Sabre ( NASDAQ: SABR ) shares fell 9% on Wednesday even as the travel technology company narrowed losses in Q3 on the back of improved bookings.
Net loss attributable to common stockholders narrowed from $241M a year-ago to $141M, driven by increased revenue, lower depreciation and amortization and a $13M reduction in loss on extinguishment of debt. Adjusted EBITDA was $34M, compared to negative $55M a year ago.
Revenue grew 50.5% Y/Y to $663M, driven by an increase in global air, hotel and other travel bookings due to the continued recovery from the COVID-19 pandemic and favorable rate impacts in the firm's Travel Solutions business as international and corporate bookings improved.
Sabre's ( SABR ) bookings continued to improve with September gross air bookings at the highest monthly rate of recovery vs. 2019 levels since the pandemic began in March 2020.
However, free cash flow generation remained pressured at negative $123M vs. negative $83M a year ago. The company attributed this to some disbursements made in the quarter and around $10M in cash restructuring costs. It expects free cash flow to turn positive in Q4, driven in part by the continued travel recovery and typical seasonal cash flow favorability.
It expects to be free cash flow positive in 2023, and annually thereafter.
For the full year 2022, Sabre ( SABR ) expects adjusted EBITDA of ~$90M, which is better than the midpoint of its prior EBITDA guidance for a recovery range of between 50% and 60%.
For further details see:
Sabre slides even as losses narrow, free cash flow remains pressured