Core Viewpoint - Sabre Corporation has announced an upsized offering of $1,325,000,000 in Senior Secured Notes, increasing from an initial $975,000,000, with a maturity date set for July 15, 2030 and an interest rate of 11.125% [1][2]. Group 1: Offering Details - The Senior Secured Notes will pay interest semi-annually and are guaranteed by Sabre Holdings Corporation and its subsidiaries [2]. - The offering is expected to close on June 4, 2025, subject to customary closing conditions [1]. - The Secured Notes will be secured by a first-priority security interest in substantially all property and assets of Sabre GLBL and the guarantors [2]. Group 2: Use of Proceeds - A portion of the net proceeds will be used to prepay outstanding borrowings under an intercompany loan agreement, specifically targeting a senior secured term loan due in 2028 [3]. - Remaining proceeds will be utilized to prepay, redeem, or repurchase other indebtedness through various methods, including tender offers [3]. Group 3: Tender Offers - Sabre GLBL plans to launch tender offers for certain existing senior secured notes, with a maximum aggregate purchase amount of $336,375,000 [3]. - The details of the Tender Offers will be included in the offers to purchase dated May 20, 2025 [6]. Group 4: Company Overview - Sabre Corporation is a leading technology company focused on the travel industry, providing solutions for airlines, hoteliers, and travel agencies [7]. - The company is headquartered in Southlake, Texas, and serves customers in over 160 countries globally [7].

Group 1 - Sabre Corporation announced an offering of $975,000,000 aggregate principal amount of senior secured notes by its subsidiary Sabre GLBL Inc [1] - The Secured Notes will be guaranteed by Sabre Holdings Corporation and secured by a first-priority security interest in substantially all property and assets of Sabre GLBL and the guarantors [2] - The net proceeds from the sales of the Secured Notes are expected to be used to prepay outstanding borrowings under an intercompany loan agreement and to address other indebtedness [3] Group 2 - The Secured Notes will be offered in a private offering to qualified institutional buyers and non-U.S. persons outside the United States [4] - The offering does not constitute an offer to sell or solicitation of an offer to buy the Secured Notes in jurisdictions where such offering would be unlawful [5] - Sabre Corporation is a leading technology company in the travel industry, serving customers in over 160 countries globally [6]

Core Viewpoint - Sabre (SABR) has received an upgrade to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, indicating a positive outlook for the company's stock price [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - Institutional investors often rely on earnings estimates to determine the fair value of stocks, leading to significant buying or selling activity that impacts stock prices [4]. Sabre's Earnings Outlook - The recent upgrade for Sabre reflects an improvement in its underlying business, which is expected to drive the stock price higher as investors respond positively to this trend [5][10]. - For the fiscal year ending December 2025, Sabre is projected to earn $0.18 per share, representing a 194.7% increase from the previous year, with a 91.7% increase in the Zacks Consensus Estimate over the past three months [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [7]. - The upgrade to Zacks Rank 2 places Sabre in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10].

The collaboration will enable Riyadh Air to utilize Sabre's advanced technology solutions, including its multi- source approach to content distribution, which seamlessly integrates both New Distribution Capabilities (NDC) and traditional content to advance its retailing and distribution strategy. This partnership enables Riyadh Air to deliver dynamic, personalized travel offers, reaching a global network of travel agents, corporate buyers, and customers. By tapping into Sabre's extensive global marketplace, ...

Core Viewpoint - Sabre Corporation reported a break-even bottom line for Q1 2025, missing the earnings estimate of 1 cent per share, compared to a loss of 2 cents per share in the same quarter last year [1] Financial Performance - Sabre's revenues for Q1 2025 were $776.62 million, which was 1.77% below the Zacks Consensus Estimate and represented a 0.8% decline year over year [1] - The adjusted EBITDA for Q1 2025 was $149.6 million, an improvement from $142 million in the previous year, with an adjusted EBITDA margin of 19.3%, up 110 basis points year over year [6] Segment Performance - Travel Solutions segment revenues decreased by 2% year over year to $702.13 million, primarily due to lower air bookings and the impact of previously demigrated carriers [2] - Distribution revenues, a sub-division of Travel Solutions, fell by 0.5% to $569 million, affected by lower air bookings but partially offset by increased average booking fees and hotel distribution bookings [3] - IT Solutions revenues were $133 million, down 6% year over year, attributed to customer demigrations [4] - Hospitality Solutions segment revenues increased to $85.2 million from $78.8 million in the prior year, driven by positive customer deployments and CRS transaction growth [5] Cash Flow and Balance Sheet - At the end of Q1 2025, Sabre had cash, cash equivalents, and restricted cash of $672 million, down from $745.5 million in the previous quarter [6] - Cash used in operating activities was $81 million, resulting in a negative free cash flow of $98 million during the quarter [7] Guidance - For 2025, Sabre expects revenue growth in the high single digits, with the Zacks Consensus Estimate for revenues at $3.23 billion, indicating a year-over-year growth of 6.57% [8] - Adjusted EBITDA is forecasted to be approximately $630 million for 2025, with expectations of generating over $200 million in cash flow throughout the year [8] - For Q2 2025, Sabre anticipates revenue growth in flat to low single digits and an adjusted EBITDA of $140 million [9]

Core Insights - Sabre Corporation has appointed Jennifer Catto as Executive Vice President and Chief Marketing Officer to lead its global marketing strategy and brand development [1][2][5] - Jennifer Catto brings over 25 years of experience in brand transformation and integrated marketing from her previous roles at various companies [2][4] - The appointment reflects Sabre's commitment to innovation and enhancing customer engagement as it aims to become the premier technology platform in travel [5] Company Overview - Sabre Corporation is a leading global travel technology company that addresses complex challenges in the travel industry, serving customers in over 160 countries [6] - The company focuses on harnessing speed, scale, and insights to empower airlines, hoteliers, and travel agencies [6] Leadership Vision - Jennifer Catto emphasizes the importance of a brand as a promise to the market and aims to shape Sabre's brand to reflect its transformation and innovation [3][5] - The leadership believes that Catto's unique blend of creativity and operational focus will enhance Sabre's brand and deepen customer engagement [5]

Core Insights - Sabre reported revenue of $776.62 million for the quarter ended March 2025, reflecting a decrease of 0.8% year-over-year and a revenue surprise of -1.77% compared to the Zacks Consensus Estimate of $790.57 million [1] - The company's EPS was $0.00, an improvement from -$0.02 in the same quarter last year, but fell short of the consensus estimate of $0.01, resulting in an EPS surprise of -100.00% [1] Financial Performance Metrics - Travel Solutions - Air Bookings were reported at 82.44 million, below the average estimate of 85.29 million [4] - Travel Solutions - Lodging, Ground and Sea Bookings reached 13.92 million, slightly above the average estimate of 13.73 million [4] - Hospitality Solutions - Central Reservations System Transactions totaled 30.77 million, in line with the average estimate of 30.75 million [4] - Total Travel Solutions Bookings were 96.36 million, below the average estimate of 99.02 million [4] - Passengers Boarded in Travel Solutions were 165.83 million, slightly below the estimate of 167 million [4] - Revenue from Hospitality Solutions was $85.21 million, exceeding the average estimate of $83.39 million, representing an 8.1% increase year-over-year [4] - Revenue from Travel Solutions was $702.13 million, below the average estimate of $718.39 million, reflecting a year-over-year decline of 1.6% [4] - IT Solutions Revenue within Travel Solutions was $133.01 million, below the estimate of $140 million, marking a 5.9% decrease year-over-year [4] - Distribution Revenue in Travel Solutions was $569.12 million, below the average estimate of $578.40 million, with a year-over-year change of -0.6% [4] Stock Performance - Sabre's shares have returned +25.6% over the past month, outperforming the Zacks S&P 500 composite's +10.6% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Financial Data and Key Metrics Changes - Revenue for the first quarter was approximately $777 million, roughly flat year on year, while adjusted EBITDA increased by 5% year on year to $150 million [23][11] - Adjusted EBITDA margin improved by 110 basis points year on year to 19.3%, driven by lower technology costs and effective cost management [11][23] - The company ended the quarter with $672 million in cash on the balance sheet, and free cash flow remains on track for the full year [23][11] Business Line Data and Key Metrics Changes - Air distribution bookings decreased by 3% year on year, primarily due to lower group bookings in the APAC region and a pullback in U.S. government and military travel [12][6] - Hotel B2B distribution business saw strong bookings growth of 7% year on year, with gross booking value transacted through the platform increasing by 11% in Q1 [13][17] - The IT solutions segment experienced a decline of $8 million year on year, attributed to prior demigrations, but is expected to resume growth in the second half of 2025 [26][11] Market Data and Key Metrics Changes - The GDS industry growth assumption for 2025 has been adjusted from flat to a decline of 1% to 2%, reflecting recent airline traffic softness [6][20] - The company expects to realize over 30 million incremental air distribution segments this year from business signed during 2024 [12][6] Company Strategy and Development Direction - The company announced an agreement to sell its Hospitality Solutions business for $1.1 billion, with net proceeds expected to be used primarily for debt repayment, enhancing the company's balance sheet [9][18] - Strategic priorities include generating free cash flow, deleveraging the balance sheet, and investing in innovation for sustainable long-term growth [10][22] - The company is focused on transforming its GDS platform into a modern, open marketplace, integrating content from various sources to enhance booking efficiency [15][14] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging macro environment but expressed confidence in the company's resilient business model, which is less affected by pricing volatility [5][6] - Despite the softer market dynamics, the company reaffirmed expectations for double-digit distribution bookings growth for the full year [7][20] - The company anticipates low single-digit revenue growth in Q2, with expectations for stronger growth in the second half of 2025 [30][20] Other Important Information - The company plans to use approximately $825 million of the proceeds from the sale of Hospitality Solutions to pay down debt, with the remaining funds allocated for strategic investments [29][86] - The company expects to generate pro forma free cash flow of greater than $200 million for the year [33][48] Q&A Session Summary Question: Can you expound more on the macro environment and its impact? - Management indicated that the GDS market growth is now expected to decline by 1% to 2%, but the revenue model is based on transaction volume rather than pricing, which should mitigate the impact [37][38] Question: What does the sale of Hospitality Solutions mean for refinancing? - The sale is expected to improve the company's net debt to EBITDA ratio by approximately one turn and reduce interest expenses by $65 million, allowing for more efficient future financings [40][41] Question: How quickly can cash proceeds from the sale be used to pay down debt? - The company plans to pay down debt shortly after receiving the proceeds, within five days, and expects free cash flow to be greater than $200 million this year [48][49] Question: Can you provide insights on the performance of Sabre Mosaic? - Management reported strong wins with airlines, with a mix of full stack and offer components, indicating a rich pipeline for future growth [51][52] Question: What was the impact of Q1 on different travel segments? - The softness in Q1 was broad, affecting both corporate and leisure travel, with specific declines noted in inbound travel to the U.S. and military travel [58][59] Question: How does the company view its market share in light of the GDS outlook? - While the GDS market is projected to decline, the company expects to grow its market share significantly through double-digit growth in distribution bookings [85][64]

Financial Data and Key Metrics Changes - Revenue for the first quarter was approximately $777 million, roughly flat year on year, while adjusted EBITDA increased by 5% to $150 million, aligning with guidance [22][11] - Adjusted EBITDA margin improved by 110 basis points year on year to 19.3%, driven by lower technology costs and effective cost management [11][22] - The company ended the quarter with $672 million in cash on the balance sheet, and free cash flow remains on track for the full year [22][11] Business Line Data and Key Metrics Changes - Air distribution bookings decreased by 3% year on year, primarily due to lower group bookings in the APAC region and a pullback in U.S. government and military travel [12][6] - Hotel B2B distribution business saw strong bookings growth of 7% year on year, with gross booking value transacted through the platform increasing by 11% in Q1 [13][17] - The digital payments business experienced a 30% year on year increase in gross spending, reaching $4 billion in the first quarter [17] Market Data and Key Metrics Changes - The GDS industry growth assumption was adjusted from flat to a decline of 1% to 2% for the full year 2025, reflecting recent airline traffic softness [6][20] - The company expects low single-digit growth in air distribution bookings for Q2, with a strong recovery anticipated in the second half of the year [20][29] Company Strategy and Development Direction - The company announced the sale of its Hospitality Solutions business for $1.1 billion, with plans to use approximately $960 million of the proceeds to pay down debt, significantly improving its leverage [9][18] - Strategic priorities include generating free cash flow, deleveraging the balance sheet, and investing in innovation for sustainable long-term growth [10][32] - The company is focused on transforming its GDS platform into a modern, open marketplace, integrating content from various sources to enhance booking efficiency [15][16] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging macro environment but expressed confidence in achieving double-digit distribution bookings growth for the year despite market softness [20][37] - The company expects to see stronger APAC group booking trends in Q2 and anticipates significant growth in air distribution bookings in the second half of 2025 [29][20] - Management reiterated that the revenue model is primarily based on transaction volume rather than pricing, which should mitigate some impacts from market pressures [37][6] Other Important Information - The company plans to retain approximately $135 million of the sale proceeds for reinvestment in strategic growth initiatives and technology modernization [85][84] - The company has a strong pipeline for digital payments and is seeing increased customer adoption, reinforcing confidence in its growth strategy [17][18] Q&A Session Summary Question: Can you expound more on the macro environment and its impact? - Management indicated that the company is not immune to macro challenges, adjusting GDS market growth expectations down to 1% to 2% for the year, but remains confident in achieving double-digit growth in distribution bookings [36][37] Question: How quickly can you use the cash proceeds from the sale to pay down debt? - The company plans to pay down debt shortly after the sale closes, within five days of receiving proceeds, expecting to maintain a free cash flow expectation of greater than $200 million for the year [46][45] Question: Can you provide insights on the implementation of new business won? - Management confirmed that implementation is on track and does not foresee significant execution risk, assuming current market conditions remain stable [75][76] Question: What is the outlook for air bookings growth through the year? - Management expects high teens growth in Q3 and above 20% in Q4, with strong carryover into 2026 anticipated [67][70] Question: How does the gross margin of new agency business compare to existing volume? - New business is expected to have slightly lower average booking fees and margins due to geographical mix and increased NDC volumes, but overall margins are expected to remain in line with previous years [90][92]

Sabre (SABR) reported break-even quarterly earnings per share versus the Zacks Consensus Estimate of $0.01. This compares to loss of $0.02 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -100%. A quarter ago, it was expected that this provider of technology services to the travel industry would post a loss of $0.07 per share when it actually produced a loss of $0.08, delivering a surprise of -14.29%.Over the last four quarters ...