Sabre (SABR) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue grew 4% year-over-year to $767 million, exceeding guidance and driven by strong performance in both Travel Solutions and Hospitality Solutions, as well as favorable supplier mix and increased hotel and travel bookings.

• Adjusted EBITDA rose 76% year-over-year to $129 million, with margin expanding by about 7 points to 16.8%.

• Free cash flow turned positive at $8 million in Q2, the highest Q2 free cash flow in five years and a $65 million improvement from Q2 2023.

• Major commercial wins, new and renewed partnerships, and product launches such as SabreMosaic and SynXis Concierge AI drove momentum.

• Cost reduction initiatives and technology transformation supported margin expansion and improved liquidity.

Financial highlights

• Q2 2024 revenue was $767 million, up 4% year-over-year; distribution revenue grew 4% to $551 million.

• Adjusted EBITDA reached $129 million, a 76% increase from Q2 2023, with margin rising to 16.8%.

• Net loss attributable to common stockholders was $70 million, improved from $129 million loss in Q2 2023.

• Free cash flow was $8 million, compared to negative $57 million in Q2 2023.

• Ended Q2 with $634 million in cash and cash equivalents.

Outlook and guidance

• Full-year 2024 revenue guidance raised to approximately $3.05 billion and Adjusted EBITDA to $525 million; positive free cash flow expected for Q3, Q4, and full year, with majority in Q4.

• Q3 2024 guidance: revenue of ~$775 million, Adjusted EBITDA of ~$135 million; Q4: revenue of ~$725 million, Adjusted EBITDA of ~$120 million.

• Full-year net loss attributable to common stockholders expected to be ~$260 million, with significant non-cash and non-recurring adjustments.

• On track for 2025 targets: over $700 million Adjusted EBITDA and over $200 million free cash flow.

• Liquidity expected to be sufficient for at least the next twelve months.