Sabre (SABR) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue grew 4% year-over-year to $767 million, exceeding guidance, with Adjusted EBITDA up 76% to $129 million and positive free cash flow for the first time in five years.

• Raised full-year 2024 revenue and Adjusted EBITDA guidance, maintaining confidence in positive free cash flow and doubling Adjusted EBITDA from 2023 to 2025.

• Achieved commercial wins and expanded partnerships across agency, distribution, and hospitality, including major contracts in North America, Asia, and Europe.

• Continued progress on technology transformation and innovation, notably with the launch of SabreMosaic and SynXis Concierge AI.

• Cost reduction and restructuring initiatives yielded significant savings, supporting margin expansion and improved liquidity.

Financial highlights

• Q2 2024 revenue was $767 million, up 4% year-over-year; Adjusted EBITDA reached $129 million, margin rose to 16.8% from 9.9%, and net loss narrowed to $70 million from $129 million.

• Free cash flow was $8 million, the highest Q2 free cash flow in five years, and ended the quarter with $634 million in cash.

• Adjusted EPS improved to $(0.05) from $(0.17) year-over-year.

• Operating income improved to $61 million from a $42 million loss in Q2 2023; operating margin rose to 7.9%.

• Interest expense increased 22% year-over-year to $129 million due to refinancing at higher rates.

Outlook and guidance

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

• Full-year 2024 guidance: revenue ~$3.05 billion, Adjusted EBITDA ~$525 million, positive free cash flow expected.

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

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