Sabre (SABR) Q4 2024 earnings summary

Executive summary

• Achieved strong financial and operational results in 2024, with revenue of $3.03B (up 4% YoY) and Adjusted EBITDA of $517M (up 53% YoY), surpassing guidance and delivering significant margin expansion.

• Completed a major technology transformation, migrating over 99% of compute capacity to the cloud, resulting in over $150M in annualized cost benefits versus 2019 and 2023.

• Strategic focus on free cash flow, deleveraging, and sustainable growth through investments in technology, open marketplace, and intelligent retailing solutions.

• Launched SabreMosaic platform and secured major airline and agency partnerships, supporting 2025 growth.

• Refinanced $1.6B–$1.9B in debt maturities, extending maturities to Q4 2029 and reducing near-term refinancing risk.

Financial highlights

• FY 2024 revenue grew 4% to $3.03B; Adjusted EBITDA rose 53% to $517M; Adjusted EBITDA margin improved by 5.5 points to 17.1%.

• Q4 2024 revenue was $715M (up 4% YoY); Q4 Adjusted EBITDA was $115M (up 20% YoY); Q4 operating income was $57M (up 53% YoY).

• Hospitality Solutions segment Adjusted EBITDA reached $38M for the year, up $25M YoY; revenue was $327M, up 7% YoY.

• Free cash flow for 2024 was negative $14M, including $19M in debt modification costs; cash balance at year-end was $746M.

• Adjusted EPS improved to $(0.19) for FY 2024 from $(0.52) in FY 2023; full year net loss was $279M, improved from $542M YoY.

Outlook and guidance

• FY 2025 revenue expected to grow high single digits YoY; Adjusted EBITDA guidance is greater than $700M; free cash flow expected to exceed $200M; CapEx projected at $85M.

• Double-digit growth expected in air distribution bookings, hotel distribution bookings, and CRS transactions in 2025, driven by new business wins and platform expansion.

• Q1 2025 expected to be the lowest quarter for revenue and Adjusted EBITDA due to timing of new business implementations.

• Full-year 2025 net loss guidance: ~$38M; free cash flow driven by at least $285M operating cash flow and ~$85M capex.