Sabre Corp (SABR) Reports Q3 2023 Earnings, Exceeds Prior Guidance
Q3 2023 revenue of $740 million, up 12% from Q3 2022
Operating income of $52 million, marking the first quarterly operating income since Q4 2019
Net loss attributable to common stockholders of $212 million
Adjusted EBITDA of $110 million, a significant increase from $34 million in Q3 2022
On November 2, 2023, Sabre Corp (NASDAQ:SABR) released its Q3 2023 earnings report, revealing a 12% YoY increase in revenue and a return to positive operating income. The company also reported its first Q3 with positive operating cash flow since 2019.
Financial Performance
Sabre Corp (NASDAQ:SABR) reported Q3 2023 revenue of $740 million, marking a 12% increase from the same period in 2022. The company's operating income was $52 million, a significant turnaround from the operating loss of $57 million reported in Q3 2022. This marks the first quarterly operating income since Q4 2019.
However, the company reported a net loss attributable to common stockholders of $212 million, and a diluted net loss per share attributable to common stockholders of $0.61. This is a decrease from the net loss of $141 million and diluted net loss per share of $0.43 reported in Q3 2022.
Adjusted EBITDA and Cash Flow
Sabre Corp (NASDAQ:SABR) reported an adjusted EBITDA of $110 million, a significant increase from the $34 million reported in the same period last year. The company also reported cash from operations of $59 million in Q3, marking the first Q3 with positive operating cash flow since 2019. The company generated $39 million of free cash flow in Q3.
Business Highlights and Outlook
The company expanded and renewed agreements with several large customer partners, including Virgin Australia, Air France-KLM, and LATAM. The company's Hospitality Solutions revenue increased by 16% YoY in Q3, driven by a 7% increase in CRS transactions. The company expects to deliver $200 million of annualized savings from previously announced cost reductions.
Looking ahead, Sabre Corp (NASDAQ:SABR) has raised its FY23 financial outlook. The company ended Q3 with a cash balance of $623 million.
Summary of Financial Tables
The financial tables provided in the earnings report reveal a YoY increase in revenue, operating income, and adjusted EBITDA. The company's net loss margin was 28.6%, compared to 21.2% in Q3 2022. The company's adjusted EBITDA margin was 14.9%, a significant increase from 5.2% in Q3 2022.
The company's Travel Solutions revenue increased by 11% to $672 million, driven by an increase in global air and other travel bookings. The Hospitality Solutions revenue increased by 16% to $79 million, driven by an increase in central reservation system transactions.
Explore the complete 8-K earnings release (here) from Sabre Corp for further details.
This article first appeared on GuruFocus.
