Financial Performance - Q2 2024 revenue totaled 767million,up461 million, a 103millionyear−over−yearincrease[2]−AdjustedEBITDAreached129 million, a 76% increase from Q2 2023[6] - Free Cash Flow for Q2 2024 was 8million,comparedtonegative57 million in Q2 2023[6] - Revenue for Q2 2024 increased to 767.2million,upfrom737.5 million in Q2 2023, representing a 4% growth[31] - Operating income for Q2 2024 improved significantly to 60.9million,comparedtoanoperatinglossof42.2 million in Q2 2023[31] - Net loss for Q2 2024 decreased to 69.5million,downfrom124.0 million in Q2 2023, reflecting a 44% reduction in losses[31] - Net loss attributable to common stockholders for Q2 2024 was 69.76million,asignificantimprovementfrom129.28 million in Q2 2023[42] - Adjusted EBITDA for Q2 2024 was 128.69million,upfrom73.05 million in Q2 2023, with an Adjusted EBITDA margin of 16.8% compared to 9.9% in the prior year[42] - Free Cash Flow for Q2 2024 was 8.01million,asubstantialimprovementfromanegative56.86 million in Q2 2023[43] - Net loss improved from (223,766)millioninthefirsthalfof2023to(140,590) million in the first half of 2024[33] - Cash used in operating activities decreased from (99,188)millioninthefirsthalfof2023to(39,959) million in the first half of 2024[33] - Adjusted Net Loss from continuing operations improved to 18.48millioninQ22024from56.94 million in Q2 2023[42] - Cash provided by operating activities turned positive at 28.13millioninQ22024,comparedtoanegative26.78 million in Q2 2023[43] Segment Performance - Travel Solutions revenue increased 4% to 695million,drivenbyfavorablerateimpactsandincreasedbookings[11]−HospitalitySolutionsrevenuegrew983 million, with central reservation system transactions up 4%[13] - Travel Solutions segment generated 163.64millioninAdjustedOperatingIncomeforQ22024,whileCorporatesegmentreportedalossof62 million[44] - Adjusted Operating Income for Travel Solutions in Q2 2023 was 116,368,whileHospitalitySolutionsreportedalossof2,037, and Corporate had a loss of 68,236,resultinginatotalAdjustedOperatingIncomeof46,095[45] - Adjusted EBITDA for Q2 2023 was 73,049,withTravelSolutionscontributing136,641, Hospitality Solutions 4,307,andCorporatealossof67,899[45] - In the six months ended June 30, 2024, Adjusted Operating Income for Travel Solutions was 333,426,HospitalitySolutions7,818, and Corporate a loss of 116,486,totaling224,758[46] - Adjusted EBITDA for the six months ended June 30, 2024, was 271,000,withTravelSolutionscontributing368,625, Hospitality Solutions 18,442,andCorporatealossof116,067[46] - For the six months ended June 30, 2023, Adjusted Operating Income for Travel Solutions was 206,470,HospitalitySolutionsalossof10,531, and Corporate a loss of 122,168,totaling73,771[47] - Adjusted EBITDA for the six months ended June 30, 2023, was 131,111,withTravelSolutionscontributing251,349, Hospitality Solutions 1,497,andCorporatealossof121,735[47] Costs and Expenses - Technology costs decreased by 23% in Q2 2024 to 219.3million,comparedto284.3 million in Q2 2023[31] - Interest expense increased by 22% in Q2 2024 to 129.3million,upfrom106.1 million in Q2 2023[31] - Stock-based compensation increased to 12.23millioninQ22024from8.74 million in Q2 2023[42] - Interest expense, net rose to 129.29millioninQ22024from106.13 million in Q2 2023[42] - Restructuring and other costs decreased significantly to 15.49millioninQ22024from59.37 million in Q2 2023[42] - Additions to property and equipment decreased to 20.12millioninQ22024from30.08 million in Q2 2023[43] - Additions to property and equipment were (47,794)millioninthefirsthalfof2024,slightlylowerthan(48,190) million in the same period of 2023[33] - Restructuring and other costs in 2024 primarily represent charges associated with the cost reduction plan implemented in Q2 2023, totaling 10,439[49]−Acquisition−relatedcostsin2024were863, primarily related to fees and expenses incurred for acquisition and disposition-related activities[49] - Litigation costs, net in 2024 were 1,579,associatedwithantitrustlitigationandotherforeignnon−incometaxcontingencymatters[49]−Indirecttaxmattersin2024includedachargeof6,131 due to newly adopted legislation in Canada[49] Balance Sheet and Cash Flow - Ended Q2 with a cash balance of 634million[2]−Q22024cashfromoperationswas28 million, the first positive Q2 operating cash flow in five years[2] - Total assets decreased slightly from 4,672,194millioninDecember2023to4,666,375 million in June 2024[32] - Cash and cash equivalents decreased from 648,207millioninDecember2023to612,614 million in June 2024[32] - Long-term debt decreased from 4,829,461millioninDecember2023to4,789,406 million in June 2024[32] - Accounts receivable increased from 343,436millioninDecember2023to376,476 million in June 2024[32] Guidance and Forward-Looking Statements - Full-year 2024 Adjusted EBITDA guidance raised to ~525million,upfrompriorguidanceof 520 million[17] - Adjusted EBITDA and Free Cash Flow are provided as forward guidance, though specific figures are not disclosed[23][24] Market Presence and Strategy - Sabre serves customers in over 160 countries, highlighting its global market presence[19] - The company emphasizes its focus on innovative products and next-generation technology solutions to empower travel partners[19] - Sabre's financial performance is influenced by transaction volumes in the global travel industry, particularly air travel[26] - The company faces risks related to pricing pressure in the Travel Solutions business and changes affecting travel supplier customers[26] - SabreMosaic, a next-generation AI-infused retailing platform, was announced[2] Definitions and Metrics - The company defines Adjusted EBITDA as loss from continuing operations adjusted for various factors including depreciation, amortization, and interest expense[35] - Adjusted EBITDA Margin is calculated as Adjusted EBITDA divided by revenue[36] - Free Cash Flow is defined as cash used in operating activities less cash used in additions to property and equipment[36]
Sabre(SABR)2024-08-01 11:40