American Express Global Business Travel (Amex GBT) has reported strong financial results for the fourth quarter and full year ended December 31, 2023. In the fourth quarter of 2023, the company delivered $549 million in revenue, representing an increase of 4% or $22 million compared to the same period in the prior year. The adjusted EBITDA for the quarter was $80 million, marking an 83% increase over the prior year period.
For the full year 2023, Amex GBT achieved a revenue of $2,290 million, reflecting a substantial 24% increase of $439 million from the previous year. The adjusted EBITDA for the full year was $380 million, exhibiting an impressive 269% growth compared to the prior year period. The company's focus on operating leverage resulted in an 11-percentage-point expansion in the adjusted EBITDA margin to 17%.
The total transaction value (TTV) for the full year 2023 was reported at $28,192 million, indicating a notable 23% increase from the previous year. Moreover, the net cash provided by operating activities saw a significant improvement, totaling $162 million for the full year, compared to a net cash used by operating activities of $394 million in 2022.
Amex GBT’s net debt decreased to $886 million as of December 31, 2023, from $919 million in the prior year, and the leverage ratio improved to 2.3x. The company also reported a positive full-year free cash flow of $49 million.
Looking ahead to 2024, Amex GBT has introduced its outlook, anticipating a 6-9% revenue growth and projecting adjusted EBITDA to range between $450 million to $500 million, representing an 18% to 32% growth compared to 2023. The company also aims to achieve an adjusted EBITDA margin of 18% to 20% and expects free cash flow to exceed $100 million in the coming year.
Following these announcements, the company's shares moved 3.1%, and are now trading at a price of $5.84. Check out the company's full 8-K submission here.
