Sabre, a leading technology provider for the global travel industry, recently held its third quarter 2024 earnings call, revealing significant commercial, operational, and financial achievements. The call, led by Senior Vice President, Investor Relations and Treasurer, Brian Evans, was followed by President and CEO, Kurt Ekert, and Chief Financial Officer, Michael Randolfi.
Financial Performance and Strategic Priorities
Sabre reported steady year-on-year revenue growth, a significant increase in adjusted EBITDA, and positive free cash flow. The company is on track to more than double adjusted EBITDA from 2023 to 2025, supported by strategic initiatives and cost management efforts. Kurt Ekert emphasized the team's commitment to innovation, customer dedication, and achieving positive free cash flow.
Growth Strategies and Business Highlights
The third quarter saw solid improvement across key financial metrics, driven by an acceleration in the growth rate of Air Distribution bookings, high single-digit growth in hotel distribution bookings, and increased average booking fees. Sabre's Travel Solutions division delivered steady financial progress, with Air Distribution bookings growing by greater than 3% year-on-year. The company's Hospitality Solutions division also showed strong revenue growth, reaching $84 million, a 7% year-on-year improvement.
Innovation and Strategic Partnerships
Sabre continues to invest aggressively in its six growth strategies, including SabreMosaic, its AI-powered technology platform designed to modernize travel retailing. The platform's open, modular, and flexible design has received overwhelmingly positive feedback from airlines and industry experts, positioning Sabre as a leader in advanced offer and order technology.
Financial Outlook and Guidance
Michael Randolfi provided an update on Sabre's financial performance and outlook for the fourth quarter. The company expects revenue of approximately $715 million and adjusted EBITDA of approximately $115 million. For the full year 2024, Sabre anticipates revenue of approximately $3.03 billion and adjusted EBITDA of approximately $515 million. The company remains confident in achieving its 2025 targets of greater than $700 million in adjusted EBITDA and greater than $200 million in free cash flow.
Q&A Session
During the Q&A session, analysts delved into topics such as revenue differences, IT Solutions dynamics, free cash flow, and the travel environment. Sabre executives provided insightful responses, highlighting the company's progress and future plans.
Conclusion
Sabre's third quarter earnings call underscored the company's strategic progress and financial achievements. With a focus on innovation, customer-centricity, and growth strategies, Sabre is well-positioned to drive sustainable growth and enhance shareholder value in the long term.