Sabre (SABR) Q4 2024 earnings summary

Executive summary

• Achieved strong financial and operational results in 2024, with revenue of $3.03 billion (up 4% year-over-year) and Adjusted EBITDA of $517 million (up 53%), surpassing initial guidance.

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

• Strategic focus on free cash flow generation, 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 $1.6–$1.9 billion in debt maturities, extending maturities to Q4 2029 and improving the debt maturity profile.

Financial highlights

• Full-year 2024 revenue grew 4% to $3.03 billion; Adjusted EBITDA rose 53% to $517 million, exceeding guidance.

• Q4 2024 revenue was $715 million (up 4% year-over-year); Q4 Adjusted EBITDA was $115 million (up 20% year-over-year).

• Hospitality Solutions segment Adjusted EBITDA reached $38 million for the year, up $25 million year-over-year.

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

• Adjusted EPS improved to $(0.19) for FY 2024 from $(0.52) in FY 2023; net loss margin improved to (9.2)% from (18.6)% year-over-year.

Outlook and guidance

• 2025 guidance: high single-digit revenue growth, Adjusted EBITDA greater than $700 million, and free cash flow over $200 million; capital expenditures projected at $85 million.

• Double-digit growth expected in air distribution bookings, hotel distribution bookings, and Hospitality Solutions 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; positive free cash flow expected in remaining quarters.

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