NASDAQ$SABR

Sabre Corp · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Reported second quarter results that exceeded prior guidance and raised FY23 financial outlook.

Sabre's second quarter revenue reached $738 million, a 12% increase from Q2 2022. The company reported a net loss of $129 million, with an adjusted EPS of ($0.17). Adjusted EBITDA was $73 million, driven by growth in global travel bookings and favorable rate impacts.

  • Financial results exceeded Q2 guidance
  • Advanced strategic priorities focused on growth, innovation, free cash flow generation, and balance sheet deleveraging
  • Executed long-term global agreement with Hyatt for central reservation system technology
  • On track to deliver savings of $100M in 2H'23 and $200M for FY2024 from cost reduction program

Headline financials

Total Revenue

$738M

Previous: $658M+12.2%
EPS (adj)

-$0.17

Previous: -$0.25+32.0%
Total Bookings

90.0M

Previous: 81.0M+11.1%
Air Bookings

76.9M

Previous: 69.8M+10.3%
Lodging, Ground & Sea

13.5M

No prior period
Average Booking Fee

$5.87

Previous: $5.35+9.7%
Capital Expenditures

-$30.1M

Previous: -$16M-88.2%
Free Cash Flow

-$154M

Previous: -$203M+24.3%
Net Income

-$124M

Previous: -$187M+33.9%
Operating Income

-$42.2M

Previous: -$70.2M+39.9%
Gross Profit

$421M

Previous: $383M+9.9%
Cash & Equivalents

$706M

Previous: $992M-28.8%
Total Assets

$4.92B

Previous: $5.18B-4.9%
Stock-Based Comp

$8.74M

Previous: $26.1M-66.6%

Revenue & EPS history

Sabre · Revenue · Quarterly

$738M

Q2 2023+12.2%vs Q2 2022
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Sabre · $748M total across 2 segments · Q2 2023

  • Distribution
    $671M+12.0%
  • IT Solutions
    $77M+16.7%

Forward guidance

Sabre's third quarter, fourth quarter, and full-year 2023 outlook are summarized as follows:

Tailwinds

  • Q3 2023 Revenue ~$725M
  • Q4 2023 Revenue ~$700M
  • FY 2023 Revenue $2.9B to $3.0B
  • Q3 2023 Adjusted EBITDA ~$100M
  • Q4 2023 Adjusted EBITDA ~$110M

Headwinds

  • Q3 2023 Free Cash Flow ~$20M Incl. restructuring
  • Q3 2023 Free Cash Flow ~$50M Excl. restructuring
  • Q4 2023 Free Cash Flow ~$70M Incl. restructuring
  • Q4 2023 Free Cash Flow ~$85M Excl. restructuring
  • FY 2023 Adjusted EBITDA ~$340M

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

+0.3%

Avg return

Earnings day

-0.8%

Avg return

5 days after

+0.7%

Avg return

30 days after

45%

24 / 53 earnings

Positive

+32.1%

Q4 2021

Best reaction

-32.9%

Q4 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+4.0%-0.5%-9.8%
Q4 2025+24.0%-4.1%+40.7%
Q3 2025-0.5%-6.0%-18.5%
Q1 2025+0.0%+16.7%+12.7%
Q4 2024+22.4%+26.8%+3.2%
Q3 2024-22.4%-19.0%-4.6%
Q2 2024-8.5%-10.2%-11.1%
Q1 2024-11.0%-8.3%+7.9%
Q4 2023-32.9%-37.2%-55.1%
Q3 2023+18.0%-4.4%+8.6%
Q2 2023+30.9%+45.3%+45.5%
Q1 2023-7.1%-7.1%-12.2%
Q4 2022-16.3%-22.8%-43.7%
Q3 2022-21.5%-21.7%+4.5%
Q2 2022+18.1%+19.8%+13.7%
Q1 2022-9.3%-17.8%-25.8%
Q4 2021+32.1%+28.0%+18.7%
Q3 2021-15.2%-8.0%-22.4%
Q2 2021-4.3%+1.1%-1.9%
Q1 2021-17.3%-13.9%-5.8%
Q4 2020+2.3%+24.9%+35.9%
Q3 2020+32.0%+21.9%+64.9%
Q2 2020-3.2%+1.7%-8.2%
Q1 2020+0.1%-12.6%+54.9%
Q4 2019-24.7%-30.3%-68.4%
Q3 2019+3.2%+1.2%+1.8%
Q2 2019+6.4%+5.2%+0.6%
Q1 2019-8.6%-4.2%-10.6%
Q4 2018-0.9%-3.9%-8.3%
Q3 2018+7.8%+6.7%+13.9%
Q2 2018-6.0%-4.5%+0.5%
Q1 2018+12.8%+12.7%+18.8%
Q4 2017+18.6%+21.6%+15.8%
Q3 2017+7.7%+3.3%+9.7%
Q2 2017-8.9%-10.8%-16.7%
Q1 2017+3.2%+4.5%-3.7%
Q4 2016-12.1%-8.2%-12.9%
Q3 2016-11.1%-10.7%-3.1%
Q2 2016-9.0%-8.0%-2.9%
Q1 2016+3.4%
Q4 2015+12.3%
Q3 2015-3.0%
Q2 2015+6.3%
Q1 2015+1.3%
Q4 2012-0.8%
Q4 2014-2.4%
Q3 2013-1.4%
Q3 2014-0.5%
Q2 2013-0.7%
Q2 2014-0.7%
Q1 2014+3.4%
Q1 2013+3.4%
Q4 2013+3.4%

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