SABR Q3 2024 Earnings

Call Details

• Call Title: Sabre Corporation Q3 2024 Earnings Call
• Date: October 31, 2024 at 1:00 PM UTC
• Management Team:
  • Brian Evans (Senior Vice President, Investor Relations and Treasurer)
  • Kurt Ekert (Chief Executive Officer)
  • Mike Randolfi (Chief Financial Officer)
  • Scott Wilson (EVP and President of Hospitality Solutions)

Call Summary

Financial Performance

• Total third quarter revenue was $765 million, an increase of $24 million, or 3%, versus last year.
• Distribution revenue was $551 million, up $26 million, or 5% year-on-year, and total distribution bookings were 93 million, a 4% increase versus 89 million in Q3 2023.
• IT Solutions revenue totaled $140 million, a decline of $7 million versus the prior year, driven primarily by previously disclosed demigrations.
• Hospitality Solutions revenue increased to $84 million, up 7% year-on-year, and hospitality adjusted EBITDA improved 67% to $11 million versus prior year.
• Company adjusted EBITDA was $131 million in Q3 2024 versus $110 million in Q3 2023, representing a $20 million year-on-year improvement.
• Adjusted EBITDA margin expanded to 17% in Q3 2024 from 15% in Q3 2023, and the quarter generated $8 million of free cash flow with a cash balance of $690 million.

Guidance

• Fourth quarter guidance is revenue of approximately $715 million and adjusted EBITDA of approximately $115 million.
• The company expects to generate greater than $80 million of free cash flow in Q4 2024 and to be positive for full-year 2024.
• Full-year 2024 guidance was updated to approximately $3.0 billion of revenue and approximately $515 million of adjusted EBITDA.
• The company reaffirmed 2025 targets of greater than $700 million of adjusted EBITDA and greater than $200 million of free cash flow.
• Guidance commentary highlights Q4 seasonality as the lightest quarter for air distribution bookings but the strongest quarter for free cash flow generation due to working capital seasonality.
• Management attributed a $10 million shortfall versus the prior quarterly revenue guide to an aggregation of small variances across revenue streams, including a 200,000 booking shortfall that represented roughly $1.2 million of the variance.