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Sep 30, 2020
Sabre Q3 2020 Earnings Report
Sabre's third quarter results were announced, highlighting improvements in bookings, commercial activity, and new innovations with Google.
Key Takeaways
Sabre's Q3 2020 revenue totaled $278 million, a significant decrease from $1 billion in Q3 2019. The company reported a net loss attributable to common stockholders of $312 million, or $1.07 per share, compared to a net income of $64 million, or $0.23 per share in the prior year. Adjusted EPS totaled ($0.82). The results were negatively impacted by the COVID-19 pandemic, partially offset by cost-saving measures.
Bookings growth steadily improved from the previous quarter, exceeding industry growth by 19 percentage points.
IT Solutions revenue exceeded Distribution revenue for the second consecutive quarter.
Hospitality bookings continued to lead the travel industry's improvement.
Sabre and Google are developing an Artificial Intelligence (AI)-driven technology platform and smart retailing engine.
Revenue by Segment
Forward Guidance
Sabre expects to operate at a more profitable cost structure after recovery from the COVID-19 pandemic, with an additional $75 million in annual cost savings starting in 2024 due to technology transformation and contract renegotiations.
Positive Outlook
- Steady improvement in bookings is expected.
- Annual costs reduced by $200 million.
- Technology transformation to unlock $75 million in annual cost savings.
- Migration to Google Cloud Platform expected to drive cost savings.
- Renegotiated DXC contract to further reduce costs.
Challenges Ahead
- COVID-19 pandemic may persist longer than expected.
- Uncertainty in the travel industry due to the pandemic.
- Potential impact on business and results of operations.
- Challenges in maintaining system integrity and infrastructure.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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