Sabre (SABR) 4 May 232023 Q1 Earnings call transcript

Good morning, ladies and gentlemen. Welcome to the Sabre First Quarter 2023 Earnings Conference Call. My name is Olivia, and I'll be your operator.

As a reminder, please note today's call is being recorded.

I will now turn the call over to the Senior Director of Investor Relations, Brian Roberts. sir. ahead, go Please

remarks accompanies at page. and during Earnings everyone. issued web Call. this which our also press Olivia, First which an to our morning. of replay today's Quarter the release, presentation website on available XXXX be is This Investor website available this on on Sabre available is A good prepared today's you, Relations A slide Welcome morning, Sabre's call earnings investors.sabre.com. call Thank will morning, later we

We EBITDA, and transactions, that and and arrangements, our costs COVID-XX, and from financial reductions, strategic you the future our expenses, advise benefits statements cost comments transformation financing of and that beliefs savings commercial events, and related contain cash represent industry others. free liquidity, and effects about among trends, flow, revenue, our adjusted technology margins forward-looking and recovery outlook or expectations targets, expected our including

statements materially including may All call. on forward-looking uncertainties uncertainties filings, results these this today's our release quarter morning risks SEC the Form is More XXXX issued made from to our and conference information earnings and first that on actual cause in statements contained our involve XX-Q. risks and differ

release directly other The investors.sabre.com. certain EBITDA will available exclude most adjusted have measures certain our earnings margin, to References during adjusted adjusted items. Throughout to measures GAAP and on website documents also for and today's been be today's EBITDA, non-GAAP EPS call, cash are and call income, net operating adjusted we comparable in the posted at reconciliations non-GAAP presenting financial flow adjusted measures. income, free adjusted

Wilson, our Officer. after the our of Kurt CEO; President are will and prepared be Scott Mike me Q&A Chief Randolfi, and and remarks. for Solutions, Hospitality with President available Ekert, Financial EVP Participating

will the over With to Kurt. that, I call turn

demands company you Sabre's everyone, because XX Thanks, CEO. I and Brian. I'm innovation our marketplace. tremendous where there scale. evolving grow the as at are dynamically technologies for today opportunity the significant travel to thank address changing joined that a new to operate I deliver huge industry, opportunities be believe We of comes a business. to in for the here us. pace morning, months and customers that joining With Good Sabre excited demand ago modern and

will business On growth, Sabre's for today's We targets. our to a and base. to opportunities and strategic put our call, our and business into our revenue XXXX are value achieve reposition shareholders. our to and cultivate cost Mike delivering new sharing committed designed I long-term plans, growth structurally profitable to expectations believe continuing durable reduce lean to on core strategic these while and path us customers financial to XXXX priorities And we be to

the you walk call, I cover. jumping through of the let's can Before topics details I today's an On by into start X, overview four priorities. see key Mike of will outlining will strategic and the Slide agenda. that

efficiency, Sabre. differentiated development enhance I'll propositions explain discuss enable lie will growth improved will exciting expect And product how our for then transformation our opportunities the ahead Next, the that we offerings. of create technology I value and

support for will XXXX plans provide Mike our and XXXX. to detail reduce financial you in outline and results resources more realign financial outlook Finally, for our first through quarter, take to costs growth the and Sabre's opportunities

moment priorities on long-term company. strategic direction four build my to remarks, take that key of Turning opening to Slide a for describe the our foundation form let me the X. To

cash the flow and free are most financial First, delevering -- balance generating important sheet our objectives. positive free

over expectations $XXX to XXXX. we free and achieve generate As our Mike have will a moment, to in cash path detail in we in believe million XXXX flow a durable

core our execution will sustainable focus long-term. to businesses we and delivering in growth continue over on Second, the

of capturing share continue our gaining increased to are momentum. customers volumes to partners bookings, air existing and build For from example, intend and industry we

our different both retailing to and the have and innovation to marketplace. of value propositions tools drive we in travel to with this demands on a set Third, and existing deliver continue The capabilities, changing of merchandising and to plan capitalize the we enhance tomorrow future new of opportunities customers.

initiatives We moment. share believe are in outlining that today these growth will that do a just we and I'll

our towards resources reposition Fourth, future we cost our plan to growth. opportunities for reduce and specific base

expect by into an estimated but million detail free to with cash in path and shortly, $XXX XXXX believe announcing $XXX to will these actions we actions annualized million adjusted go costs are the we our XXXX. solidify We our flow We today, and objectives. reduce in EBITDA

each into detail, us help these targets. in to put path us go on durable a -- how me let will help XXXX priorities explaining more Now our of they

Turning to Slide X.

to As outlines generating most accomplish positive flow milestones previously, I delevering our financial free This slide the balance cash the stated Sabre of believe objectives. benefit objectives are the and stakeholders. important will enable to sheet these us we

we free cash positive XXXX, restructuring Mike costs. few achieve in through actions be you to expect flow to taking the outcome. we that First, in are walk specific And minutes, a excluding will

Second, target free we we X.X cash times. we XXXX our achieve path we are X.X that a targeting to be will over XXXX, of exit and believe as leverage flow $XXX in on million in to

efforts airfares, I'd travel in growth and historically IATA Furthermore, high like the upcoming any volumes. elevated Before indicate factors to carriers our to for further, discuss Today, strong we add outlook years. significant by capacity load see capacity. forecasts I go

specifically to expect traction. as markets, be Pacific, continue bolstered this We gain international to further Asia

these Given we trends. about are long growth dynamics, optimistic

in range of the rates seen GDS the marketplace. Over past year, have we a growth

of have you growth we while achieve a our low we What the including under in quarters is single-digits. scenario, couple own is others, that double-digits, quarters, here experienced will our control. driven volume exclusively only financial even almost by to recent industry a under conservative we believe targets path durable most that have saw Some show the the in quarterly today improvements sequential factors

most in XXXX industry the to given If building, are what will we as outlining we possible, growth we very operating here demonstrates are recent of targets leverage is than we XXXX believe rate stronger the the and have have upside believe today. a meaningful quarters, we we the seen

Slide let's to Now turn X.

on priorities, sustainable second which the our businesses. drive core strategic is to in growth Moving to key of our

our GDS excluding this can As increased XXXX, with industry from you Expedia. and share year-on-year associated bookings table, including volumes of see in QX both

XXXX. in Importantly, after proportion XXXX in a QX volumes, was bookings first of XXXX larger removing industry quarter Expedia the Sabre and of air than

The turn in based with Please growth on with MIDT the and largest Slide further Expedia, industry depicts experienced success the customer have industry world, which table sustainable excluding the highlights information GDS This existing core we X. to chart bookings base. agencies the is XX standard. delivering our

of the the agencies depicted chart, recent the by arrows year-to-date three quarter. nearly As green trailing with the grown most has largest in Sabre versus quarters

We and contract that will renewals pipeline. commercial to sequential are confident upcoming we wins opportunities our within based on continue realize and known gains

Turning X. to Slide

Moving revenue close revenue travel our building priorities, and ecosystem, offerings to to value key opportunities to delivering incremental our our and existing these this customers. our to slide, core the segments. we've Sabre's marketplace outlined by of third revenue new capabilities On customers, strategies to new customers. which of propositions growth drive our value exist expanding changing with and grow specific new to is both into wallet geographies and with new capitalizes that in are enable building with strategic us existing enhance and innovation and customers existing share growing on but initiatives or our of new existing our that delivering Many underpenetrated existing value and by drive

our Across have segment, number Travel strategic Solutions key business of areas. we a growth

targeted product of drive segments. and as expansion service Our specific innovation as people and marketplace consists GDS growth investments in strategy to well geographies

largest and growth and this We with initiative will believe to have support segment. we consistently this travel won continue of with many above-market customer important buyers, agencies the

has GDS. the countries In ranked bookings. India, not GDS agreement strategy, of announced recently in Sabre the all support and GDS India highest Air XXXX, of the world, top carrier first this of had Air global a among with the new XX in distribution been of in number In quarter the bookings second we India which

live content system. this today, our of in As is

multisource to for Our creating sellers all is technology providing relevant buyers. efficiently true business key a and buyers. our Sabre is new increasing strategy and participants uniquely designed complexity access platform efficiently content EDIFACT brings grow believe or both of solution together a and to essential EDIFACT essential by an component and distribution is is all for which We needed content air positioned functionality the unified brings the of to NDC content that and capability, is to an handle strategy, ecosystem industry of unified challenge that content. This multisource marketplace platform part to NDC, our integrating NDC solve

very make several good NDC during milestones we and achieved quarter the to continue progress. Importantly,

volumes traction for and American, we offering Finnair. our gaining carriers, and United NDC with Sabre, industry NDC NDC very still While recently small have are and and is successfully launched the

we opportunity Next, an developing core further The the to This existing customers display to extending highly the content, capability and supported intelligent consumption content opportunity agency and around premier travel. of distribution platform retailing. buyer lodging our is services existing relationships. by see We this lodging for by hotelier this dynamic business-to-business customer become our to initiative and distribution complementary is offerings air significant platform. and for to do intend grow our centered and accommodation of

customers and at a order offerings existing pivot airline experiences platform time moving We their enhancing lead These and new which are multisource customers and higher technology modular plan help intelligent intelligent offer to a diversify grow designed enable streams and both delivery. IT and believe revenue personalized growth. creation creation with by to airline build to [ph] optimize Solutions order expect the to travelers, retailing and our core. is point, our that Airline will conversion more at them We offer on our built revenue solutions industry to best-in-class over we business airline L&AT the offerings product for with to and

double-digit XXXX. In annual double-digit Hospitality expect adjusted business, to exit growth we as our achieve margins we in revenue EBITDA Solutions and

and have coming retail and in includes Retail property offering, see revenue and Studio rich new which Hospitality our Solutions We intelligent pipeline from wins, Nuvola. customer growth a additions from

Importantly, to our intelligent to will platform solutions our hospitality as grow. upsell our opportunity properties, additional on our expands retailing suite powerful include of customers

meaningful this to ahead. contributor last the expect roughly we to a basis EBITDA shared and in fully XXXX years allocated in again be on business we be a quarter, As breakeven

we payment payment that relationship growth We excited in leader growth the Last, in relationships a of also large. the Conferma, years. very we coming And coupled travel strategic in in Sabre Mastercard, to payments with space virtual is our with the become and the competitively stepping are the long-term new with relatively to and Solutions Conferma's acquisition from positioned Travel space, customer are for our benefits the a which businesses. into presents Hospitality opportunity revenue opportunity be believe marketplace

have now expert We a travel, Conferma payments access fantastic to BXB We cash leader and hired not industry with run multiple the only in security but which customers' also increased streamlines to the business. in flow. capability digitize to space suppliers payments the optimizes recently

of Sabre's existing business grow As capitalize an fast-changing a are we over time. innovate value the continue growth to whole, important and to and on to our how to these enhance new strategies travel customers. must plan ecosystem propositions part both We

Now turning Slide XX. to

transformation is Benefits innovation reduced to we technology our and and speed and stability to a are faster deployments. to Our customers already security, software more seamless realizing enabler market, pace. new enhanced key latency bring include at capabilities

ML include promise. Ancillary product partnership our with having this provides also key embedded great recent a partnership in capabilities innovation few on our Google and new commercial pursuits. IQ of anecdotal And Google's and some AI Our examples

our to achievements. recent Turning

quarter, of total As the our of capacity XX% first of successfully had we compute end to the Google Cloud. migrated

compute efforts. was our of to cost Google what our of it Cloud, move about to the capacity transformation With unit XX% is prior

for exited migrate centers, to that managed Tulsa our to environment Google our legacy our goal tech in XXXX Now midrange transformation we last server have Sabre of Cloud. the major is data

goal, services than We the of external to are XXX that servers, by cloud. our we more quarter, XX in more web more connections traffic track than progress into XX% and first the achieve migrating on and than network good customer-facing made

exit tech significant provide leverage we will expect we As savings to we our to XXXX. the have and from previously, as transformation our realize articulated fully cost this financial operating performance, benefit

greater Turning and reduce we announcing to resource Today, meaningfully achieve realignment XX. our structure, improve a are Slide costs organizational efficiency. to

XXXX these the cost of We $XXX and annualized for $XXX actions in XXXX an in combined savings in cost $XXX million in million expect million deliver second savings additional reductions. half to in a

the will our we second part quarter. end we expect to about a As meaningful occur contractor these of which of base and actions, XX%, expect most total the reduce by of by employee

respect As around the I take my so I especially do to of decision the immense a have take new CEO, especially it role. pains world. in given these all the this lightly, in not me my colleagues steps time for early Sabre that

actions put targets. I future us will us direct and strategic to However, path on the and am confident that position financial a these achieving better for our

want heavily to customers. services. invest in continue and I and I to in emphasize our aggressively Sabre Importantly, will our has today deliver the key strategies and commitments to will transformation outlined industry-leading our have that technology and products successfully to we continue to compete growth and meeting

Mike I our and will first and walk to targets. now through to quarter longer-term hand financial the call you over performance plan

Please turn and morning, good Slide Thanks, everyone. Kurt, to XX.

the path I additional Before our I want about the we're targets. and approaching how long-term first to results, add XXXX to context get into quarter

driving aligning value innovation, growth our Sabre's focused toward initiatives. As enhancing customers Kurt on resources our we're and to noted,

volume years, we a industry but objectives a financial to more optimistic have the believe conservative in we are scenario. durable We achieve coming even about path travel our growth growth under

are execute is path on have and largely can XXXX line-of-sight we We based that upon. our proceeding that targets set actions with to expectations of we a and the XXXX believe to

XXXX's targets. a If building, are would our EBITDA believe and increases. recovery leverage operating small upside very portion adjusted improvement by volume meaningful to are XXXX XXXX's is targets EBITDA we the and we industry industry toward which accelerates, build drive the of Only given possible, the XXXX adjusted this driven

incremental growing approximately adjusted of tech or and by revenue efficiency to our focus million XXXX, our half While build $XXX approximately the benefits transformation. our driven emphasis EBITDA on cost is from on is our and

in of XXXX resource annually second XXXX. $XXX efficiency our From efforts, realignment $XXX the to we and savings of generate of expense cost and expect half expense million in million reduction

to the slide. referring Now

left, expectations. for The adjusted table we bookings. overall cash can and table the first our quarter on was EBITDA. right the our in line expectations the As we the see Free first essentially in in the you flow on solid that growth from the highlights revenue exceeded with saw quarter

First Sabre's overall. up the industry quarter grew XX% distribution were QX bookings as faster XXXX than volumes from

versus $XXX Turning Total $XXX XX% million, $XXX $XXX XXXX. million QX increase or to revenue last $XXX of XX% totaled compared Distribution a to million an XX. million Slide million, year. QX increase was or revenue in

XX% to in increase totaled $XX in the $XX million XXXX. bookings quarter, Our distribution a million compared QX

first fee X% quarter, booking average Our from was the $X.XX XXXX. first in quarter the up

believe in favorable mix and more see to regions trend travel, into higher to is booking type continue of continue in We profitable resulting fees, this XXXX. and likely we

$XXX million Solutions IT in totaled of a revenue from million boarded $XXX quarter. the year totaled million comparable $XX period. revenue This $XXX prior improvement QX was a in versus $XXX the million, XXXX. XX% Passengers decline in million

lower streams XX% and $XX revenue, driven of of from Hospitality IT revenue Central business $XX million Solutions Russia, approximately system of per from The growth million, offset an points a passengers totaled and improvement Air growth, business million in and having $XX versus were First approximately by other quarter revenue XXXX. shift. longer than had also quarter a to reservation was airline million million year XX% Solutions IT above million $XX in totaled $XX and revenue ancillary transactions or Center the mix revenue by impact added rate boarded transaction revenue in $XX the XX more impact. QX in million in which last which no Sabre $XX favorable QX average XXXX. contributed revenue our QX

our better We first million was in quarter negative the balance Adjusted with the in flow Free of million million. the quarter, $XXX cash to $XX cash $X a essentially expectations. EBITDA of XXXX. ended first line $XX was as year-over-year QX with compared million in

discuss Moving to Slide to XX our guidance.

and We of second restructuring $XXX of EBITDA $XX million inclusive expect negative approximately between quarter of adjusted flow million $XX free XXXX charges. million, revenue and approximately cash $XX million, of

of negative cash $XX between If free would you expect we charges, the flow million and $XX exclude restructuring million.

pursuant that debt expect not pay we with uninvested AirCentre, of XX, sale we reminder, sale to May proceeds Currently, amount are by our a $XX required million. from As exceed to down XXXX. to that any

approximately we of between both the and revenue and half of positive in second million adjusted and the fourth of third billion, $XXX $X.X For XXXX, expect million free cash EBITDA $XXX quarters. flow

revenue $X excluding XXXX, full and full $XXX the for of billion million, restructuring. the XXXX, year continue billion and For flow we impact cash $X.X adjusted to between positive EBITDA free we to the between expect expect $XXX and and million be year

Slide to XX. Moving

These layers more As Kurt efficient second our approximately geographic we occur expected cost evaluation realignment the organization spans workforce expect of is of savings the includes employee end in a largely XX% improved that mentioned supports of million will streamlining $XXX initiatives in footprints. an and savings design earlier, before quarter. This deliver an and our our management to will reduction include a XXXX. cost growth resource our base, estate and real in and plan and plan that and of reduction

the investments our strategic we growth time, At same are toward prioritizing initiatives.

expect in actions be to these XXXX. $XXX annualized of We taken the XXXX in million benefit

XX. to XXXX path to guidance. Moving our This Slide expect adjusted provides achieve how chart the we EBITDA for

have other $XX to first benefits initiatives based apply would For adjusted taking to This today, historical half EBITDA the prior into to provided strategic our generate taking would million. account half EBITDA into we Prior volume from million. the be guidance cost on seasonality, earnings adjusted of second reductions, approximately growth. of adjusted that account industry if imply first approximately build, take and drivers, the the expected $XXX and EBITDA XXXX, expect half we we

EBITDA, adjusted of $XXX today million in the seasonally have we expect half that benefit announced are second the of and that we generate XXXX. half the half upon Building first will actions second cost

can outlined strategic $XX million approximately growth our earlier contribute initiatives believe we this year. Additionally,

noted this to of points on remarks, and my a expected for sequential approach path to $XXX year. as growth is industry XXXX creates Also, industry third benefit growth based the for build small EBITDA quarter only We a expectations million represents quarters. our fourth $XX the our XXXX rate a this million adjusted adjusted of $XXX million in per in volume of toward earlier calendar of X.X and EBITDA believe volume durable component of remainder

that growth be will to our higher, rate the be Should expectations. upside

X.X add growth to cash to rate if that as noted and this sequential million of additional $XX an points on would adjusted the example, EBITDA For XXXX, closer half second the in is the year. flow slide, free

Moving to XX. slide

walk you positive we Now, restructuring excluding cash costs through we free to generate how plan in flow, XXXX.

this you As in see and be between The $XXX year. discussed can working to call $XXX earnings XXXX are of to sources in our in $XXX we currently positive still expect underway, we table, initiatives expect million and that February capital from the we benefits cash million. million working capital drive

Our expected approximately cash $XXX is interest still be XXXX. million to in

about expenditures million. XXXX We also expect capital $XX of

To developed to highlight, greater that we upon. believe positive sight execute less extent, restructuring, have relying much excluding in we actions on path growth, that XXXX, free industry on to and we've could cash a to and generate a volume flow durable we line of

under cost less have that through to remains a derisked performance reductions. XXXX strong industry factors the control believe taking end made by and decision to rely our we we have a on While possibility, the expectations of result own more our achieve our faster external recovery

XX. slide to Moving

to toward will path target and efficiency industry in greater remain one XXXX build developed how path, prior in stronger EBITDA which the lower level now generate includes of a than our walk expenses this million. adjusted assumed Sabre's XXXX target, but different versus our We to adjusted a that recovery. this we towards Now, of $XXX you additional XXXX, I EBITDA gains confident through ability expect we've

are savings drive EBITDA the which combined driven in the expect our that improvement from is now XXXX XXXX XXXX. million from approximately technology and costs, under note, to of $XXX half realignment announced adjusted by important lower by resource to our We our to transformation cost expected control. about today It's

million. strategic today's initiatives to highlighted approximately generate earlier $XXX expect our We growth call on

following $XXX expect to three digits revenue million We end first, and by driven margins contribution achieving at roughly growing the be the by areas; Solutions Hospitality this double-digit equally of double XXXX.

Second, from to share wins. wallet retailing airline GDS and our in of continuing finally, and above-market growth initiatives. expansion And increases from drive strategy payments growth our competitive

volumes, contribution Moving optimistic trajectory to remain relying overall the on while we are industry the we volume about volume now growth, travel less from future gains. of

industry quarter XXXX which articulating million year per X.X and is volumes assumption, underlying we now the supporting for we of XX% today, are targets and Our $XXX conservative believe approximately that the to recovery approximately XXXX, respect a with about full averaging between improvement. improve is P&L points

are and pre-pandemic noted airline increase our pace we've from these optimistic today. airline partners, on As industry closer the to are future faster would increases we about in levels, targets volumes. indicators upside meaningful volumes reach previously, Should that provide we at based industry a to presenting

the adjusted this help approximately To will of we cost quantify million free structure of additional each flow. with to cash directly $XX point worth is down growth flow EBITDA, volume are developing, which

full to of a we in adjusted targets. would upside XXXX we developed XXXX toward potential believe Assuming to have of a $XXX imply our EBITDA. target path durable recovery million million $XXX Collectively, up our

would cash greater than XXXX Moving the $XXX of free in generate believe greater million base establish to slide to flow We $XXX than achieving XXXX. adjusted XX. million EBITDA in

as Assuming less environment to rate cash $XXX than a we interest XXXX today, interest be million. similar expect

We $XX $XX and expect be expenditures capital million. between million to

greater level million with generate in free expenditures, than Collectively, capital flow expect interest of $XXX this we adjusted cash to EBITDA, cash of and XXXX.

meaningfully the will allow Sabre this de-lever Importantly, to sheet. balance

a half XX. and to half debt slide times net balance achieving highlight adjusted EBITDA we to target This outlines how that and toward de-lever and to levels. sheet progress meaningful XXXX our a path by three subsequently intend with slide two to the Moving our

billion net the billion net billion. be by end balance expect of end XXXX, XXXX. flow our we targets, of Based $X.X the free debt $X.X was reduce cash balance quarter our of debt to upon $X.X As first to between be and of our to the able

to cash and balance flow we debt. free further that decline work reduce as to thereafter generate expect We

million XXXX, and debt will on times. of EBITDA EBITDA than I'll generating With target X.X to to be net $XXX adjusted back X.X to Kurt. adjusted with And in XXXX, it reach we that, believe leverage our expect hand path our to we greater by a to approach of X.XXx,

Thank you, Mike.

provide remarks. your few line opening closing Before I questions, will for a the

we lot have we help our you shared us today the with targets a I confident our updated and expectations, look place and outcomes. information path in our forward of First, you XXXX and the to about I progress. keeping to have plans on leadership these durable XXXX am achieve our goals, to

Second, for Sean many I appreciation extend of to years my Sabre. deep Menke his at service

in We capacity Sabre are continuing for entire look I speak steadfast unprecedented you, thankful of for the his I our forward and partner him team especially thank when during Sean. Board. Chair to to say with know as leadership, times his I

With line questions. please the that, for operator, open

Instructions] [Operator Baer And Josh coming with from our Stanley. is Morgan line of first question the

line open. Your is

little more appreciate I in in all I detail on the XXXX the contribution targets. hoping you and talk million growth confidence the new bit And strategic the $XXX slides. the initiatives, really the a the wondering was for question. about the could Thanks Great. to EBITDA or

$X like the and wins growth mentioned, on growth. from rely some wondering Just the some too, revenue that profile margin of there, buckets you that Like implying that's opportunity an incremental strategic if thinking kind competitive through billion-plus initiatives. three

This you. Kurt. thank the Josh, question. is appreciate I

to relatively that most a core that growth strategies our we've payments hired We've all articulated strategic the First -- business. expert lead growth field. far important to close of Payments they're all, that it's business. look is the we to note the at today, as

we the and We the actually have leverage with Mastercard. the businesses. And relationships in HS both strategy relationship TS existing that have will

growth customers, to cost in strategies, that expansion, great operating business is very convert business. because point, on once you additional of is investment. part As Obviously, our high-margin the look leverage that some or GDS as your we a market of wallet there win it feet at there either business. has street, greater a is with expansion there you But expect great But some additional a revenue new share product the you flow-through. GDS of requires

is growth, because to not high you other unit that building but of they from investment the come at As we're look an all operating or very leverage strategies, required anything each with high drive margin very there scratch. and initiate

For payments them selling by effectively the at at distribution of shelf. an And clientele, don't the hotel as we're already a infrastructure into example, on opportunity, and putting if as existing that more opportunity them or you have. look need an replicate product you we look lot extending to we

that business. our existing is higher will a expectation than come or margin growth strategies the actually our So unit with incumbent overall,

Thanks. That's really helpful.

NDC. on question Second

to wondering, is context bookings far Just happens as targets, mix like in follow-up, your economics your And the of as XXXX assumption you're as when there you making any for what a what NDC? facilitate NDC versus traditional?

is Sabre. industry today, low as that Josh. percentage of the as for single-digits for NDC distribution, airline overall important note intermediary a to It's Thanks, as well

I within all for one certainly forward negotiated traction a fits in can an for XXXX expect we look that We've XXXX, as commercially, additional have that number of others. of we As now agreements. is and NDC a our do size we to will expectation NDC there different profile. gain no you number negotiation tell NDC. maturing We're target

well what I and confident ahead. financial Sabre quarters tell profile, the unit that with margin And as years can is realize so as in you as we've project the strategies at the NDC of curve, growth accretion coupled are we see looking articulated, inclusive what adoption you'll the that we the

in queue. back hop I’ll Thanks. Great. the Okay.

from our And question the Oppenheimer. coming Jed you. line next Kelly of Thank with

open. is line Your

Hey, great. Thanks for taking my question.

guidance I is low-end think it's correct? of right versus, about bookings $XXX it million Just looking guess, at XX% at the the million recovered EBITDA EBITDA the way at XX% with of $XXX bookings. was Is that longer-term that updated to targets, the with prior

Yeah. to That's think it. the right about way

be questions. I Can step-up I assume pretty prude. management, previous XXXX but not guidance, to then get you material it's path historically, to medium-term up. profitability came us was have a kind think has might I since just a in then know Are to two mean, we never great. Okay, XXXX a hit to And what give that, of like? you going count to XXXX? I company that something its and I XXXX, like given is this on And it under Xx guidance know looks

we there up be guidance? is about hit contracts would or issues could to cause potential So you that come this thinking any that should not that

Jed, Thank you. is Kurt. this

the see to me and we this With the growth going detail. to I'll have go a and market Let not ability where over pessimistic here targets. we've provided the is provided start the about rate majority achieve you we think articulated that the forward. to articulated, a confidence it is the skepticism today, of those within respect that felt step into on our path to to there number going way our have about have and is there XXXX you to control. that we have XXXX more We targets we that number we've hand we to view the was of that we're some Mike from vast What want the

on the quarter taking, a it's we technology actions than of points think, growth and modest us. capitalize still market it XXXX, industry then strategies the of on of the X.X much, the very benefits which assumption transformation. given cost It's conservative was realistic is to of sequentially, growth that much the a smaller opportunity in view It's is a per we're the assumption ahead only

to wanted of very also market rate confidence we a we the as the deliver numbers. as you probable wanted targets of these is faster possible, hardwired durable articulated. the be have a which as in that What actually to is believe there's should ability as provided but we today, So as we showed at grow our upside growth, possible high we a -- you degree outcome, that we Mike we targets provide to to

So good ability forward feel achieve we the very path about numbers and articulated today. the we've our to

Yeah.

on And guidance from you walk think pieces what I'll call some are about I pieces and XXXX, bridge to XXXX but will we're some specific that the this XXXX providing so help. not hopefully through of as today, that

year would in next generate we The $XXX actions to improvement. through the think you that year, XXXX. that of million million in and today, in as that that a are announcing So drive taking step-up so another generate cost here EBITDA will expect annualization we $XXX

that would tech our other on is piece I transformation. The about think

to make progress. continue We meaningful

the our cost at or about, that would we've be, million. it a talked -- would total the -- As bubble costs $XXX give we indicated take inception, bubble cost had

you when about volume it substantial portion As in we you the transformation. $XXX in to of a decline same time, look from about at cost tune Google $XX a -- from Cloud. And going it's of our hosting much we're million running on costs those Cloud, Google to costs XXXX, to at pre-tech the of look XXXX. the XX% closer support And to going some have hosting volumes million the XXXX do to of volume expect on bubble to what

expect there. we continue get to So benefit to

the At increase continuing to see actions. same time, industry volumes own from we are separate our

we our to our would would benefit growth. XXXX GDS expect from industry importantly, Hospitality But in in emphasized, Solutions, from so contributors And things growth comes continued XXXX. be those expect as payments. mentioned from strategic initiatives, we Kurt growth continue volume business, growth has And such within to that meaningful a and to more as

we meaningful from to So would step-up a this not a but we see specifics -- would we're expect and providing time. at XXXX see see XXXX, to meaning

probably on lagging. versus digits I guess, the travel, then was like I Got year the is think that it, distribution Is it. obviously or this being business mid-single And down, entirely is where And there's industry, driven just call just XXXX. it the happen bookings overall are by there more to a Thank or back get of anything accelerate structural that's to of control just allowing terms capacity third-party or that that cause or the direct airlines bookings something you. to XXXX levels, could closer that is traffic? distribution lot there could travel in capacity business

Yeah. a is the bit portion great seen slower quickly leisure little that's for in Jed. What in is or recovered the industry you've grown date travel. example, What -- some recovered you parts has of most the domestic world. that see type North point-to-point other And fully of effectively America, question, to

constitutes international. the one, part the two is portion such of is long-haul and Where corporate industry, a a GDS Corporate recovered. is, travel; lag has travel there been what of significant number number

where and International look in corporate, at of that it long XXXX. XX% about If number. south was TMC is of haul you

fully not still the Pacific based in cetera. has And so recovered slowness Asia on et China,

relatively support of more have that the continues expect a structural travel grows, believe above-market back. to and industry capacity been growth at anything direct corporate come slowly, in leisure again, long going domestic that is the opportunity those grow has than I believe point-to-point. articulated, And as haul forward changed, distribution portions do exception recovered to so We for GDS what the the not than we rate We international faster sector. with there's should

Yeah. And we can provide to direction our really as I look airline as be. look important, at may be, what could signals good think ultimately, volumes partners prospective they what and to the because really at it's

high is levels. for high example, today, planes. we our airline hearing And quarters, and at And about industry to what above seeing so record the desire capacity. are if those despite airfares, add look to generally time, airline historically their at the you're running XX% airfares record we're partners same on XX% airlines that pre-pandemic load And seeing factors we're you're significantly talk the talk hearing revenue about high

to side, lot them been identifying of working short has production the planes. simply pandemic. aircraft set of side, space. same That's and during the on the capacity probably time, There with the have had difficulty on slowed growth, the going that. enough constrained down primarily take been quickly good labor the Boeing the during training resumption there's through At have of were One, a and pandemic wave been hiring time. in airlines pilots airline run, airlines by Airbus and And the a and pilots. in Now retirements

airline bring they're working add a constraints. in planes But strong going to able accelerate are both to can. those and best working to way that back airlines deliveries to they're airline they capacity on the in be significant with through side working manufacturers been they're and signaling Now, and as And capacity those on bring their capacity constrained has coming quarters.

optimism And would good growth that terms in of of accrue so to expect to that as the overall volume a gives GDSs. we us portion

marketplace we I'll higher opportunity. growth provided GDS the have it's may so the that expect say, today, dotted of is And that what hope end very believe of within end of on I low Yeah. conservative rate provided We or we line the and additional the line what hard is just happen.

Thank you.

Thank you. And our the next with Morningstar. of Wasiolek from question Dan line coming

is line Your open.

taking and maybe here. and from plans on and you current I XXXX plans macro those second quarter been And for their question. Good versus months any travel Thanks morning, guess hearing I budgets for I in has of rest guess ago? just the Thanks. environment? guys What are budgets the shift, corporations to guys. my one the there three guess,

corporate is about bit. X% the to which see you. a and past We did corporate and it travel to seasonally rate few at pick in X% been bit trend growth indicated, quarter-on-quarter other then we've today. seen overall where quarters. on January of that's basis, pre-pandemic We're the the up the for off adjusted, travel that Thank leveled a trading XX% similar Again, seeing a grow lines was trend I've is quarterly

getting of So are the is road. back what than on we're hearing in hard data a is anecdotes that people rather series this

masse. the a well, theme travel? are for en and work-from-anywhere External probably Will sectors, given many dynamic impinge example, corporate layoffs and normal. travel is actually, there's back that know to are in tech. I internal events was travel there of the And is question amount of happening a Meetings quarter, certain corporations. greater, there in last

a today If presuming back the the employment firms, each that with they've in of XXXX are than they in even and and employees as them size look reductions of the proxy have commerce that And many more put you you most XXXX, from dramatically at they did seeing still XXXX. engaged actually tech other. in, grew still to employment use their they

We're the the corporate actually for sector. long-term on travel quite bullish trends

I good of overall, But a to per prognosticate corporate not to growth is we rate growth term. lot think we for accelerate signs. be Again, the example. to So, travel quarter, upside be long going to or there's continue of for in X% X% believe the X% hear going we're whether to

Okay. that color. added Thanks for

Victor of coming of Thank question Bank you. line [Operator from the Instructions] with our And Cheng next America.

line is Your open.

morning. more much recovery may. And have for slide then, by I due more QX can from you year-to-date? driven on first Good top Thanks what gains of region agencies. you're XX on to if by faster where Maybe, question. versus color by some show if Sabre's seeing or I mix, leisure? maybe is -- share with taking the all, it A that maybe corporate be my some follow-ups. couple, of eight you us And How provide bookings in

combination well This seeing we're Kurt. share of of new you. is thank Victor, the as our wallet a as gains, with conversion what existing is On share wins. improved clientele, of

good a which the there's so, of that, is in And degree improvement sales. same-store

and a trend two trend we've universally, to geographically In the X% between that and is saw seeing quarters. you which we seen segment. tell QX, market can what I what What the similar is first in up quarter, a growth to past what X% that is both performance we're GDS market in similar we've over pretty which by seen is QX,

we you've EDIFACT hearing fees lower are -- NDC. expect from there Thank about on bit one earlier. in And provide two maybe when sure to there? economics some on But a then, you the unit you color more what compare know, you. move overall, doesn't we're I'm more is, I talk can American fits That's booking very can all, channels. QX? the we impact Should not maybe talked to clear. that. generally if some overall, NDC I no specifically hearing is what size it one know And is NDC we're but NDC about

Victor. Thanks,

stated on There NDC, is economics by are and fits all, no here First of discrete previously, carrier one as I've economics carrier. the for all. size

NDC. NDC between where they're where and We are and EDIFACT and have the economics neutral between EDIFACT different agreements

earlier, we in in adoption, indicated growth unit strategies with the we margin NDC, articulated, do expect future. forward the with coupled positive I the expect increased As to of we've be years

just never And driven tell American, launch, to better And it as launched public It Sabre we NDC the was their early American by comments. respect views both With and American been place. successful big a and would very a for April. relationship their I you private successfully American has that, a with of between the accomplishment in in us.

our Alex of line Thank you. with And Bernstein. coming from next question the Irving

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may, I if please. Two gentlemen. morning good Hi,

cost the First, bookings of on follow-up in from if provide and can on some quarter the that? is last content by the the do that with Could date, detail share a the partial look we restructuring. own please, question following to gain QX. impair you on can EDIFACT you Thanks. your which American reduce booking How please flow My ability regarding spending question compete? of confidence withdrawal second American won't sort to you're how that, functions the planning to business on

Yes.

to a take and of me bit this then Mike. give it Let

want to are marketplace as value business customers and and we who restructuring the question, in On been to the where around the did is first share, what of a we we state management and sat of the we've team all, What to marketplace. we is, down forward we've proud is world. as look Sabre the I at opportunities very the and what new done the history of today, we're the our of bring believe customers

what pool in done front organization the the opportunities of that design and is resource of we set see so we've us. that against And

So what me with let we're let talk in more Mike a that, there. bit detail about doing

Sure.

there's realignment, prioritized business our a to our going couple that forward. drive things approached we we resource within really of that as So

and third, that So way today; that are we've the very our and transformation; ensuring tech supporting possible, second, commitments. best our the resourcing initiatives in supporting customer we first, ensuring growth outlined

of that, as rest organization, looked focus, of want much our the org at what aspects spans our really went like and things with is looked various real estate layers for to evaluated with business. We resources we're evaluated and how forward? we our Now applying at and of We areas move footprint. what right the those as areas design being we org we through the we

our were drive revenue, but of really to is have to business. and that resources all that, growth going which the EBITDA those is cost focusing targeted fixed is so, going more drive efficient, for develop which on a time, And that we the to at structure lower ultimately same

marketplace true any industry airline percentage very American bookings. about the to the a respect Sabre. of launch with as as other speaking low that without single-digit nothing the seen well NDC NDC, structural launches. of And let American, me NDC for We've specific nature intermediary a customer, remains details or That's in we've with with of successful and the change had for reiterate,

will Thank to now remarks. at for time. you. I'm call seeing I closing no further queue back over this the turn questions in Ekert Mr. any

Sabre in this Thank call. you, interest today's completes appreciate us look That all morning. and We of joining you again for forward again speaking your to with soon.

conference gentlemen, does and that Thank your for you our conclude today. Ladies for participation.

You may now disconnect.