Sabre (SABR) 2 Nov 222022 Q3 Earnings call transcript

Good morning and welcome to the Sabre Third Quarter 2022 Earnings Conference Call. My name is Amy and I will be your operator.

As a reminder, please note today’s call is being recorded. I will now turn the call over to Vice President of Investor Relations, Kevin Crissey. Please go ahead, sir.

morning, good and Amy, everyone. Thanks, joining Thank XXXX our quarter for call. you for earnings third us This an we our morning, issued website available which at on is investors.sabre.com. earnings press release, also Sabre Investor webpage. which prepared accompanies A Relations this slide the remarks, presentation, is on call available today’s during this A of later will on our be replay available call website today’s morning. and We statements events, beliefs industry our about expected future trends, that including cost others. of and expenses, to duration recovery or and you effects savings, our and financial our that our liquidity, among and advise like outlook from represent would comments and forward-looking and the technology targets, contain benefits commercial costs margins arrangements, expectations revenue, COVID-XX, transformation strategic results today’s from statements All and involve call. forward-looking conference statements risks differ actual made the to on uncertainties cause may materially that More quarter and information in including release issued is SEC Form morning XX-K. our XXXX our Form XX-Q earnings contained filings, on and XXXX our risks this second uncertainties these and we Throughout certain will non-GAAP today’s also call, measures. financial presenting be during free income, adjusted EPS, items. call adjusted net been margin, EBITDA income, adjusted and EBITDA, References adjusted flow to adjusted exclude to adjusted certain have cash operating today’s and directly our in reconciliations are and The the GAAP posted website documents for measures earnings non-GAAP comparable most at measures investors.sabre.com. release other on available Participating Executive Officer. Financial with the Officer; of and me Chief Randolfi, are our Chief Sean Board Kurt President; and Menke, Chair Mike Ekert, our I’ll that, Sean. the call with turn to And over

today. for today's overview us on and you Thanks will of Mike thank Kurt, On four, Kevin. topics I you call. Good everyone morning see the joining slide can an and cover

bookings, trends. accomplishments will architecture technology changing. significant commercial the the in seeing towards the on on quarter hospitality the technology will perspective then discuss further made quarter. we for a trends He CRS also how travel transaction providing few our in you transformation are Kurt and update is our provide third usual, As by and I'll marketplace, specific including boarded, start in the progress passengers perspective we

take our you will the of quarter results and XXXX. Mike through the for outlook of Finally, financial financial the remainder

my I members want start, team Sabre to worldwide. Before I thank

few the to and for technology work months, travel the to is drive travel. platform us they premier with past of able The in Over global many I've fantastic are helping doing be our them. been customers meet

Turning to to Slide X. throughout that I'm were considerably by specifically air both volumes quarter. improved operational airline in airport report our Volumes, and pleased impacted booking the July constraints.

of recovery, The XXXX. quarter onset the booking quarter third quarter These saw distribution the Hotel solid a revenue in This which our in international IT is same were to most resulted Solutions per Asia As global result improvement with a as in in of XX% XXXX. the XXXX XXXX. of the COVID-XX improvements, third the recovered quarter positive the The same in the period we of versus current in XXX% recovery in higher booking passengers equates the strength the the same compared QX of from quarter Pacific pronounced. in translated period total the XX% October. third in progressed, continued into to the pandemic. since best to was attributable booking trends quarter continued recovery third the CRS travel. versus recovery revenue transactions versus boarded achieved period rate XXXX. Higher XX% a

boarding, at were the of XXXX. October, distribution Passengers October, excluding Our XXth volumes Radixx XX% same key and transactions CRS at XXX%. as the in in were metrics remained period strong of versus bookings were specifically XX%

recover. had starting am if annualized we were region, in international Pacific we markets, say, our positive revenue in Moving very other noted further a are region been the average Asia opportunity this which to of particularly to to X. the million the to Slide see I slowest to signs $XXX recover Last recovery quarter, to pleased regions.

our been period travel in same XX%. before, discussed restrictions the fully, bookings recovery where there to starting Sabre. has end and even ending we relaxed. QX Hong XX% have Kong more bookings XX% the of Within at we've with started expect of our in Accordingly, returns XX%. Kong, the Hong APAC, most Taiwan Taiwan than just flying recently profitability was improvement generally international improve. more the story, XXXX. better the is at By bookings domestic and as profitable bookings are international an quarter, for recovery at quarter been As pronounced

X. to Slide Turning

or Although, see the aware we of regarding concerns demand. in economic of are don't corporate leisure global growth, we slowdown either evidence a

remain We see globally tends flights seen the departure advance which domestic closing the also In effect and for above fares well fares travel. but as prior to fact, here, to we travel, depicted in the of well very strong book for and for corporate pandemic. and have leisure COVID-XX international

the above note to advance very XXXX there also own walk-up, is the beyond levels. the small. been purchase increase at It number seats XX disparity of they XX of fares Our internal and important review between average on difference air more to that fare pronounced based airlines being between average purchase periods. purchase in fly. days and has plan sold fares to date advance X well days Higher is are Historically, a fares the and encourage

XXXX flown carriers this carriers. quarter for seats these seats materialize respectively, XX% are Current in In of quarter in same fourth to total first increase an large period with versus and in XXXX. being XXXX and network seeing versus the marketing compares schedules be This of X%, the in US XXXX. of reflects the to loaded total down fact, third the X.X% we

to outpacing XXXX. fourth XX% flown third up versus being seats the international first X.X% XXXX, In domestic is same and down versus importantly, internationally growth. the be period in of X.X% XXXX approximately currently quarters in the are quarter of growth approximately More and

any We how XXXX impacted normalization to is again significantly far global traffic. what is air In of estimate in it COVID travel in would Moving economic effect than to Historically, COVID. COVID the to-date, year given believe with quarter. X%. travel traffic from was will eight, the by believe possible would perspective normalized global we drop Obviously, this be prior to about than we be X%. larger global the economic short, passenger in regarding passenger opportunity the this likely for thought only recession billion We news XXXX. expect we below XXXX present a slide the the largest global passengers the about a helpful flow even unaffected greater by it on calendar presented recovery provides in slowdown passengers slide this X.X of significantly

the walk regarding latest to transformation our highlights. you through few call Kurt? commercial Let and me to Kurt now the technology turn a over

Thank world. all, success. I join to you, Sabre are Sean, my around for best Sean, position the first and or serve Sabre of serve hard teammates and customers, continued pressing They thanking achieve our goals hello, everybody. our in

we stated please the track number end nine, made progress slide by goals our of quarter technology to transformation solid XXXX remains XXXX. third to Now, toward on our turn and the achieve in tech milestones,

begin our In the to to As migrations. Cloud. our centers a which mainframe In to migrated reminder, we migrate a XXXX Google to customer more scalability database we third Cloud from our quarter, milestones benefits Hospitality and one, make greater means reservations Cloud; and for Cloud. by This to of is Google provided the record, business accomplishment Cloud. and migrated Google two we are: expected to passenger client unlock hospitality Google Enterprise system, to name Central and offload property two, exit transitioned Solutions' key data Sabre-managed management Reservation our technology improve of October, velocity the all have fully Google SynXis important to agile, the System number

we Hospitality up Solutions better these will abate in expect performance for cost associated bubble Additionally, actions XXXX. the that year-end, financial by setting for with

product focus in as need customers. expect when initial value see our all expect you moved a and During was picture, have that migration final for from processing migrated quarter, can AWS will XXXX Cloud. to data Sabre the generate data finally, Plano, air we additional And journey Google the workloads and third centers. we to the starting emptied decommissioned in long We in our Texas. on also energy our the step first now can on the center shopping we into enhancements we we and capacity additional This with

decommissioned of data the other XX% in three in We than centers have our servers Carrollton. more Louisville, also Austin, and

a we this is technology savings As the improvement outlook key transformation of for driver margin outlined have we XXXX. provided have and expected before, that

Let me now provide context. bit more a

migrate our Turning compute to our systems has falling slide cost Cloud. infrastructure, lowest we as our Google to cost XX, number been unit of

this savings on monthly our opportunity about server cost half less which is further Cloud before centers, of to have XX% and monthly we create DXC-managed. cost cost In Cloud, our can our than we Sabre-managed fact, systems AWS. our on the Google on costs savings. And Google optimize current data It is also server both cheaper the is than believe

expect Slide Now less how Sabre's XX. from takeaway to computing key approximately By the of architecture our complex, of technology our be years expect past slide slide X.X we end over original change our and how the we will part represent Google XXXX, turning to XXXX. be. by XX% systems The volume expect how to to operate computing end the has and it this depicts This Cloud of we the we plan, is volume. as significantly changed per of

and In also flagship need meeting Mike, I October, comment to world, continue agreements our workflows, utilize choice on long-standing announced want transparency. and Sabre distribution with and technology efficient the of objectives, These help agreement United. to travel commercial turn relationships retailing with to and plan Before American two their collaborate advance we buyers' we while airlines I carriers, for the recent activity. these to solutions call renewals to in the largest over

relationship Travel, corporate our companies the management strengthened travel of also one We BCD world. the in with largest

and this over booking We relationship coming new alike. joint with announced forward benefit increase American and will look in agreement, connection to Mike, content our Business technology invest through continuing commitment BCD. and will the our Sabre And first over to conversions expanded you. believe development expect We expanded these part Hopper. BCD Travel Express and XXXX to Global we As years. QX will relationships with of of previously to its in in travelers BCD suppliers accelerate half the with and

everyone. and Thanks, morning, good Kurt,

recovery and July year, third due as million, $XXX Slide $XXX a reaccelerated travel EBITDA revenue to versus and continued in Turning results QX of improved of Total $XXX revenue quarter in in XXXX’s compared the from improvement hotel to XXXX the primarily $XXX was mid-August QX recovery global million. million slowdown. revenue million Both year-over-year significant last air, Distribution to other the bookings. travel the revenue XX. totaled in adjusted

the in XXXX, the July, whole. to XX% distribution August XX%, air Our quarter bookings XX% September, a and quarter. million recovered as in net bookings totaled to Compared and and $XX in XX% to

average Our extending The is the travel. booking in consistent the in was of with the improvement $X.XX recovery fourth types fee and $X.XX into compares quarter, quarter, third to which XXXX in of last XXXX. $X.XX $X.XX and regions QX profitable more quarter sequential

Additionally, totaled the in Solutions AirCentre is Hospitality IT as totaled XXXX. expense pandemic recovery Adjusted year an versus Central our $XX in boarded significantly versus average increased Solutions $XX fee The versus in XXX in volumes. quarter the of third XXXX. and EBITDA last in XX% revenue a travel QX period by improvement million representing quarter. comparison a in year-over-year in higher improvement XXXX. booking was revenue fees despite totaled in million quarter of was of of $XX Passengers of $XXX first year-over-year continued. strong incentives totaled challenging an million, the from XXXX. the the This in XX% million, the than caused quarter COVID-XX million and XXXX the XXX% sale $XX by revenue the portfolio the better XQ achieved transactions levels. the recovery was same revenue of improvement reservation Hospitality transaction revenue from Solutions quarter partially million system of were solutions million offset year-over-year higher $XXX

transformation. some associated income, adjusted expenses to higher labor net Free flow improved EPS, hosting associated and volume technology their versus higher due recovery operating technology fallen the typically expected, and adjusted year. quarter context, profit, Adjusted and disbursements and the important was were increased include negative agency cash professional As all $XXX to provide third have payroll about These is million quarter. $XX note disbursements the that in the incentives To some it second in totaling that in quarter. timing there with the with prior our service costs cost million. third

XXXX, second in the sequential In quarter a from $XX quarter. quarter improvement addition, free fourth we in the cash had flow. to cash favorability. balance part cash seasonally strong quarter seasonal free free Sabre's we for the costs meaningful reported continued historically turn million. by We Adjusting and cash positive travel in these flow a about in million would the cash restructuring have fourth third quarter flow for in the the cash typical items, of of has $XXX flow will recovery with period been Accordingly, ended third quarter. driven third

Moving XX, on can slide. you of to profile this slide our a maturities debt see

new is the in XXX, is B the reason plus have lenders. LIBOR Our debt time. We today, meaningfully At of February by is both this primary our nearest below XXXX. was B Term Loan this about it earlier transactions in maturity which what is Loan and $XXX and cost which Term XX% previous in we over lowest our million term refinanced by refinanced available markets supported loan two year, strong demand of

after our in Loan B debt are XXXX. Our next April Term nearest maturities

We obligations, Loan including maturing XXXX. refinance B to Term are our currently in evaluating our efficiently February market opportunities

on current and interest Our annual additional debt rates profile current to interest expense million. based our any about prior $XXX refinancings is

Our XX%, about by expense every $X basis million. net debt annual of to XX% interest changes fixed-to-floating rate points interest XX about is

our you Given the recent wondering the US foreign in exchange exposure. may about moves be dollar,

of We have net a a benefit expenses XX% have had exposure, XX% toward of expense historically the about we our With in currency. experienced and stronger our revenue weighting dollar. from denominated modest

to However, results. the impact our quarter immaterial was third

Turning to slide XX.

seasonally is bookings. we guidance, quarter XXXX offset benefit by be to slightly recovery quarter the expect than the to higher the lower partially third fourth of Moving as revenue

a low adjusted in XXXX the the be expect booking million, of recovery quarter also in XXXX. same period to assuming to approximately We EBITDA distributions compared $XX percentage fourth XXs the in

expect adjusted bookings a prior of million XX% year, for For This and our better of the between approximately than is XX% of versus assuming EBITDA distribution $XX guidance the recovery we outlook approximately EBITDA full XX%. range midpoint XXXX. of

annually free travel Importantly, expected world. is to be will the conclusion, positively around cash quarter and and in strong is recovery remained be has travel demand positive flow the the fourth In thereafter. extending

are we the please achieve forward. Operator, on higher Session line our for Q&A. We to transformation track and open profitability Question-and-Answer goals, going expect technology

with from Broome Mizuho first [Operator comes Our Instructions] question Matthew Group.

Your open. line is

Thanks very much.

level corporate your average So it believe domestic continue out average in the And booking have and fees definitely you quarter? see what booking improve. at? updated leisure fees any gets and of to thoughts was then the to you terms Do where and will international between mix

hi, then Thank start Matthew, is the this Sean. for to you Kurt. I'll question. and hand it over

$X.XX effective So of on fee, booking. to per net a we $X.XX indicated previously range

to currently this are We closer end lower of the range.

So we increase booking improve. per our there business to for continues to revenue that opportunity remains do mix some believe as

get mix, you the of Yes. And a happening. couple if it's into -- are things Matt,

just period corporate short the beginning haul short-haul leisure sort you we I recovered down of if remember closely illustrated think bill. it recovery what front what carriers and and recovery, meaning because why to the business say and time pandemic, a when watching as of to by leisure the sort does they capacity, But this has it sort short a we're relates long carriers, side corporate strong need still with the be a the would international and taking saw what's What we're travel you that. in haul, look Over kind equation. there's as seeing have of is capacity that's the noted of of on US the combination half at that. because the we is new capacity is I the three we international of place. the break really, and the I actually help, gap very their and is largest leisure driving of the closing, continues and corporate haul. to is now of why And really of side, belief part in the thrown

of right that's what sort So seeing we're now.

seen that have partnership, then Okay. in perhaps And the Business or some the Global that October? Travel quarter from maybe Group, partnership volume ramp-up you Thanks. just during on

and Matthew, next those volume period. through initial a for to during this Likewise, seeing in and see accelerate conversions conversions see BCD basically is we're tailwind QX beginning partnership, year. the GBT Collectively, thank accelerate to will We're Hopper from you. XXXX. this we going

Okay. very Perfect. Thanks much.

question. comes Thank next of next our standby our the with you. Mark question for line And Please Bernstein. from Moerdler

open. line is Your

very And you if through. it's much. questions, improvement don't two Thank see kicking mind. nice to the I've got you

The first flow. is about free cash

negative. it quarter. expecting You're next It turn to was meaningfully positive

we some And next takes. how why us does that improvement what's and some next, puts do then going gave be continue sustain? You to But And follow-ups. into of the the driver to quarter? that big think of

Sure. And of a free just little Thank cash you, our context provide me bit on that historical trends. question. Mark, for let flow

period, with back payments very cash quarter for payments between flow has If other we of go pre-pandemic from a disbursements make versus Sabre. when And the period been has partners to the partners. it when the free you to essentially we various strong fourth historically other receive do timing to

to just flow, tends expect the seasonality to And and way favorable. we if may let more see a be our because bit helpful continue, that QX. QX prepared so those those I to fourth we'll in the is payments to little think looking on fourth to at you statements, it And look just quarter QX the That very me is be at quarter. trends elaborate

more of million seasonal free QX. in of there with But payment more that million happened and then you flow cash in had was negative that cash If adjusted imply flow we more the second negative negative you be $XX quarter. what is that would the essentially that $XXX QX QX positive $XX typically into about in third timing, free would in and million at take occurring like said of quarter that benefit QX, $XX like look the are and million account you the in trends

And we positive so to fourth we and with in be free will in cash positive XXXX be expect thereafter. that, annually I the say would quarter, flow and

Should free plus transition that's forward very flow helpful. we of going impacts basically the combination the revenue/mix mostly growth Should is -- the we cash trajectory figure savings? of cloud that figure the positive

you I think it. got

have -- big tailwinds. XXXX, into as we think a go there are of I we series items the so

and a in more We great Obviously, headwinds, the headwinds lot things I as slide but We've a lower than business the are had saw to side. have We, see really moving you're a more go BTD. to starting as Hopper And wins GBT on with still And big and That some some benefits are mentioning. benefit on things the recovery. the SG&A mean, headwinds. you have scale we grows, into of is -- too, XX, tailwinds compute. to this travel tailwind cost expect XXXX. our we

So, for really good we flow. a revenue down down the from rates. revenue EBITDA obviously, to us biggest tailwinds our exceed from higher cash grows, as flow-through the The expect is headwind, should headwinds. perspective net-net, But interest free to far

That's very helpful.

within decrease upside A, than that? some that tailwind and Cloud, slide or see workloads you're all as to be Google better B, a to And has of more meaningfully, an existing single compute been Following up double-digit It's impressive of Should like down or then from, cost very moving like compute average switching. going to on is cost Cloud on per how the Yes, optimization, Google could XX. that. it is the expect I much optimization. the we

this in on jump one. Yes, Mark, let me

shift time. that for and have we'll be a the just long savings of to long-term Google and to place, that's able contract contract Cloud, of that essentially sort those the very period have is to in a it's over that we first, So,

of drive is gets relationships spending the to So things some actually get. the the we're with customers to now, right about the of their and doing. into that take as we're our lot what place. with what do compute requirements some engineers And tri-party bulk are this only also efficiencies, agency. What about relates sort that the we're having those conversations doing, teams it this where on are savings what customers Google the a to time of of some with we our can is that nice are begin finding what's even going and of that's optimization with of talking this but And we're with not how you're

able will sort we're But we been completely to be we clarity, because as Mark, quantify disclosing we it. working gain that. So haven't of that yet, still definitely more through

and Beautiful. forward work. seeing of the I to start congrats. move quarter really looking and all to lot appreciate numbers in the positive A next hard

Mark. Thanks, Great.

the One you. James for next question. your from Thank And our with comes Goodall of line next Redburn. moment question

open. is line Your

Thanks taking my for hi, questions. Yes, everyone.

just difference is So the the lower Loan the my to about of the your more are and before B, in think absolute cheaper, on first XXXX debt thoughts and remaining and debt having I one which what given value? size, the is sort expensive comparatively rates refinancing, XXXX guess, larger Term refinancing

how did the joined I efficient maturities. I say is it an would treasury thinking Yes. for I amazing say be very you approach how the going would it's with we're really to I and I managed what XXXX is balance try has managed we're a in tell to most that by obviously way would opportunistic how company is, Sean challenging What things team Sabre, to mean, say and is incredibly time. I on financings, maturities the And and kudos and what really job of would in what impressed I its shareholders. an just liquidity that, our sheet, that's first, XXXX about was before followed there. it's was And one has our one, managed first,

at plus how at our a the refinancing, proxy which in proxy terms If XXX. probably you markets of the is best have August was changed, look

you in current term so when markets that were August the our where at of and to our structure. loans we completed idea debt it least current relative And some gives refinancing

I bit to the positive. to And to working free HX? of you. Thank negative words, both guess, in phasing, HX looking just flow Are of my HX, of that one expect being capital on or you positive Great. on next guide second be versus a HX year sort be are to give other for then color cash able positive in HX and you the in HX see that would given and you be for you

context color February provide regarding we'll out. more James, playing call the Yes, on we the and how see earnings year

you. Thank Understood.

for comes our Thank question. Jed with next our moment next question from And One you. Kelly Oppenheimer.

is line Your open.

great, great. for my may, if Hey, just Thanks question. for one, on on Two, year. outlook taking just the next I

I probably think previously, your that debt your to would adjusted start implied had expense I think outlook decline mid single-digits.

I case? year, travel? is still cost? about is think Thanks. can stronger headwind just you the next impacting starting is that how there offset the just there And is the talk by And higher -- then ticketing dollar an long-haul or like

the in expect I'll Sean we XXXX XXXX. do It's to technology technology take expense take aggregate, part, On aggregate two expense made will first part. up components than the second in lower be essentially. in and of

a It's a We years of really XXXX. benefit because significant then in starts is are in compute The still net significant starting that of expense have to one the taper XXXX. have we to see of down investments, Those we're and decline really a in tech essentially our tech still cost. that. and bubble the cost bit lower to our reason

more to next But decrease net in the expense call. those, earnings expect in XXXX a the provide overall we'll of on be would on So, XXXX. we tech color slight

And up I'll the Jed question. this is second Sean. pick on

demand. seeing within actually some think major traveling strong is that driving think I United States we the by individuals dollar, strong the have to relative carriers to out it called the United that been definitely that those one of at in States overseas, that the has look thing is been the you here if they relative what So,

we're it inflation down why recovery on there seeing If being with out of we're is maybe we're passengers. impact of long-term? of more think perspective, you to call recession, billion the strong. the thing back to to coming we're back the at sort pointing that because in the think the this the even and is the about am an side, And we're And from we everybody recoveries I Leisure keep the are normalized a TMC. APAC trying relates tell that What global what think is business that I in X.X it now. out is in some regions important the I ecstatic cycle. is and where into, to I be concerned just about long-term are on looking gets we keep That's a right you I what seeing as really the headwinds things continues seeing would side is sort global we and regions. to seeing drive

United this but a of a taking more States, we've the specific month out quarter actually to there's So, of the the third step progression is seen into that's coming place of that up. October been

recover, to So, the continues will that. that as we of be beneficiary

some well. place They we've into marketplace. came being the of for are of seeing the average capacity fares And The we the down. seeing essentially the August improve operation, timeframe other but and just down taking we're is thing that when that We right? saw -- as thrown those period it, seen associated a continues sort that's with to be out there time, in issues came compression there, just July, higher call fares, average not

the of seeing that we're green So, looks US we're And happening the the the outside tailwind dollar. on for again, signs all of global signs just to looking more we're the XXXX think that's what airlines, seeing perspective. what's but with specifically like. macro just relative valuation We a US again,

IT -- the guess, sort up can on for progressing talk solutions? where of with are opening about back to get of airlines Got your they your negotiations as normal, up back I it. and -- then contract you And kind conversations airlines are like Thank just, you. solutions segment

Kurt. is you. this Thank Jed,

focus number very real within So, phenomenon -- medium on of in retailing. first And opportunity. the you global order on which may airlines we're long-term carriers, merchandising solution of of well-positioned by put vision, a becoming have against helping that about seeing effectively network segment. carriers we're heard is of been them for is Airline we behalf IATA, and IT has that by we're a all, the conversations The big better something especially out called to the think the with growth airlines. There one

number about So, customers excited with we're a together ability the our very of marketplace to the advance and prospects.

you. Thank

Thank you. with question from And our next Stanley. Morgan Baer Josh comes

open. is line Your

international Great. had question. guidance higher longer in margin this talk I up higher guidance? line EBITDA versus targets. Thank it savings? would QX the why first, I given tech about a and higher compute on and the from QX top you of Just quarter the slightly move term wondering the couple on guess, QX, than minute lower you revenue just opening progress for momentum results for a cost with the the on the the can transformation and all

Yes.

from some the movement benefiting XXXX investments had some cost as specific would are -- into QX then we say QX, QX have On I trends that standpoint. do And we I from is move mean, favorable an what XXXX. SG&A within to QX, SG&A

And moving that's so adjusted difference just to you the from costs EBITDA. slightly QX higher on have QX, and primary

the sorry, was question? And what second

the the just check like scenarios ranges still stand? to on wanted then And and targets, Yes. I XXXX

Yes, they do.

XX% year million in But recovery bridging scenario, million XX like something? putting I of a to margin in XX% like Okay. them. $XX really and incremental some out am or revenue pick recovery increased you on margin, to around back savings, XX% tech the just could then type you the for if And right the this I from from then missing scenario. think in $XXX I'm Is million getting I XX. numbers low EBITDA would any EBITDA and just the of in that the the $XXX getting incremental Even EBITDA, to XX% like

bullish we is travel about today. is say are on would I the think overall. very what we recovery where are One we So

We the the have that obviously noted, an marketplace, see that's you continue is savings, $XXX recently which, wins of recovery we've win in about transformation, about million we and announced, that to of XX% -- the with as benefit million recovery. tech XX% $XXX you

grows, should really SG&A We expect scale from standpoint. we that an see revenue good as

EBITDA expect that, XXXX. to margins, with you if do overall look so And as we at to increase margins EBITDA compared our

and XX% look had XX%, at EBITDA at look depending XXXX, on if about And recovery. there range targets the the you of XX% If between we adjusted margin. you a

our to levels. That improvement. it at those So recovery is expect targeted expectation is reasonable margin

Okay. Thank Appreciate it. you.

please. Instructions] [Operator One moment,

question next from America. of Our Cheng Victor Bank with comes

line Your is open.

my couple, I A may. Thanks taking if questions. for

you looking percentage the just provide improvement of So the all, on that last months. And presumably, trend in can by color bit given first the one region, recovery APAC. a more two of at I'm point bookings kind of is bulk

that So EMEA flattened? US recovery or somewhat assume is fair it to has

Yes.

Let we help what you with have sort seeing. me been of

have seen, this once tell I is what that month the and the and and you October of So on global was the basis place. September a taking we and probably what's October would is best recovery

APAC. with start Let's

or If the APAC year recovering they're you the APAC with it, and now. remember, at beginning looking to-date, down it's What timeframe, October we've seen the call September, really than was less they're XX% range. down at of in, the XX%

out of some flatten carriers So, seen being you have recovery. you're within that if Part has a marketplace thinking one end it a capacity the EMEA but bit. of probably recovery, the by dig we the grown XX% been we're it's Europe. that the about into of that What slowed. major That is little at has top is, in seeing

before. it's this with significant taking there So, that we being in after as America improvements capacity then the is looking where we're the We're in happening place. what's well. Latin steps first we at watching US, it, improve seeing at some the essentially and we're not happening. improvements has the quarter continued COVID greatly bookings, what's as incremental seeing to what's cases hit big were look And of in the but

part finding be there, are and that's think do trying what to global I of is sitting the needs because capacity in basis. to demand on the there a what airlines more marketplace is So, you're

for sort it's waiting supply. demand that of when following. demand is the the So, is they're the We know there, supply

breakdown now, So that's sort we're right what of Victor. of seeing the

in thinking the Thanks useful. of I volume you recovery. terms a got couple cash And that’s be for positive recovery of thinking you year, on positive? using flow the next minimum volume cash full year to follow-ups what just flow about were for

call. noted, this be but assumptions Difficulty] call, free next provide on and something you and color we not say, would thereafter. we doing cash next context positive in earnings on I annually expect the be a trends would lot it's Yes, flow year as to more We'll [Technical and

additional Got using that material then bookings already -- to I contribution BCD has for partnership you. Because thought next the there And mistaken, not Sabre some yesterday, on is the contribution you was if year. announced I'm TDS. primary

Victor, thanks. This is Kurt.

commercial relationship we're to with One, excited and partnership. there's by investment We partnership; BCD with relationship two, this the by we'll GBT sharing have. is a There with about development not existing with very relationship growth So be we marketplace. did BCD. Sabre have BCD BCD a dissimilar partnership. It's partnership. meaningful will the long-term This broader being done that technology the involve an

on mentioned as next good for tailwind year. So, for call, this a is, the us I

CRS then And maybe platform have A question then just any have you to sale since one looking capabilities on that to across final given is hospitality hospitality, and looking plans whether you not, it. you're a hotels expand? saw have on are do potential increasingly or unified you point. plans final PMS. And for and more develop in IT hospitality if invest to any Got explored

Yes.

on is -- side, that we space think on look out opportunity in on side also and important we're Kurt has clearly of and retailing very me one had Let that the called I both the is side what thing hospitality hospitality what that the thing strong. sort we have seen at The the the mentioned is capability. airline seeing that the Kurt

retailing is taking So, have that place. sort and there getting on we essentially the out we of the good what's from customers studio really our that focus feedback have

very it, we've tech the through at that gone is transformation you significant. If look

as of begins some as And be so that's year. seen really stated, we the relates that into cost to tailwind So XXXX. it a it abate right pressure to we've that will now, this

I think into you because about the important small we other it it's thing, capability, think fulfillment Nuvola if acquisition, but gets acquisition that at you look retailing side. when the the made,

is So revenue make opportunity right we How looking as that there. it do we're relates drive for retailing are place. capabilities, more hoteliers to what ability the and the that's having lining the through in platform again, the to up that everything sure that fulfilling we're

we're IT, how IT. the like grow very the do Airline on hospitality focused we So on

That's clear. you. Thank it. Got

Q&A Menke further no of to showing I'm the for at this conference questions time. I like you. closing back remarks. turn would End Thank to Mr. now

my an that Amy. and Great. again have like Thank around thank you, that right would members team Once really dedication environment their continue now. hard is recovering they I to the work world for to

relative what's taking this mentioned lot I throughout green seeing a to place. lights were of As call,

of relates amount transformation. as our it to made have enormous We an progress technology

up the but of sort we last in year -- the expenses not we piece a That was bubble I the into the it’s without it Difficulty] work, great And our what's organization. for taking on the really be [Technical again, today I it’s now told It’s We’re XXXX. there leg significant of as it’s place. this And us setting future its right most think significant, a you. call. go hard the really joining and think for earnings done most wouldn’t

This concludes you participating. today’s conference for Thank call.

may disconnect. You now