Sabre (SABR) 1 Aug 242024 Q2 Earnings call transcript

Good morning, and welcome to the Sabre Second Quarter 2024 Earnings Conference Call. My name is Rica, 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 Vice President, Investor Relations and Treasurer, Brian Evans. 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 page. also remarks on today's which Sabre during the web the call A is Relations Investor presentation, accompanies available prepared today's represent be available benefits of including expectations future our this beliefs website targets, on contain comments the will others. among transformation that commercial and arrangements free guidance liquidity, technology growth our events, volumes, you cash or from advise our call strategies, effects forward-looking replay flow and our later strategic A morning. We statements distribution financial of that about and our and on that All cause from to actual today's forward-looking results made materially conference involve statements call. and uncertainties may differ statements risks the

in June these Form and XXXX. release SEC information earnings is and ended contained our filings, this including More quarter XX, uncertainties issued the our morning our for risks XX-Q on

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

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

With turn that, call I'll the Kurt. to over

of the for team for quarter by focused strategic to that another share thank driven Thanks, of and hard worldwide. Brian. work members pleased Hello, success and we everyone, joining dedication execution, today's I'm you our presentation. and advancement delivered Sabre,

margin confidence again revenue quarter X the exceeded cash full and us time reported the We and outperformance expansion flow free years. This adjusted to we XXXX significant for we once growth, EBITDA, today, our our guidance. financial delivered guidance. positive that year quarter EBITDA revenue generated increase gives meaningful in second a steady second first Earlier increase results in adjusted

target EBITDA to than as track technology our to on efficiencies, adjusted growth more to XXXX, deliver double cost remain as XXXX our We including well our transformation. driven primarily strategies by from

Turning X. Slide to

that overview morning. cover will an of see I the topics can Mike and You this

quarter I review recent our highlights, including will First, our commercial second performance business and financial wins.

overview growth offerings. Next, close product strategies. our provide with I of have snapshot X will on an of progress the I of will made new a our we platform

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

X. higher in Sabre driven year-on-year transactions the fee increased Solutions by growth Hospitality CRS improved higher richer from customer attach quarter and content Please solid rate. by turn achieved revenue hotel hotel distribution mix, Slide bookings in driven higher second a to distribution and booking a

management, EBITDA, strong year quarter. metrics, coupled These million was above million or XX% of which cost with adjusted top line $XX $XXX drove the prior

Importantly, increased by year-over-year adjusted margin to EBITDA XX%. from our XX% X points

On X. to Slide

As a by is X strategy guided our priorities. reminder, long-term

align our flow is sheet. better free year, we over maturities first maturities debt with the cash balance next Our refinanced free and this generation Earlier few cash delever generate flow priority to years. positive to the

Additionally, and expect quarter XXXX. for fourth full positive company third the free quarter, we cash flow will in the year generate

consecutive a growth, On grow we of year-over-year quarter. achieving on distribution second air share priority, bookings for long-term basis our sustainable continue to sixth our the

in of quarter another to marketplace the Additionally, growth. execution strong Solutions with business gain our and momentum Hospitality continues

SabreMosaic, In platform. is and strategic airline third our we value retailing innovation next-generation our announced priority May, enhance Our to drive proposition.

also new shortly. We Hospitality I these Solutions. in both exciting will products delivered on of touch

XXXX cost operational overall savings. achieve drove on targeted savings in $XXX our significant transformation on greater compared efficiency technology Last, of our cost to track million our team continued remain to XXXX. We execute as to as

quarter. second meaningful solid bookings. a increases delivered Solutions in industry growth Travel expansion our was distribution booking hotel Revenue X. driven air share by in and fee, year-over-year growth Slide distribution average to Turning

the air America Asia This bookings and Sabre's as by leisure X% for quarter for X% driven travel in bookings industry to softness negative bookings for was Latin X% group intermediary distribution Corporate up declined primarily as and softness volumes compared were second in year-over-year well bookings. the general the X% with industry. between as Sabre. positive and

second year as this recent as we half continue air we wins to year-on-year and in Early easier build QX expect in XXXX. resume of support bookings to Sabre exit as outlook. distribution on growth commercial comparisons, this year-over-year Based momentum well the indicators

to On X. Slide

again and we air XXXX increasing on are share gains. our as implemented consistently a industry further track we quarter throughout the consecutive share a sixth on but year-over-year that commercial highlights achieve our pipeline, are on bookings. Based highlighted for This we yet last business not believe chart quarter, of signed basis. we rich as well As industry share distribution to expanded

Turning to Slide X.

results improvements delivered team quarter, product wins. generating strong supported customer enhancements are Solutions and continued by and expansion that transactions, product increased the second Hospitality in Our

of from For adjusted and EBITDA the to we $XX and X% was EBITDA X%, second margin XX%, improved revenue during XX%. recurring Adjusted strong quarter, quarter million. by up remained the delivered revenue at X points

year the X of Hyatt and QX, believe We Our during Hyatt signing going implementation solution we just IT efficiency at enables agreement. is with platform CRS went well and industry-leading with after scale. this rapid flexibility implementations first our the live transactions

track and full EBITDA We year revenue growth are to double-digit double-digit margin in on achieve for Solutions adjusted XXXX. Hospitality

Please turn Slide to XX.

and our we achieve quarter, wins and financial of well second the commercial goals During important significant believe we a number objectives. that to partnerships us strategic announced both position

Following some examples. are

past and distribution wins quarter. a number this had of we front, agency the On

American signed customers convert contracts well-known to significant expect we we will a travel XXXX. and in with that distribution bookings agency First, North number distribution significant of XXXX X Sabre

later able more deals share year. We to expect regarding specifics be to these this

new have long-term Korea's majority InterparkTriple, OTA, we with become their Second, a agreement largest provider. GDS to

in agency a leisure France, are we driven by our platform. excited of Finally, value large primarily signed the to multisource have

functionality continue robust number carrier more we growing agency of or capability to offer to and partners. distribution a new Regarding NDC,

During content Airlines NDC for NDC and the Airways, we Hawaiian launch and content added of second the Air for Canada. both also quarter, announced Etihad recently

will Additionally, first content Airlines the from this LATAM NDC year. be GDS offer to Sabre later

also TMCs of targeted Further, expansion within their corporate Spotnana platform travelers. our and at content integrate announced with NDC partnership an to Sabre's we

to nearly world's hotel Airline more Airlines. In multiyear In Hyatt, secured Singapore IT, SynXis franchisor, our successfully American PRISM data live than our we Solutions, team recently for and with and Property software also in for and migrating renewals solution earned optimization network analytics largest renewal the Wyndham, after with Aeromexico, planning for with Hub Airlines with addition a going Under Hospitality our And schedule. announced a utilize SynXis exclusive long-term Sabre just their Hospitality global to the agreement, that will hotels continue platform X SynXis Wyndham X nearly CRS provider its to reservation year as system. for operations, reaffirming Wyndham renewal with decades. yesterday X,XXX our of cloud-based central Wyndham this our ahead onto manage for we signed Sabre CRS

achieving significant commend a on value number expanding deliver of I for wins critical added that for and our to partnerships commercial teams customers.

On to Slide XX.

quarter, selecting each points distribution. are our on basis of as distribution vendor second technology believe we approximately expansion, further end On foreseeable Agencies share we digital to our hotel Sabre XXX in growth drove noting mentioned, choice, X buyers annually well such annualized and basis share strategies. and air of multisource of as by the an During achieve of future. are platform, I differentiated other payments progress a our gains positioned and XXXX for distribution offerings gains successfully we the the offering. We as on preferred made

growth. rate experienced distribution XX% them a our hotel growth array hotel X of to attachment strong sources Hotel second and points up in drive an with quarter up efficiently hotel diverse content the air distribution globally which to from We XX% to continue will bookings bookings personalized and intelligent platform, manner XX%. and delivers in the year-over-year, consolidates believe strong

increased payments remain during year-over-year. card We the growth payments of virtual digital second In business. deployments the pace about in quarter, our excited XX%

greater Last, the SynXis compelling SynXis has adopting of beyond of ancillary industry reservations the next using is in artificial Hospitality solution and power launched the coupled of Concierge.AI, Retailing, generation productivity room hotelier expanded We enables next-generation in significantly successes year-to-date. Synexis which properties user during our Solutions. quarter intelligence. number we with achieved and number experience, which a the revenue delivering improvements our Retailing of opportunity knowledge Furthermore,

Turning to Slide XX.

multisource content. Another a efficiency the in to our the critical customers, of of is offers platform. automation dynamically piece while choices. via the interface content industry-best and and to this platform consumes provides is capability choice, pricing We of buyers buyers It its NDC type growth believe edifact and offering seamlessly most This scale personalized unified seamless traditional dynamic providing plan strategic our carrier our and global low-cost world. to airline

XX. On to Slide

revolutionize this and architecture. open and SabreMosaic, by personified platform. is innovation delivering personalized and worldwide. retailing create, airline delivering new flexible, SabreMosaic by an dynamically to content believe to order Google's fully on deliver travelers focus capabilities, will technology offer scalable array We sell cloud-native strategic AI enables Our airlines our powerful modular of offering Using and

details customers negotiations We hearing in providing months. for with commercial coming and late-stage our enthusiasm SabreMosaic. additional several strong We the and in from are marketplace, the and implementation carriers look are to forward

on momentum. delivering our operating consistently are we and Overall, strong and strategy gaining plans

walk forward financial hand over to outlook. now and call our the will through performance Mike I to you

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

progress for we our quarter towards strong steady objectives. which financial another represented quarter second The Sabre in achieving made

improved with efficiency, drove resulting flow-through strong EBITDA. year-over-year our in conjunction Solid revenue our adjusted line, cost significant growth, bottom in improvement in to a

guidance financial will us both I our EBITDA adjusted of half XXXX, in for the in revenue greater increase to first and year detail full The shortly. confidence which results discuss give XXXX

be flow QX, cash quarter the the million, expect cash year. positive and ended we full We for and to of QX in balance with a $XXX free

XX. to turn Please Slide

driven in we positive favorable beat revenue adjusted guidance distribution operating bookings. revenue our hotel see Strong of outperformance and cash EBITDA guidance. air revenue can achieved flow-through bookings mix free and for our you a exceeded was As table, expenses distribution EBITDA versus by lower overall and second primarily on higher-than-expected adjusted drove flow. rate and the quarter The

Total last X% year. second an $XXX quarter million was revenue XX. $XX Slide to of million, Turning or increase versus

totaled $XXX or million increase Distribution million, XXXX. $XX $XXX X% million QX a compared revenue in to a

million distribution X% Our bookings were in XXXX. in XX XX QX total million quarter, a compared increase the to

Asia in including bookings. was up average from quarter, discounted fee group a of the experienced mix richer we bookings, fewer XXXX second Our as booking X% $X.XX QX

Solutions prior IT quarter million $XXX the the in year. compared $XXX million to totaled revenue in

and Hospitality improvement $X Adjusted $XX the versus $XX revenue XXXX. versus X% second of an its QX million with EBITDA in QX million $XX improvement revenue was year. Solutions strong of prior XXXX million, approximately continued totaling quarter or trajectory million $X million in

revenue the of the growth accelerating CRS expect in Hyatt year and second implementation. our half We transaction from

growth in for revenue on year full We the double-digit double-digit track for and margins are Solutions Hospitality XXXX.

million from $XX QX year a $XX continued versus adjusted EBITDA lower of benefit implemented XXXX, the and our XXXX in of million costs XX% Sabre's year-over-year. $XXX adjusted in about transformation drive The EBITDA from quarter in margin QX unit cost in million last year. XXXX, XX% QX to second this improvement represented technology our helped the actions

represents in Lastly, million $X free years. second cash generated the X flow of quarter, free we in generated cash flow which highest quarter the

Turning to Slide XX.

guidance for approximately third of EBITDA we quarter of $XXX expect XXXX, Regarding approximately of revenue adjusted $XXX the million. and million

fourth quarter, approximately approximately we million of and of the adjusted expect million. $XXX For $XXX EBITDA revenue

to cash occurring quarters. for Overall, expect the in third be with XXXX, quarter. positive both fourth majority in the generate We free flow free to fourth and expect cash positive the flow we

by revenue and driven Our guide for quarter EBITDA adjusted fourth sequentially third is lower versus seasonality. quarter

As the in the strongest due bookings, lightest a quarter flow the quarter reminder, typically air generation capital. free fourth but to seasonality cash for working distribution for quarter favorable is

of currently approximately approximately revenue For we of adjusted full $XXX expect EBITDA million $X,XXX million. XXXX, year and

in flow second results and greater that QX XXXX achieve $XXX believe Furthermore, as during call million track of than than our $XXX in cash we on greater adjusted our outlined quarter are targets XXXX to earnings million we February. highlight our in EBITDA free

towards financial products and achieving team committed our our new quarter, to in delivering second priorities. remain conclusion, delivered we members long-term our on key significant the operational another developed the objectives accomplishments again once Sabre priorities and in support commercial took in the achieved strong results In step our years to strategic strategic to critical and second quarter, come.

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

first [Operator from comes line Company. of Our Kelly of & the Instructions] question Oppenheimer Jed

you're revenue maintaining it guidance, cutting that guidance the of on capacity. despite sort airlines Just your some seems

of kind industry? the just that you can with So frame

what's discuss Kurt, And some then, think And going softness. just you a have mentioned leisure I follow-up. you then there? on Can I

Thanks the Jed. Yes. question, for

First, I included you is would our market for assumption growth. nominal our remind just that flat to baseline growth guide in

transition to of I we've things would couple recently that expect stronger growth to in of do of lot the we driven reached. second a by say year, a that, the commercial with is primarily the air Now actually agreements bookings distribution half

So our with we feel really guide. comfortable overall

Sabre The of other to aspect how is see and a couple capacity we affecting with it regards things.

even First, or keep half are on reductions, lower And lot fare about the more this held the average reductions, domestic. indicated of than most capacity lot in a on about capacity tended in you fly up with still they'll year. working capacity be that's airlines traffic been year flying a some last X% mind, But more airlines targeted with which to to second the long-haul international, the is have to better. X% shift leisure of more

actually And favorable think so we net-net, a us. for that's dynamic

Jed, is this Kurt.

agencies. We softness. this broadly leisure OTA well across leisure as as both saw about brick-and-mortar question second the On

the Connect in back that period. of in think We annualization of Direct we material over in Connect there's February we activities Connect. a front, seen the of Direct increase happened past Direct call, OTA that over had small year, the activity terms the increased nothing amount but COVID On the discussed new

And see Direct slight very a Channel, it intermediary capacity share the which the shift then for that channel but to the tough it based be broadly, is to may numbers, where partly there's today. airline is in on it's from leisure,

it. Got then... And

tell look trends. more seen we I you at we've What that QX, positive when would is

we're as market actually days into XX the So growth, seeing positive days -- and both corporate leisure. or new for into we're for quarter, XX GDS

on margins my value shareholder Can signed accelerating, just, that profile for Solutions. alternatives it looking is you strategic the segment other fits talk follow-up it. expanding. segment? Revenue for you just contracts, Got higher a And of potentially good how just some the into like at that about Sabre? then is strategic And Hospitality to potential create there

Jed. Thanks, Yes.

our we've We fire. Hospitality quarters, business for are, indicated is number now repeatedly of on as Solutions a

the then PMS mid-tier Our new the overall, winning products doing are margin. And space. and suite Studio CRS, enterprise of and our We're the We're in revenue resonating, solutions. our Retail expanding well. very and

on That's potential. focus Our fragmented significant really a very Solutions gaining Hospitality solutions of lot allowing a realize those traction. and very is are to market,

Hospital important see business strategy. Solutions of is we our part So very a

the of line Goodall next from Our comes question James of Redburn.

a by the [ X% I sort just, air geography? was your the share market could guess, commentary that ] fact the GDS gain the and down versus in a little expansion bookings I First side bookings. one is were on help you love hoping just Would driven Is of of if saw of main equation. X.X% square just the that competitor X% please? bit color there, around

Yes.

market forward, let look performance. a positive So as share confident gains but well GDS share And sequential signed share industry or not starting at as distribution we as based in we as seeing the part we very of first again, for look in yet on growth and QX, QX, improving QX, implemented the as of consecutive Sabre business gained pipeline. industry all, quarter. accelerate well air me in rich the just we're first our will trading as sixth we're that's And meaningfully that reiterate, significant year-on-year

may going apples on I oranges and to think explain. an comparison, here let me what's be

bookings. low So that we which in single-digit the volumes our We includes what see namely air proportion industry NBC can all distribution said EDIFACT a have And know competitors MIBT GDS their going publicly, our are. is what of by information, bookings. NDC as

air for We a So basis. that distribution QX competitors argument's on below XXX slightly let's basis we say, were below were points. where volume in or see our can sake, at year-on-year

we're on in year-on-year below a range Amadeus' where different in and performance, of, air than volume they plus what seeing obviously fact, reporting. again distribution is which is that is EDIFACT are or NDC Sabre distribution what the slightly Specifically, numbers are

distribution So not one possible NDC is include does reason IT for this air bookings Sabre that its in volumes.

of or NDC and clarity, IT our distribution not technology the IT distribution part the the NDC is NDC consider and volumes. environment. Airline part airline's provided of side Solutions API business the We For technology or of inside Airline IT airline's on

comparing that be may used definition what their to distribution has others not volumes, changed. have of it what comprises hence for apples So be and us oranges, to changed

our line growth. gaining well we continued the that is primed marketplace bottom seeing are are are that But is offerings resonating for within again, what The we share. we're and

both main of are We outperforming our competitors. GDS

overall some just And of in the sense. sort rest stand-alone I where to stack functions, still of of order and are terms then today? system. of makes an pointed deliver there And will the of sort as a sort development? I sort your those? guess, guess, to is terms the that done? offer you Could a shifting in offer system be the guess you where development sort That on tack IT so with needs you come, that to carrier Or about of SabreMosaic. of theoretically run are this And settle being order I of

great and Thanks, question.

about So SabreMosaic. fully Cloud technology. next-generation excellent really modular, super excited AI-infused, native,

at actually we've that When some production in for Intelligence our in the and made at And on Retail drive well side. accretion full SabreMosaic, fit very revenue development, there offer predominantly Today, airlines you XX carriers product today. for suites we in progress are example, with of have suite will, place. can look products great

seeing is very be softening standpoint a and beneficial. do offer the the has the to little implement can an a what airline demand there's from desire environment, in to these, retail very or so dislocation And solutions yield adopt we're to that these because

to the the future does Order in it PSS. state. we've doesn't buy buy of modularity, or can top on the is to And also And it PSS. this can this in way, monolithic any have is, displace not by of involve by technology piece, this on more SabreSonic, a built it system it its way homegrown only top deploying can us the carrier component because traditional challenging sit sit other the

of has But using. network they're of the hundreds the typical PSS for applications hang off that order, carrier that

effort a think happen, involvement, but the a X-year massive will involvement. And airlines' journey. with X, X, change there's that people that's Sabre's most So not only

to more we'll and So on more order, couple conjunction but carrier that have in suffice in that development do of with a broadly. do coming then to we key partners, say, the will years, promulgate we

And cheekily ask if one more. could I

existing may any in who existing you're said Is can several You launch not If customers, PSS Sabre carriers. be be? there they're of color would negotiations that that they great. if give customers, of late-stage they're you sort with on sort Sabre

consider don't well as customers I both That customers. James. existing it as cheeky, includes Sabre non-Sabre

Our the next from Morgan Josh Stanley. line of question of Baer comes

Wanted to particularly talk for NDC. given about cost a your bit, around of revenues little momentum

-- that revenues how are we NDC portion how those an of world? wondering trend Just what going in cost fees? increasing of expect to And incentive should forward

So all a is essentially about think would virtually, the are is fees. a There's of of portion cost almost that of there, sales, revenue is I all it couple incentive way respects. The fees. incentive of in but it of salaries small in

First, overall, the be that we forward, I margin year you look just would move next expect, particularly generally gross I at XX%, roughly trend, into if foresee we through as and this our year. would likely say, as we would even around look as

of lower of the with average a globe, there. slightly a about the and the we average things. I exception a EMEA, With most lower so NDC reached, incentive booking are what regard similar the unit would through parts a fee maybe the economics to from being we've which economics NDC, Overall, slightly has fee, agreements way far, in see NDC fee pretty what higher experienced think we've with couple on is booking

margin, be the expect percentage overall, to we ranges revenue the similar see and a of roughly would today. standpoint in as we therefore, But gross from cost

bookings, I booking it is that to a And [ because that NDC above jump Got shift seen region of Is the if the up the times in level? part now. that? is weighing on the $X.XX we've ] mix of mean, revenue right the not fee $X couple above per it. types Or closer or given else? something in just of And $X,

Yes.

fee the last has growing mind, had in environment, volumes to in year. keep that NDC First, increase. over And our continued we've booking

would call booking look things couple overall, couple things is, couple of What that a we aided last say have as our quarter I last fee. specifically, average of it a the and of at, quarters

now historical normal. we At to have First, if we've a fair see look to below where, had quarters bookings reverting of Pacific point, relative trend, a you some trended that at bit couple a Asia norm. group

stronger The in regions, second fee. on is other quarter and EMEA a booking was that's the thing than second a the average basis higher relative

we're pretty but down ticking we I So forward, fee, booking relatively to little near a think as do probably maintain $X, move a do going I bit $X. see below rich but it

is I'd we QX expect and lower still would are what I where I QX be near than would But to So expect. say today. somewhat $X

next of Our Mizuho. comes Lee question line James of from the

questions quarterly And on macro first question. one one, quarterly. Two and the

impressive. this can obviously, maybe you margin, drive the that And the guidance Congratulations. seeing your the top On allow very you numbers, are some you're EBITDA drivers beat? of unpack

issue. Secondly, obviously, the talk people CrowdStrike a about airline in the lot industry of

kind what your impact wondering in Just GDS business. you're seeing of

the question, can travel comment was lastly, on economic mixed kind seeing wondering macro about right given if business we're of now. a that environment environment, you overall And I

state So we'd travel get love for to guys. business of the you

back mic the for questions, the give take first me second the and the Mike third then I'll Mike let -- James, and question.

airlines to our other ecosystem so Obviously, material So impact a providers, way. were we it's these security and in Sabre, all, being does not tertiary by respect deploy events. there's CrowdStrike, any and Sabre first of CrowdStrike supporting impacted on not but many of a systems directly the with to part not

grow pretty that corporate Secondly, think case that corporations bullish X%, with seen we're what expected X%, supplier basis. what of the on sort that's be customers is and the X% to we've you at travel travel from TMC, environment, I from forward. respect will largely hear year and per various and going is unit historic that, a rates, relatively to And from business

In we're largely fact, what that's seeing.

very So and optimistic good we about that. feel

and our from corporate benefit our very is growth. Sabre know, may that footprint well TMC positioned you to with As

we adjusted is more by EBITDA, first, we to by just average on the would beat certainly that is The than largest our driver With revenue, I that far which million. fee, beat favorable expected. highlight of $XX and regard booking

And team then that's bookings, I doing there mean expectations. XX%. as look is smaller exceeded hotel to that a up job. you at a degree, distribution our The great

helped of $XX million that higher the so revenue. support And

we've And cost addition if to sooner on of that, a in milestones. realized transformation. our lot that, more QX, the achieved side, start expense, a at to expected. than now we've our we Now down technology -- we much benefits drivers from come our tech you look to Those are from And EBITDA. transformation technology favorable we expected adjusted even the run terms of rate in than favorable beat more of

of question next from the Bernstein. Irving line Our comes Alex of

for please. me, Two

on you SabreMosaic about And on their strategy gross in earlier of saw begin we conversations quarter. How opportunity up of to were products? And earnings question and different its travel agents Sabre both as since you are and it, distribution the do existing your How has ago? replacement revenue then? First second, with James's implement Airlines customers, call think following a here on. about, they the net priorities modify and months few changed American then any what to

first -- SabreMosaic? I let question on think and the Is Thanks, me that your Yes. question? first was take these on

that. earnings Yes, correct. revenue from and opportunity The

Yes.

lot, think, I relationships Airline the we stabilized lot business, -- healthier And revenue a historically. the gotten So a we can now. actually we've as and volume had see the you we've with than performance IT

largely We there's standpoint, to won't of promise getting into being From Sabre, side, the growth see a buying From is back a near-term mid- long cycle market. financial revenue in a IT has here. the impact there a Airline to to suite the our again, this what's over great long cycle, being you business because products. SabreMosaic medium basically of resonance the and catalysts material offer long-term turn sold now longer term. on standpoint, here, a more is implementation believe for strong is

So that. we're very about excited

industry that too it's be PB used what tell early the But economics, end the will traditional unit possible In PSS terms from and will commercials model will the what of will or we to in the up. business. be away move it's the where new exactly model very the that's

point yet. a share standpoint a have but wouldn't We that of market I from view,

terms travel, really With key corporate great seen the ours. others AA. is can customer that that seen to they've qualified think NDC forward, We think will go in to continue the cetera, to very And to grow. positioned do very and intermediaries eyeballs. bring We functionality connectivity here of our a leisure We them. high-yield and is we that agencies, et value benefits it built. well we've stay. NDC think with respect of AA as it's We have and we're

part our to platform, it's multisource As none. we second think of

customers, the what mousetrap be the customers, they is in we're so OTAs, TMC [ And marketplace. hearing from that had ] large model brick-and-mortar we delivered, large scale believe will the best

Bank the of from comes question of line of Cheng America. Victor next Our

on bookings side. back the going Maybe

have But is as at HX Amadeus. differences starting actually bit for the you well, think I explained I Amadeus a versus softer looking about QX. think

on growth. saying QX, QX you're more think you're confident I

wins. think are side, leisure more side Can I you maybe you they Is that and that? the or mentioned regions which bit commercial about some talk on from? corporate there's a

in higher compared evolved if I that I has think past quarters. of is what wins corporate just that, correctly, And Sabre XXXX I is favorable then driving actually, HX? And higher investment corporate general, investment. forward, mix going more a if question then a software your that given about leisure. split separately, historically, think has And of are the I last a corporate had to split levels? if growth versus How couple remember regards if higher given, lot and corporate into think you you And to confidence -- a you in is with have of

within for think our obviously software coverage soft report I the of particularly about in a airline sector. companies number demand

to on sales of you're what airline reluctant one a your space maybe longer spend new think talk being about I the software? software. as well, that and Is seeing airline on peers in lot cycle hotel

in all address don't, best missed. tell and chime my if Victor, And thank I to I to back them. do the questions. please that. all capture I'm you tried to I what going for me just

software first, start me the which amongst last suppliers. Let demand is with piece

robust As products growth we we're seeing Solutions there. very indicated, demand our and Hospitality for robust

think So we're several to expanding to going the revenue continue future, XX% the years. see into margins next we prospectively over CAGR with

space. So on that we're very bullish

today what In is license there most share X these revenue fee. the seeing the and/or of model bolted an in for a Airline suite space, airline's can different for One existing is our Retail be terms products solutions, demand for of gain on areas. Solutions because the to accretion Intelligence technologies, can we're be

secondly, we're PRISM, renewed optimize their enthusiasm help which provides marketplace seeing information airlines then a and on And performance. corporate of the corporate to for reporting lot

I'd that or there's not So seen softness, we've while have say, that. I relative heard experienced

I to this the have to and don't from on in order would that is that's a and probably I industry thing respect converted one by as would longer industry the offer XXXX, The know at PSS transition offer order, We aspirational. with SabreMosaic fully look say to much horizon.

And take I is going in see next a piece longer. to several years. the order the think good you'll offer traction again,

about on oranges Let And the to apples booking me touch commentary. the spoke earlier I comparison.

talk point, then Let Sabre. a and me just I'll bit illustrate the about

an about IT talking component. was So when as I compared NDC NDC to distribution

and booking It the API, we're of Sabre, in within our connected the but transaction, example, air on we for like actually that NDC its this Amadeus don't we scenario, to But or NDC say, carriers. API airline's and And example, counting would the company, NDC a that in the say between technology the consider providing distribution one where sitting buyer, IT and facilitating environment NDC that then positive is to is NDC what's distribution So we NDC IT IT case, would we're in count that hosted let's going a know, volumes, volumes. not solution as that we're may Amadeus consider their not well. air be, again, volume airlines in is within there. for

the For of of we seeing and into second the us, forward. of terms the revenue in volume and year is what acceleration are half -- going

that we've we won or gains, When at more on the share what me, lot a I seeing we've offer already. won -- look detail are -- We beyond said agencies the carriers we've excuse indicated. the can't as that I

Asia, a sort prospectively. in X. million geographically, have X the The very large say mix. that Spain ever would quite which wins very in will then is France X customers, And of meaningful, rich. OTA, segments American last pipeline quarter. We our well from while. very do actually each these a in But TMC, of about, wins, is in biggest XX leisure mix a And I it's convert This will that our of our biggest North we and it's over Interpark, the talked I win in are we both sort

we're business across board. that So the seeing strength

choice. their more the our is Our multisource where buyer of and based our say, hotel ago, technology the the provider platform, and and on felt chose I'd decision one XX say, of are GDS versus we're well this that or payments technology of, now and agency have solutions agnostic they distribution they where one customers. us similar choice similar offering really not, years a with today, are And been resonating if content, technology telling becoming that may

really marketplace. in that's of the the decisions are dynamic So how made changing

address if of I know. Victor, you points any the asked, let failed to me And please

versus at I'm Any mix, very I of split clear. the you one it's correct? if higher on is last I leisure? one can talk you about? based think that think color a corporate that Maybe just corporate more

overall think, of competition. to that relatively are GDSs of mix corporate far. highest TMC I have, we minority more than exposed the our the portfolio, any We a booking is portion of It but by much our

Understood. now content on Have one On one you from already moving and And they're EDIFACT can obviously, back positive maybe July if seen that? some back GDSs. in. effect in last squeeze I on American,

overall, comment We're certainly on American. both to QX, you. appreciate I going in specifically And seeing American. improving trends on we're would share say, thank and Sabre. with basis not relationship market we for the Yes, a a

time. showing to am Kurt turn no remarks. further like now for questions I closing this would to I it Mr. back at Ekert

in that momentum we're your We speaking interest. you. you marketplace. about gaining to for everyone, again the Thanks, excited next look the Thank quarter. continued We're to forward

in participation the concludes Thank conference. program. you for today's This your

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