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]