Sabre(SABR) - 2024 Q2 - Quarterly Results

Financial Performance - Q2 2024 revenue totaled $767 million, up 4% from Q2 2023[2] - Operating income improved to $61 million, a $103 million year-over-year increase[2] - Adjusted EBITDA reached $129 million, a 76% increase from Q2 2023[6] - Free Cash Flow for Q2 2024 was $8 million, compared to negative $57 million in Q2 2023[6] - Revenue for Q2 2024 increased to $767.2 million, up from $737.5 million in Q2 2023, representing a 4% growth[31] - Operating income for Q2 2024 improved significantly to $60.9 million, compared to an operating loss of $42.2 million in Q2 2023[31] - Net loss for Q2 2024 decreased to $69.5 million, down from $124.0 million in Q2 2023, reflecting a 44% reduction in losses[31] - Net loss attributable to common stockholders for Q2 2024 was $69.76 million, a significant improvement from $129.28 million in Q2 2023[42] - Adjusted EBITDA for Q2 2024 was $128.69 million, up from $73.05 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 $8.01 million, a substantial improvement from a negative $56.86 million in Q2 2023[43] - Net loss improved from $(223,766) million in the first half of 2023 to $(140,590) million in the first half of 2024[33] - Cash used in operating activities decreased from $(99,188) million in the first half of 2023 to $(39,959) million in the first half of 2024[33] - Adjusted Net Loss from continuing operations improved to $18.48 million in Q2 2024 from $56.94 million in Q2 2023[42] - Cash provided by operating activities turned positive at $28.13 million in Q2 2024, compared to a negative $26.78 million in Q2 2023[43] Segment Performance - Travel Solutions revenue increased 4% to $695 million, driven by favorable rate impacts and increased bookings[11] - Hospitality Solutions revenue grew 9% to $83 million, with central reservation system transactions up 4%[13] - Travel Solutions segment generated $163.64 million in Adjusted Operating Income for Q2 2024, while Corporate segment reported a loss of $62 million[44] - Adjusted Operating Income for Travel Solutions in Q2 2023 was $116,368, while Hospitality Solutions reported a loss of $2,037, and Corporate had a loss of $68,236, resulting in a total Adjusted Operating Income of $46,095[45] - Adjusted EBITDA for Q2 2023 was $73,049, with Travel Solutions contributing $136,641, Hospitality Solutions $4,307, and Corporate a loss of $67,899[45] - In the six months ended June 30, 2024, Adjusted Operating Income for Travel Solutions was $333,426, Hospitality Solutions $7,818, and Corporate a loss of $116,486, totaling $224,758[46] - Adjusted EBITDA for the six months ended June 30, 2024, was $271,000, with Travel Solutions contributing $368,625, Hospitality Solutions $18,442, and Corporate a loss of $116,067[46] - For the six months ended June 30, 2023, Adjusted Operating Income for Travel Solutions was $206,470, Hospitality Solutions a loss of $10,531, and Corporate a loss of $122,168, totaling $73,771[47] - Adjusted EBITDA for the six months ended June 30, 2023, was $131,111, with Travel Solutions contributing $251,349, Hospitality Solutions $1,497, and Corporate a loss of $121,735[47] Costs and Expenses - Technology costs decreased by 23% in Q2 2024 to $219.3 million, compared to $284.3 million in Q2 2023[31] - Interest expense increased by 22% in Q2 2024 to $129.3 million, up from $106.1 million in Q2 2023[31] - Stock-based compensation increased to $12.23 million in Q2 2024 from $8.74 million in Q2 2023[42] - Interest expense, net rose to $129.29 million in Q2 2024 from $106.13 million in Q2 2023[42] - Restructuring and other costs decreased significantly to $15.49 million in Q2 2024 from $59.37 million in Q2 2023[42] - Additions to property and equipment decreased to $20.12 million in Q2 2024 from $30.08 million in Q2 2023[43] - Additions to property and equipment were $(47,794) million in the first half of 2024, slightly lower than $(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-related costs in 2024 were $863, primarily related to fees and expenses incurred for acquisition and disposition-related activities[49] - Litigation costs, net in 2024 were $1,579, associated with antitrust litigation and other foreign non-income tax contingency matters[49] - Indirect tax matters in 2024 included a charge of $6,131 due to newly adopted legislation in Canada[49] Balance Sheet and Cash Flow - Ended Q2 with a cash balance of $634 million[2] - Q2 2024 cash from operations was $28 million, the first positive Q2 operating cash flow in five years[2] - Total assets decreased slightly from $4,672,194 million in December 2023 to $4,666,375 million in June 2024[32] - Cash and cash equivalents decreased from $648,207 million in December 2023 to $612,614 million in June 2024[32] - Long-term debt decreased from $4,829,461 million in December 2023 to $4,789,406 million in June 2024[32] - Accounts receivable increased from $343,436 million in December 2023 to $376,476 million in June 2024[32] Guidance and Forward-Looking Statements - Full-year 2024 Adjusted EBITDA guidance raised to ~$525 million, up from prior guidance of ~$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]