Corporate travel tech firm Navan forecasts 2027 revenue between $866 million and $874 million-exceeding Wall Street's average estimate of $839 million.
The company, headquartered in Palo Alto, California, earns most of its revenue from large enterprise clients in AI, manufacturing, and healthcare sectors.
In February, Yahoo joined Navan’s platform to integrate AI into travel booking, aiming to cut travel spend by 7% to 10%.
Fourth-quarter gross bookings reached $2.3 billion-up 42% year-over-year-surpassing analyst expectations of $2.14 billion.
Revenue rose 34.7% to $178 million, above the projected $162 million.
Sales and marketing expenses more than doubled to $117.3 million in Q4, reflecting aggressive client acquisition.
Higher oil prices due to Middle East tensions may boost Navan’s earnings, as the company profits when travel costs rise.
Navan debuted on Nasdaq in October at $22 per share, but its stock has since declined 61.3% to $8.51 as of Tuesday’s close.