SOUTHLAKE, Texas – Sabre Corporation (NASDAQ:SABR), a leading software and technology provider for the travel industry, reported its fourth quarter financial results, revealing a revenue of $687 million, which fell short of the consensus estimate of $691.86 million.
Despite this miss, the reported revenue marks a 9% increase from the fourth quarter of 2022, showcasing a year-over-year (YoY) improvement. The company's adjusted earnings per share (EPS) for the quarter came in at ($0.12), slightly better than the estimate of ($0.14).
The company's stock plummeted by 27% following the announcement, indicating a strong negative market response. This decline is attributed to Sabre's guidance for the first quarter of 2024 and the full year, which both trailed estimates.
For Q1 2024, Sabre anticipates revenue of approximately $750 million, below the consensus of $787.5 million. For the full year 2024, the company expects revenue to be around $3 billion, compared to the consensus estimate of $3.18 billion.
President and CEO Kurt Ekert highlighted the significant commercial successes, efficiency gains, and product innovation achievements that drove strong financial results in 2023. He emphasized the company's commitment to delivering modern retailing and distribution technology that meets the evolving needs of the travel marketplace and to realizing strategic and financial priorities.
In the fourth quarter of 2023, Sabre's operating income showed a notable improvement, with $37 million compared to an operating loss of $55 million in the same quarter of the previous year. This was primarily due to increased global air, hotel, and other travel bookings, as well as favorable rate impacts in the company's Travel Solutions business. The net loss attributable to common stockholders improved to $96 million from a loss of $165 million in Q4 2022.
For the full year 2023, Sabre reported a 15% increase in revenue, totaling $2.9 billion, compared to $2.5 billion in 2022. The company's operating income for the year was $47 million, a significant turnaround from the operating loss of $261 million in the previous year. However, the net loss attributable to common stockholders widened to $542 million from $457 million in 2022, driven by higher interest expenses and other factors.
Sabre's Travel Solutions and Hospitality Solutions both reported revenue growth, with the latter experiencing a 19% YoY increase in revenue on a 10% growth in central reservation system transactions.
The company's financial outlook for 2024 reflects the challenges ahead, with expected net losses and lower revenue projections compared to expectations. Despite the current setback, Sabre's leadership remains focused on achieving long-term financial goals and expanding its market presence.
Edited by Rachael Rajan