Sabre (SABR) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue grew 4% year-over-year to $767 million, exceeding guidance and driven by favorable supplier mix, increased hotel and travel bookings, and commercial wins across agency, distribution, and hospitality.

• Adjusted EBITDA surged 76% year-over-year to $129 million, with margin expanding by ~7 points to 16.8%, and net loss narrowed to $70 million from $129 million.

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

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

• Continued technology transformation and innovation, including the launch of Sabre Mosaic and SynXis Concierge AI, and secured major new and renewed partnerships.

Financial highlights

• Q2 2024 revenue was $767 million, up 4% year-over-year; Adjusted EBITDA reached $129 million, up 76%; Adjusted EPS improved to $(0.05) from $(0.17); net loss was $70 million, improved from $129 million.

• Free cash flow was $8 million, a $65 million improvement from Q2 2023; operating income improved to $61 million from a $42 million loss.

• Ended Q2 with $634 million in cash and cash equivalents; net debt at quarter-end was $4.52 billion.

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

• Operating margin improved to 7.9% from (5.7)% year-over-year.

Outlook and guidance

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

• Q3 2024 guidance: revenue ~$775 million, Adjusted EBITDA ~$135 million; Q4 2024: revenue ~$725 million, Adjusted EBITDA ~$120 million; positive free cash flow expected for both quarters.

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

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

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