Sabre (SABR) 3 Aug 232023 Q2 Earnings call transcript

Good morning, and welcome to the Sabre Second Quarter 2023 Earnings Conference Call. My name is Cherie, 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 the Senior Director of Investor Relations, Brian Roberts. Please go ahead, sir.

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

transformation, results effects contain on risks and from and More We filings, future among ongoing the involve cash events, earnings including comments our All that reductions and these cost and of statements XX-Q. industry expenses, today’s information our and benefits quarter this from forward-looking on Form contained is commercial the trends, SEC COVID-XX, you forward-looking savings technology strategic costs others. release flow, liquidity, expected and advise financial our the statements beliefs arrangements, differ represent issued our including conference and recovery statements and to outlook morning materially XXXX free cause that revenue, call. made uncertainties priorities, our in or about strategic margins actual from uncertainties risks expectations EBITDA, that second adjusted may our our targets,

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

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

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

for today. fundamentals the the quarter to business. joining indicative financial in within Thank global for of raise us In you, the am our positive and trend exceeded our is win morning this we confidence in to be underlying second discuss upward morning, gives this second and joining to travel adjusted I highlight you pleased ability to our quarter, thank you accomplishments segments, Good performance everyone Brian. the momentum We across dynamic EBITDA XXXX business Sabre’s significantly technology guidance. the marketplace. today us see compete expectations and and key our our that believe the

Sabre core remain $XXX million. strategic outlined objectives we priorities. we and our than focused on Furthermore, our of XXXX Sabre’s durable quarter on and targets towards on last EBITDA the are cash that of on million of adjusted conference greater path is that We I financial am flow greater than call delivering pleased a free $XXX

I On Before jumping an call, into cover. and X, the you the the see will through topics Slide of Mike today’s let’s walk detail of agenda. overview can

second from First, our describe of I review I data the supports then our revenue the which will take moments to highlights will quarter and that some business are a seeing, we expectations. near-term underlying few

our Next, the transformation. of second and successes quarter the provide detail then our update on I will progress customer technology during

outlook. for our results and second financial the to the provide through you take will an Mike update XXXX Finally, quarter

Turning to Slide X.

As long-term direction our our from a key strategic are company. the reminder, priorities the foundation for these four of

accomplishments each of from As achieving objectives. and refer priority, provide to towards that progress points will highlight each I proof second I recent our the these quarter

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

we to and combined operational business improving anticipated. than QX fundamentals deliver Solid results execution better had

provided original guidance XXXX earnings stated adjusted the able to I we half EBITDA increase on expect are be to to February the our guidance we previously, pleased upper revenue call. now the And year-to-date. also be within we As of

more detail refinanced term debt will XXXX nearest significant maturities, describe our also which we Mike a quarter, of in the During portion shortly.

flow cash impact generation annually we and Importantly, free restructuring in of see excluding to QX thereafter. positive free and beginning towards of flow XXXX, this expect the cash year in transitioning then be Sabre positive

of our year-on-year again during is bookings second share once to on air strategic Moving priority, which quarter. industry basis long-term growth, the to second sustainable a its increased deliver Sabre

share excluding industry the of addition, volumes and XXXX second versus In impact both Expedia, improved XXXX of our GDS quarter levels. has

expand with outlined to backbone efforts last growth Our partners, agencies our the and that is airline new and we quarter. distribution of the business continues strategy

expect also will of the years. significant our growth the in quarter that achieved each with customers businesses across coming support successes We during second our we

Our innovation our and enhance customers. existing proposition new third strategic drive to is and priority value with both

and in quarter our and remains competitive transformation operational financial quickly technology in to achieved during We remain delivering our our a technology a to our milestones second services products track and term on customers. and longer and Our achieve reliably the goals. advantage cornerstone migration manner secure

In important addition, overall needs. several our our will enhance suite of competitive fulfill our we we believe strategies made customers’ evolving strides on growth that to product

solutions, Techsembly hospitality within speeding ability accelerate product of deliver development studio of our to scale to retail For customers. key example, hotelier acquisition to we our expect including our and suite, our our products

completed that quarter. majority the communicated cost resource we now of and we last Last, the have realignment vast reduction program

objectives of path on we we May are and $XXX XXXX our delivered our In summary, on million outlined targets. second on half the our the reduced costs executing you towards team XXXX to to reduced achieving priorities XXXX second of realize our track costs back of and the and quarter, in an laser-focused on durable are annualized $XXX during in estimated We in million XXXX.

by be chart. healthy to seat including suggests Underpinning robust. XXXX and of turn increase that let’s and solid coming latest in optimism third the air further in yield The further growth of growth quarter year-over-year deliveries underlying a a and schedule the October. aircraft in growth volume load Slide can travel the of the driven from factors month Now, demand capacity the remains expected carriers, to global host Industry constraints our growth indicate regarding and is of labor here training in environment for year-over-year capacity shortfalls, factors, of XX% airline supply is XX% for rising X. seen global industry being in mitigation optimism quarters that

industry backdrop, have targets volume provided. exceed would industry strong upside level, last industry specifically, business a by conservatively Regarding expect should Respondents survey for year-over-year Despite articulated grow demand travel quarter, the corporate corporate coming industry this of be of to is expected And indicated sequential recent passenger healthy realize in in they that to to volumes the as X moving growth second surveys that XXXX. to a we we guidance we in have, points forward. we and to quarters. double-digits and X growth travel expect indicate the ‘XX half to planned

Slide Turning to X.

achieved XXXX. During quarter May, on in highlight share QX in a see we call again versus to slide, you can our bookings share earnings as QX. the increasing expanded industry basis And first in in our year-over-year XXXX table used GDS this that of QX we this

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

compare geographic air seasonal first you bookings XX.X% the bookings QX industry sequential by share was in the shift the If of of mix to of change impacted between slight quarters. quarter, XX.X% the from

to that not converted business on pipeline, growth deliver our but increase our initiatives. continue and yet as bookings expect will signed, share we we robust of industry Given a

to turn Please X. Slide

Our and this on Solutions can you team Hospitality see slide. Solutions, across here as is delivering many Travel successful business both wins

we platform Most beginning Hospitality with increased We under Sabre continue reservation CRS SynXis a global to in realize announced Hyatt Solutions. momentum the XXXX. become notably, which in Hyatt, main agreement our recently central will for

the and overall capabilities platform improve offer guest enhanced will reservation Our experience.

platform In addition to well-known Hyatt based streamline help our IT and agreement, SynXis brands hotelier Asia-Pacific, the their to selected two infrastructure. combine in

distribution, NDC of ancillary This content to were its we long-term new with airlines’ a content and Sabre with provide access Sabre. dynamically and Air to Canada’s access of all fares of In agreement increasing which significantly will to example expanded Sabre offers, including a Canada, represents sign leading priced pleased provides important airline and agencies with services. with Air participation level new in another the via agreement

and alongside the in a see content incorporating Sabre highly content of The NDC as other available place sell expanding breadth complementary EDIFACT SAP GDS a We Sabre’s content, sources. GDS and travel NDC with share of Marketplace Concur, and Sabre online to is globally largest has booking shared platform NDC volumes NDC or proposition our buy to content product the value with corporate that sellers. offers efficient integration which multi-source first Recently, provider. and both buyers will its enhancing be

and During quarter last travel airlines in in which we globally. content distribution announced to the is United for May, Marketplace and included the we were first additions the also our fastest India number doubled we the previously positioning one to half of bring Aeromexico. growth as supporting through Sabre And back distributing and on growing regions back of Air XXXX, air platform, NDC our international of bookings able industry

of significant we a the America. a agency front, are commitment the in SabreSonic existing positive On number a IT IT growing Internova, carrier, relationship top South pleased our our agreements. getting a second to Examples selected solutions, needs. response passenger the we Chilean in from with In in retailing rapidly include the core long-term XX Sky deepening America, our solutions. North lastminute quarter, new and with is we system with its of are agency which customers for service and new intelligent Airlines, signed low-cost

expanded the optimization PSS utilizing planning solutions its latest renewed capabilities through of we is that and network We its domestic All carrier’s enhanced recently Serbia routes. our the relationship Air to improve with addition, agreement In agreement Airways Nippon and for our produce. revenue-generating some

the others. in also are payments software we quarter among also additional and business. We Last, Air strong in had planning realizing China renewals our Delta Conferma very network with growth

wins details number quarter technology move future. to deliver during second on not do to help achieved goals. we expect of will commercial now foreseeable us our However, will on transformation. these I In our the summary, financial Sabre for the that out a break

X. Slide to turn Please

QX. Our forward short-term technology achieved milestones transformation continues and several in to we move

of of earlier. of quarter, we XX% Google end As have quarter the second one XX% successfully our Cloud, migrated compute total capacity from to up the

quarter, all of Additionally, had we by Sabre-managed the fully decommissioned the XX centers. data end second

and improvements servers of end the Tulsa annual complete at compute. savings mid-range [ph] in of now also Sabre the chart end. unit XXXX remainder track cost have deliver least XXXX. the the XX% We at hand to The expense schedule we slide of year on complete of transformation tech decommissioned on DXC this to in the $XXX to of are on shows are side and our by track seeing right Overall, significant our million is

XX. Slide May, realignment announced to to a efficiency. Now In structure, greater organizational achieve resource our costs and lower we improve

these half $XXX in combined savings a an gives capturing these million expect were able deliver second complete million these $XXX to cost actions of we $XXX in size annualized XXXX, savings confidence in timing overall had actions in high the additional XXXX reductions. anticipated for began in second the to quarter and in and than million We the which in We savings sooner and of actions. us cost

we Now structure. Slide on that opportunities, on value delevering our priorities consistent the XX. and second sustainable closing, efficient we to flow a to of continue deliver quarter, delivered customers organization cash in prioritize enhancement growth free In will with more to a we and cost our propositions and the the lower

hand to over the now you financial walk expectations. XXXX will our second I performance through Mike quarter to and call

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

Sabre. XXXX with and average to quarter year. strong for growth second higher saw The in We line compared and a significantly volume QX prior industry fees quarter booking expectations our was

Hospitality grow share revenue Solutions expected. a generation to Sabre a and adjusted on As basis. contributed generated EBITDA double-digit to transaction continues with higher revenue than year-over-year sooner Kurt per growth mentioned,

flow. and momentum In remainder XXXX in second are adjusted quarter [Technical results and line strong addition, Overall cost optimistic which and the we for drive gained of Difficulty] the efforts, We cash significant accelerated better-than-expected free EBITDA reduction beyond. helped bottom our and

the Now referring to slide.

second exceeded for you can flow. revenue, free and EBITDA cash adjusted quarter table, from we see As the our expectations

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

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

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

We we for this continue volumes regions foreseeable profitable realize to of mix booking in that level travel, and international and fee types further support resulting favorable growth our in booking should fees, future. the more believe at into higher

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

revenue Second impact quarter passengers was demigrations, changes more of from from in by in of and business which law. the IT Russian the impact offset of of revenue million the growth boarded result lower than $XX majority the was other Solutions vast

Hospitality of a revenue million $XX versus driven central XXXX. growth or totaled QX million $XX Solutions X improvement was approximately XX% of of of in growth points XX million, of performed system adjusted revenue X points transactions and expectations Hospitality $XX basis. initial The revenue a Solutions generated higher and reservation rate transaction. our has points significantly $X.X by on than EBITDA per year-to-date million better

While QX breakeven for Hospitality $XX million XXXX million would Solutions Solutions be of improvement XXXX, XXXX, EBITDA in be forward. to adjusted our now initial expectations $XX a that year-over-year. meaningful Hospitality was Adjusted expect represented contributor million $XX QX versus in we a to going EBITDA

range for the and $XX of $XX flow restructuring quarter, cash was charges, between impact negative Free a million restructuring $XX second guidance the than was million, negative including which including negative better costs. million prior of our in

quarter, the proceeds expectation than loans our earnings of the Center the discussed paid additional was of Techsembly the on the This second $XX approximately from Air due and amount During capital term to acquisition $XX down investments. last of sale. we million lower million call

We $XXX of million. balance quarter with a cash ended the second

facility maturities. nearest-term to de-risk begin the when April significant to guidance, actions of our private with the reducing offer our refinancing XXXX during on financing successful majority we our balance took moving the maturities. XXXX Before of June, quarter second tender by helped in debt bonds the combined we sheet discuss our a bond portion completed let’s The

in cash to and obligations feature with favor and XXXX In sheet, our facility the this our foreseeable addition, to to in payment a we interest facility this option balance the the utilize on to regards efficiency provides the is and defer flexibility of kind we to focus on optionality substantial remaining our flexibility. believe expect maturities, future. refinance intent for With of

XX our guidance. to to discuss Moving Slide

of adjusted $XXX We expect of million approximately approximately million, million third $XXX restructuring. quarter of and $XX EBITDA XXXX free inclusive flow revenue positive of approximately cash

we If would you quarters. of we regard seasonal typical free trends, million. positive $XX QX between to impact, revenue lower expect QX cash by With flow exclude expect the restructuring differences slightly than sequential approximately be driven the to

improvement driver $XX of our QX the full expected And from adjusted to $XXX sequential a in EBITDA QX on million to in due impact in seasonality primary flow, cost expect of near quarter the generate favorable to and excluding capital of in a in impact EBITDA adjusted we $XX in improvement approximately efforts. working typical million The is million cash QX, free dynamics. restructuring approximately the reduction sequential

As XXXX. into a reminder, preferred will convert September our mandatory common equity on shares X,

payment will Following our will million shares these this payment quarterly share $X dividend conversion, million our and our XX September be on count on last shares. X rise approximately

restructuring. million revenue quarter free of $XX of approximately $XXX adjusted positive of flow cash and We XXXX million, $XXX inclusive approximately approximately million of expect EBITDA fourth

be $XXX in regard lower seasonality Excluding bookings. million. sequential than by air restructuring, we million in QX revenue With expect approximately expect QX to at to $XX driven of distribution as positive typical free $XX roughly approximately trends, noted, we cash million flow

adjusted the improvement excluding cost of generate we by realization due flow, dynamics. typical impact seasonality $XX efforts. sequential as fourth full in prior on average As EBITDA reduction approximately air and free the working in lower expect discussed sequential in approximately the the QX, in to quarter on quarter, a year. generates And cash driven approximately $XXX from adjusted favorable fourth given restructuring we third versus to a and $XXX in the to million distribution the EBITDA fewer a bookings million capital revenue quarter QX, of QX XX% the sequentially calls, for Despite earnings quarterly million in typically our in improvement than reminder, expect

a historically period we cash payments we the of fourth when has quarter fourth seasonally in quarter. flow driven Sabre’s receipts partner by strong timing free for been make when the first in receive agency versus quarter

guidance the range $X.X full is now February year the be original now billion and For the be revenue call expected revenue to to half we of upper the billion. $X XXXX, and within provided earnings between on expect

XXXX $XXX In million. the the revenue quarter above believe and guidance we cost the expect approximately adjusted for now we favorable million have second of higher our taken between We year $XXX million, adjusted addition, performance EBITDA support for adjusted full seen in higher and have $XXX of EBITDA we the actions prior guidance. the EBITDA already

for in very full While sequential forward. point Included cost we air to are million. conservatively we be industry continue approximately on a free for $XX X the on noted restructuring. projections going approximately improvement flow capital free X flow and base in the expect assumption as Also, optimistic our of call, about of distribution potential our the to our XXXX, impact volume expenditures percentage year we prior for restructuring earnings million growth, excluding $XX positive our cash XXXX, of cash to

We increased certain to growth strategic a initiatives such our multi-sourced hospitality support solutions. portion spending NBC including as of and platform, our content investment development of

it continue improvement to optimization consistent and product through to expect needs will marketplace. that us the on travel evolving will the meet proactively of allow focus We

expenditures range in in this expect as XXXX years a based be capital increased similar to investment. We future on

year million for We cost cash expect $XXX approximately also in the now full XXXX. interest

on are cash positive Additionally, year from least to flow million benefits we capital at $XXX and this our working actions. these in track initiatives generate expect

towards second The the quarter a forward earlier. was strategic Kurt priorities highlighted meaningful step that

achieving on cash than to and XXXX. free is continue durable million than long-term path of We targets in EBITDA million adjusted company $XXX greater toward in greater flow a believe the in $XXX

for And with that, operator, please line open the questions.

And the question come Josh from Stanley. Morgan with will first Instructions] [Operator our line Baer you. of Thank

is open. line Your

Question recovery right, XXXX. it year. basis the the and I’m looking EBITDA XX on the the Congrats QX. on from improved If for bookings, it Great. points versus upside the and at performance improvement air

that quarter how like assumed in takes to wondering compares that’s the the forward? going any X.X% and ramp puts and Just

early we which Josh, the between last with X relatively consistent quarter, that’s you. What percentage guidance of in quarter, of thank prior is in corporate. seeing we’re provided points frankly, and and is X QX consistent part the quarterly the leisure versus growth sequential QX to

safe forward, some that improvement be growth we we in as Asia side. the at planned good And have where chance conservatively seeing better are were the we to be a We year. than we do going but expect, the articulated relative number, to in to early forecasted on or has

you spent I the Got know focus were notable you PSS some if And to Okay. I losses all there wins hoping just any could was time on it. across businesses. some commercial of highlight? or reviewing PSS and wins wondering

Yes. seen Josh. the have wins I look stabilized Thank at benefits when remarks, you, the articulated business. the through Overall, some Solutions, or in prepared the we period. we have that of you IT

We investing portfolio. drive prospects we business. this retailing leading to feel in about And solutions in are this the long-term growth good future next-generation now very for

to directly, PSS definitely just passenger replacement? Got investors like Thank represent about ask win, does it. you. Amadeus guess I mentioned million that XX competitive wondering a

Josh. Thanks

by that to are And on as we that note begin We EBITDA for successful impact a do are references I this Sabre a come would believe transaction, the Spirit, small basis with will confidentiality, – customer. is annual like volume current revenue they before, the this very be disclosed competitor should Sabre carrier minimis I pursuing we note de JetBlue in year. bound our to should next with an impact. on have

the And from that come Bank of Instructions] [Operator you. Thank with Victor of America. line will Cheng

open. is line Your

region one seeing my thanks point percentage quarter-on-quarter But X your just and may. look and X.X a of improved Two, quarter, by and of know us obviously, quarter growth. and for more if have. got this X wins some Amadeus, I the some if than might Air of roughly well, you this we improvement. quite follow-up. to contracts And on a losses are you points quarter, solid within maybe I they very morning, region can points where bit are color questions which percentage Thank improvements, takes what back have – as for on higher is And to the Obviously, taking give congrats Good Great. at this the India you going and some in well I puts you by quarter. you. you kind

Yes. look note what is are quarter-on-quarter. Victor. not about this, we to are seasonality when we It’s we at talking that important the not Thanks doing

basis. talking sequential That are marketplace. We about the in is improvement on percentage compared year-on-year a

share that And project We talk to about we you talk understand What quarterly very are that don’t we seasonality. do going about our and performance. progression that understand well. so is and in

As on that’s across in share improvements remarks, prepared and QX during continues or peers, greatest The improvements we an sequential elevated a basis. our recovering Difficulty] Asia And we performance versus quarter-on-quarter look then the the see quarter-on-quarter. basis, competitive are at to you seeing outpace certainly improvement Pacific at if board. we [Technical relative indicated our better was it

as Significant to strength on strength both Europe. APAC partly on was booking fees general, in our that regions. higher basis in And basis sequential mentioned, tend driven the in year-over-year a by Kurt also those markets, be a a national then little and

really a booking as forward. mix that generally good that provided average see tailwind fee. And we on move so continuing our we And

And economics, you and us Thank the the guess contribution said think other you very two good ‘XX side maybe contribution and kind color think Can and as how more on Hyatt see margin but contribution? deals That’s about follow-up bit should and alluded do I it as and we a well? on the revenue main Obviously, about on your CRS Hyatt to. ‘XX, the you give implementation hospitality quantify material the that you. only how costs and by you we implement color. of

Yes. Victor. Thanks

SynXis Sabre about the the It Hyatt really portfolio, augments go platform. on, are enterprise that on and to win. we We will as said, excited the

come going HS articulated another year to growth before, that what is step point in which When to beyond. this are back revenue the expect at overall, is business XXXX. this through have and see you HS can look that, you and on see You Hyatt to proof we double-digit

articulated year. margin that us And quarter, of double-digit million growth benefit the that million next of ‘XX, initiatives million, of of see ‘XX production HS last $XX will the we $XX see by meaning $XXX will in EBITDA end will deliver XXXX. believe will $XXX versus of HS million we HS you be You achieve that

So, out world, of customer the of what break strategic great don’t is deal. accretive and any Hyatt brands does. this the we leading business. this about the and think we this one of individual is We economics But feel to clearly quite financially

[Operator Instructions] come And next question of our will Wasiolek line with the from Morningstar. Dan

Your is line open.

guys. morning call Good and execution nice this taking the Thanks quarter. Hey. for

So, just to how kind recovered when of about SME this operators, talk – about developed following corporate up, they lagging. at should already And this is of markets, some you the operators we larger And seeing talk may that hotel just up mentioned GDSs having of travel. it GDSs between as think still looking kind the of play corporate in Is the hotel of a fully travel mix? – but have kind opening corporation to versus those budgets and the do the are out tend how you being GDS? be what does relates more about that governor,

Yes. you. Dan, thank

managed geography. is suggest $X a travel that a travel that I it spend year, figure $X is at where you corporate a one running and million, procurement So, of typically more Number than ways. is million change couple But corporations based look category. as on

go there a tends managed TMCs, is goes that more travel travel supplier tends effectively of relatively travel corporate predominantly that SME providers. portion versus agencies, we that through right, to but corporate tools are believe almost or booking entirely Unmanaged has through has the corporate GDS recovered. direct You slowly, through to travel through through intermediaries, unmanaged in recovered go

So, predominantly business. our travel as in future, recover accrue truly to corporate to continues that the

lens think that for is ex-U.S. a everybody than than slowly on travel tremendous the The domestically other amount interestingly the look more market corporate example, is puts at corporate And North larger China, originates travel to a has has. America that of there North recovered is thing meaning this. in States, travel American relatively I United

well. is as points we upside in non-U.S. of So, the sale believe there significant

perspective, the would that XX if about only add have been strong think moderating a potential and for And travel the that yield allows what at a thing travel is from we And environment. more the segments recently. more you you months, corporate I of airlines, that at And has amount more bookings yield moderation some budgets for relatively look think benefiting year, is you are very, over if that which us environment other seen in the same very yield of as corporate has dollars. fixed, last in on

little Okay. Makes if I what a information kind And per revenue to of ask on you how sense. here. think just some more But one booking. gave topic the about could should about boarding. the revenue we But of kind like – out, was a how the looked different call but was think think, maybe obviously Russia down about there per passenger And bit it sequentially. I that

how we that about Just moving any thoughts out, should there or call forward? and think anything to

the half attributable the majority Airline is year-over-year think about variable fixed of revenue of way IT per was we PBs. correlates revenue talked to law. the Russian decline Solutions of with roughly associated with – half was changes demigrations, we it directly our which on products based of The our Roughly the Obviously, that about vast driver is that is you should Sure. sell. and PB in

PB. roughly of just of grow per because in it half done result So have PBs with a revenue revenue half per PB the is are that mix, PB are that the you about they and variable, this see growing, as represents average lower going to only quarter, PBs given revenue your per as

Okay. Great. Thank you.

do moment. the actually, a time. One with Barclays. we no questions showing now have question am like call at in I over I from you. to this Thank would further – queue to Jeff Harlib back turn the

Yes.

‘XX, Following to looking economics, the better are to XXX your you will remaining perform addressing in and the with Obviously, [ph] successful timing how how you but at better, are refinancing you ‘XX of converts? you a have options. portion is maturities of if respect looking

Yes. Thanks for the question.

just me to this our quarter. refinancing let thoughts First, recap a that bit little the occurred around

One, the achieve. the a financing, it As was quarters. about XXXX, maturities completed a and within and of obviously, achieved that third a financing objectives focused we also by there pursue extended that maturities. It to April were helped intentionally of really XXXX on couple few out that took so it

focus back What you refinancing and are that. really refinancing, XXXX, gave specifics and mind of to efficiency with answer part addressing focus good to continue and should required in to the optionality and the we to the are the given with with be regards to Our expect say of window is I remainder of on XXXX But to, how we advantage going not-too-distant forward. to not I is our the flexibility are expect the option, maturities. going would see it perspective on going us and – now a future, sensitivity stakeholders, the on you believe taking we around us also PIK going the focused market what keeping But obviously, of pursue flexibility. opportunities that’s would us in

going Okay. here? around, is the think And a sustainable, is on you you just should steadier current uptick the booking, that or it’s revenue improvement to from move per that do be the saw or in quarter,

Yes.

to booking no, A unpack average for fee. couple the question. the thanks So of things

months. trends fee. were very XX there about, that’s talked average better than have international, seen APAC have of we been look perform mix, they been have booking had, regional sequential you a we Europe and over as drivers, have seen have and two the One to we last continue improvement, the supportive and in both is and As these favorable really at the

of And trends we is The looking look continuing. and really see thing of trends, mix are at bookings, a when underlying look we favorable we both the we at at drill more as down of it’s the those mix carriers the and we mix. other

And the this would average remain for to range the fee so foreseeable we booking roughly expect future. in

question And Solutions. Great. me, for IT last Okay. just

You that have lapping you business the talked on revenue forward some about – do you mean coming see new we and how do business were going trajectory now? losses. how I in

Yes.

in being the stabilized would from right QX, at down mentioned, very to have going sequentially I business. this $XXX tick look QX that that as small Kurt As you but generally now. had just that range are million a we quarter, in the said, expect we With

I would the to And questions you. further back turn now Ekert like at the no time. closing showing thank any queue call Mr. this I for to over am remarks. in

We and soon. joining again you that today’s speaking all you morning. in interest appreciate us of you with your look very forward call. again to Sabre, concludes thank this for and Operator, Thank

concludes Thank you all This participating. Thank for you. today’s program.

You disconnect. may now