt for even more interest expense savings.

Karen: Second we continue to deleverage now targeting a range of one five to two five times net debt to adjusted EBITDA over the long term.

Karen: And as I said earlier this new target leverage is lower than our previous range.

Karen: Reflecting our strong focus on the balance sheet.

Karen: And third we will look to invest in high return organic growth and accretive M&A.

Karen Williams: And third, we will look to invest in high return organic growth and accretive M&A. So, to wrap things up, why should investors be excited about Amex GBT in 2024 and beyond? First, we expect revenue outperformance as business travel stabilizes at or above GDP growth and Amex GBT continues to win and gain share. Second, Operating leverage, focus on productivity and leveraging AI and automation is expected to deliver 18 to 32% adjusted EBITDA growth in 2024. And as we look over the medium to long term, we expect further opportunity to expand our margins. Third, we are accelerating free cash flow after last year's positive inflection. On top of this, we have an opportunity to refinance our debt for even more interest expense savings.

Karen: So to wrap things up why should investors be excited about amex GBT in 2024 and beyond.

So, to wrap things up, why should investors be excited about Amex GBT in 2024 and beyond? First, we expect revenue outperformance as business travel stabilizes at or above GDP growth and Amex GBT continues to win and gain share. Second, operating leverage, focus on productivity and leveraging AI and automation is expected to deliver 18% to 32% adjusted EBITDA growth in 2024. And as we look over the medium to long-term, we expect further opportunity to expand our margins. Third, we are accelerating free cash flow after last year's positive inflection. On top of this, we have an opportunity to refinance our debt for even more interest expense savings.

Karen: We expect revenue outperformance as business travel stabilizes at or above GDP growth and Amex GBT continues to win and gain share.

Karen: Second operating leverage focus on productivity and leveraging AI and automation is expected to deliver 18% to 32% adjusted EBITDA growth in 2024.

Karen: And as we look over the medium to long term, we expect further opportunity to expand our margin.

Third, we are accelerating free cash flow after last year's positive inflection. On top of this, we have an opportunity to refinance our debt for even more interest expense savings. Finally, our evolution to positive and accelerating cash flow supports investment in long-term sustained growth, organically and through accretive M&A. So, we can now move into Q&A. Paul and I are joined by Eric Bock, who is our Chief Legal Officer and Global Head of M&A. Operator, please go ahead and open the line. Thank you. If you would like to ask a question, please press star followed by one on your telephone keypad. If you would like to withdraw your question, please press star followed by two. When preparing to ask your question, please ensure your device is unmuted locally.

Karen: Third we are accelerating free cash flow after last year's positive inflection.

Karen: On top of that we have an opportunity to refinance that debt for even more interest expense savings.

Karen: Finally.

Operator: Finally, our evolution to positive and accelerating cash flow supports investment in long-term sustained growth, organically and through accretive M&A. So we can now move into Q&A. Paul and I are joined by Eric Bock, who is our Chief Legal Officer and Global Head of M&A. Operator, please go ahead and open the line. Thank you. If you would like to ask a question, please press star followed by one on your telephone keypad. If you would like to withdraw your question, please press star followed by two. When preparing to ask your question, please ensure your device is unmuted locally.

Karen: Our evolution to positive and accelerating cash flow supports investment in long term sustained growth.

So, we can now move into Q&A. Paul and I are joined by Eric Bock, who is our Chief Legal Officer and Global Head of M&A. Operator, please go ahead and open the line. Thank you. If you would like to ask a question, please press star followed by one on your telephone keypad. If you would like to withdraw your question, please press star followed by two. When preparing to ask your question, please ensure your device is unmuted locally.

So, we can now move into Q&A. Paul and I are joined by Eric Bock, who is our Chief Legal Officer and Global Head of M&A. Operator, please go ahead and open the line.

Karen: Organically and through accretive M&A.

Speaker Change: So we can now move into Q&A.

Speaker Change: Paul and I are joined by Eric <unk>, who is our chief legal officer and global head of M&A.

Operator: Thank you. If you would like to ask a question, please press star followed by 1 on your telephone keypad. If you would like to withdraw your question, please press star followed by 2. When preparing to ask your question, please ensure your device is unmuted locally.

Speaker Change: Operator, Please go ahead and open the line.

Speaker Change: Yeah.

Speaker Change: Thank you if you'd like to ask a question. Please press star followed by one on your telephone keypad.

Speaker Change: If you would like to withdraw your question. Please press star followed by two.

Speaker Change: When preparing to ask a question. Please ensure your devices on mute locally.

Speaker Change: First question comes from Duane <unk> with Evercore ISI. Your line is open. Please go ahead.

Paul Abbott: First question comes from Duane Pfennigwerth with Evercore IS. Your line is open, please go ahead. Thank you. Maybe first just on the business travel recovery, can you please speak to the geographies and industry verticals that showed the biggest sequential improvement? And maybe since we're sitting here in early March, could you touch on trends into the first quarter? I mean, the airlines that remain fully committed to business travel have noted continued pickup or continued building here into the March quarter. Yeah, sure. Thanks, Duane.

First question comes from Duane Pfennigwerth with Evercore ISI. Your line is open, please go ahead.

Thank you. Maybe first, just on the business travel recovery. Can you please speak to the geographies and industry verticals that showed the biggest sequential improvement? And maybe since we're sitting here in early March, could you touch on trends into the first quarter? I mean, the airlines that remain fully committed to business travel have noted continued pickup or continued building here into the March quarter. Yeah, sure. Thanks, Duane.

Duane Pfennigwerth: Thank you. Maybe first, just on the business travel recovery. Can you please speak to the geographies and industry verticals that showed the biggest sequential improvement? And maybe since we're sitting here in early March, could you touch on trends into the first quarter? I mean, the airlines that remain fully committed to business travel have noted continued pickup or continued building here into the March quarter.

Duane: Thank you.

Duane: Maybe first just on the business travel recovery can you please speak to the geographies.

Duane: The industry verticals that showed the biggest sequential improvement.

Duane: And maybe since we're sitting here in early March could you touch on trends into the first quarter I mean, the airlines that remain.

Duane: Fully committed to business travel I've noted continued pick up our continued building here into into the March quarter.

Speaker Change: Yeah sure. Thanks Duane.

Yeah, sure. Thanks, Duane. The trends actually remain pretty consistent with what we've shared before. You know, we're still seeing air outpacing hotel, we're still seeing APAC as a region outpace U.S. and Europe. So, I would say, those are the two main trends. We have been, continuing to see SME growth outpace multinational and global but I think -- as I look ahead to 2024, which was the second part of your question, I think we will see a continuation of some of the trends. I think we'll continue to see hotel outpace air. I think we are going to continue to see APAC outpace the U.S. and Europe. But I do think we're going to see our growth in global, multinational and SME start to become more consistent because we certainly, to your last point, have seen a pickup in the global, multinational segment -- certainly in December and into the first quarter. And I know this was referenced in some of the airline presentations, we've also seen a pickup, particularly in the technology sector and professional services. And I think we will see a narrowing of the gap, if you like, between SME and global, multinational as we go through 2024 but I think the other trends are going to remain pretty consistent.

Paul Abbott: Yeah, sure. Thanks, Duane. The trends actually remain pretty consistent with what we've shared before. You know, we're still seeing air outpacing hotel, we're still seeing APAC as a region outpace U.S. and Europe. So, I would say, those are the two main trends. We have been, continuing to see SME growth outpace multinational and global but I think -- as I look ahead to 2024, which was the second part of your question, I think we will see a continuation of some of the trends. I think we'll continue to see hotel outpace air, I think we are going to continue to see APAC outpace the U.S. and Europe.

Paul Abbott: The trends actually remain pretty consistent with what we've shared before. You know, we're still seeing air outpacing hotel. We're still seeing a Pakistan region outpace the US and Europe.

Speaker Change: <unk> actually remained pretty consistent with what we've shared before.

Speaker Change: We are still seeing output.

Speaker Change: Outpacing hotel.

Speaker Change: We're still seeing APAC is the region outpace the U S.

Speaker Change: And in Europe.

Paul Abbott: You know, so I would say those are the two main trends. We have been, continuing to see, you know, SME growth, you know, outpace multinational and global. But I think as I look ahead to 2024, which was the second part of your question, you know, I think we will see a continuation of some of the trends. I think we'll continue to see hotel outpace air.

Speaker Change: So I would say those are the.

Speaker Change: Two main trends.

Speaker Change: We have been.

Speaker Change: <unk> C F&B.

Speaker Change: SME growth.

Speaker Change: Outpace multinational and global but I think as I look ahead to 2024, which was the second part of your question.

I think we'll continue to see hotel outpace air, I think we are going to continue to see APAC outpace the U.S. and Europe. But I do think we're going to see our growth in global, multinational and SME start to become more consistent because we certainly, to your last point, have seen a pickup in the global, multinational segment -- certainly in December and into the first quarter. And I know this was referenced in some of the airline presentations, we've also seen a pickup, particularly in the technology sector and professional services. And I think we will see a narrowing of the gap, if you like, between SME and global, multinational as we go through 2024 but I think the other trends are going to remain pretty consistent.

I think we'll continue to see hotel outpace air, I think we are going to continue to see APAC outpace the U.S. and Europe.

Speaker Change: I think we will see a continuation of some of the trends I think we'll continue to see hotel outpace yeah.

Paul Abbott: I think we are going to continue to see, you know, AIPAC, outpace, you know, the U.S. and Europe. But I do think we're going to see our growth in global multinational and SME start to become, you know, more consistent, because we certainly, to your last point, have seen a pickup in the global multinational segment, certainly in December and into the first quarter. And I know this was referenced in some of the airline presentations. We've also seen a pickup, particularly, you know, in the technology sector and professional services. And I think we will see a narrowing of the gap, if you like, between SME and global multinational as we go through 2024, but I think the other trends are going to remain pretty consistent.

Speaker Change: I think we are going to continue to see APAC.

But I do think we're going to see our growth in global, multinational and SME start to become more consistent because we certainly, to your last point, have seen a pickup in the global, multinational segment -- certainly in December and into the first quarter. And I know this was referenced in some of the airline presentations, we've also seen a pickup, particularly in the technology sector and professional services. And I think we will see a narrowing of the gap, if you like, between SME and global, multinational as we go through 2024 but I think the other trends are going to remain pretty consistent.

Outpace the U S.

Speaker Change: In Europe.

Speaker Change: But I do think we're going to see our growth in global multinational.

Speaker Change: Semi stopped.

Speaker Change: <unk> become more consistent because we certainly to your last point have seen a pickup in the global multinational segment certainly in December and into the first quarter.

Speaker Change: And now this was referenced in some of the mainline presentations. We've also seen a pickup, particularly in the technology sector and professional services.

Speaker Change: And I think we will see.

Speaker Change: A narrowing of the gap if you like between SME and global multinational as we go through 2024, but I think the other trends are going to remain pretty consistent.

Paul Abbott: The other one that I would just call out as we look ahead to 2024 -- 2023, we saw much more, I think, significant increases in average daily rate and average ticket price. We do think that's going to moderate in 2024 so, we're expecting sales to be one to two points ahead of our transaction growth in the year ahead. Those are the key trends I'd pick out, Duane. Thanks. And then, just for a follow-up -- you touched on it with AI and productivity but on the supplier integration side, can you talk about your top priorities, one or two top development priorities into 2024? And maybe, the reality is there's nothing there.

The other one that I would just call out as we look ahead to 2024 -- 2023, we saw much more, I think, significant increases in average daily rate and average ticket price. We do think that's going to moderate in 2024 so, we're expecting sales to be one to two points ahead of our transaction growth in the year ahead. Those are the key trends I'd pick out, Duane.

Speaker Change: The other one I would just call out as we look ahead to 2024.

Speaker Change: 'twenty three we saw a much more significant increases in average daily rate and average ticket price. We do think that's going to moderate in 2024.

Speaker Change: So we are expecting sales to be one to two points ahead of our transaction growth in the year ahead. So most of the key trends pick outline.

Speaker Change: Thanks, and then maybe maybe just for a follow up.

Duane Pfennigwerth: Thanks. And then, just for a follow-up -- you touched on it with AI and productivity but on the supplier integration side, can you talk about your top priorities, one or two top development priorities into 2024? And maybe, the reality is there's nothing there but I'd be curious on the supplier integration side, if you feel like there's anything strategic.

Speaker Change: You touched on it with with AI and productivity, but maybe on the supplier integration side can you talk maybe about your top priorities, maybe one or two top development priorities into 2020 forward and maybe the reality is theres nothing there, but I'd be curious on the supplier.

Paul Abbott: But But I'd be curious on the supplier integration side, if you feel like there's anything strategic. Yeah, I mean, certainly, one of the key areas of focus for us in 24 on the supplier side is to continue to invest in our marketplace and continue to make sure we've got the most comprehensive and the most competitive content, and really leveraging the investments we've made in our supply management platform, which enables us to bring in content from multiple different sources, and display that content through all of our channels. And so access to content and integration of content is a key priority for 2024. As you would expect, NDC is part of that. We're now working with 10 airlines on NDC, airlines that are either rolling out or piloting NDC. I'd say each airline is at a different stage of development.

But But I'd be curious on the supplier integration side, if you feel like there's anything strategic.

Speaker Change: Integration side, if you feel like Theres anything strategic.

Yeah. I mean, certainly, one of the key areas of focus for us in '24 on the supplier side is to continue to invest in our marketplace and continue to make sure we've got the most comprehensive and the most competitive content. And really leveraging the investments we've made in our supply management platform, which enables us to bring in content from multiple different sources and display that content through all of our channels. And so, access to content and integration of content is a key priority for 2024. As you would expect, NDC is part of that. We're now working with 10 airlines on NDC, airlines that are either rolling out or piloting NDC. I'd say, each airline is at a different stage of development but we are now live with NDC content in both our software platforms, NEO and Egencia. As you know, we continue to integrate hotel content through our supply management platform, around 30% of our hotel transactions actually come from third-party API integrations and not through the GDS on the hotel side. So, yeah, we'll continue to be an important area of investment for us to ensure that we're offering the most comprehensive, the most competitive content and that we continue to deliver the most valuable marketplace and travel. Okay, thank you. We now turn to Toni Kaplan with Morgan Stanley. Your line is open, please go ahead. Thanks so much.

Paul Abbott: Yeah. I mean, certainly, one of the key areas of focus for us in '24 on the supplier side is to continue to invest in our marketplace and continue to make sure we've got the most comprehensive and the most competitive content. And really leveraging the investments we've made in our supply management platform, which enables us to bring in content from multiple different sources and display that content through all of our channels. And so, access to content and integration of content is a key priority for 2024.

Speaker Change: Yes, I mean certainly.

Speaker Change: One of the key areas of focus for us in 24 on the supply side is to continue to invest in our marketplace and continue to make sure. We've got the most comprehensive.

Speaker Change: And the most competitive content.

Speaker Change: And really leveraging the investments we've made in our supply management platform, which enables us to bring in content from multiple different sources.

Speaker Change: On to slide that content through all of our channels.

Speaker Change: So.

Speaker Change: Access to content and integration of content is a key priority for 2024 as you would expect MDC is is part of that we're not working with 10 airlines on NBC.

As you would expect, NDC is part of that. We're now working with 10 airlines on NDC, airlines that are either rolling out or piloting NDC. I'd say, each airline is at a different stage of development but we are now live with NDC content in both our software platforms, NEO and Egencia. As you know, we continue to integrate hotel content through our supply management platform, around 30% of our hotel transactions actually come from third-party API integrations and not through the GDS on the hotel side. So, yeah, we'll continue to be an important area of investment for us to ensure that we're offering the most comprehensive, the most competitive content and that we continue to deliver the most valuable marketplace and travel.

Speaker Change: Airlines that are either rolling out we're piloting in D. C. I say each airline is at a different stage of development, but we are now.

Paul Abbott: But we are now live with NDC content in both our software platforms, NEO and Agencia. As you know, we continue to integrate hotel content through our supply management platform. Around 30% of our hotel transactions actually come from third-party API integrations and not through the GDS on the hotel side. So, yeah, we'll continue to be an important area of investment for us to ensure that we're offering the most comprehensive, the most competitive content, and that we continue to deliver the most valuable marketplace and travel. Okay, thank you. We now turn to Toni Kaplan with Morgan Stanley. Your line is open, please go ahead. Thanks so much.

Speaker Change: <unk> with NBC content in both our software platforms.

Speaker Change: Genocea.

Speaker Change: As you know we continue to integrate hotel content through our supply management platform around 30% of our hotel transactions actually come from third party API integrations and not through the GDS on the hotel side.

Speaker Change: So yes, we will continue to be an important area of investment for us to ensure that we're offering the most comprehensive the most competitive content and that we continue to deliver the most valuable marketplace and travel.

Speaker Change: Okay. Thank you.

Okay, thank you. We now turn to Toni Kaplan with Morgan Stanley. Your line is open, please go ahead. Thanks so much.

Duane Pfennigwerth: Okay, thank you.

Speaker Change: We now turn to Toni Kaplan with Morgan Stanley. Your line is open. Please go ahead.

We now turn to Toni Kaplan with Morgan Stanley. Your line is open, please go ahead. Thanks so much.

Operator: We now turn to Toni Kaplan with Morgan Stanley. Your line is open, please go ahead.

Toni Michele Kaplan: Thanks, So much I wanted to ask about the products and professional services and how that performed during the quarter I think we didn't see the split we normally do and so if you could just give some of the drivers and why you decided to take that up.

Thanks so much. I wanted to ask about the products and professional services and how that performed during the quarter. I think we didn't see the split we normally do. And so if you could just give some of the drivers and why you decided to take that up. First thanks Toni for the question. From a trends perspective, it was very much in line with the trends that we've been seeing through the year, continued strong performance in terms of our meetings and events business. We will take an action in terms of your question in terms of not not breaking that out, and come back. Okay, great. And then just to follow up on the geography question, have you seen any impact from the, flow down in China and how that is, how you're thinking about it and how it impacted your 24-hour. Yeah, China is a market, a joint venture market for us, we actually don't consolidate the volumes. So you won't see, you know, an impact from from back in in our numbers.

Toni Kaplan: Thanks so much. I wanted to ask about the products and professional services and how that performed during the quarter. I think we didn't see the split we normally do and so, if you could just give some of the drivers and why you decided to take that up.

Karen Williams: I wanted to ask about the products and professional services and how that performed during the quarter. I think we didn't see the split we normally do. And so if you could just give some of the drivers and why you decided to take that up. First thanks Toni for the question. From a trends perspective, it was very much in line with the trends that we've been seeing through the year, continued strong performance in terms of our meetings and events business. We will take an action in terms of your question in terms of not not breaking that out, and come back. Okay, great. And then just to follow up on the geography question, have you seen any impact from the, flow down in China and how that is, how you're thinking about it and how it impacted your 24-hour. Yeah, China is a market, a joint venture market for us, we actually don't consolidate the volumes. So you won't see, you know, an impact from from back in in our numbers.

Yeah. Thanks, Toni for the question we for.

First thanks Toni for the question. From a trends perspective, it was very much in line with the trends that we've been seeing through the year, continued strong performance in terms of our meetings and events business. We will take an action in terms of your question in terms of not not breaking that out, and come back. Okay, great. And then just to follow up on the geography question, have you seen any impact from the, flow down in China and how that is, how you're thinking about it and how it impacted your 24-hour. Yeah, China is a market, a joint venture market for us, we actually don't consolidate the volumes. So you won't see, you know, an impact from from back in in our numbers.

First, thanks, Toni for the question. From a trends perspective, it was very much in line with the trends that we've been seeing through the year -- continued strong performance in terms of our meetings and events business. We will take an action in terms of your question, in terms of not not breaking that out and come back. Okay, great. And then just to follow up on the geography question, have you seen any impact from the, flow down in China and how that is, how you're thinking about it and how it impacted your 24-hour.

Karen Williams: First, thanks, Toni for the question. From a trends perspective, it was very much in line with the trends that we've been seeing through the year -- continued strong performance in terms of our meetings and events business. We will take an action in terms of your question, in terms of not not breaking that out and come back.

Speaker Change: From a common sense is it was sorry.

Speaker Change: Pretty much in line with the trends that we've been seeing through the year.

Speaker Change: Continued strong performance in terms of our meetings and events business.

Speaker Change: We will take an action in terms of your question in terms of not not breaking that out.

Speaker Change: Come back.

Toni Kaplan: Okay, great. And then just to follow up on the geography question, have you seen any impact from the flow down in China and how that is -- how you're thinking about it and how it impacted your '24 outlooks.

Okay, Great and then just a follow up on the geography question have you seen any impact from the <unk>.

Speaker Change: Slowdown in China, and how that is how you're thinking about it and and how it impacted your 24 outlook.

Yeah, China is a market, a joint venture market for us, we actually don't consolidate the volumes. So you won't see, you know, an impact from from back in in our numbers. Our domestic business in China, though, actually remains pretty robust, but it is a small part of our business. And as I said, we don't consolidate it. So you're not going to see, you know, an impact from from that in our 2024 outlook. Okay, terrific, thank you. Our next question comes from Peter Christiansen with Citigroup. Your line is open. Please go ahead.

Paul Abbott: Yeah. China is a market, Toni, a joint venture market for us. We actually don't consolidate the volumes so, you won't see an impact from back in in our numbers. Our domestic business in China though, actually remains pretty robust but it is a small part of our business. And as I said, we don't consolidate it so, you're not going to see an impact from that in our 2024 outlook.

Speaker Change: Yes, So China is a market Chinese joint.

Speaker Change: Joint venture market for us so we actually don't consolidate the volumes. So you won't see an impact from from Bakken.

Speaker Change: <unk>.

Paul Abbott: Our domestic business in China, though, actually remains pretty robust, but it is a small part of our business. And as I said, we don't consolidate it. So you're not going to see, you know, an impact from from that in our 2024 outlook. Okay, terrific, thank you. Our next question comes from Peter Christiansen with Citigroup. Your line is open. Please go ahead.

Speaker Change: Our domestic business in China actually remains pretty robust, but it is a small part of our business and as I said, we don't consolidate it so youre not going to see.

Speaker Change: And impact from from that in our 2020 for outlook.

Speaker Change: Okay terrific. Thank you.

Okay, terrific, thank you. Our next question comes from Peter Christiansen with Citigroup. Your line is open. Please go ahead.

Toni Kaplan: Okay, terrific. Thank you.

Operator: Our next question comes from Peter Christiansen with Citigroup. Your line is open, please go ahead.

Our next question comes from Peter Christiansen with Citigroup. Your line is open. Please go ahead.

Peter Corwin Christiansen: Thank you good morning.

Paul Abbott: Thank you. Good morning. Nice trends here. Paul, I was wondering if you could, in any way, if you could frame the opportunity on the B2B payments launch with Amex, I guess as it relates to your current base of clients, potential uptake there. And I'm also curious if this solution can help improve working capital management as it relates to some of your S&B clients. Yeah, look, we're very excited about the launch with Amex that we announced yesterday. Neo1 is a product that we've launched in the UK and the US, and we've been very, very pleased with the acquisition results. But we have been working in parallel with payment integration with Amex because it's a really important feature of the platform, and it brings a lot of the functionality to life. But just stepping back for those who aren't aware of Neo1, it's an all-in-one spend management platform. So it enables businesses to manage their indirect procurement.

Peter Corwin Christiansen: Thank you. Good morning, nice trends here. Paul, I was wondering if you could, in any way, if you could frame the opportunity on the B2B payments launch with Amex -- I guess as it relates to your current base of clients, potential uptake there. And I'm also curious if this solution can help improve working capital management as it relates to some of your SMB clients.

Trends here, Paul I was wondering if you could.

Peter Corwin Christiansen: Anyway, if you could if you could frame the opportunity.

Peter Corwin Christiansen: The BTB payments launch with Amex.

Peter Corwin Christiansen: As it relates to your current base of clients.

Peter Corwin Christiansen: Central uptake there and I'm also curious.

Peter Corwin Christiansen: This solution can can help improve working capital.

Peter Corwin Christiansen: As it relates to some of your SMB clients.

Paul Abbott: Yeah. Look, we're very excited about the launch with Amex that we announced yesterday. Neo1 is a product that we've launched in the UK and the U.S., and we have been very, very pleased with the acquisition results. But we have been working in parallel with payment integration with Amex because it's a really important feature of the platform and it brings a lot of the functionality to life. But just stepping back for those who aren't aware of Neo1, it's an all-in-one spend management platform. So, it enables businesses to manage their indirect procurement.

Speaker Change: Yes, we're very excited about the launch with with Amex.

Speaker Change: That we announced yesterday at neocon as a product.

Speaker Change: We've launched in the U K and the U S and we've been very very pleased with the acquisition results, but we have been working in parallel with payment integration with amex, because it's a really important feature of the platform and it brings a lot of the functionality to life.

Speaker Change: But just stepping back for those who are not aware of.

Speaker Change: Neither one is an older one spend management platform enables businesses to manage their indirect procurement.

So, it enables businesses to manage their indirect procurement, it also enables them to book travel through our Neo travel platform and it enables them to manage all of their expenses. And now, we've added payment. So, for companies that really don't want to have multiple SaaS solutions to manage procurement and indirect spend and travel and expenses, you have it all in one place as a turnkey solution. And we know that that's very attractive to SME customers but the integration of payment is really, really important because what customers can now do in Neo1 is they can simply add their eligible American Express business or corporate card account into the platform and then, they can use that to set budgets and to issue virtual payment cards to employees across the company. And then, they can do that, also, at the same time setting controls and policy in the platform. So, it's a very powerful solution for businesses that are really looking for that turnkey, all-in-one spend management platform. And we are looking forward to working with American Express to increase our sales and marketing spend on Neo1, both through our own channels and, of course, through the Amex partner channels as well. I mean, your point on working capital, yes, it also helps because the ability to essentially just implement customers immediately with authorised payment on card, it is our preferred payment method. And, definitely, is one of the things that we've been doing across the business to improve our working capital performance. So, the more that we can scale Neo1 and the more that we scale our software solutions with payments in-built, the more it improves working capital.

Paul Abbott: It also enables them to book travel through our Neo travel platform, and it enables them to manage all of their expenses. And now we've added payment. So for companies that really don't want to have multiple SaaS solutions to manage procurement and indirect spend and travel and expenses, you have it all in one place as a turnkey solution. And we know that that's very attractive to SME customers. But the integration of payment is really, really important because what customers can now do in Neo1 is they can simply add their eligible American Express business or corporate card account into the platform, and then they can use that to set budgets and to issue virtual payment cards, to employees across the company. And then they can do that also at the same time setting controls and policy in the platform. So it's a very powerful solution for businesses that are really looking for that turnkey, all-in-one spend management platform. And we are looking forward to working with American Express to increase our sales and marketing spend on Neo1, both through our own channels and of course, through the Annex partner channels as well. I mean, your point on working capital, yes, it also helps because the ability to essentially just implement customers immediately with authorised payment on card. It is our preferred payment method and definitely is one of the things that we've been doing across the business to improve our working capital performance. So the more that we can scale Neo1 and the more that we scale our software solutions with payments in-built, the more it improves working capital. Thank you, Paul. I imagine it also helps client stickiness as well. I just have a quick follow up back to vertical exposure. Just curious, specifically as it relates to some of your technology clients. I know that that's been an area that that that's the deepest contraction during the pandemic.

It also enables them to book travel through our Neo travel platform, and it enables them to manage all of their expenses. And now we've added payment. So for companies that really don't want to have multiple SaaS solutions to manage procurement and indirect spend and travel and expenses, you have it all in one place as a turnkey solution. And we know that that's very attractive to SME customers. But the integration of payment is really, really important because what customers can now do in Neo1 is they can simply add their eligible American Express business or corporate card account into the platform, and then they can use that to set budgets and to issue virtual payment cards, to employees across the company. And then they can do that also at the same time setting controls and policy in the platform. So it's a very powerful solution for businesses that are really looking for that turnkey, all-in-one spend management platform. And we are looking forward to working with American Express to increase our sales and marketing spend on Neo1, both through our own channels and of course, through the Annex partner channels as well. I mean, your point on working capital, yes, it also helps because the ability to essentially just implement customers immediately with authorised payment on card. It is our preferred payment method and definitely is one of the things that we've been doing across the business to improve our working capital performance. So the more that we can scale Neo1 and the more that we scale our software solutions with payments in-built, the more it improves working capital.

Speaker Change: It also enables them to book travel through travel platform and enables them to manage all of the expenses and now we've added payments.

Speaker Change: So.

Speaker Change: For companies that really don't want to have multiple SaaS solutions to manage procurement and indirect spend and travel and expenses you have it all in one place as a turnkey solution.

Speaker Change: We know that that's very attractive to SME customers.

And we know that that's very attractive to SME customers but the integration of payment is really, really important because what customers can now do in Neo1 is they can simply add their eligible American Express business or corporate card account into the platform and then, they can use that to set budgets and to issue virtual payment cards to employees across the company. And then, they can do that, also, at the same time setting controls and policy in the platform. So, it's a very powerful solution for businesses that are really looking for that turnkey, all-in-one spend management platform. And we are looking forward to working with American Express to increase our sales and marketing spend on Neo1, both through our own channels and, of course, through the Amex partner channels as well. I mean, your point on working capital, yes, it also helps because the ability to essentially just implement customers immediately with authorised payment on card, it is our preferred payment method. And, definitely, is one of the things that we've been doing across the business to improve our working capital performance. So, the more that we can scale Neo1 and the more that we scale our software solutions with payments in-built, the more it improves working capital.

Speaker Change: But the integration of payment is really really important because what customers can now do it near one is they can simply add the eligible American express business or corporate card account into the platform.

Speaker Change: And then they can use that to set budgets and to issue issue virtual payment cards to.

Speaker Change: Two employees across the company and then they can do that also.

Speaker Change: Same time, setting controls and policy in the platform.

Speaker Change: So.

So, it's a very powerful solution for businesses that are really looking for that turnkey, all-in-one spend management platform. And we are looking forward to working with American Express to increase our sales and marketing spend on Neo1, both through our own channels and, of course, through the Amex partner channels as well. I mean, your point on working capital, yes, it also helps because the ability to essentially just implement customers immediately with authorised payment on card, it is our preferred payment method. And, definitely, is one of the things that we've been doing across the business to improve our working capital performance. So, the more that we can scale Neo1 and the more that we scale our software solutions with payments in-built, the more it improves working capital.

Speaker Change: It's a very powerful solution for businesses that are really looking for that turn key OLED one spend management platform and we are looking forward to working with American express to it.

Paul Abbott: So it's a very powerful solution for businesses that are really looking for that turnkey, all-in-one spend management platform. And we are looking forward to working with American Express to increase our sales and marketing spend on Neo1, both through our own channels and of course, through the Annex partner channels as well. I mean, your point on working capital, yes, it also helps because the ability to essentially just implement customers immediately with authorised payment on card. It is our preferred payment method and definitely is one of the things that we've been doing across the business to improve our working capital performance. So the more that we can scale Neo1 and the more that we scale our software solutions with payments in-built, the more it improves working capital. Thank you, Paul. I imagine it also helps client stickiness as well. I just have a quick follow up back to vertical exposure. Just curious, specifically as it relates to some of your technology clients. I know that that's been an area that that that's the deepest contraction during the pandemic.

Speaker Change: Increased our sales and marketing spend on the <unk>, both through our own channels and of course through the onyx partner channels as well.

Speaker Change: I mean your point on working capital, Yes is it also helps because.

I mean, your point on working capital, yes, it also helps because the ability to essentially just implement customers immediately with authorised payment on card, it is our preferred payment method. And, definitely, is one of the things that we've been doing across the business to improve our working capital performance. So, the more that we can scale Neo1 and the more that we scale our software solutions with payments in-built, the more it improves working capital.

Or the ability to essentially just implement customers immediately with authorized payment on calls.

Speaker Change: It is our preferred.

Speaker Change: Payment method and definitely is one of the things that we've been doing across the business to improve our working capital performance. So the more that we can scale near one in the mall that we scale software solutions with payments and built the more improved working capital.

Speaker Change: Thank you Paul I'd imagine it also helps.

Peter Corwin Christiansen: Thank you, Paul. I imagine it also helps client stickiness as well. I just have a quick follow up back to vertical exposure. Just curious, specifically, as it relates to some of your technology clients, I know that that's been an area that [inaudible] the deepest contraction during the pandemic. Just curious if you could talk about some of the underlying trends with that particular vertical and how you see that evolving over the next year. Thank you.

Speaker Change: Client stickiness as well.

Speaker Change: I have a quick follow up back to vertical exposure.

Curious specifically as it relates to some of your technology clients I know that that's been an area that.

Speaker Change: That's awesome.

Speaker Change: The deepest contraction during the pandemic just curious if you could talk about some of the underlying trends with that particular vertical and how you see that.

Paul Abbott: Just curious if you could talk about some of the underlying trends with that particular vertical and how you see that. Evolving. Year.

Speaker Change: Evolving over the next year. Thank you.

Speaker Change: Yes, we were pleased to see the.

Paul Abbott: Yeah, we're pleased to see the pickup and we've had double digit growth within the technology vertical Q4 and into Q1. So I think that's a positive sign. And I just reflects the higher level of confidence, you know, in in that sector and with many of the large technology clients that we have. And we do see that trend continuing through the balance of 24. Thank you. As a reminder, if you'd like to ask a question, please press star 1 on your telephone keypad now. We now turn to Lee Horowitz with Deutsche Bank. Your line is open, please go ahead.

Paul Abbott: Yeah. We're pleased to see the pickup and we've had double-digit growth within the technology vertical, Q4 and into Q1. So, I think that's a positive sign and I just reflect the higher level of confidence in that sector and with many of the large technology clients that we have. And we do see that trend continuing through the balance of '24.

Speaker Change: Hiccup, we've had double digit growth within the technology vertical.

Speaker Change: Q4 and into Q1, so I think that's a positive sign and <unk>.

Speaker Change: This reflects the higher level of confidence in that sector.

Speaker Change: With many of the large technology clients that we have and we do see that trend continuing through.

Speaker Change: The balance of 'twenty four.

Speaker Change: Thank you.

Operator: Thank you. As a reminder, if you'd like to ask a question, please press star 1 on your telephone keypad now. We now turn to Lee Horowitz with Deutsche Bank. Your line is open, please go ahead.

Speaker Change: As a reminder, if you'd like to ask a question. Please press star one on your telephone keypad now.

Speaker Change: You know I was trying to Lee Horowitz with Deutsche Bank. Your line is open. Please go ahead.

Lee Horowitz: Great. Thanks.

Lee Horowitz: Great, thanks. I mean, you know, focusing on the four-year guide a bit more. So, seems to suggest that there's sort of no more recovery tailwinds left for business travel broadly and you're settling back into sort of the GDP, perhaps GDP plus type growth algo. But by RMF, transaction recovery relative to '19 is probably some 80%. So, why would we expect the industry to not benefit from some ongoing recovery dynamics? And perhaps, can you comment why the industry is now, let's say, fully recovered at something below sort of 2019 levels?

Lee Horowitz: Focusing on the full year guide a bit more so you know it seems to suggest that there's sort of no more recovery tailwind for business travel broadly and you are settling back into sort of the GBP, perhaps GDP plus type growth algo of IRR math, you know transaction recovery relative to the 19 is probably sub 80%. So while we expect the industry to <unk>.

Paul Abbott: So why would we expect the industry to not benefit from some ongoing recovery dynamics? And perhaps, can you comment why the industry is now, let's say, fully recovered at something below sort of 29%? Yeah, Lee, I mean, I think I said this last quarter when we did earnings that, you know, the way that we're looking at the industry going forward is that we will now see growth that is, you know, above GDP plus our new wins. Trying to frankly identify what relates to a recovery from events that are now four years old is just more of an art than a science, quite frankly.

So why would we expect the industry to not benefit from some ongoing recovery dynamics? And perhaps, can you comment why the industry is now, let's say, fully recovered at something below sort of 29%?

Lee Horowitz: Not benefit from some ongoing recovery dynamics and perhaps can you comment why the industry is now let's say is fully recovered.

Below sort of 2019 levels.

Paul Abbott: Yeah, Lee. I mean, I think I said this last quarter when we did earnings that the way that we're looking at the industry going forward is that we will now see growth that is above GDP plus our new wins. Trying to, frankly, identify what relates to a recovery from events that are now four years old is just more of an art than a science, quite frankly. So, what we've tried to do is be transparent around the level of growth that we think the industry will see over the next 12 months. And, again, we've been pretty consistent in saying, I think what we will see is the industry will grow somewhere between three to five points and then we'll put four points of share gains on top of that. So, that's how we think about it.

Lee Horowitz: Yeah.

Speaker Change: I think so.

Speaker Change: This last quarter, when we did earnings that delay that we have.

Speaker Change: Looking at the industry going forward is that we will now see.

Speaker Change: Growth that is.

Speaker Change: Above GDP, plus our new wins trying to frankly identify what relates to a recovery from events that are now four years old is just more of an all of the science quite frankly, so what we've tried to do is be transparent around the level of growth that we think the industry will see.

Paul Abbott: So what we've tried to do is be transparent around the level of growth that we think the industry will see, over the next 12 months. And again, we've been pretty consistent in saying, I think what we will see is the industry will grow somewhere between three to five points, and then we'll put four points of share gains on top of that. So that's how we think about it.

Speaker Change: Over the next 12 months.

Speaker Change: Again, we've been pretty consistent in saying I think what we will see is the industry will grow somewhere between three to five points and then we'll put four points of share gains on top of that so that's how we think about it.

Paul Abbott: What I would also say is that, I think one of the exciting things, frankly, about 2024 is that it is a year of normalized growth, more stabilized growth. And what that will do is highlight how successful our model is in that environment because even in an environment where we have higher inflation, where there is lower GDP growth -- we're able to deliver 18% to 32% adjusted EBITDA growth. And I think that we're excited about 2024 because it will highlight the advantages of our model. We will deliver 18% to 32%. Adjusted EBITDA growth, our forecast for underlying EBITDA is to grow around 69% with $90 million of adjustment, coming from reducing restructuring, integration and interest expense.

Speaker Change: I would also say is that.

Speaker Change: I think one of the exciting saves frankly about 2024.

Speaker Change: Is that.

Speaker Change: It is a year of I think normalized growth more stabilized growth and what that will do is highlight.

Speaker Change: How.

Speaker Change: Successful model is in that environment because they.

Speaker Change: Even in an environment, where we have higher inflation, where there is lower GDP growth.

Speaker Change: We're able to deliver 18% to 32% adjusted EBITDA growth.

Speaker Change: And I think that.

Speaker Change: We are excited about 2020 full because I think it will highlight the advantages of our model.

Speaker Change: We will do.

Speaker Change: Deliver 18% to 32%.

Speaker Change: Adjusted EBITDA growth.

Speaker Change: Cost of underlying EBIT dollars to grow around 69% with $90 million of adjustments.

Speaker Change: Coming from reducing restructuring integration and interest expense.

Paul Abbott: Yeah, we're going to more than double the free cash flow generation of the business and we're going to continue to expand margins by 150 to 350 basis points. So, you know, I think we should look at 2024 as an opportunity to really demonstrate how our model can deliver above industry returns in a more stable growth environment.

Speaker Change: Yes, we're going to more than double the free cash flow generation of the business and we're going to continue to expand margins by 150 to 350 basis points.

Speaker Change: So.

Speaker Change: We should look at 2024 as an opportunity to really demonstrate how our model can deliver above industry returns in a more stable growth environment.

Speaker Change: Great.

Paul Abbott: Great, thank you. Let me [inaudible] remake both your cost base and perhaps, customer-facing products. Can you maybe talk to some of the early wins you've seen on either side of that corner that will be transforming your business and perhaps, the timeline to which you expect to see meaningful returns in the next year or so on either the customer experience or sort of taking meaningful costs out of your business as you lean more aggressively into generative AI [inaudible]. Yeah, well, thank you, I think.

Lee Horowitz: Great, thank you. Let me [inaudible] remake both your cost base and perhaps, customer-facing products. Can you maybe talk to some of the early wins you've seen on either side of that corner that will be transforming your business? And perhaps, the timeline to which you expect to see meaningful returns in the next year or so, on either the customer experience or sort of taking meaningful costs out of your business as you lean more aggressively into generative AI [inaudible].

Speaker Change: Great. Thanks, and then maybe one.

Speaker Change: Really there to remake both your cost base and perhaps customer facing products can you maybe talk to some of the early wins, you've seen on either side of that corner.

Speaker Change: Born in your business and perhaps you know the timeline to which you expect to see meaningful returns in the next year or so.

Speaker Change: Either the customer experience or sort of taking meaningful cost out of your out of your business as you lean more aggressively into January day I technologies.

Paul Abbott: Yeah. Well, thank you. I think the key point for me here is that we have both the expertise and the opportunity to make a significant difference through AI and automation. And what I mean by that is, We have the expertise because 78% of our transactions come through digital channels. We own our own software platforms in Neo and Egencia. We've been using machine learning and AI for several years to deliver strong results in terms of our drive to automate our business and our drive to generate efficiencies and margin expansion. So, we've got the expertise here. But we also got the opportunity, 40% of our costs are still people in servicing organization, we have significant amount of costs in our finance organization and also, in our product and platform engineering teams. And those are the areas that we've identified, where we see proven use cases for AI and generative AI, in order to take out significant cost and really improve productivity. And we have a three-year plan for our cost reduction efforts and our margin expansion efforts and our AI initiative is an important part of that. So, you're going to see the results from those initiatives show in the margin expansion of the business as we go through '24, '25 and '26.

Speaker Change: Yes, Thank you I think.

Paul Abbott: The key point for me here is that we have, both the expertise and the opportunity, to make a significant difference through AI and automation. And what I mean by that is, We have the expertise because 78% of our transactions come through digital channels. We own our own software platforms in Neo and Agentia. We've been using machine learning and AI for several years to deliver, You know, strong results in terms of our drive to automate our business and our drive, you know, to generate efficiencies and margin expansion. So we've got the expertise here. But we also got the opportunity, you know, 40% of our costs are still people in servicing organization, we have significant amount of costs in our finance organization, and also in our product and platform engineering team.

Speaker Change: The key point for me here is that we have.

Speaker Change: Both the expertise and the opportunity.

Speaker Change: To make a significant difference through AI and automation.

Speaker Change: And what I mean by that.

Speaker Change: We have the expertise because 78% of transactions come through digital channels.

Speaker Change: We own our own software platforms, and neo and Egencia, we've been using machine learning and AI for several years to deliver.

Speaker Change: Strong results in terms of a drive to automate our business and our drive to generate efficiencies and margin expansion. So we've got the expertise here, but we also have the opportunity of 40% of all costs all still people in servicing organization, we have significant amount of costs in our finance organization.

Paul Abbott: So, we've got the expertise here. But we also got the opportunity, 40% of our costs are still people in servicing organization, we have significant amount of costs in our finance organization and also, in our product and platform engineering teams. And those are the areas that we've identified, where we see proven use cases for AI and generative AI, in order to take out significant cost and really improve productivity. And we have a three-year plan for our cost reduction efforts and our margin expansion efforts and our AI initiative is an important part of that. So, you're going to see the results from those initiatives show in the margin expansion of the business as we go through '24, '25 and '26.

Speaker Change: And also in <unk>.

Speaker Change: And our platform engineering teams and those are the areas that we've identified where we see proven used cases.

Paul Abbott: And those are the areas that we've identified, where we see proven use cases for AI and generative AI, in order to take out significant cost and really improve productivity. And we have a three-year plan for our cost reduction efforts and our margin expansion efforts and our AI initiative is an important part of that. So, you're going to see the results from those initiatives show in the margin expansion of the business as we go through '24, '25 and 26.

Speaker Change: <unk> AI.

Speaker Change: Generative AI.

Speaker Change: In order to take out significant costs and really improve productivity.

Speaker Change: And we have a three year plan.

Speaker Change: For our cost reduction efforts and our margin expansion efforts.

Speaker Change: AI initiative is an important part of that so youre going to see the results from those initiatives show in a margin expansion of the business as we go through 'twenty four 'twenty five 'twenty six.

Paul Abbott: This concludes our Q&A. I'll now hand back to Paul Abbott, CEO, for final remarks. Okay. Well, thank you. Thank you for the questions. In closing, I would just like to thank our team for their dedication to our customers, the strong results they've delivered in 2023. We are very confident that 2024 is going to be another year of share gains, strong growth in profits and cash flow, and continued margin expansion. Thank you very much for joining us today and your continued interest in American Express Global Business Travel. Thank you. Goodbye. ?? ?? ??

Operator: This concludes our Q&A. I'll now hand back to Paul Abbott, CEO, for final remarks.

Speaker Change: This concludes our Q&A I'll now hand back to Paul I bet City yard for final remarks.

Paul Abbott: Okay. Well, thank you. Thank you for the questions. In closing, I would just like to thank our team for their dedication to our customers, the strong results they've delivered in 2023. We are very confident that '24 is going to be another year of share gains, strong growth in profits and cash flow and continued margin expansion. Thank you very much for joining us today and your continued interest in American Express Global Business Travel. Thank you.

Speaker Change: Okay.

Paul: Okay well. Thank you. Thank you for the questions in closing I would just like to thank our team for their dedication to our customers. The strong results. They delivered in 2023, we are very confident that 'twenty four is going to be another year of share gains and strong growth in profit and cash flow.

And continued margin expansion. Thank you very much for joining us today and your continued interest in American Express global business travel. Thank you.

Paul: Goodbye.

Paul: [music].

Paul: Yeah.

Paul: [music].

Paul: Okay.

Paul: Yeah.

Q4 2023 Global Business Travel Group Inc Earnings Call

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