SABR - Earnings call transcript Q4 2024

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Operator

Good morning, and welcome to the Sabre Fourth Quarter and Full Year 2024 Earnings Conference Call. My name is Didi, 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.

Brian Evans

Good morning, and welcome to our fourth quarter and full year 2024 earnings call. This morning we issued an earnings press release which is available on our website at investors.sabre.com. accompanies on remarks web the which during also page. presentation call this Sabre slide today's is prepared available A investor relations and website including statements growth, that A available our to targets, and beliefs you liquidity, and call bookings commercial, today's about represent of our later future arrangements, our growth free expectations strategic involve cash and and made cause flow our transactions, from others. All our events, that that technology transformation, call. statements forward-looking replay risks among advise effects this financial results and contain will comments today's statements of or morning. We differ the forward-looking may of guidance conference the on on uncertainties be actual materially results strategies, uncertainties XX, on XX-K contained we today's issued filings, these earnings release our and December morning Form will including measures. be our certain information ended our XXXX. Throughout risks this year non-GAAP in and financial SEC presenting call, also the is for More References Officer. items. The earnings and Financial have posted exclude available non-GAAP the free are to adjusted other been Mike and at GAAP adjusted during Kurt cash Chief certain EBITDA margin, Randolfi, measures adjusted President on are call and directly and reconciliations our Ekert, flow comparable in measures for with today's documents website investors.sabre.com. Participating release most EBITDA, to me CEO; and the prepared I'll President and EVP that, of Hospitality Q&A Solutions remarks. With Wilson, after available the Scott to be call will turn Kurt. over for

Kurt Ekert

and today discuss and Hello, our everyone, us fourth Brian. quarter year results. thank full to you joining for XXXX Thanks,

executing balance continued and highlight quarter and strengthening our our XXXX this sheet. the Our strategy progress making we are our for against performance expectations

of that can will X, see and morning. an you I Slide to the topics overview cover this Mike Turning

our Then and travel address these have are progress how I growth performance. reshaping will Sabre's will business evolving on overview an global the industry growth made the our how focused financial I investments we provide of trajectory. highlights, including our review XXXX First, strategies, they

year in XXXX guidance. Please Slide XXXX. Mike through Next, year take and XXXX you X. will results to a financial quarter and Sabre successful had discuss full our our fourth turn

work Our transformation increase growth wins. Steady product combined management us commercial in technology positioning totaled revenue members our positioning provided strategic which for significant million and commend with basis year-on-year XXXX million year, on Sabre initial of I team expansion world objectives, enhancements, resulted last $XXX platform meaningful adjusted from our guidance effective around accelerated and points EBITDA, team growth the for greater XXX delivered growth a beyond. in for of towards than and February. margin our XX% dedication their cost hard in the above including for $XXX and

Travel fees richer achieved higher mix, versus growth from year. air solid percentage digit Turning X share distribution new business. a to up hotel year-on-year in Solutions Slide double financial from distribution in our the due XXXX for X. point GDS average was bookings, exit booking rate prior to industry results distribution customer contributions Notably, and

by initiatives. the bookings expect we making continue building growth progress year-on-year our we growth driven primarily forward, Looking to are distribution our on momentum,

Turning to X. Slide

to transformation customer and to delivered team base. EBITDA was as customer contributed Overall, an continued XXXX our to mix moving transactions. turn This And in to to operational please CRS the of mainly which in within strong our Solutions our transactions, before revenue in with completion Hospitality Slide target. Revenue finally, Our $XX increase part $XX driven adjusted focus by CRS a accelerated on objectives. growth high revenue all-time results total due revenue million, driven reached increased new strong favorable and growth in performance to a implementation, deployments higher note technology million, transaction Hyatt successful strategy year-end, is X. in beginning the increases by due generate line to our update, into meaningful growth. Please

capacity has cloud, Our XX% and Google partnership of delivered million XXXX foundation more compute future our a of in than both benefits strong for with and achieving migration the establishing of greater innovations. XXXX cost to the versus team than $XXX

turn to Slide The ahead. Please has substantial industry recent travel experienced years. in looking Now XX. global change

the and evolve, remains our continues strategic customers As and unchanged. marketplace value focus to our to innovate to deliver stakeholders

balance and top free priorities. generating sheet cash First, flow de-levering our financial our remain

front, are Mike We we progress detail shortly. this with greater making on share and pleased are the will

and Sabre able and deliver X will address marketplace. I we but we demands, to that XX. our our last real-time and growth sustainable a critical around expected by these SaaS availability, prioritizing and performance more an infrastructure. require believe drive the stack, go technology are products the from including be areas: this, X which more are areas, that Second, data enhanced and build, modern are growth marketplace, solutions. growth. in seamless can technology to To we deliver strategies, and is information to transformation, means cloud-based already open fuel and plans. Operating travel delivered increasingly promising strategic excellent stack encapsulate technology security. drive design, dynamic achieved not market are growth customer technology into open, modern We our A that access we are XXXX. On realizing only also powerful volume only in our which revenue greater Slide strategies, of investing significantly capabilities, Having businesses customers Travelers modern, growth in high and to the of detail objectives starting scalability, retailing today's to to and integration, can immediate achieve now solutions results with intelligent essential advanced

losers. capabilities from increasingly differentiating addition, winners AI-powered In are

advanced Our our and harnesses next-generation AI data capabilities and high-quality partnership into the infuses of Google with power its products solutions.

code and and enable productivity teams are faster swiftly, generative leveraging problems We pace, to throughput. better engineering and classical diagnose at also AI that to resolve improve write and our

marketplace marketplace. strategies: Multi-source transforming foundational buyers NDC, our for XX. are and EDIFACT. elements platform, distribution traditional historical namely broader carrier, into expansion, our of is X digital will specific standardizing BXB the travelers marketplace. On Sabre consolidating efficient low-cost previously modern including Now and growth by review platform to air ubiquitous, and our distribution, I starting GDS, sources, distribution multi-source fragmented open open with strategies, offering, provides articulated payments. Sabre's The content open Slide hotel and a a

early Qantas, with adopter and recent our Our with from including have live and program Air already on integrations XXX airlines approximately content India. Air agencies, XX we NDC currently relationships platforms Portugal, LCCs expanded Emirates, TAP to connects over now XX

air our global trajectory agencies. team totaling XX realize business signed initiative segments From growing shortly. Sabre's Our our this, distribution commercial share we segments. In build XXXX, to between expansion enhanced volume distribution in BXB is a XXXX, will from leading significant in geographic distribution new million I we growth our focuses on which to million position. market strong to on expect growth and touch key on hotel continue XX as on platform

global new partners adding investments in in product higher success driving Our hotel our enhancements are rates. and attachment

I and $XX in our were bookings is business our Payment XX. year-on-year a billion, drove open value mentioned driving growth global by XX% Slide marketplace buyers. As double reducing XXXX, spending contributes friction new distribution ahead. Last, digital digital XX% to XX% opportunity payments in revenue. On there increase and platform, The billion. booking a increase significant in up hotel continues earlier, to business platform resulting a efficiency We moving increase in totaling our year-on-year believe sellers digits $XX gross Solutions through win bringing to to payments to team in and the through

modernized is customers. SabreMosaic, optimization to PSS agreements agnostic. In we and third our with open, with airline retailing AI-powered SabreMosaic Air systems, intelligent modular, of and Virgin solutions SabreMosaic commercial providing and already enhanced market time our that over our design traditional delivering that by Notably, solutions results strategy key interest. Australia, revenue Riyadh customers. and and our also will is Serbia, signed The momentum area are PSS hotel strong is flexible XXXX, travel platform, delivering for replace Air,

bookings, the Sabre's and optimize increase fourth in SynXis brings with XXXX, and PSS. In multi-year Xx platform, retailing technology for extension customers trajectory. improve results, personalization selling Studio open early Retail leading management. in marketplace existing capabilities and with and utilizing bookings, on air double-digit Airlines, the rates. we accretive in distribution pleased greater growing Slide are and offers, a growth to resonating with year-on-year. On American on hotel SynXis, are of we ancillary a content platforms. have and retailing presence solutions CRS Hospitality properties including Based transactions. sales than conversion growth experienced hotel of top including to third-party retailing hoteliers revenue partnership distribution a we of And SynXis these our reshaping of enables This Solutions, ancillaries Additionally, Retail expect Solutions offering Studio CRS XX. were In Hospitality greater property a renewal our to announce quarter, a

fully bookings of largest expect growth come Inc. agreements, number signed, will from not well win distribution We a majority yet as we large including of and Korean signed implemented Travel, OTA as World the XXXX. in another the air in but

We North are loyalty we While XX they credit nearly on growing not agency name, and to top disclose complete a of steadily are migration XXXX. process, through a in million share progressing we expect strong airline of pleased XXXX. commitment agency this focused rapidly This liberty customer's to generated win America, to X are card and segments this which were business, at in the space. in the majority

drive incremental NDC multi-source LCC our expect we addition, to and In strategy volumes.

place drive Sabre in and are summary, the growing than volume total have our of for the you now growth forward, XXXX CRS the total business growth GDS projected and addressable through business, will in hand rather that expectations are industry competitive performance accurately implementation that in double-digit EDIFACT will existing the and air and targeting reflects and in by driven LCC, right growth on Solutions, strategies multi-source we drivers moving revenue to distribution solutions hospitality double-digit distribution and the content, expect Hospitality over confident growth transaction market details approach we will acceleration the including walk industry our that we of in this to provide and distribution shortly. In in demonstrates marketplace, platform, to to Regarding Mike call bookings significant confident better volume for growth share, beyond. I XXXX, NDC, including Hyatt. for additional distribution air our focus with position. In strengthening on represent bookings new we bookings share. We forward evolving we Mike solely our distribution XXXX and believe more air outlook. are XXXX we CRS financial signed our

Michael Randolfi

million good and which Thanks, The all growth, to effectively and Sabre Kurt, $XXX margins in above revenue Slide year-on-year more than by $XXX cost, everyone. Please our higher of increased strong provided managed line. Adjusted invested EBITDA innovation, guidance morning, financial generated February. XX% strong in bottom support We to last XX. million, strategically than delivered the to to and of in resulted initial flow through XXXX XXXX. results turn greater team

On capital the achieved year, each performance, on the objective our financial significant priorities. made cash strength our and structure of free advancements we our this of strategic long-term flow for improved

$XXX fourth compared to a million, Turning $XXX totaled million Total million $XX Total to in the increased QX Slide XXXX. X% increase XXXX. in bookings $XXX last quarter in X% quarter, million. million XX. a were QX Distribution revenue versus distribution to $XX increase year revenue to compared X%

EBITDA improvement in Our million was $XXX improvement was million, transactions. Segment QX EBITDA of year-on-year. and in X% in million driven in an $X.XX adjusted increase revenue $X million, Hospitality primarily quarter $XX to QX X% our represented XXXX QX versus the fourth revenue EBITDA million. year-on-year quarter, Sabre's Strong margin roughly quarter drive fourth to adjusted by XXXX CRS from year-on-year. IT XXXX. in versus the an of million booking cost in $X average prior Solutions a was year. XX% up QX totaled adjusted X% XXXX in $XX the quarter million fee of helped $XXX $XX increased discipline Solutions XXXX the fourth in fourth XX% flat

revenue, We year Moving million, up achieved performance. delivered EBITDA, revenue objectives up adjusted XXXX. to billion, our of EBITDA and full $X.XX flow $XXX adjusted and We for financial our of X%; cash XX%. free

related growth $XX flow the cash opportunistic million targeted in to of million, our we $XX the delivered adjusted November. Solutions of debt in objective. Free line with million including segment refinancing Additionally, was negative Hospitality $XX costs EBITDA, million, completed modification $XX year in for

cash refinancing, XXXX. with positive cash flow a Excluding of generated free opportunistic this in $XXX the million. of the balance ended accounting treatment year We we

looking XXXX. Please Now to turn XX. to Slide

double-digit air customers distribution, now to with chart key transactions our expected contributions revenue mentioned, come to with on during North contributors of include the from Starting are the These announced majority Kurt in us signed Europe significantly in year. As targeted the we vast resonating green, faster grow highlighted of as wins in the commercial strategies the course from see and bookings are deals already this growth. last to XXXX take compared wins moment year provide and the as being quarter over to significant that this position agency will the left, you a implemented clarity the with growth in year, more wins to third and Asia. XXXX. I'll X that America can along our

as Importantly, positive. The we a quarterly expectations our indexed, outlook Based and on on only and where overall air growth international from accelerate for right continue the Overall, remains more than to balance airline air year to industry bookings expect for growth distributions more corporate XXXX incremental heavily as in XX contribution XXXX. bookings implementations XXXX. with million come both expect through Sabre assume sequential nominal outlines year-over-year Beginning pace the travel, the industry the growth. we of is recent the commentary, quarter, chart bookings in to these of online. compared we second the see

Slide transactions coming with in not incremental signed vast is CRS to yet growth the year-on-year business. of XX. approximate from to we growth half Hyatt Hospitality also implemented but roughly In Solutions, CRS expected expect in XXXX. Turning of transactions double-digit volumes majority

chart Moving the on right. the to

to steady transactions high the remainder throughout CRS mid by expect year-on-year year. We followed first growth in the quarter, single-digit in of the acceleration a

with single-digit of follow we XX, than not wins, likely adjusted of and greater we seasonal revenue implementation the on our to quarter, million. low $XXX adjusted our to Turning Based EBITDA quarterly our historical In flat growth Slide timing and year-on-year our patterns. and new guidance. EBITDA first commercial will expect revenue expect

expect due year. With adjusted we EBITDA free revenue result expect quarterly commercial will in incentive our as first year-on-year a move we cash the As significant lowest Unlike XXXX, quarter. make typically outflows represent EBITDA. through we we and payments is due in experience seasonality our of collections to to reminder, we quarter the adjusted cash previous timing increases of of agency the we to when receive and first quarter to in the in the versus wins when first flow, airline ramp and working higher capital business. of years, This revenue regards generally the the

payments compensation also period. pay We this incentive annual during

last cash positive of to expect and quarters As in flow the first result, a we quarter XXXX. remaining free to be similar year

than the full million XXXX, single-digit high we growth, EBITDA For cash year expect year-on-year of free and revenue adjusted million. $XXX greater of greater flow $XXX than

of In capital of addition, million $XX expense $XXX and about cash investments to expect interest strategic we expenditures approximately support million. our

in financial atypical additional Given provide move color pattern expect in how EBITDA adjusted on metrics to XXXX, revenue expect we of and the I will our primary that XXXX. we seasonal

growth For half that bookings, we second as expect to revenue in of the primarily expect distribution to single-digit well Solutions IT in high growth, CRS full year, transactions resume air XXXX. we in revenue the the hotel achieve bookings, and Hospitality increases distribution as from Solutions

costs average the total lower be year-on-year to gross a fee growth. Further, lower completion objective marginally mix, adjusted as Sabre's expected expect and also will of portion new technology driven XXXX LCC NDC, geographic the bookings as drive down revenue transformation margin expected fee average is by a XXXX. technology in and have to percentage of We of booking a booking versus

the related volumes lower a by the cloud required hosting bubble with we expect and from and will partially XXXX management accelerating the to expense Overall, revenue complete bottom cost increased dollars We the slight migration SG&A of flow-through be cloud for further to in operating costs of the higher robust compute line. the to will full profit we increase. costs in elimination of gross year-over-year coupled strategy. On year to investments growth, XXXX, drive expect expect the support our offset

Turning of each XXXX. XX. priorities advanced to our in Slide We strategic

disciplined efficient taken a couple to the more over are realign actions and With years last cost we the resources, of organization.

Kurt and significant drive revenue our is contributions As growth momentum top within growth. line the to strategies expected highlighted,

we we February $XXX last to our as greater adjusted and result, million XXXX guidance. communicated part EBITDA a and than achieve remain of As on expect track the of

XXXX several sheet while maturities. to transactions cash XX. in flow debt Slide free Sabre's aligning We strengthen projected to Turning completed refinancing better generation with balance also upcoming

XXXX, earlier, extended debt fourth improving significantly of opportunistically quarter XXXX, debt November As billion maturities mentioned profile. in maturity in the we $X.X to Sabre's

Our next large maturity XXXX. will not come due until June

result on maturities improvements of repay a come our with as XXXX As we refinancing due. during the to debt financial activities are well they cash and hand positioned the XXXX achieved,

flow to line cash innovation. operator, our have our deliver and sustainable accomplishments XXXX To strategic Sabre's us and questions. growth with XXXX through We that, sheet trajectory in the unchanged: please XX. position value focus Turning reshaped Slide the free beyond. And and for growth in remains shareholder open to de-lever In and balance generate believe closing, well

Operator

comes Instructions] from Morgan [Operator And our Stanley. question first Josh of Baer

Josh Baer

hoping of I'm I through looks win. that more a just ramp you was the risk and that little as could of come through wondering implementing how you Can new time? online walk like that? agency far to commercial just into the onboarding like any insight as process me process the over talk

Kurt Ekert

This is Kurt.

they an whether a you they have have we we historical not amount either a side their have online functionalities in fairly you geographically. single may multi-automated somebody uniquely to say, one-size-fits-all. existing with a it's multi-automated, new that agencies in with an they typically single them specific There's Typically, with meaning that up have had integration they with then knowledge travel quickly run an TMCs, and won. with given GDS, experience by or develop seamless a of but may comparison implementing client how terms new So client it's that agent, business, it's whether develop or single be ramps. By automating, may for brick-and-mortar example, and, geography. run with OTA, there those, and tremendous that leisure I'd or typically on a easier Once that to have it's of or else

they and another So one vendor, run may else call then in somewhere center one geography, or one. one

effort them. required ways And side an agency that in by is their or so there's the operating significant approximates a change for brick-and-mortar because many system GDS TMC the on

the So customer have do we while predicated timeline is drive side on of to the that to there are actions the the our on implementation, prospect. oftentimes, the things or

that given because we've that well outcomes those ramp We're this. sync specializes that projections with we've large that technically commercially today, confidence both many have team opportunities. customers, those a the of we're in will terms we we great today achieve of we and the In concert, doing and have underway and in given in and those with

we it. are So to those to underway our have experience and of do has well that lot but clients, the by a by execution-wise work we towards us There's objectives. happen achieving

Josh Baer

million then further. cost you in Or there unpack And hoping Is was in embedded the the a just I of that's bucket? that $XXX realizing that the completion is else efficiencies incremental sort could of transformation? bit anything tech

Michael Randolfi

So XXXX, year program a was tech in to we last million. $XXX transformation, yes, and cost actions XXXX. $XXX of was all we The already savings XXXX. had we in which of completed have had which been as from is things the a big our $XXX we taken cost transformation, XXXX exit recall, provided million, were efficiency tech if walk as were all which when realized of as remaining you well undertaking. the $XXX million total We that million, had indicated X there

XXXX. the around we've the initiative achieved XXXX, objectives. original undertook And Our transformation savings we starting from tech

in seeing you're what this P&L the year. that's so And

Operator

of comes next Irving Alex from Our question Bernstein.

Alexander Irving

normal please. and from passenger driving the your please, in color me, per know that beyond you year? revenue big what's that, sequentially Any this are for boarded seasonality. from evolution see QX how on step-up question A What XXXX? expectations I

Michael Randolfi

expect is revenue the previously slightly boarded. of completed down there portions, half. different of be we passenger Part PBEs passengers revenue first associated we half, roughly to we in with than I don't see mean the Other get on carriers. couple in boarded. second solutions year, more existing benefits then revenue revenue the the a year, something revenue additional to had half to we also there's First, by per line in revenue the that expecting that airline really as first boarded. What because That's the the and there. look some ] we're from That's half. And of to IT when year-over-year. see but in other -- we in based from driven manage passengers was there's throughout the IT to revenue the XXXX de-migrated say X first half prior would air airline And I then IT carriers tail XXXX, the the look is SabreMosaic. would some I of revenue of [ constructs we a to start had higher small is of

the year-over-year we expect we'd half, would revenue second for to the growth down slightly be to the growth then year resume IT first a So in basis the in and air expect we'd in demonstrate it to overall. it expect on half. And

Operator

Our question of from Jed comes Oppenheimer. next Kelly

Jed Kelly

on reiterating the job Nice guidance.

seen question, I of newer Sabre? And outlook, but about just in join talk Can into sort come implied are some types agents you these you we've side leisure? about versus some late call, heavily of into the your corporate that was travel impacts how year talk think the full of to then what's you can that just leaning First NDC. capital

Kurt Ekert

Kurt. is This

sector capital corporate especially to First the coming the generally, the attractiveness of that all, on the into speaks of think infusion travel. sector, I

corporate with you're traditional the returns forget most connectivity in fundamental have because Navan and we in believe, is capabilities the shopping So multi-source Spotnana. shop space of parsing or of platform, that actually generally provide likes content and that about the algorithmic all with them we LCC, for relevant companies. of NDC, critical. EDIFACT. And that terms content, our put and to speaking the all sorts is these of We the best TravelPerk of we don't relationships And very

is a new do a more whether to of the with robustly them. player, capital applaud we So entrant traditional coming it in business all and intend or we

Michael Randolfi

to at overall first, just industry a as Jed, is to, stage. we and has assumption for as flat assumption, kind expectations quite With would at while highlight, of you regard this look been know, nominal which, assumption baseline travel I base growth, our our our

fairly being when and Now meaningful said, expectations have at still overall at when in -- still with positive. spend. you constructive domestically actually increases meaningful for the it's capacity There's look look that internationally, softened. business backdrop, increases, particularly growth airline you yields as travel increases And there's

being there's assumption So quite reason better we control. than is that, but with industry that said, to would believe on highlight that we can to assumption. our focused I frankly, flat our nominal, What which be can is, of we're

we have expect can this we won business based significant we you As ramp-up control. in on based on year, what we've volume and and what significant won see, to

Operator

of Our Victor Instructions] question next America. [Operator Bank of Cheng comes from

Hin Fung Cheng

revenue affect win, quite think implies on throughout A first to the I substantially It going ramps bookings if air booking? the year. lower? up of it 'XX it? And may. higher does how material higher and how well. win, growth QX how think -- we about about mix? per almost some will couple, how the guess, or extent, growth impact I is the then it Is and should we all, the it as well, growth the about the into Is we it that do in undisclosed thinking How be to a airline, maybe

Kurt Ekert

well. and take second to me try do we'll first, the the let then Victor, as

you're bookings on So growth, air right.

That's as had. implement the and implies we strong significant realize the That ramp that year XXXX. QX we through have. a wins into clearly into have an momentum and then see expectation You'll you should that

Michael Randolfi

prepared think we regard booking we in as dollar look by this the about, up as EBITDA growth to impact, largest be first, coming about it that as talked booking to degree at in and from the distribution expect fee we growth And like we're double-digit gross driven profit we seeing. the the improvement with to, remarks, year,

and that a fee. are being margin said, coming with is, with some lower volumes of highlight would what booking these slightly lower slightly Now I

fee would So we would be average below $X.XX. ended expect that for XXXX year booking XXXX that. the at the slightly I in

trends expect year. and but what's gross so And of share profit I going going we're the our drive lower, to I EBITDA to growth be that's expect slightly would expect that substantial to be lower, to would would this I margin dollars, overall gross the generate lion's also

Kurt Ekert

Mike's the booking undisclosed Yes. in will to slightly respect fee. associated be And with on the than balance significant dilutive add to North there's that just booking customer, North that slightly world on average win, given effect the fees America have to a volume to American with and point, tend lower this the of

Hin Fung Cheng

you're didn't airlines any in on seeing updates specifically. share And relative you then performed mention given ramping this on you quarter, XX NDC don't about of mix you the now, I how on end? gains. on your And whether volumes to whether NDC market of some bookings know color whether have also the QX well, as like your

Kurt Ekert

the for component connectivity, indicated, that content very the have remains up total. over do from to us winning QX coupled of broadly exponential NDC we and bookings point NDC the and in expect NDC long-term. or specifically, with terms air of solution year that single-digit think In pretty a the TMCs will against the exited XXXX significant overall in percentage distribution With growth for make choice see provider about beyond. We We competition. of OTAs basis our for we leading the provided functionality We're X as XXXX, low brick-and-mortar year-on-year. low

Michael Randolfi

-- would this double-digit expecting have just is double you growth we thing And bookings I other Victor, the remind year. we're only

I our think marketplace. competitiveness highlights the that in

Hin Fung Cheng

or 'XX as winning for peers? undisclosed and we generally more on on that that. if going But of think as maybe the re-intermediation? front? we about maybe a I a if think kind of the GDS especially one. guided the forward maybe are And Obviously, wins win versus can other there? well the ones, you speaking, bit squeeze in one medium is about mentioned is you last should more portion have it potential The it the How trend what Or re-intermediation term LCC well,

Kurt Ekert

majority vast is the of realization articulated. the wins as specifically, new XXXX of to you're we see In going growth the

Now increasing that -- NDC LCC long-tail portion for the pie of of will content traditionally an a have. did for not portion we be that and

XXXX, As growth. you to tail and more NDC out beyond we expect go contributors to especially LCC become meaningful the long our

what feel be very mix over time. is that about we to going So good

Operator

comes of Dan question from next Our Morningstar. Wasiolek

Dan Wasiolek

just kind incentives? new lower this been result that as communication the new signing talked of margins about of of So there some there business? of might competitive of gross -- slightly your is has Or that environment in business. 'XX just in all result the Is you've with be a that change kind a with of like kind mix just

Kurt Ekert

Yes.

First, let trajectory, when highlight, generate look also lower margin. at at our we me X, dollars, significant expect profit a to just albeit slightly gross you

mix Second, don't math increased if margin you a basis expect at seen of we And really accretion. What terms -- higher work compete effectively. mix do competitive I been XXX our It's added transactions more of It environment, of bookings. that we being to do is the look significant the EBITDA significant content. see over It's we environment. points. with a margin types has if and NDC, mix between to EBITDA a you by in higher competitive haven't of in and change 'XX, LCC highly I of the would say are 'XX 'XX, any we

perspective. but And profit from gross so lower does lower a margin, booking fee and slightly accretive with that very have that, dollar some again, a average of

Operator

question Our comes Fitzgerald. from Mathivanan Cantor Deepak next of

Unknown Analyst

on This is Deepak. Jack for

for Just a me. one high-level

going see your You and remarks. the about most 'XX maybe bit AI your beyond? forward discuss you kind you prepared Can in business little AI implementing across opportunity from a even talked of in where

Kurt Ekert

our the the are operations. is throughput, number thousands the productivity X of meaning productivity have, or on in developers service for developer them enabling the customer and opportunities And then term, Near biggest efficiency to through opportunity travel a code X we put at year. Longer that with stepping calendar Those out e-commerce. consumers we're and for faster and how a this there's realizing term, things really within pace. engage shop for into are transformative of

fully to into the our footprint. see begin we're, right And Gemini deliver that stack code Google's within that And embedding as into optimization us products we so our now, SabreMosaic for well example. airlines, as distribution for revenue AI you'll for example, promulgate

think than X, medium our X, Sabre our we long-term that term, competitive. first into excuse over to, the then more the And on But revenue time. help latter. so near make turn that's competitors again, -- going more to more me, customers And X, help

Operator

comes next of Wei Our from Fang Mizuho. question

Unknown Analyst

is Wayne Jame [ ] [ calling for This ].

different First just of want solid Since the out, to like result. will but be margin right, versus transactions questions carry was the half rest double the all, [indiscernible] for wondering congrats you on well? little of if to XXXX. that incremental I guys the as been profile bit called the check. of Most have my in Hyatt transactions of happens a answered, I

Kurt Ekert

HS. profile Hyatt I is, for margin of to as individual is break than on the Mike be, to different what half expect indicated, We the customer asked in balance, contracts. clarity, accretive details we we're year. the business like out is bringing don't Hyatt the Just for of HS see believe you CRS this HS that other roughly the customers? overall And will the growth transaction

Michael Randolfi

we expansion look EBITDA, see would Solutions expect, you And year-on-year. you'll continued margin overall look Hospitality EBITDA at you at and if

Operator

I'm to showing time. no I'd Kurt this remarks. like further to closing it at Ekert for back questions turn

Kurt Ekert

could the look thank at and be Well, All And forward how Thank I and you. right. additional support on interest. as progress I the we performing. team go Sabre is your appreciate do Sabre prouder and you. future of not into sharing

Operator

Thank disconnect. you may This for concludes participating, today's and now conference you call.

Sabre (SABR) 20 Feb 252024 Q4 Earnings call transcript