Sabre Corp (SABR) Reports Notable Financial Improvement in 2023
Revenue Growth: Sabre Corp (NASDAQ:SABR) reported a 15% increase in annual revenue, reaching $2.9 billion in 2023.
Operating Cash Flow: Operating cash flow improved significantly, with $96 million reported in Q4 and $56 million for the full year.
Net Loss Reduction: Although net loss was reported, it showed improvement with a 42% reduction in Q4 compared to the same period in 2022.
Adjusted EBITDA: A substantial increase in Adjusted EBITDA to $96 million in Q4 and $337 million for the full year.
Free Cash Flow: Achieved a positive free cash flow of $77 million in Q4, marking a significant turnaround from the previous year.
On February 15, 2024, Sabre Corp (NASDAQ:SABR), a leading technology provider to the global travel industry, released its 8-K filing, disclosing its financial results for the fourth quarter and full year ended December 31, 2023. The company, which holds the number-two air booking volume share in the global distribution system industry, reported a 15% increase in revenue for the full year, reaching $2.9 billion. This growth was attributed to an uptick in global air, hotel, and other travel bookings, as well as favorable rate impacts in the Travel Solutions business segment.
Sabre's Travel Solutions segment, which accounted for 91% of the total 2022 revenue, was split between distribution (70% of segment sales) and airline IT solutions (30%) revenue. The company also saw a 19% year-over-year growth in its Hospitality Solutions revenue, driven by a 10% increase in Central Reservation System (CRS) transactions.
Despite the revenue growth, Sabre Corp (NASDAQ:SABR) reported a net loss attributable to common stockholders of $96 million in Q4 and $542 million for the full year. However, this represents an improvement compared to the previous year, with a 42% reduction in net loss in Q4. The diluted net loss per share was $0.26 for Q4 and $1.56 for the full year. Adjusted EBITDA for Q4 was $96 million, a significant improvement from $1 million in Q4 of 2022, and $337 million for the full year.
The company's financial achievements are particularly important in the Travel & Leisure industry, where the ability to generate positive cash flow and maintain liquidity is crucial for ongoing operations and investment in technology. Sabre's success in refinancing the majority of its 2025 debt maturities and ending the year with a cash balance of $669 million provides a solid foundation for future growth and stability.
President and CEO Kurt Ekert commented on the results, stating:
"2023 was an important year for Sabre. Our team members around the world delivered significant commercial successes, efficiency gains, and product innovation achievements that drove strong financial results, including compelling growth in revenue and Adjusted EBITDA, and achievement of our free cash flow objective."
Looking ahead, Sabre anticipates continued revenue growth and margin expansion in 2024. The company's focus on delivering modern retailing and distribution technology aligns with the evolving needs of the travel marketplace, positioning it well to realize its strategic and financial priorities.
Value investors and potential GuruFocus.com members interested in the Travel & Leisure sector may find Sabre Corp (NASDAQ:SABR)'s journey towards financial improvement and strategic growth an appealing opportunity for further analysis and potential investment.
Explore the complete 8-K earnings release (here) from Sabre Corp for further details.
This article first appeared on GuruFocus.
