Global Business Travel Group, Inc. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>Global Business Travel Group, Inc. has filed its Q1 2024 10-Q report.</b>

AI Summary

Global Business Travel Group, Inc. (GBTG) filed a Quarterly Report (10-Q) with the SEC on May 7, 2024. Global Business Travel Group, Inc. filed its 10-Q report for the period ending March 31, 2024. The filing covers the first quarter of fiscal year 2024. The company's principal business address is 666 Third Avenue, New York, NY 10017. The company was formerly known as Apollo Strategic Growth Capital II. The fiscal year end for the company is December 31.

Why It Matters

For investors and stakeholders tracking Global Business Travel Group, Inc., this filing contains several important signals. This 10-Q filing provides investors with the latest financial performance and operational updates for Global Business Travel Group, Inc. for the first quarter of 2024. Understanding the details within this report is crucial for assessing the company's current financial health, strategic direction, and potential risks and opportunities moving forward.

Risk Assessment

Risk Level: — Global Business Travel Group, Inc. shows moderate risk based on this filing. The filing is a standard quarterly report (10-Q) with no immediate red flags or significant negative disclosures, indicating a low level of immediate risk based on this document alone.

Analyst Insight

Review the detailed financial statements and management's discussion and analysis within the 10-Q to identify any emerging trends or specific performance indicators.

Key Numbers

• 2024-03-31 — Period End Date (Quarterly report period)
• 2024-05-07 — Filing Date (Date the report was filed)
• 1231 — Fiscal Year End (Company's fiscal year end)

Key Players & Entities

• Global Business Travel Group, Inc. (company) — Filer name
• Apollo Strategic Growth Capital II (company) — Former company name
• 2024-03-31 (date) — Period of report
• 2024-05-07 (date) — Filed as of date
• 666 Third Avenue, New York, NY 10017 (address) — Business address

FAQ

Industry Context

Global Business Travel Group operates in the transportation services sector, focusing on business travel management.

Regulatory Implications

The filing is made under the Securities Exchange Act of 1934, requiring regular reporting of financial information to the SEC.

What Investors Should Do

1. Analyze the balance sheet and income statement for Q1 2024.
2. Review any disclosures related to debt, equity, or cash flow.
3. Examine management's discussion and analysis for insights into business performance and outlook.

Key Dates

• 2024-03-31: Quarter End — End of the reporting period for the 10-Q filing.
• 2024-05-07: Filing Date — Date the 10-Q report was officially submitted to the SEC.

Year-Over-Year Comparison

This is the first 10-Q filing for the period ending March 31, 2024, following the previous fiscal year-end report.

Key Financial Figures

• $0.0001 — stered Class A common stock, par value $0.0001 per share GBTG The New York Stock Exc

Filing Documents

• gbtg-20240331.htm (10-Q) — 1008KB
• gbtg-20240331xexx311.htm (EX-31.1) — 9KB
• gbtg-20240331xexx312.htm (EX-31.2) — 9KB
• gbtg-20240331xexx321.htm (EX-32.1) — 4KB
• gbtg-20240331xexx322.htm (EX-32.2) — 4KB
• 0001820872-24-000024.txt (&nbsp;) — 6078KB
• gbtg-20240331.xsd (EX-101.SCH) — 48KB
• gbtg-20240331_cal.xml (EX-101.CAL) — 67KB
• gbtg-20240331_def.xml (EX-101.DEF) — 245KB
• gbtg-20240331_lab.xml (EX-101.LAB) — 600KB
• gbtg-20240331_pre.xml (EX-101.PRE) — 439KB
• gbtg-20240331_htm.xml (XML) — 720KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Item 1. Consolidated Financial Statements Consolidated Balance Sheets as of March 31, 2024 (Unaudited) and December 31, 2023 2 Consolidated Statements of Operations for the Three Months Ended March 31, 2024 and 2023 (Unaudited) 3 Consolidated Statements of Comprehensive Loss for the Three Months Ended March 31, 2024 and 2023 (Unaudited) 4 Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2024 and 2023 (Unaudited) 5 Consolidated Statements of Changes in Total Shareholders' Equity for the Three Months Ended March 31, 2024 and 2023 (Unaudited) 6 Notes to the Consolidated Financial Statements (Unaudited) 7 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 21 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 32 Item 4.

Controls and Procedures

Controls and Procedures 32

OTHER INFORMATION

PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 33 Item 1A.

Risk Factors

Risk Factors 33 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 34 Item 3. Defaults Upon Senior Securities 34 Item 4. Mine Safety Disclosures 34 Item 5. Other Information 34 Item 6. Exhibits 35

Signatures

Signatures 36 Table of Contents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Consolidated Financial Statements

ITEM 1. Consolidated Financial Statements GLOBAL BUSINESS TRAVEL GROUP, INC. CONSOLIDATED BALANCE SHEETS (in $ millions, except share and per share data) March 31, 2024 December 31, 2023 (Unaudited) Assets Current assets: Cash and cash equivalents $ 475 $ 476 Accounts receivable (net of allowance for credit losses of $ 13 and $ 12 as of March 31, 2024 and December 31, 2023, respectively) 812 726 Due from affiliates 37 42 Prepaid expenses and other current assets 152 116 Total current assets 1,476 1,360 Property and equipment, net 232 232 Equity method investments 13 14 Goodwill 1,206 1,212 Other intangible assets, net 528 552 Operating lease right-of-use assets 52 50 Deferred tax assets 264 281 Other non-current assets 64 50 Total assets $ 3,835 $ 3,751 Liabilities and shareholders' equity Current liabilities: Accounts payable $ 386 $ 302 Due to affiliates 44 39 Accrued expenses and other current liabilities 526 466 Current portion of operating lease liabilities 18 17 Current portion of long-term debt 8 7 Total current liabilities 982 831 Long-term debt, net of unamortized debt discount and debt issuance costs 1,355 1,355 Deferred tax liabilities 5 5 Pension liabilities 176 183 Long-term operating lease liabilities 56 55 Earnout derivative liabilities 59 77 Other non-current liabilities 28 33 Total liabilities 2,661 2,539 Commitments and Contingencies (see note 8) Shareholders' equity: Class A common stock (par value $ 0.0001 ; 3,000,000,000 shares authorized; 472,617,208 shares and 467,092,817 shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively) — — Additional paid-in capital 2,751 2,748 Accumulated deficit ( 1,456 ) ( 1,437 ) Accumulated other comprehensive loss ( 124 ) ( 103 ) Total equity of the Company's shareholders 1,171 1,208 Equity attributable to non-controlling interest in subsidiaries 3 4 Total shareholders' equity 1,174 1,212 Total liabilities and shareholders' equity $ 3

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (1) Business Description and Basis of Presentation Global Business Travel Group, Inc. ("GBTG"), and its consolidated subsidiaries (GBTG together with its consolidated subsidiaries, the "Company"), including GBT JerseyCo Limited ("GBT JerseyCo"), is a leading business-to-business software and services company in travel and expense. The Company provides a platform serving travel primarily for business purposes and a full suite of differentiated, technology-enabled solutions to business travelers and clients, suppliers of travel content (such as airlines, hotels, ground transportation and aggregators) and third-party travel agencies. The Company manages end-to-end logistics of business travel and provides a link between businesses and their employees, travel suppliers, and other industry participants. GBTG is a Delaware corporation and tax resident in the United States of America ("U.S."). The Company has one reportable segment. Potential Acquisition of CWT On March 24, 2024, GBTG entered into an Agreement and Plan of Merger (the "Merger Agreement") with CWT Holdings, LLC, a Delaware limited liability company ("CWT"), pursuant to which, among other things, GBTG will acquire CWT. The transaction values CWT at approximately $ 570 million on a cash-free and debt-free basis, subject to certain assumptions and purchase price adjustments. At the closing of the transaction, GBTG expects to fund the acquisition with a combination of cash and an aggregate of approximately 72 million shares of its Class A common stock, par value $ 0.0001 per share ("Class A common stock"), at a price of $ 6.00 per share as purchase consideration. The transaction is expected to be completed in the second half of 2024, subject to the satisfaction of customary closing conditions, including the receipt of certain regulatory approvals. Basis of Presentation The Company's consolidated financial statements include the accounts of GBTG,

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses, and related disclosures in the consolidated financial statements and accompanying notes. Estimates are used for, but not limited to, supplier revenue, allowance for credit losses, depreciable lives of property and equipment, acquisition purchase price allocations including valuation of acquired intangible assets and goodwill and contingent consideration, valuation of operating lease right-of-use ("ROU") assets, impairment of goodwill, other intangible assets, long-lived assets, capitalized client incentives and investments in equity method investments, valuation allowances on deferred income taxes, valuation of pensions, interest rate swaps, earnout shares and contingent liabilities. Actual results could differ materially from those estimates. (2) Recently Issued Accounting Pronouncements Accounting Pronouncements - Adopted The Company did not adopt any new accounting pronouncements during the three months ended March 31, 2024. Accounting Pronouncements - Not Yet Adopted There were no new accounting standards or pronouncements that were issued during the three months ended March 31, 2024 that the Company expects to have a material impact on its consolidated financial statements. However, the Company has yet to adopt the following accounting standard updates ("ASU") issued by the Financial Accounting Standards Board (the "FASB"). Segment Reporting In November 2023, the FASB issued ASU No. 2023-07, " Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures " which expands the segment reporting disclosures and primarily requires disclosures on (i) significant segment expenses that are regularly provided to the chief operating decision maker ("CODM") and are included wi

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (3) Revenue from Contracts with Customers The Company disaggregates revenue based on (i) Travel Revenue which includes all revenue relating to servicing a transaction, which can be air, hotel, car rental, rail or other travel-related booking or reservation, and (ii) Product and Professional Services Revenue which includes all revenue relating to using the Company's platform, products and value-added services. The following table presents the Company's disaggregated revenue by nature of service. Sales and usage-based taxes are excluded from revenue. Three months ended March 31, (in $ millions) 2024 2023 Travel revenue $ 492 $ 467 Product and professional services revenue 118 111 Total revenue $ 610 $ 578 Payments from customers are generally received within 30 - 60 days of invoicing or from their contractual date agreed under the terms of contract. Contract Balances Contract assets represent the Company's right to consideration in exchange for services transferred to a customer when that right is conditioned on the Company's future performance obligations. Contract liabilities represent the Company's obligation to transfer services to a customer for which the Company has received consideration (or the amount is due) from the customer. The opening and closing balances of the Company's accounts receivable, net, and contract liabilities are as follows: Contract liabilities (in $ millions) Accounts receivable, net Client incentives, net (non-current) Deferred revenue (current) Balance as of March 31, 2024 $ 811 $ 10 $ 30 Balance as of December 31, 2023 $ 725 $ 9 $ 19 Accounts receivable, net, exclude balances not related to contracts with customers. Deferred revenue is recorded when a performance obligation has not been satisfied but an invoice has been raised. Cash payments received from customers in advance of the Company completing its performance obligations are included in deferred revenu

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (4) Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consist of: (in $ millions) March 31, 2024 December 31, 2023 Prepaid technology costs $ 53 $ 36 Prepaid travel expenses 39 13 Value added and similar taxes receivables 10 10 Income tax receivable 3 12 Other prepayments and receivables 47 45 Prepaid expenses and other current assets $ 152 $ 116 (5) Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consist of: (in $ millions) March 31, 2024 December 31, 2023 Accrued operating expenses $ 206 $ 160 Accrued payroll and related costs 160 184 Client deposits 73 53 Accrued restructuring costs (see note 6) 28 30 Deferred revenue 30 19 Value added and similar taxes payable 9 12 Other payables 20 8 Accrued expenses and other current liabilities $ 526 $ 466 (6) Restructuring, Exit and Related Charges From time-to-time, the Company takes initiatives to reduce costs, exit from non-profitable business components and geographical regions and/or improve operational efficiency. The table below sets forth accrued restructuring, exit and related costs included in accrued expenses and other current liabilities, for the three months ended March 31, 2024: (in $ millions) Employee Related Facility - Non-Lease Related Total Balance as of December 31, 2023 $ 26 $ 4 $ 30 Accruals 9 — 9 Cash settled ( 10 ) ( 1 ) ( 11 ) Balance as of March 31, 2024 $ 25 $ 3 $ 28 10 Table of Contents GLOBAL BUSINESS TRAVEL GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (7) Long-term Debt The outstanding amount of the Company's long-term debt consists of: (in $ millions) March 31, 2024 December 31, 2023 Senior Secured Credit Agreement Principal amount of senior secured initial term loans (Maturity – August 2025) $ 236 $ 237 Principal amount of senior secured tranche B-3 term loans (Maturity – December 2026) 1,000 1,000 Principal amount of senior secured tranche B-4 term loans (Maturity – December 2026) 135 135 Principal amount of senior secured revolving credit facility (Maturity – September 2026) — — Other borrowings 6 6 1,377 1,378 Less: Unamortized debt discount and debt issuance costs ( 14 ) ( 16 ) Total debt, net of unamortized debt discount and debt issuance costs 1,363 1,362 Less: Current portion of long-term debt ( 8 ) ( 7 ) Long-term debt, non-current, net of unamortized debt discount and debt issuance costs $ 1,355 $ 1,355 During each of the three months ended March 31, 2024 and 2023, the Company repaid the contractual quarterly installment of $ 1 million of the principal amount of senior secured initial term loans. As of March 31, 2024 and December 31, 2023, interest on initial term loans was based on synthetic LIBOR plus 2.50 %. Under the senior secured credit agreement, the tranche B-3 and B-4 term loans accrue interest at a variable interest rate based on secured overnight finance rate ("SOFR") plus 0.10 % ("Adjusted SOFR") plus a leverage-based margin ranging from 5.25 % to 6.75 % per annum, and loans under the senior secured revolving credit facility accrue interest at a variable interest rate based on Adjusted SOFR plus a leverage-based margin ranging from 4.75 % to 6.25 % per annum. Adjusted SOFR floor of 1.00 % applies to the tranche B-3 and tranche B-4 term loans and borrowings under the senior secured revolving credit facility. Improvement in the Company's leverage ratio, computed in a manner as provided in the senior secured credit

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) Other borrowings primarily relate to finance leases and equipment sale and lease back transaction. Security; Guarantees GBT UK