Core Insights - Sabre Corporation has signed a global distribution agreement with Riyadh Air, marking it as the first global distribution partner for the newly established Saudi Arabian national carrier [1][4] - The partnership aims to enhance Riyadh Air's retailing and distribution strategy by utilizing Sabre's advanced technology solutions, including New Distribution Capabilities (NDC) and traditional content [2][3] Group 1: Partnership Details - The collaboration allows Riyadh Air to access Sabre's extensive global marketplace, enabling the delivery of dynamic and personalized travel offers to a wide network of travel agents and customers [2][4] - Sabre's multi-source content approach will support Riyadh Air in modernizing the travel experience and meeting evolving traveler expectations [3][4] Group 2: Strategic Goals - Riyadh Air aims to become the first native digital airline globally, focusing on exceptional customer experiences through advanced technology [3][6] - The partnership with Sabre is a crucial step in Riyadh Air's mission to redefine travel retailing and distribution, enhancing booking experiences through personalized content [4][6] Group 3: Technology and Innovation - Riyadh Air has selected SabreMosaic™ for its Offer Management capabilities, which will optimize offers and create personalized experiences for travelers [4] - The collaboration is expected to drive revenue and enhance customer satisfaction across Riyadh Air's global network [4]

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]

Core Insights - Sabre (SABR) reported break-even quarterly earnings per share, missing the Zacks Consensus Estimate of $0.01, compared to a loss of $0.02 per share a year ago, indicating an earnings surprise of -100% [1] - The company posted revenues of $776.62 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 1.77% and down from $782.89 million year-over-year [2] - Sabre shares have declined approximately 32.9% since the beginning of the year, contrasting with the S&P 500's decline of -4.7% [3] Earnings Outlook - The sustainability of Sabre's stock price movement will largely depend on management's commentary during the earnings call and future earnings expectations [3][4] - Current consensus EPS estimate for the upcoming quarter is $0.02 on revenues of $809.33 million, and for the current fiscal year, it is $0.15 on revenues of $3.23 billion [7] Industry Context - The Internet - Software and Services industry, to which Sabre belongs, is currently ranked in the bottom 31% of over 250 Zacks industries, which may negatively impact stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that investors should monitor these revisions closely [5][6]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was approximately $777 million, roughly flat year on year, while adjusted EBITDA increased by 5% to $150 million, aligning with guidance [23][12][26] - Adjusted EBITDA margin improved by 110 basis points year on year to 19.3%, driven by lower technology costs and effective cost management [12][23] - Free cash flow remains on track for the full year, with expectations of greater than $200 million [49][33] 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 decline in U.S. government and military travel [13][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 [14][18] - IT Solutions revenue decreased by $8 million year on year, expected to resume growth in the second half of 2025 [27][12] 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][40] - The company anticipates low single-digit growth in air distribution bookings for Q2, with expectations of double-digit growth for the full year [21][31] Company Strategy and Development Direction - The company is focused on generating free cash flow, deleveraging the balance sheet, and investing in innovation for sustainable long-term growth [11][34] - The sale of the Hospitality Solutions business, valued at $1.1 billion, is aimed at strengthening the balance sheet and focusing on core airline IT and travel marketplace platforms [10][9] - Strategic priorities include multi-source content aggregation, distribution expansion, and growth in the digital payments business [16][18] 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 despite market softness [5][40] - 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 [31][21] - Management reiterated that the revenue model is based on transaction volume rather than pricing, which may mitigate the impact of market pressures [40][39] Other Important Information - The company plans to use approximately $960 million in net proceeds from the sale of Hospitality Solutions primarily to pay down debt, reducing leverage significantly [10][29] - The company expects to generate pro forma adjusted EBITDA of greater than $630 million for 2025, excluding the impact of the Hospitality Solutions business [32][30] Q&A Session Summary Question: Can you expound more on the macro environment and its impact? - Management noted a shift in GDS market growth expectations from flat to down 1% to 2%, indicating that while there is price pressure, the need for travel remains strong [39][40] Question: What does the sale of Hospitality Solutions allow for in terms of refinancing? - The sale is seen as a significant credit-enhancing event, improving net debt to EBITDA and reducing interest expenses, which will facilitate more efficient future financings [41][42] 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 proceeds, within five days, and expects free cash flow to be greater than $200 million this year [49][48] Question: Can you provide insights on the softness in Q1 and its implications for Q2? - The softness was broad, affecting both corporate and leisure travel, with improvements expected in Q2 based on recent trends [58][59] Question: How is the implementation of new business going? - Management expressed confidence in the execution of new business, with no significant risks anticipated [75][76] Question: What are the gross margins for new agency business compared to existing volumes? - New business is expected to have slightly lower margins due to geographical mix and increased NDC volumes, but overall margins are expected to remain in line with previous years [88][90] Question: Can you provide updates on the Coforge partnership? - The partnership aims to accelerate product delivery and innovative solutions, with a mix of fixed fee and gainshare components [91][90]

Financial Performance & Outlook - Q1 2025 revenue was $777 million, a decrease of 0.8% year-over-year[24, 43] - Q1 2025 Adjusted EBITDA was $150 million, a 5% increase year-over-year, with an Adjusted EBITDA margin of 19.3%, up 1.1 percentage points year-over-year[24, 44] - The company maintains its full-year Free Cash Flow objective[44] - Pro forma Adjusted EBITDA is expected to be ~$140 million in Q2 2025 and >$630 million for FY 2025[64] - The company expects high single-digit revenue growth YoY for FY25 on a pro forma basis[61] Hospitality Solutions Sale - The company entered into an agreement to sell Hospitality Solutions to TPG for ~$1.1 billion[19] - Net cash proceeds from the sale are expected to be ~$960 million, primarily used to reduce debt[19, 54] - The Hospitality Solutions business generated $327 million in revenue and $38 million in Adjusted EBITDA in 2024[19] - The sale is expected to close by the end of Q3 2025[19] Strategic Focus & Growth - Travel Solutions Distribution revenue was $702 million, a decrease of 2% year-over-year[27] - Total distribution bookings decreased by 2% year-over-year, while air distribution bookings decreased by 3% year-over-year[27] - Hotel distribution bookings increased by 7% year-over-year[27] - The company anticipates double-digit growth rate in 2025 air distribution bookings[35, 39]

Financial Performance - Total revenue for Q1 2025 was $776,617 thousand, a decrease of 1% from $782,886 thousand in Q1 2024[150] - Adjusted Net Loss from continuing operations for Q1 2025 was $(682) thousand, an improvement from $(5,739) thousand in Q1 2024[147] - Adjusted EBITDA for Q1 2025 was $149,581 thousand, compared to $142,306 thousand in Q1 2024, reflecting a year-over-year increase of 5%[147] - Operating income for Q1 2025 was $103,398 thousand, up from $98,085 thousand in Q1 2024, indicating a growth of 5%[150] - The company reported a loss from continuing operations of $35,548 thousand in Q1 2025, a significant improvement from a loss of $71,105 thousand in Q1 2024[150] Revenue Breakdown - Revenue from Travel Solutions decreased by $11,507 thousand, or 2%, while Hospitality Solutions revenue increased by $6,390 thousand, or 8%[152] - Cash used in operating activities for Q1 2025 was $(80,603) thousand, compared to $(68,090) thousand in Q1 2024, indicating a decline in cash flow[149] - Free Cash Flow for Q1 2025 was $(98,494) thousand, slightly worse than $(95,766) thousand in Q1 2024[149] Debt and Financing - Approximately 48% of the company's debt is variable, which is subject to fluctuations in interest rates, impacting current and future interest expenses[126] - As of March 31, 2025, the company's outstanding debt totaled $5.1 billion, with approximately 48% being variable debt impacted by interest rate changes[178] - The company entered into a third and fourth amendment to the Amended and Restated Credit Agreement, exchanging $775 million of existing senior secured term loans for new loans maturing on November 15, 2029[183] - On November 25, 2024, the company exchanged approximately $800 million of new senior secured notes due November 2029, with an interest rate of 10.750% per annum[184] - The company is required to pay down term loans by 50% of annual excess cash flow, with no excess cash flow payment required in 2024 or 2025[182] Cash Flow and Liquidity - The company has resources to fund liquidity requirements over the next twelve months, including a principal payment of approximately $217 million due under current debt facilities[126] - Cash and cash equivalents as of March 31, 2025, were $651.1 million, down from $724.5 million as of December 31, 2024[170] - The company expects pro forma free cash flow for the full year 2025 to exceed $200 million, influenced by normal seasonality[175] - Cash used in investing activities was $8.25 million for the three months ended March 31, 2025, compared to $27.68 million in the same period in 2024[192] - Financing activities provided $13 million in cash for the three months ended March 31, 2025, significantly lower than the $78 million provided in the same period in 2024[195] Operational Highlights - Travel Solutions reported a 2.1% decrease in total direct billable bookings, from 98,459 in Q1 2024 to 96,356 in Q1 2025[140] - Direct billable bookings for Air decreased by 3.2%, from 85,170 in Q1 2024 to 82,438 in Q1 2025[140] - IT solutions passengers boarded decreased by 1.3%, from 167,926 in Q1 2024 to 165,826 in Q1 2025[140] - Hospitality Solutions saw a 5.9% increase in Central Reservations System transactions, rising from 29,051 in Q1 2024 to 30,769 in Q1 2025[140] - The travel ecosystem has shifted, leading to changing needs among airline, hotel, and agency customers, which the company is addressing through strategic priorities for sustainable growth[125] Strategic Initiatives - The company expects to close the Hospitality Solutions Sale for approximately $1.1 billion in cash by the end of Q3 2025, with net proceeds of about $960 million expected to be used to repay outstanding indebtedness[127] - The company plans to manage and report its business in one reportable segment following the closing of the Hospitality Solutions Sale[127] - The company has established strategic priorities to achieve sustainable long-term growth amid changing market conditions[172] - The company plans to continue monitoring liquidity levels and may take additional steps if necessary to manage through economic headwinds[174] Tax and Regulatory Matters - The company expects to be a U.S. federal cash taxpayer in 2025, benefiting from the utilization of net operating loss (NOL) carryforwards and tax credits[177] - The company recognized an income tax benefit of $57 million for the three months ended March 31, 2025, representing an effective tax rate of 265%, compared to an income tax expense of $3 million in the prior year[169] - The company monitors digital services taxes (DST) legislation in various jurisdictions, impacting its operations and financial reporting[177] Cost Management - Selling, general and administrative expenses increased by $1.9 million, or 1%, to $143.3 million for the three months ended March 31, 2025, compared to $141.4 million in the prior year[161] - The global capital markets experienced increased volatility throughout 2024, affecting the company's refinancing efforts and leading to higher interest expenses[179] - The company incurred third-party fees of approximately $10 million related to the Term Loan B Amendments, which were expensed in the consolidated statements of operations[183] - The company incurred a $10 million contribution to its defined benefit pension plan during the three months ended March 31, 2025[193] - Capital expenditures for the three months ended March 31, 2025, amounted to $18 million, primarily for software development[194] Market Conditions - The company has not experienced any material changes in market risk since December 31, 2024[201] - There were no off-balance sheet arrangements during the three months ended March 31, 2025[196]