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Sep 30, 2023
Sabre Q3 2023 Earnings Report
Reported first quarterly operating income since Q4'19, revenue increased 12% year-over-year, and raised FY23 financial outlook.
Key Takeaways
Sabre reported a successful third quarter in 2023, exceeding prior guidance and raising its full-year 2023 financial outlook. The company achieved double-digit revenue growth, significant margin expansion, and strong free cash flow generation. Key highlights include the first quarterly operating income since Q4 2019 and positive operating cash flow for the first time since 2019.
Financial results exceeded Q3 guidance.
Reported first quarterly operating income since Q4'19 with significant margin improvement; Q3 revenue increased 12% year-over-year while operating costs declined 4%.
Reported cash from operations of $59 million in Q3 and generated $39 million of free cash flow in Q3.
Hospitality Solutions revenue increased 16% year-over-year in the third quarter on a 7% CRS transactions increase.
Revenue by Segment
Forward Guidance
Sabre's full-year 2023 outlook includes revenue between $2.9B and $3.0B and Adjusted EBITDA of approximately $345M. The company expects positive free cash flow excluding restructuring costs.
Positive Outlook
- Revenue between $2.9B and $3.0B
- Adjusted EBITDA of approximately $345M
- Positive Free Cash Flow excluding restructuring costs
- Expect to deliver $200M of annualized savings from previously announced cost reductions
- Technology transformation on track for savings and operating targets
Challenges Ahead
- Full-year Adjusted EBITDA guidance consists of (1) full-year expected net loss attributable to common stockholders adjusted for the estimated impact of loss from discontinued operations, net of tax, of approximately $525 million; preferred stock dividends of approximately $14 million; restructuring costs of $63 million; acquisition-related amortization of approximately $40 million; stock-based compensation expense of approximately $56 million; loss on debt extinguishment of $109 million; other costs including the tax impact of the above adjustments of $59 million, less (2) the impact of depreciation and amortization of property and equipment and amortization of capitalized implementation costs of approximately $110 million; interest expense, net of approximately $449 million; and income tax benefit less tax impact of net income adjustments of approximately $30 million.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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