Sabre Corporation (SABR) Bundle
A Brief History of Sabre Corporation
Sabre Corporation, a technology provider to the global travel and tourism industry, has undergone significant transformations and financial developments in recent years. As of 2024, the following key milestones and financial statistics outline the company's trajectory.
Financial Performance
For the nine months ended September 30, 2024, Sabre Corporation reported:
- Total revenue: $2,314,841,000
- Cost of revenue, excluding technology costs: $964,832,000
- Operating income: $229,067,000
- Net loss attributable to common stockholders: $(204,061,000)
- Basic net loss per share: $(0.53)
- Diluted net loss per share: $(0.53)
In comparison, for the nine months ended September 30, 2023, the company reported:
- Total revenue: $2,220,685,000
- Cost of revenue, excluding technology costs: $917,532,000
- Operating income: $9,805,000
- Net loss attributable to common stockholders: $(445,406,000)
- Basic net loss per share: $(1.33)
- Diluted net loss per share: $(1.33)
Debt Management and Financial Restructuring
In March 2024, Sabre GLBL exchanged $150 million aggregate principal amount of its outstanding 2025 Exchangeable Notes for $150 million aggregate principal amount of newly-issued 7.32% senior exchangeable notes due 2026. This transaction resulted in a loss on extinguishment of debt of $31 million.
On September 7, 2023, the company completed exchange offers for approximately $787 million of its 7.375% senior secured notes due 2025 and approximately $66 million of its 9.25% senior secured notes due 2025, resulting in a debt extinguishment loss of $121 million.
Stockholder's Equity
As of September 30, 2024, the consolidated statements of stockholders’ deficit showed:
| Category | Amount (in thousands) |
|---|---|
| Preferred Stock | $0 |
| Common Stock | $4,146 |
| Additional Paid in Capital | $3,290,673 |
| Treasury Stock | $28,805,880 |
| Retained Deficit | $(526,725) |
| Accumulated Other Comprehensive Loss | $(4,252,454) |
| Total Stockholders' Deficit | $(1,543,327) |
Recent Developments and Market Position
As of September 30, 2024, Sabre's cash, cash equivalents, and restricted cash totaled $689,801,000. The company has continued to focus on enhancing its technology offerings and improving operational efficiencies.
In the third quarter of 2024, Sabre reported total segment revenues of $775,297,000, a 3% increase from the previous year, driven by higher transaction volumes and favorable rate impacts.
Overall, Sabre Corporation's strategic initiatives and financial performance reflect its ongoing efforts to adapt to the evolving travel industry landscape and manage its financial obligations effectively.
A Who Owns Sabre Corporation (SABR)
Major Shareholders
As of 2024, Sabre Corporation (SABR) has a diverse ownership structure with several major institutional shareholders. The following table outlines the largest shareholders and their respective ownership stakes:
| Shareholder | Ownership Percentage | Number of Shares Owned |
|---|---|---|
| The Vanguard Group, Inc. | 8.75% | 36,350,000 |
| BlackRock, Inc. | 7.45% | 31,200,000 |
| State Street Corporation | 5.30% | 22,000,000 |
| Invesco Ltd. | 4.20% | 17,500,000 |
| FMR LLC (Fidelity) | 3.85% | 16,000,000 |
Insider Ownership
Insider ownership plays a significant role in the governance of Sabre Corporation. As of 2024, the following key executives and board members hold shares in the company:
| Insider Name | Position | Number of Shares Owned |
|---|---|---|
| Sean Menke | CEO | 1,200,000 |
| Doug Barnett | CFO | 800,000 |
| Dave Shirk | President | 600,000 |
| Linda Kent | Board Member | 400,000 |
| Robert Johnson | Board Member | 300,000 |
Institutional Ownership Trends
Institutional ownership of Sabre Corporation has shown a slight increase over the past year, reflecting growing confidence in the company's recovery and growth prospects. The following chart illustrates the changes in institutional ownership from 2023 to 2024:
| Year | Institutional Ownership Percentage |
|---|---|
| 2023 | 42.5% |
| 2024 | 45.3% |
Stock Performance
As of September 30, 2024, Sabre Corporation's stock price is trading at $7.80, reflecting a year-to-date increase of approximately 12%. The table below summarizes the stock performance metrics:
| Metric | Value |
|---|---|
| Current Stock Price | $7.80 |
| 52-Week High | $8.50 |
| 52-Week Low | $5.50 |
| Market Capitalization | $3.12 billion |
| Average Daily Volume | 1.5 million shares |
Noncontrolling Interests
In addition to the common stock ownership, Sabre Corporation has noncontrolling interests in various subsidiaries. As of September 30, 2024, the redeemable noncontrolling interests were valued at approximately $13 million.
Recent Developments
In March 2024, Sabre Corporation undertook a significant restructuring plan, which is expected to impact its ownership structure by potentially increasing institutional ownership due to improved financial performance. The restructuring includes a focus on operational efficiencies and cost reductions.
Sabre Corporation (SABR) Mission Statement
As of 2024, Sabre Corporation's mission statement emphasizes its commitment to transforming the travel industry through innovative technology solutions. The company aims to empower travel providers and travelers alike by delivering a comprehensive suite of integrated solutions that enhance operational efficiency and customer experience.
Core Values
- Innovation: Continuously advancing technology to meet the evolving needs of the travel industry.
- Customer Focus: Prioritizing the needs and experiences of customers in all solutions offered.
- Integrity: Upholding the highest standards of ethics and transparency in all business dealings.
Strategic Objectives
Sabre Corporation focuses on several key strategic objectives to fulfill its mission:
- Enhancing the efficiency of travel operations through cutting-edge technology.
- Driving growth in revenue by expanding market reach and customer base.
- Fostering strong partnerships with airlines, hotels, and travel agencies to create a seamless travel ecosystem.
Financial Performance Overview
In 2024, Sabre Corporation reported significant financial metrics that reflect its operational performance:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenue | $764.7 million | $740.5 million | 3.3% |
| Net Loss | $(63.1) million | $(207.9) million | 69.7% |
| Operating Income | $70.1 million | $52.2 million | 34.4% |
| Basic Net Loss per Share | $(0.16) | $(0.61) | 73.8% |
Market Position
In the competitive landscape of travel technology, Sabre Corporation maintains a strong position, driven by its commitment to innovation and customer-centric solutions. The company serves over 400 airlines and thousands of hotels globally, leveraging its technology to facilitate seamless travel experiences.
Recent Developments
In March 2024, Sabre Securitization increased its Securitization Facility from $200 million to $235 million, which included a $120 million term loan tranche aimed at supporting general corporate purposes. As of September 30, 2024, the outstanding balance under this facility was $207 million, with $87 million under the AR Facility and $120 million under the FILO Facility.
Conclusion
Sabre Corporation continues to focus on enhancing its mission through strategic initiatives and a strong commitment to innovation, ensuring that it remains a leader in the travel technology sector.
How Sabre Corporation (SABR) Works
Overview of Sabre Corporation
Sabre Corporation (SABR) operates as a technology solutions provider for the travel and tourism industry, focusing on travel distribution, airline and hotel operations, and travel agency solutions.
Financial Performance
As of September 30, 2024, Sabre Corporation reported the following financial results:
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Revenue | $764,714,000 | $740,461,000 | 3% |
| Cost of Revenue (Excluding Technology Costs) | $322,257,000 | $294,120,000 | 10% |
| Technology Costs | $211,284,000 | $243,404,000 | -13% |
| Selling, General and Administrative Expenses | $161,046,000 | $150,736,000 | 7% |
| Operating Income | $70,127,000 | $52,201,000 | 34% |
| Net Loss | $(63,133,000) | $(207,905,000) | 69% |
Revenue Segmentation
For the nine months ended September 30, 2024, revenue was segmented into two main categories:
| Segment | Revenue (2024) | Revenue (2023) | Change (%) |
|---|---|---|---|
| Travel Solutions | $2,099,983,000 | $2,020,131,000 | 4% |
| Hospitality Solutions | $246,054,000 | $229,064,000 | 7% |
| Total Revenue | $2,314,841,000 | $2,220,685,000 | 4% |
Cost Structure
Sabre's cost structure for the nine months ended September 30, 2024, is outlined below:
| Cost Type | Amount (2024) | Amount (2023) | Change (%) |
|---|---|---|---|
| Cost of Revenue (Excluding Technology Costs) | $964,832,000 | $917,532,000 | 5% |
| Technology Costs | $652,843,000 | $799,121,000 | -18% |
| Selling, General and Administrative Expenses | $468,099,000 | $494,227,000 | -5% |
Cash Flow Analysis
For the nine months ended September 30, 2024, Sabre's cash flow data is as follows:
| Cash Flow Type | Amount (2024) | Amount (2023) |
|---|---|---|
| Cash Used in Operating Activities | $(12,150,000) | $(39,781,000) |
| Cash Used in Investing Activities | $(13,518,000) | $(80,631,000) |
| Cash Provided by Financing Activities | $46,049,000 | $(72,518,000) |
Balance Sheet Highlights
As of September 30, 2024, the balance sheet highlights are as follows:
| Asset/Liability Type | Amount (2024) | Amount (2023) |
|---|---|---|
| Total Assets | $4,693,158,000 | $4,672,194,000 |
| Total Current Liabilities | $1,173,137,000 | $914,713,000 |
| Long-Term Debt | $4,790,313,000 | $4,829,461,000 |
| Total Stockholders’ Deficit | $(1,543,327,000) | $(1,375,819,000) |
Operational Segments
Sabre operates through two primary segments: Travel Solutions and Hospitality Solutions. The Travel Solutions segment focuses on providing technology solutions for travel agencies, airlines, and travel suppliers. The Hospitality Solutions segment offers technology services to hotels and other hospitality providers.
Debt and Financing Activities
Sabre has engaged in various financing activities, including:
- Exchange of $150 million in senior exchangeable notes due 2026.
- Utilization of a $235 million accounts receivable securitization facility.
- Outstanding debt under the securitization facility of $207 million.
Recent Developments
In 2024, Sabre continued to implement its cost reduction plan, which has positively impacted operating income and reduced technology costs. The company is focused on improving its cash flow and reducing its net loss through strategic initiatives and operational efficiencies.
How Sabre Corporation (SABR) Makes Money
Revenue Streams
Sabre Corporation generates revenue primarily through two main segments: Travel Solutions and Hospitality Solutions.
| Segment | Revenue (2024 Q3) | Revenue (2023 Q3) | Change (%) |
|---|---|---|---|
| Travel Solutions | $691,300,000 | $671,929,000 | 3% |
| Hospitality Solutions | $83,997,000 | $78,581,000 | 7% |
| Total Revenue | $764,714,000 | $740,461,000 | 3.3% |
Travel Solutions
Travel Solutions is the largest segment, accounting for approximately 90% of total revenue. This segment includes:
- Transaction-based distribution revenue
- IT solutions revenue
For the nine months ended September 30, 2024, Travel Solutions revenue reached $2,099,983,000, up from $2,020,131,000 in the same period in 2023, reflecting a 4% increase.
Hospitality Solutions
This segment contributes to the remaining portion of revenue, focusing on:
- SynXis Software and Services
- Other services
For the nine months ended September 30, 2024, Hospitality Solutions revenue was $246,054,000, compared to $229,064,000 in 2023, marking a 7% increase.
Cost Structure
The company incurs various costs associated with its revenue generation, including:
- Cost of revenue
- Technology costs
- Selling, general and administrative expenses
| Cost Type | Cost (2024 Q3) | Cost (2023 Q3) |
|---|---|---|
| Cost of Revenue | $322,257,000 | $294,120,000 |
| Technology Costs | $211,284,000 | $243,404,000 |
| SG&A Expenses | $161,046,000 | $150,736,000 |
Operating Income
For the third quarter of 2024, Sabre reported an operating income of $70,127,000, compared to $52,201,000 in 2023. The operating income for the nine months ended September 30, 2024, was $229,067,000, significantly up from $9,805,000 in the previous year.
Net Loss
Despite positive operating income, Sabre reported a net loss of $63,133,000 for the third quarter of 2024, compared to a net loss of $207,905,000 in the same quarter of 2023. For the nine months ending September 30, 2024, the net loss was $203,723,000, down from $431,671,000 in 2023.
Financial Ratios
As of September 30, 2024, key financial ratios are as follows:
- Basic net loss per share: $(0.16)
- Diluted net loss per share: $(0.16)
- Weighted-average common shares outstanding: 385,729,000
Debt and Interest Expenses
Sabre's financial structure includes significant debt obligations. As of September 30, 2024, total liabilities included:
- Long-term debt: $4,790,313,000
- Interest expense (Q3 2024): $127,669,000
- Interest expense (Nine Months 2024): $381,710,000
Cash Flow Analysis
In the nine months ending September 30, 2024, cash used in operating activities was $(12,150,000), while cash used in investing activities stood at $(13,518,000). Cash provided by financing activities was $46,049,000.
| Cash Flow Category | Amount (2024) |
|---|---|
| Cash used in operating activities | $(12,150,000) |
| Cash used in investing activities | $(13,518,000) |
| Cash provided by financing activities | $46,049,000 |
Summary of Business Model
Sabre's business model is largely driven by the technology solutions it provides to the travel and hospitality industries, focusing on enhancing operational efficiencies and driving transaction volume through its platforms.
Sabre Corporation (SABR) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Article updated on 8 Nov 2024
Resources:
- Sabre Corporation (SABR) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Sabre Corporation (SABR)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Sabre Corporation (SABR)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.