Q3 2024 Sabre Corp Earnings Call Transcript
Key Points
- Sabre Corp (SABR) reported steady year-on-year revenue growth and a significant increase in adjusted EBITDA for the third quarter.
- The company achieved a 19% increase in adjusted EBITDA compared to the same quarter last year, driven by effective cost management and revenue expansion.
- Hospitality Solutions revenue increased by 7% year-on-year, marking the highest quarterly revenue in segment history.
- Sabre Corp (SABR) continues to expand its air distribution share, with bookings growing by more than 3% year-on-year, outperforming the industry.
- The company has secured significant commercial wins, including partnerships with Virgin Australia and Riyadh Air, enhancing its growth prospects.
- Sabre Corp (SABR) experienced a $10 million revenue shortfall compared to its guidance, attributed to small differences across various revenue streams.
- IT Solutions revenue declined by $7 million year-on-year, primarily due to previously disclosed demigrations.
- The company did not reach an agreement with Turkish Airlines, resulting in the loss of Turkish content, which could impact its competitive position.
- Average booking fees showed slower growth, raising concerns about future revenue per booking trends.
- Despite positive free cash flow in Q3, the company is lapping a $150 million one-time benefit from working capital initiatives last year, affecting year-over-year comparisons.
(technical difficulty) that may cause actual results to differ materially from the statements made on today's conference call.
More information on these risks and uncertainties is contained in our earnings release issued this morning and our SEC filings, including our Form 10-Q for the quarter ended September 30, 2024. Throughout today's call, we will also be presenting certain non-GAAP financial measures. References during today's call to adjusted EBITDA, adjusted EBITDA margin and free cash flow have been adjusted to exclude certain items. The most directly comparable GAAP measures and reconciliations for non-GAAP measures are available in the earnings release and other documents posted on our website at investors.sabre.com.
Participating with me are Kurt Ekert, Prxesident and CEO; and Mike Randolfi, Chief Financial Officer; Scott Wilson, EVP and President of Hospitality Solutions, will be available for Q&A after the prepared remarks.
With that, I'll turn the call over to Kurt.
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