Sabre (SABR) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue grew 3% year-over-year to $765 million, driven by both Travel Solutions and Hospitality Solutions, with net loss narrowing to $62.8 million and operating income rising to $70 million.

• Adjusted EBITDA increased 19% year-over-year to $131 million, with margin expanding to 17.1%.

• Achieved positive free cash flow of $8 million and ended the quarter with $690 million in cash.

• Strategic priorities include generating positive free cash flow, sustainable growth, innovation, and cost base reduction.

• Launched SabreMosaic, an AI-powered, modular platform for modernizing airline retailing, with Virgin Australia and Riyadh Air as customers.

Financial highlights

• Q3 2024 revenue was $765 million, up 3% year-over-year; distribution revenue grew 5% to $551 million.

• Adjusted EBITDA rose to $131 million from $110 million in Q3 2023, with margin expanding from 15% to 17.1%.

• Net loss attributable to common stockholders for Q3 2024 was $62.8 million, or $(0.16) per share, compared to $211.8 million, or $(0.61) per share, in Q3 2023.

• Free cash flow was $8 million for the quarter; cash balance ended at $690 million.

• Adjusted EPS improved to $(0.04) from $(0.06) year-over-year.

Outlook and guidance

• Q4 2024 guidance: revenue of ~$715 million, adjusted EBITDA of ~$115 million, and >$80 million free cash flow.

• Full-year 2024 guidance: revenue of ~$3.03 billion, adjusted EBITDA of ~$515 million, and positive free cash flow.

• 2025 targets: >$700 million adjusted EBITDA and >$200 million free cash flow.

• Full-year net loss guidance of ~$269 million, with significant non-cash and interest expense adjustments.

• Company believes it has sufficient liquidity to meet obligations over the next twelve months, including $242 million of principal due at maturity.