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Dec 31, 2019
Sabre Q4 2019 Earnings Report
Announced strategic initiatives to increase addressable market and lower costs by 2024 and reported solid results.
Key Takeaways
Sabre's Q4 2019 revenue increased by 1.9% to $941.4 million, with net income attributable to common stockholders at $10.1 million, and adjusted EPS at $0.16. The company is investing in technology to transform its marketplace and expand its services.
Acquired Radixx and investing in low-cost carrier solutions.
Announced plans to build full-service property management system with Accor.
Joined forces with Google Cloud to utilize emerging technology trends.
Expects $150 million incremental technology spend in 2020 to support strategic initiatives.
Revenue by Segment
Forward Guidance
Sabre expects to spend an incremental $150 million on technology in 2020 to build an advanced travel marketplace. The 2020 financial outlook includes this incremental technology spend. The global health crisis related to the Coronavirus (COVID-19) is impacting travel bookings and will have a material impact on the company's 2020 financial results.
Positive Outlook
- Partnership with Google to facilitate technology transformation and help unlock future revenue opportunities.
- Expects core business to perform well and in line with previous expectations.
- Expects to realize a healthy Adjusted EBITDA margin of 26% or greater in 2024 upon completion of technology transformation.
- Strategic initiatives are focused on creation and distribution of personalized offers including through NDC.
- Increasing footprint in low-cost carrier growth and innovation.
Challenges Ahead
- Incremental technology spend will have a material impact on financial results.
- Global health crisis related to the Coronavirus and its impact on travel will materially impact 2020 financial results.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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