Slide 1: Q3 2024 Earnings Report
Q3 2024 Earnings Report 31 October 2024 ©2024 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 confidential | ©2024 Sabre GLBL Inc. All rights reserved. 3
Slide 4: Agenda
Agenda 01 Q3 2024 highlights and review 02 Growth strategies update 03 Review of Q3 2024 financial results 04 Guidance update ©2024 Sabre GLBL Inc. All rights reserved. 4
Slide 5: Continued strong financial performance in Q3 2024
Continued strong financial performance in Q3 2024 Revenue Adj. EBITDA Adj. EBITDA margin +$24M +$20M (+3%) (+19%) +2.2 pts $740M $765M $131M 17.1% $110M 14.9% 2020 Q3 2023 Q3 2024 Q3 2023 Q3 2024 Q3 2023 Q3 2024 Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP measures. See slide 2 and the ap
Slide 6: Q3 2024 Highlights: Delivering on our priorities
Q3 2024 Highlights: Delivering on our priorities STRATEGIC PRIORITIES RECENT ACHIEVEMENTS GENERATE POSITIVE FREE • Generated positive quarterly free cash flow of $8M CASH FLOW / DE-LEVER THE • On track to deliver positive free cash flow for full year 2024 BALANCE SHEET • Strong pipeline of new comme
Slide 7: Travel Solutions Q3 2024 financial highlights
Travel Solutions Q3 2024 financial highlights TOTAL DISTRIBUTION TOTAL REVENUE ADJUSTED EBITDA BOOKINGS $691M $180M 93M Growth of 3% YoY Growth of 11% YoY Growth of 4% YoY AIR DISTRIBUTION AIR DISTRIBUTION HOTEL DISTRIBUTION INDUSTRY SHARE BOOKINGS BOOKINGS 34.7% +3% +9% Growth of 0.5pts YoY YoY YoY
Slide 8: Faster air distribution industry bookings growth vs. broader industry
Faster air distribution industry bookings growth vs. broader industry Share of Air Distribution Industry Bookings +0.5pts 34.7% ✓ 7th consecutive quarter of YoY share gains 34.1% ✓ Anticipate continued momentum from recent commercial wins ✓ Expect to achieve further industry share gains Q3 2023 Q3 2
Slide 9: Hospitality Solutions Q3 2024 financial highlights
Hospitality Solutions Q3 2024 financial highlights TOTAL REVENUE ADJUSTED EBITDA $84M $11M Growth of 7% YoY ~$4M Improvement YoY CENTRAL RESERVATION RECURRING REVENUE* SYSTEM TRANSACTIONS 80% 35M As a % of total revenue Growth of 2% YoY Hyatt implementation on track * Three months ended September 30
Slide 10: Growth strategies
Growth strategies Multi-Source Platform Distribution Expansion Hotel B2B Distribution Hospitality Solutions/Retail Studio Digital Payments ©2024 Sabre GLBL Inc. All rights reserved. 10
Slide 11: Intelligent Open Modular
Intelligent Customer Management Customer Touchpoints Open Distribution & Partnerships Offer Management Order Management Delivery Management Content Management Financial Management Disruption Management Modular Data Intelligence Technology Partners Flexible ©2024 Sabre GLBL Inc. All rights reserved.
Slide 12: Virgin Australia testimonial: Going Places Together
+ GOING PLACES is future-focused and customer-centric and TOGETHER will propel us to new retailing heights. David Hogarth CIO, Virgin Australia ©2024 Sabre GLBL Inc. All rights reserved. 12
Slide 13: Growth strategies continue gaining traction
Growth strategies continue gaining traction • Announced commercial • Strong growth with hotel partnerships with Virgin Hotel B2B bookings up 9% YoY in Q3 Australia and Riyadh Air SabreMosaic [ TM [ • Air Serbia agreement for NDC Distribution • Hotel attachment rate to air IT solutions bookings up ~2
Slide 14: Q3 2024 financial highlights
Q3 2024 financial highlights ✓ Delivered revenue growth of 3% YoY or $24M to $765M ✓ Achieved Q3 AEBITDA of $131M, up 19% or $20M YoY ✓ Expanded AEBITDA margin by ~2pts YoY to 17% in Q3 ✓ Achieved $11M in Q3’24 AEBITDA from Hospitality Solutions; up $4M YoY ✓ Generated $8M of free cash flow in Q3 ✓
Slide 15: Q3 2024 results versus guidance
Q3 2024 results versus guidance Q3’24 Guidance Q3’24 Actual Revenue ~$775M $765M AEBITDA(1) ~$135M $131M Free Cash Flow(1) Positive $8M 1 Adjusted EBITDA and Free Cash Flow are non-GAAP measures. See slide 2 and the appendix for a discussion of non-GAAP financial measures, including reconciliations
Slide 16: Solid YOY financial improvement in Q3 2024
Solid YOY financial improvement in Q3 2024 Q3’23 Q3’24 Commentary Improvement driven by an increase in global air, hotel, and other travel bookings and Total Revenue $740M $765M favorable rate impacts from richer mix Travel Solutions $672M $691M Revenue up 5%; distribution bookings up 4% vs. Q3’23;
Slide 17: Q4 and FY 2024 guidance
Q4 and FY 2024 guidance Q4’24 FY’24 ~$3.03B Revenue ~$715M February 15, 2024 Guide: >$3.0B August 1, 2024 Guide: ~$3.05B ~$515M AEBITDA ~$115M February 15, 2024 Guide: >$500M August 1, 2024 Guide: ~$525M Free Cash Flow >$80M Positive Adjusted EBITDA and Free Cash Flow are non-GAAP measures. See slid
Slide 18: Opportunity to create long-term shareholder value
Opportunity to create long-term shareholder value Deliver sustainable growth: Focus on innovation and targeted investment 1 in growth strategies Improve financial trajectory: Expect to more than double Adjusted 2 EBITDA from 2023 to 2025 to enhance free cash flow generation 3 Optimize capital struct
Slide 19: Thank you
Thank you Thank you ©2024 Sabre GLBL Inc. All rights reserved. 19
Slide 20: Appendix
APPENDIX
Slide 21: Business outlook and financial guidance
Business outlook and financial guidance • Fourth quarter Adjusted EBITDA guidance consists of expected net loss attributable to common stockholders of approximately $64 million; less the expected impact of acquisition-related amortization of approximately $10 million; expected stock-based compensati
Slide 22: 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 Operating Income, Adjusted Net Loss from continuing operations ("Adjusted Net Loss"), Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted EP
Slide 23: Non-GAAP financial measures
Non-GAAP financial measures Adjusted Operating Income, Adjusted Net 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 a
Slide 24: Tabular reconciliations for Non-GAAP measures
Tabular reconciliations for Non-GAAP measures Reconciliation of net loss attributable to common stockholders to Adjusted Net Loss from continuing operations, Operating income to Adjusted Operating Income, and Loss from continuing operations to Adjusted EBITDA: (in thousands, except per share amounts
Slide 25: Tabular reconciliations for Non-GAAP measures
Tabular reconciliations for Non-GAAP measures ©2024 Sabre GLBL Inc. All rights reserved. 25
Slide 26: Tabular reconciliations for Non-GAAP measures
Tabular reconciliations for Non-GAAP measures Reconciliation of Adjusted Operating Income (Loss) to Operating income (loss) in our statement of operations and Adjusted EBITDA to Loss from continuing operations in our statement of operations by business segment: (in thousands; unaudited) ©2024 Sabre
Slide 27: Tabular reconciliations for Non-GAAP measures
Tabular reconciliations for Non-GAAP measures Reconciliation of Adjusted Operating Income (Loss) to Operating income (loss) in our statement of operations and Adjusted EBITDA to Loss from continuing operations in our statement of operations by business segment: (in thousands; unaudited) ©2024 Sabre
Slide 28: Tabular reconciliations for Non-GAAP measures
Tabular reconciliations for Non-GAAP measures Reconciliation of Adjusted Operating Income (Loss) to Operating income (loss) in our statement of operations and Adjusted EBITDA to Loss from continuing operations in our statement of operations by business segment: (in thousands; unaudited) ©2024 Sabre
Slide 29: Tabular reconciliations for Non-GAAP measures
Tabular reconciliations for Non-GAAP measures Reconciliation of Adjusted Operating Income (Loss) to Operating income (loss) in our statement of operations and Adjusted EBITDA to Loss from continuing operations in our statement of operations by business segment: (in thousands; unaudited) ©2024 Sabre
Slide 30: Non-GAAP footnotes
Non-GAAP footnotes (1) Net income 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 Lanka (Pte)