SABR Q3 2022 Earnings
AI Summary
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Call Details
- Call Title: Sabre Corporation Q3 2022 Earnings Call
- Date: November 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)
- Mike Randolfi (Chief Financial Officer)
Call Summary
Financial Performance
- Total revenue for Q3 2022 was $663 million compared to $441 million in Q3 2021.
- Distribution revenue totaled $431 million in Q3 2022 versus $245 million in Q3 2021.
- Distribution bookings totaled 80 million in the quarter and net air bookings recovered to 56% of 2019 for the quarter overall.
- Adjusted EBITDA was $34 million in Q3 2022 compared to a significantly lower figure in the prior year period.
- IT Solutions revenue was $173 million in Q3 2022 and passengers boarded totaled 180 million, representing a 96% recovery versus Q3 2019.
- Hospitality solutions revenue was $67 million and central reservation system transactions totaled 32 million, or 104% of 2019 levels.
- Free cash flow was negative $123 million in Q3 2022, and the company ended the quarter with a cash balance of $804 million.
- Average booking fee in Q3 2022 was $5.38, which was 13% higher than the same period in 2019.
Guidance
- Company expects Q4 2022 revenue to be slightly higher than Q3 2022 as recovery benefits are partially offset by seasonally lower bookings.
- Company expects Q4 2022 adjusted EBITDA to be approximately $30 million assuming distribution booking recovery in the low 60s versus 2019.
- Full-year 2022 adjusted EBITDA is expected to be approximately $90 million assuming distribution bookings of approximately 55% versus 2019.
- Free cash flow is expected to be positive in Q4 2022 and to be positive annually thereafter.
- Guidance for 2022 adjusted EBITDA is stated to be better than the midpoint of prior guidance for a 50% to 60% recovery range.
- Company reiterated 2025 targets and indicated tech transformation is a key driver of expected margin improvement for future years.
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