SABR Q2 2022 Earnings

Call Details

• Call Title: Sabre Corporation Q2 2022 Earnings Call
• Date: August 2, 2022 at 1:00 PM UTC
• Management Team:
  • Kevin Crissey (Vice President of Investor Relations)
  • Sean Menke (Chair of the Board and Chief Executive Officer)
  • Kurt Ekert (President)
  • Doug Barnett (Chief Financial Officer)

Call Summary

Financial Performance

• Total revenue for Q2 2022 was $658 million, compared to $420 million in Q2 2021.
• Distribution revenue was $432 million in Q2 2022 versus $218 million in Q2 2021.
• Adjusted EBITDA in Q2 2022 was $24 million, showing significant year-over-year improvement.
• Free cash flow was a negative $89 million in Q2 2022, and cash balance at quarter end was approximately $1 billion.
• IT Solutions revenue totaled $168 million in Q2 2022 versus $155 million in Q2 2021, despite the sale of the Air Center portfolio earlier in 2022.
• Hospitality solutions revenue was $66 million in Q2 2022 with CRS transactions at 102% of 2019 levels and totaling $30 million in the quarter.

Guidance

• The company increased its 2022 revenue and adjusted EBITDA outlook and expects adjusted EBITDA to exceed the prior expectation by at least $85 million under each booking recovery scenario.
• The improvement in the forecast includes better-than-expected Q2 adjusted EBITDA of $24 million and anticipated incremental bookings in H2 2022 from recent new customer contracts.
• The company expects free cash flow to turn positive in Q4 2022 under the presented scenarios.
• The company reiterated medium-term financial objectives previously outlined for 2025 without updating those specific targets on the call.
• No single numeric full-year revenue guide was provided on the call beyond scenario improvements and the $85 million adjusted EBITDA upside statement.
• Company expects server migration targets of 65% in Google Cloud and 90% in public cloud by year end as part of technology-related guidance.