Sabre Corporation · NASDAQ:SABR
Sabre — Q1 2025 Earnings Presentation
34 slides from Sabre's earnings presentation, May 7, 2025
Slide 1: Q1 2025 Earnings Report
Q1 2025 Earnings Report 7 May 2025 ©2025 Sabre GLBL Inc. All rights reserved. 1
Slide 2: Forward-looking statements
Forward-looking statements Forward-looking Statements Certain statements herein are forward-looking statements about trends, future events, uncertainties and our plans and expectations of what may happen in the future. Any statements that are not historical or current facts are forward-looking state
Slide 3: Today's presenters
Today's presenters Kurt Ekert Mike Randolfi President & CEO EVP & CFO
Slide 4: Agenda
Agenda 01 Agreement to sell Hospitality Solutions 02 Q1 2025 business highlights 03 Q1 2025 financial results 04 Q2 and FY 2025 outlook ©2025 Sabre GLBL Inc. All rights reserved. 44
Slide 5: Agreement to sell Hospitality Solutions: Overview
Agreement to sell Hospitality Solutions Overview
Slide 6: Agreement to sell Hospitality Solutions
Agreement to sell Hospitality Solutions TRANSACTION DETAILS • Entered into definitive agreement to sell Hospitality Solutions to TPG • Transaction valued at ~$1.1 billion • Expected net cash proceeds of ~$960 million1 will be primarily used to reduce debt and improve leverage profile • 2024: Busines
Slide 7: Sale of Hospitality Solutions expected to accelerate improvement in financial profile
Sale of Hospitality Solutions expected to accelerate improvement in financial profile TRANSACTION SUPPORTS OUR STRATEGIC FOCUS Drive stronger AEBITDA growth Accelerate Generate Free Cash Flow and Delever deleveraging the Balance Sheet Divestiture and debt pay down to accelerate Power deleveraging, i
Slide 8: Business highlights
Q1 2025 Business highlights
Slide 9: Solid financial performance in Q1 2025
Solid financial performance in Q1 2025 Q1 financial results are presented before the impact of discontinued operations, consistent with prior guidance methodology REVENUE ADJUSTED EBITDA ADJUSTED EBITDA MARGIN ($6M) +$7M +1.1pts (1%) +5% $783M $777M $150M 19.3% $142M 18.2% Q1 2024 Q1 2025 Q1 2024 Q1
Slide 10: Travel Solutions Q1 2025 financial and metric highlights
Travel Solutions Q1 2025 financial and metric highlights TRAVEL SOLUTIONS DISTRIBUTION IT SOLUTIONS TOTAL REVENUE TOTAL DISTRIBUTION BOOKINGS PASSENGERS BOARDED $702M 96M 166M (2%) YoY (2%) YoY (1%) YoY AIR DISTRIBUTION BOOKINGS (3%) YoY AVERAGE BOOKING FEE $5.91 +2% YoY HOTEL DISTRIBUTION BOOKINGS
Slide 11: Executing against our strategic focus
Executing against our strategic focus Generate Free Cash Flow and Delever the Balance Sheet Drive Growth through Innovation INTELLIGENT MODERN OPEN RETAILING AND TECHNOLOGY MARKETPLACE COMMERCE 11
Slide 12: Driving growth through innovation
Driving growth through innovation OPEN MARKETPLACE INTELLIGENT RETAILING AND COMMERCE Multi-Source Distribution Hotel B2B Digital Platform Expansion Distribution Payments Deliver the most robust air Expand customer-base Expand content to become Provide simplified and Become the industry leading cont
Slide 13: Competitive wins and platform expansion to accelerate growth
Competitive wins and platform expansion to accelerate growth OPEN MARKETPLACE OPEN MARKETPLACE FY 2025 AIR DISTRIBUTION QUARTERLY RAMP OF AIR DISTRIBUTION BOOKINGS GROWTH BOOKINGS GROWTH EXPECT DOUBLE-DIGIT GROWTH FY’25 • Continue to expect double- digit growth rate in 2025 driven primarily by signe
Slide 14: Financial highlights
Q1 2025 Financial highlights ©2025 Sabre GLBL Inc. All rights reserved. 14
Slide 15: Q1 2025 financial highlights
Q1 2025 financial highlights Q1 financial results are presented before the impact of discontinued operations, consistent with prior guidance methodology REVENUE ADJUSTED EBITDA ADJUSTED EBITDA MARGIN $777M $150M 19.3% (0.8%) YoY +5% YoY +1.1pts YoY CASH ON BALANCE SHEET $672M Full Year Free Cash Flo
Slide 16: Q1 2025 actual results versus guidance
Q1 2025 actual results versus guidance Q1 financial results are presented before the impact of discontinued operations, consistent with prior guidance methodology Q1’25 Q1’25 Guidance Actual Flat to low-single digit $777M Revenue YoY growth (0.8%) YoY Adj. EBITDA >$150M $150M ($98M) Free Cash Flow R
Slide 17: Q2 and FY 2025 Outlook
Q2 and FY 2025 Outlook
Slide 18: Hospitality Solutions transaction strengthens financial profile
Hospitality Solutions transaction strengthens financial profile Planned debt paydown associated with the sale of Hospitality Solutions will accelerate deleveraging toward long-term target of 2.5x to 3.5x IMPROVING NET LEVERAGE PROFILE ANTICIPATED DELEVERAGING IMPACT Leverage ratio (Net debt / Adjust
Slide 19: Expected use of net cash proceeds from sale of Hospitality Solutions
Expected use of net cash proceeds from sale of Hospitality Solutions Net cash proceeds will be used primarily to pay down debt 2025 PRO FORMA2 FREE CASH FLOW USE OF NET CASH PROCEEDS ADJUSTMENTS ~$960M FY 2025 FY 2025 ~$165M 2021 TLB B-2 Pre-HS Transaction Pro Forma2 ~$170M 2022 TLB B-1 Adjusted EBI
Slide 20: Q2 and FY 2025 pro forma guidance
Q2 and FY 2025 pro forma guidance1 Effect of HS Initial FY’25 Pro Forma1 FY’25 Pro Forma1 Q2’25 Transaction Double digit Double digit Low single digit Air Distribution Volumes - YoY growth YoY growth YoY growth High single digit High single digit Low single digit Revenue - YoY growth YoY growth YoY
Slide 21: Pro forma 2025 outlook
Pro forma 2025 outlook1 Full year expectations remain unchanged, excluding the anticipated impacts of the sale of Hospitality Solutions Pro forma Adjusted EBITDA of ~$140M in Q2 and >$630M for FY’25 2025 PRO FORMA1 FREE CASH PRO FORMA1 ADJUSTED EBITDA FLOW ADJUSTMENTS >$200M >$200M Q2 2025 FY 2025 A
Slide 22: Executing against our strategic focus
Executing against our strategic focus Generate Free Cash Flow and Delever the Balance Sheet Drive Growth through Innovation INTELLIGENT MODERN OPEN RETAILING AND TECHNOLOGY MARKETPLACE COMMERCE 22
Slide 23: Thank you
Thank you
Slide 24: Appendix
APPENDIX
Slide 25: Non-GAAP financial measures
Non-GAAP financial measures We have included both financial measures compiled in accordance with GAAP and certain non-GAAP financial measures, including Adjusted Net Loss from continuing operations ("Adjusted Net Loss"), Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted EPS, Free Cash Flow and ratio
Slide 26: Non-GAAP financial measures
Non-GAAP financial measures Adjusted Net Income (Loss), Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted EPS, Free Cash Flow and ratios based on these financial measures are not recognized terms under GAAP. These non-GAAP financial measures and ratios based on them are unaudited and have important
Slide 27: Non-GAAP pro forma outlook
Non-GAAP pro forma outlook The non-GAAP pro forma financial outlook in this press release, including pro forma Adjusted EBITDA and pro forma Free Cash Flow, is not necessarily indicative of the operating results of the Company if the Company were to complete the sale of the Hospitality Solutions bus
Slide 28: Tabular reconciliation for Normalized Non-GAAP measures
Tabular reconciliation for Normalized Non-GAAP measures The following table reconciles our previously reported consolidated adjusted results by income statement line item to normalized adjusted results from continuing operations by line item. Adjustments represent (1) the impact of classifying Hospi
Slide 29: Business and financial pro forma outlook
Business and financial pro forma outlook The Company is providing certain financial information, including second quarter and full year 2025 financial outlook on a pro forma basis to give effect to the sale of the Hospitality Solutions business and the application of the proceeds from the sale to pa
Slide 30: Tabular reconciliations for Non-GAAP measures
Tabular reconciliations for Non-GAAP measures Reconciliation of net income (loss) attributable to common stockholders to Adjusted Net Loss from continuing operations and income (loss) from continuing operations to Adjusted EBITDA: (in thousands, except per share amounts; unaudited) ©2025 Sabre GLBL
Slide 31: Tabular reconciliations for Non-GAAP measures
Tabular reconciliations for Non-GAAP measures ©2025 Sabre GLBL Inc. All rights reserved. 31
Slide 32: Tabular reconciliations for Non-GAAP measures
Tabular reconciliations for Non-GAAP measures Reconciliation of Adjusted EBITDA to Income (loss) from continuing operations in our statement of operations by business segment: (in thousands; unaudited) ©2025 Sabre GLBL Inc. All rights reserved. 32
Slide 33: Tabular reconciliations for Non-GAAP measures
Tabular reconciliations for Non-GAAP measures Reconciliation of Adjusted EBITDA to Income (loss) from continuing operations in our statement of operations by business segment: (in thousands; unaudited) ©2025 Sabre GLBL Inc. All rights reserved. 33
Slide 34: Non-GAAP footnotes
Non-GAAP footnotes (1) Net income (loss) attributable to noncontrolling interests represents an adjustment to include earnings allocated to noncontrolling interests held in (i) Sabre Travel Network Middle East of 40%, (ii) Sabre Seyahat Dagitim Sistemleri A.S. of 40%, (iii) Sabre Travel Network Lank