Q4 2022 Sabre Corp Earnings Call

February 15, 2023

The conference will begin shortly to raise and lower Johan during Q&A, you can dial star one one.

[music].

Good morning, ladies and gentlemen, and welcome to the Sabre fourth quarter and full year 2022 earnings conference call. My name is Olivia and I'll be your operator.

As a reminder, please note today's call is being recorded.

I'll now turn the call over to the senior director of Investor Relations, Brian Roberts. Please go ahead Sir.

Thank you Olivia and good morning, everyone welcome to <unk> fourth quarter and full year 2022 earnings call.

This morning, we issued an earnings press release, which is available on our website at investors Dot safer dotcom.

Slide presentation, which accompanies today's prepared remarks is also available during this call on the Sabre Investor Relations webpage.

A replay of today's call will be available on our website later this morning.

We would like to advise you that our comments contain forward looking statements that represent our beliefs or expectations about future events, including the duration and effects of COVID-19 industry and recovery trends benefits from our technology transformation and commercial and strategic arrangements, our financial outlook and targets expected revenue adjusted EBITDA.

Free cash flow costs, and expenses cost savings margins and liquidity among others.

All forward looking statements involve risks and uncertainties that may cause actual results to differ materially from the statements made on today's conference call.

More information on these risks and uncertainties is contained in our earnings release issued this morning, and our SEC filings, including our Q3 2022 Form 10-Q, and 2021 Form 10-K.

Throughout today's call. We will also be presenting certain non-GAAP financial measures references during today's call to adjusted operating income adjusted net income adjusted EBITDA adjusted EBITDA margin adjusted EPS and free cash flow has been adjusted to exclude certain items the.

The most directly comparable GAAP measures and reconciliations for non-GAAP measures are available in the earnings release and other documents posted on our website at investors Dot Sabre Dot com.

Participating with me are Sean Menke, our chair of the Board and Chief Executive Officer, Kurt <unk>, Our President and Mike <unk>, Our Chief Financial Officer with that I'll turn the call over to Sean.

Thanks, Brian and good morning, everyone and thank you for joining us today.

On slide four you can see an overview of the topics Kurt Mike and I will cover on today's call.

I'll review, our many achievements for 2022, and then outline how these support our long term objectives.

Kurt will then review the latest industry trends and review our plan for 2023 and beyond he will also highlight the substantial progress we made in the fourth quarter and in 2022 towards our technology transformation.

Further he will also provide additional detail on key commercial accomplishments and review of the important partnerships that we renewed and expanded upon in 2022.

Finally, Mike will take you through the final results of the quarter and year and our financial outlook for 2023.

Before I start I want to thank my Sabre team members worldwide.

122 was a year of progress and recovery the global pandemic brought on by COVID-19 in 2020 had a significant impact on the travel industry and savor. Despite those headwinds the sabre team in 2022 made significant forward progress with our technology transformation provided best in class service to our customer.

<unk> and one new business I am extremely proud of what we have accomplished to date and what we will do for years to come.

Turning to slide five 2022 was a year of many accomplishments our revenue recovered to $2 5 billion. We returned to positive adjusted EBITDA, we generated positive free cash flow as we exited the year and we continued our significant progress on our strategic initiatives.

<unk> reached an important positive inflection point.

With these key financial metrics now positive we expect that trend to continue which we believe will give us the opportunity to delever delever our balance sheet.

Our technology transformation is delivering financially and operationally in line with our previously stated goals with the end in sight, our cloud based infrastructure is more scalable distributed and secure than the prior mainframe environment.

Just as importantly, it allows us to build more advanced and agile products and capabilities to serve our customers for the years to come and the way we planned.

We solidified key partnerships with travel management industry leaders BCD and Amex GBT.

We expect these partnerships will be a meaningful volume driver for safer going forward.

In addition, we renewed and extended important agreements with many of our airline customers, including American United and most recently Jetblue.

As you can see on this slide in 2023, we expect to see meaningful growth in adjusted EBITDA and to generate full year positive free cash flow.

We are very encouraged year to date by volume trends, which are in line with our plan.

Over the long term, we maintain our bullish view of a significant global recovery in growth, but our near term management of the business will continue to be based on steady improvements in global volumes with a strong emphasis on cost management to be free cash flow positive in 2023.

Turning to slide six we are optimistic over the long term with regards to the travel recovery based on historical booking trends favorable favorable indicators from airlines related to the demand environment and their desire to grow capacity geographic regions, continuing to open and renewed improvement in corporate travel.

As this chart shows we believe the opportunity for volume recovery as global travel normalizes is significant.

In 2022, the demand recovery was uneven driven by resurgence in COVID-19 cases at the beginning of the year airline and airport operational constraints airline capacity limits and regional travel restrictions. We believe some of these factors negatively impacted the recovery in the latter half of the fourth quarter of 2022.

I mentioned in my earlier comments, we believe those negative impacts are temporary and we have seen volumes improve in the new year.

To get into more of the details let me now turn the call over to Kurt Kurt.

Thank you, Sean let's turn to slide number seven.

Before I discuss the latest industry trends I will briefly revisit the guidance we provided in our last earnings call.

And discuss why the results for the quarter did not meet our expectations.

As Sean mentioned shortly following our November earnings call.

The upward trajectory of volume growth that we previously experienced was interrupted in corporate travel and in Asia Pacific in late November and through the month of December .

As you can see from this volume chart.

The trajectory of the recovery in 2022 was higher overall, but uneven.

The total distribution bookings recovery in Q4 was 59% versus the same period in 2019.

This 59% booking recovery equates to a 65% revenue recovery as a result of a higher booking rate achieved in Q4 of 2022 <unk> versus Q4 of 2019.

Higher revenue per booking resulted from a continued favorable mix.

Importantly, we are already seeing improvement in both corporate travel and Asia Pacific volumes in 2023 through early February .

To put numbers behind it.

Year to date recovery in our travel management company business is about nine percentage points above December levels.

It has strengthened on a sequential weekly basis.

Accordingly, we believe the late 2022 recovery setbacks.

That we saw for both corporate travel and Asia Pacific are likely to prove temporary.

Given the positive recovery trends, we are now once again seeing.

To illustrate this point.

We're now realizing a return of group bookings coming out of Asia that are reminiscent of pre COVID-19 travel patterns.

Despite the fluctuations in air bookings in recent months.

We believe several key trends are supportive of continued air traffic growth through 2023.

Yeah, why capacity is expected to rise.

As aircraft deliveries accelerate and operational constraints that have curtailed growth.

We believe this additional capacity is likely to unlock robust consumer.

And corporate demand.

Evident from higher or excuse me from elevated air fares that have not limited industry load factor improvement.

As we look at the balance of 2023, we are optimistic on overall demand and recovery levels moving forward.

But prepared for the possibility of further unevenness in 2023.

Accordingly, we will be responsive to changes in volume growth.

And control cost as needed to focus on achieving positive free cash flow this year.

And while we will adjust as needed to external market conditions, we remain.

Focused on the key long term strategic opportunities for our business.

We are confident in our ability to grow our distribution business.

Underpinned by our solid partnerships with many.

The largest travel management companies.

Brick and mortar and online agencies in the world.

We are winning consistently across both retention and conversion opportunities.

And are pleased with our strategic positioning in our core GDS business.

We believe the investments we are making in product and sales should continue to drive growth in our air bookings.

To illustrate this note that we have realized increased share.

With nearly three quarters of the largest 20 travel agencies so far in 2023.

Turning to it solutions.

Passengers boarded recovered 90%.

In Q4 versus the same period in 2019.

Looking ahead, we are encouraged by the opportunities to grow our PSS and airline commercial product offerings, including.

Including our innovation and next generation retailing and merchandising.

And hotel Crs transactions in Q4 were 104% compared to the same period in 2019.

We believe our hospitality solutions business is primed for strong growth.

Both in its core Crs offerings as well as the new retail studio and new vault products.

As I mentioned previously 2023 year to date volumes.

Across each of our key businesses improved from December .

Specifically through February nine.

Year to date air distribution bookings were 62% versus the same period in 2019.

I'd solutions passengers boarded with 94% and.

Crs transactions were 125%.

Now please turn to slide number eight.

I'm pleased with the progress we made in 2022 on our two key technology milestones for the year.

Gration to Google cloud.

And the Offloading of passenger name record.

During 2022, we completed the exit of our Sabre managed data centers, including Plano Lewis.

Lewisville Carrollton and Austin.

All told during 2022 with.

We decommissioned approximately 13000 servers from these sites.

And another 500 servers from our from our Tulsa data centers operated by <unk>.

We ended the year with approximately 66% of our total compute capacity in Google Cloud ahead of our original goal.

Our mainframe offload program continued to make great strides and.

And we significantly exceeded our 2022 <unk>.

<unk> savings goal.

Development work for Offloading passenger name record our primary customer reservations database.

Has been completed.

And customer migrations are on track to complete this year.

Additional key accomplishments during the year included moving all air shopping to Google Cloud.

Which enabled us to realize our planned savings in data processing costs.

Due to the reduced cost of Google cloud compute it.

Multiple shopping optimization efforts.

We also migrated our Sonexus central reservation system and.

And property management system to Google Cloud.

Thus fully completing the transition of our hospitality solutions business to the cloud.

The chart on the right hand side of this slide <unk>.

We reiterate the significant savings and margin improvement that.

We expect our technology transformation to deliver in the coming years.

Turning to slide nine.

Consistent with our strategy our unit cost of compute has continued to decline as we migrate our systems to our lowest cost infrastructure.

Google Cloud.

In Q4, our average monthly unit cost of compute fell 8% sequentially from the third quarter and.

And we finished 2020% to 25% below our 2021 unit cost of compute.

And please keep in mind. This savings does not include the long term opportunity to optimize our systems on Google cloud.

Which we believe can drive additional cost efficiencies.

Okay.

Turning to slide number 10.

This slide again shows how Sabres computing volume has changed over the past three years and how we expect it to change by the end of 2024.

During Q4, we increased the proportion of our total compute volume on Google cloud by 16 points from the third quarter.

By the end of 2024 as per our original plan.

We expect Google cloud to represent nearly all of our computing volume.

We continue to expect that by significantly reducing the complexity and increasing the agility of our technology architecture.

We can better serve our customers at a significantly lower overall cost.

Before I turn the call over to Mike I want to highlight some of our many commercial accomplishments in 2022.

Last year, we signed distribution agreement renewals with several global flagship carriers, including American and United.

These agreements extend and enhance our partnerships with these carriers and.

And we plan to collaborate to utilize sabre technology and solutions to help them enhance their product offerings.

And to respond faster to consumer demands and the evolving travel marketplace.

We remain confident in the value, we bring to our customers and expect to win additional distribution agreements in 2023.

And beyond.

We also recently announced the extension of our long term and deep Jetblue PSS and distribution relationships.

And should their proposed merger be approved.

We believe we are very well positioned to help jetblue expand.

Back in November we also announced a new partnership with Mastercard.

To accelerate the use of virtual cards for business to business travel payments.

This announcement builds upon our acquisition of confirm.

Which we acquired in August 2022.

And furthers our strategy to create an open and independent travel payment ecosystem.

We are excited to work with an industry leader with the scale and capabilities of Mastercard.

We believe that the growth opportunity from virtual cards in the coming years will be substantial.

We also strengthened our relationships with.

With travel agency leaders, such as American Express global business travel.

BCD travel and Hopper.

Our new agreements and joint technology partnerships with GBT, and BCD are providing incremental bookings to safer network.

And are expected to continue to drive additional growth as migration continues.

While also yielding opportunities to improve our customers overall experience.

The key takeaway for the many partnerships that we expanded in 2022 is.

Is that many of the largest travel providers in the world.

Want to do business with Sabre and.

And we continue to focus on providing the highest level of service and.

And product innovation to our many global partners.

<unk> processed over 1 billion total transactions in 2022.

And we are excited to continue playing a central role in the global travel recovery in 2023 and beyond.

Mike over to you.

Thanks, Kurt and good morning, everyone. Please turn to slide 11.

As we discuss Q4 I'd like to begin by reiterating some context on recent trends specifically, how we saw volumes evolved throughout the quarter and how that influences our plans going forward.

During our third quarter conference call, we indicated expectations of a Q4 air bookings recovery and the low 60% range and adjusted EBITDA for the fourth quarter of approximately $30 million.

As Sean and Kurt stated volume trends in late November and December were not as strong as expected, which was the primary reason, we missed our Q4 recovery and adjusted EBITDA guidance.

What we have learned over the last three years is that the volume recovery trajectory remains upward but uneven.

Given that context, we continue to have a heightened focus on cost control such that we are targeting for expenses to grow at a significantly slower rate than revenue to support our adjusted EBITDA and cash flow targets that are aligned with the guidance we provided to them.

We expect to be free cash flow positive on an annual basis in 2023 and believe we are on track for our 2025 targets.

Additionally, I would like to reiterate that as we transition to generating positive free cash flow for the full year 2023, and beyond we view the highest priority of that free cash flow generation to be reducing debt and delevering, our balance sheet with a long term goal of being between two five times to three five times.

Net debt to adjusted EBITDA.

Total Q4 revenue was $631 million, an increase of $130 million or 26% versus last year.

Distribution revenue totaled $417 million, a 46% increase compared to $286 million in Q4 2021.

Our distribution bookings totaled $76 million in the quarter, a 32% increase compared to $58 million in Q4 2021.

Our average booking fee was $5 49 in the fourth quarter, which compares to $5 38 last quarter $5 35 in Q2, 2022, and $4 90 success in the fourth quarter of 2021.

We continue to see favorable mix into more profitable regions and types of travel, resulting in higher booking fees and we believe this trend is likely to continue in 2023.

It solutions revenue totaled $157 million in the quarter. This is a decline versus revenue of $165 million last year.

Passengers boarded totaled 168 million, a 30% improvement from $129 million in Q4 2021.

To provide more context on this line item on a year over year basis for the quarter, we experienced a $25 million benefit from higher volume offset by no longer having air centre revenue of approximately $30 million and lower revenue from our airline it.

Business in Russia of approximately $4 million as compared to Q4 2021.

We realize the migration of our Russia Russian airline business in Q4, as a result of changes in Russian law.

Looking forward in 2023, we expect an approximate $100 million headwind to our it solutions revenue. The vast majority of which is the result of the impact of the Russian law.

Additionally, as a reminder, we sold our air Centre business at the end of February 2022, and in Q1 2022, we realized approximately $35 million in revenue from this business.

Please note that these impacts are incorporated into the guidance that we're providing today.

Hospitality solutions revenue totaled $65 million.

An improvement versus revenue of $54 million in Q4 2021.

Central reservation system transactions totaled $27 million in the quarter and were 16% above $23 million in Q4 2021.

Adjusted EBITDA of $1 million was better year over year as compared to negative $26 million in Q4 2021.

The year over year improvement in revenue in the quarter was partially offset by increased travel solutions incentives expense and hospitality solutions transaction fees from higher volumes.

As expected our technology cost increased due to higher variable hosting costs associated with the volume recovery and higher labor and professional service expense associated with our technology transformation.

Free cash flow was $22 million in the fourth quarter, which benefited from seasonally strong working capital inflows.

Our team also successfully refinanced the remainder of our term loan B in November with our nearest debt maturity now being April 2025.

In addition, we entered into an accounts receivable securitization on February 14, 2023, which we expect to contribute approximately $100 million.

Two our available liquidity base when funded.

This transaction will be recorded in the financing section of our cash flow statement.

We view this securitization program as a very efficient financing that is largely debt neutral when taking into account the paydown associated with the Arizona proceeds.

As a reminder, pursuant to our sale of Air Center, we are required to pay down debt with any uninvested proceeds from that sale by may 24th 2023.

Currently we expect that amount to be approximately $80 million.

We ended the fourth quarter with a cash balance of $816 million.

Turning to slide 12, moving to guidance as we look through our earnings cadence earnings cadence throughout the year, we remind you that the first quarter was a seasonally strongest bookings quarter of the year with that we expect first quarter 2023 revenue of approximately $725 million.

And adjusted EBITDA of approximately $50 million.

As we discussed last quarter the fourth quarter is typically the most favorable from a working capital and free cash flow perspective.

Following that the first quarter typically experiences higher working capital and cash outflows.

Therefore, it is typically the weakest quarter from a from a free cash flow perspective.

This seasonality is driven primarily by timing of when we receive partner receipts in the fourth quarter versus when we make agency payments to partners in the first quarter.

Additionally, during the first quarter, we will have cash outflows of approximately $60 million for our 2020 to annual incentive compensation payments.

Hence, we expect negative free cash flow of between $80 million to $90 million and.

In the first quarter.

As we progress through the year, we expect meaningful sequential improvement in free cash flow generation.

For the full year 2023, we expect revenue to be between $2 8 billion and $3 billion.

And adjusted EBITDA between $300 million and $320 million.

To provide further context for our revenue projections for distribution. This outlook assumes continued incremental improvement in the travel recovery and some benefit from a higher average booking fee.

Regarding it solutions as a result of the $100 million headwind and the impact of the Air Center disposition. In Q1, 2022 mentioned earlier, we would expect modest year over year declines in it solutions revenue throughout 2023 with a year over year decline being greatest in Q1.

<unk> 2023.

For hospitality solutions revenue, we expect it to exceed 2019 levels.

We expect our 2023% total revenue growth to have strong flow through to adjusted EBITDA.

Given that at current volume levels, our cost structure is roughly 40% variable and 60% fixed.

Additionally, we see efficiency, including the benefit of a lower cost of compute helping to offset other inflationary pressures.

In 2023, we expect to generate approximately $25 million in working capital benefit from growth in our business and we are targeting $125 million of working capital initiatives, which we expect to begin delivering value in the second quarter.

We expect our 2023 capital expenditures to be between 50% and $60 million.

Our annual net cash interest expense based on our current debt profile and expected interest rates.

Proximately $390 million.

Our net fixed to floating debt is about 70% to 30%.

Every change in interest rates of 25 basis points changes, our annual interest expense by about $3 million.

Collectively we expect to generate positive free cash flow in 2023.

Annual basis thereafter.

As we look at our 2025 targets that we had previously provided and are reiterating.

We expect adjusted EBITDA to grow at least $600 million.

Between 2023, and 2025 and to be greater than $900 million.

In 2025.

At a high level the contributions to adjusted EBITDA growth are expected to come from three key drivers each having a roughly equal contribution to our goal.

For the first driver, we expect a continued travel industry recovery and ultimately higher distribution and passenger boarded volumes in today.

For our second driver our technology transformation, which we expect will enhance our product development cycle is it.

Expected to also result in meaningful expense reductions by 2025 as compared to today.

The third driver is an expected mix of additional opportunities supported by recent agency wins.

Growth in IC solutions, a shift to adjusted EBITDA generation for hospitality solutions growth in virtual payments from confirm and a continued emphasis on cost control.

In conclusion, we are confident in our ability to deliver on our long term strategic and financial objectives. We expect our technology transformation to provide substantial operating leverage to our business and we remain optimistic.

Global travel recovery will continue.

And to be responsive if necessary to ensure we achieve positive free cash flow in 2023.

Operator can you. Please open the line for questions.

Thank you, ladies and gentlemen, as a reminder to ask a question you will need to press star one on your telephone and wait for your name to be announced to withdraw your question Westar. One again, please standby, while we compile the Q&A roster.

And our first one.

Coming from the line of Matthew Broome with Mizuho Group. Your line is open.

Thanks, so much for taking my questions.

I guess firstly.

Could you maybe provide a little bit more context as to what impacted the recovery in November and December .

Was it limited to corporate in APAC and really what were the reasons for that.

Matthew Thank you this is Kurt.

So as I discussed during the prepared remarks, what we saw was basically an interruption in one corporate travel and to Asia Pacific travel there were certainly some other change.

Changes, but those were the two primary factors.

The good news as I indicated is that as you look at the first five to six weeks of this year.

We are seeing trading returned to the trend levels that existed before that back half of Q4.

So we believe that what we experienced in Q4 was an interruption and a long standing recovery that we expect to continue going forward.

Okay. Thanks, and then sort of looking ahead.

In terms of your guidance what level of bookings growth is sort of eight tenths of that.

And I guess, how confident are you that the capacity constraint and travel that we saw last summer have now been resolved.

So in terms of the bookings recovery incorporated in our guidance.

Simply if you look at where we ended the year. We ended the year in the fourth quarter with our bookings are covering around 58%. We entered the year somewhere right around 60% inherent in our guidance today is the assumption of a steady incremental recovery from where we are we're not assuming a big inflection upward just assuming a steady incremental.

<unk>.

A study of incremental recovery in terms of constraints on the airlines side.

When we listen to our airline partners.

They are working diligently to.

Move those constraints, which are primarily.

Pilot training hiring pilots and new aircraft, but they have also indicated it's going to take time to.

When you move those constraints. So what we see is that the airlines are responding by.

I tried to address those constraints and as we move forward there'll be consistent increases in capacity likely as those constraints are being with us, but they will continue to take time to us all and Matt can you just let me add one last point, which is if you look at our GDS or distribution business. Historically, we had about a 50 50 mix of corporate versus leisure.

And about a 50 50 mix on domestic versus international.

Flights.

Those obviously are very different numbers that you see in the broader airline distribution marketplace and so as capacity begins to come back we believe that benefit will accrue relatively more towards corporate travel Android international bookings and that our distribution business is actually outgrow the airline distribution marketplace overall.

Okay very helpful. Thank you.

Thank you one moment. Please our next question.

Our next question coming from the line of John .

<unk> from Morgan Stanley Your line is open.

Okay.

Great. Thanks for the question.

I wanted to ask a couple on.

The non GDS bookings segments. So.

So first on hospitality like the recovery in Crs trends in hospitality revenue is terrific. The losses are getting larger though so just wondering like what will it take for this business to become profitable.

Assuming there is some.

Sort of near term Tech Tech.

Cost headwinds or something else like what how should we think about the normalized margins for this segment.

Yeah. Thank you. This is Kurt good question. So as you look at hospitality solutions.

And you look at 2022.

The revenue and the.

Trending that we were seeing as a result, one of our strong sector recovery and hospitality too as a result of us taking more properties and growing our Crs business.

As we look forward to 2023, we expect to see strong topline growth in Crs as well as the new product offerings I mentioned during the prepared remarks, we do expect that that business will be in the range of breakeven on an EBITDA basis for this calendar year and begin to become a strong EBITDA contributor in the years ahead.

Okay got it and then just wanted to.

Dig in on.

The it solutions headwinds.

I guess, so air Center closed in Q1 of 'twenty two right.

Correct, Yes, thats in the February .

So just thinking through the.

Okay.

The impact like passengers boarded grew.

30% and then in Q2 and Q3, we saw some nice growth year over year and it solutions that also didn't have air centre.

I'm not sure the $4 million alone from from Russia.

Sort of explains that is there any more context to help sort of piece together.

What happened in Q4 with ITG solutions revenue.

And then also.

I'm wondering about the gist.

For like.

Where the 100 million headwind is coming from on the Russian law like any more context, there and I think there was some commentary that it's like the vast majority is from of the 100 million headwind as Russia lasso what else is in there. Thank you.

Thanks, Let me start and then I'll pass it over to Mike <unk> to finish up so I think it support and take a step back as you look at airline.

What we experienced in Russia with the carrier D. Migration. There was a consequence of local Russian law was enacted last year that had nothing to do with our performance or the quality of our technology. If you normalize that out and look out over the last three years to four years, our wins and losses on our <unk>.

Basis, a relatively neutral for the company.

And we believe going forward there is a good growth opportunity within the.

The airline solutions suite.

No pest Michael Yes, So let me just.

Dive into a couple of different pieces first as you noted on their center there was about $35 million in revenue in Q1 of last year that we will not have this year due to the sale.

Secondly, with regards to the $100 million, which the vast majority of which is Russia and there are some other D migrations in there, but the vast majority of that is Russia.

Given the change in Russian law occurred during the fourth quarter.

Majority of the revenue that was recognized associated with revenue with Russia was in the first three quarters of this year. So what you see going from Q3 to Q4.

Is the.

Step down.

Largely attributable to Russia now as we look at the $100 million.

That was referenced because.

Most of that was revenue that was generated in the first three quarters of this year.

That will create the greatest headwind in the first three quarters of 2023.

Okay. Thank you.

Thank you and as a reminder, ladies and gentlemen, if you'd like to ask a question. Please press star one on your Touchtone telephone.

Our next question.

And our next question coming from the line of Victor Cheng from Bank of America. Your line is now open.

Alright, thanks for taking my questions.

A couple if I may, but first on Russia and Pat.

And then you stay at the $100 million is coming from mostly from the first three quarters. It seems.

Just look at the Russian carrier PBS.

Seen disproportionately.

Thanks.

Terms of the $100 million revenue I would expect a much smaller amount so I am not sure whether you can.

Shed some light into that.

And then the other one is on Tech savings, obviously, you talked about $100 million 150 million tax savings by 2025.

If I remember correctly is that based on the 80% recovery.

So presumably you would not expect that 80% recovery by 25, So what are your expectations on top of a recovery.

25, and given that level of recovery as the actual tax savings that we should be looking at.

Yes, so with regard to your first question as you think about the $100 million of impact, but one thing I would point you to and we call this out.

On the Q1 earnings call that there was approximately $24 million of previously deferred revenue that had been recognized in the first quarter and similarly, there's about another $5 million in the second quarter of 2022, so that may be why the number is larger than.

What youre contemplating.

With regard to the tax savings first let me just start by we are optimistic that there will be a full recovery over the long run that is our point of view that's consistent with what we hear from our airline partners is consistent with what they say on their earnings calls and what they say publicly.

Now our financial objectives are not predicated upon a full recovery, but we do believe want ultimately is likely to assume.

As noted today, we are reiterating the targets, we provided for 2025, thats, a greater than 80% greater than 100% and greater than 120% recovery levels and as we previously stated at the greater than at the greater than 80% level, we expect tax savings to be a $150 million at the greater than 100%.

<unk> recovery levels, we would expect the tax savings to be about $100 million.

But obviously that would be welcome to have that rate of recovery.

Got it that's great and then maybe one follow up if I may.

How should we think about the revenue per booking trend going forward as Ed.

Roomful inflation related to uplift and.

Again, as Ed Roomful of Mexican movement, I guess as APAC reopens.

Victor Thank you.

As we have discussed we believe that there is ample upside both in corporate and international recoveries within our distribution business because of those we believe that theres positive mix opportunity in 2023 and in the years ahead. So we believe there is upside to our average booking fee or revenue per booking.

Okay.

Got it thank you.

Thank you and I'm showing no further questions at this time I will now turn the call back over to Mr. <unk> for any closing remarks.

Great. Thank you very much and I want to thank everybody for joining us today.

As you can see as we talked about 2022 and as we think about 2023, there's been a lot of progress on our tech transformation to date. This is another big year for that but the team has done an amazing job and we're beginning to see really the efficiencies on the cost savings as we look at 2023.

I'm excited about what we're doing as it relates to the product side, what we're doing on airline hospitality as well as distribution curve and walk you through numerous things that are taking place there and again I think we're very focus on but we look at it it's a recovery continuing to take place in the marketplace, which will allow us to really focus on free cash flow.

Low generation in the year, so again, a lot to talk about throughout the year and thank you for joining us today.

Ladies and gentlemen that does conclude our conference for today. Thank you for your participation you may now disconnect.

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Good morning, ladies and gentlemen, and welcome to the fourth quarter and full year 2020 earnings Conference call. My name is Livia and I'll be your operator.

A reminder, please note today's call is being recorded I will now turn the call over to the senior director of Investor Relations. Brian Roberts. Please go ahead Sir.

Thank you Olivia and good morning, everyone welcome to <unk> fourth quarter and full year 2022 earnings call.

This morning, we issued an earnings press release, which is available on our website at investors Dot Sabre Dot com.

Slide presentation, which accompanies today's prepared remarks is also available during this call on the Sabre Investor Relations webpage.

A replay of today's call will be available on our website later this morning.

Free cash flow costs, and expenses cost savings margins and liquidity among others.

All forward looking statements involve risks and uncertainties that may cause actual results to differ materially from the statements made on today's conference call.

More information on these risks and uncertainties is contained in our earnings release issued this morning, and our SEC filings, including our Q3 2022 Form 10-Q, and 2021 Form 10-K.

The most directly comparable GAAP measures and reconciliations for non-GAAP measures are available in the earnings release and other documents posted on our website at investors Dot <unk> Dot com.

Thanks, Brian and good morning, everyone and thank you for joining us today.

On slide four you can see an overview of the topics Kurt Mike and I will cover on today's call.

Ill review, our many achievements for 2022, and then outline how these support our long term objectives.

Further he will also provide additional detail on key commercial accomplishments and review the important partnerships that we renewed and expanded upon in 2022.

Finally, Mike will take you through the final results of the quarter and year and our financial outlook for 2023.

Before I start I want to thank my Sabre team members worldwide 2022, with a year of progress and recovery. The global pandemic brought on by COVID-19 in 2020 has a significant impact on the travel industry and savor. Despite those headwinds the sabre team in 2022 made significant forward progress.

With our technology transformation provided best in class service to our customers and one new business I am extremely proud of what we have accomplished to date and what we will do for years to come.

Turning to slide five 2022 was a year of many accomplishments our revenue recovered to $2 $5 billion. We returned to positive adjusted EBITDA, we generated positive free cash flow as we exited the year and we continued our significant progress on our strategic initiatives.

<unk> reached an important positive inflection point.

With these key financial metrics now positive we expect the trend to continue which we believe will give us the opportunity to delever delever our balance sheet.

Just as importantly, it allows us to build more advanced and agile products and capabilities to serve our customers for the years to come and the way we planned we.

We solidified key partnerships with travel management industry leaders BCD and Amex GBT.

We expect these partnerships will be a meaningful volume driver for safer going forward.

In addition, we renewed and extended important agreements with many of our airline customers, including American United and most recently Jetblue.

As you can see on this slide in 2023, we expect to see meaningful growth in adjusted EBITDA and to generate full year positive free cash flow.

We're very encouraged year to date by volume trends, which are in line with our plan.

As this chart shows we believe the opportunity for volume recovery as global travel normalizes is significant.

I mentioned in my earlier comments, we believe those negative impacts were temporary and we have seen volumes improve in the new year.

To get into more of the details let me now turn the call over to Kurt Kurt.

Thank you, Sean let's turn to slide number seven.

Before I discuss the latest industry trends I will briefly revisit the guidance we provided in our last earnings call.

And discuss why the results for the quarter did not meet our expectations.

As Sean mentioned shortly following our November earnings call.

The upward trajectory of volume growth that we previously experienced was interrupted in corporate travel.

And in Asia Pacific in late November and through the month of December .

As you can see from this volume chart.

The trajectory of the recovery in 2022 was higher overall, but uneven.

Total distribution bookings recovery in Q4 was 59% versus the same period in 2019.

This 59% booking recovery equates to a 65% revenue recovery as a result of the higher booking rate achieved in Q4 of 2022 versus Q4 of 2019.

Higher revenue per booking resulted from a continued favorable mix.

Importantly, we are already seeing improvement in both corporate travel and Asia Pacific volumes in 2023 through early February .

To put numbers behind it.

Year to date recovery in our travel management company business is about nine percentage points above December levels.

And has strengthened on a sequential weekly basis.

Accordingly, we believe the late 2022 recovery setbacks.

That we saw for both corporate travel and Asia Pacific are likely to prove temporary given a positive recovery trends. We are now once again seeing.

To illustrate this point.

We're now realizing a return of group bookings coming out of Asia that are reminiscent of pre COVID-19 travel patterns.

Despite the fluctuations in air bookings in recent months we.

We believe several key trends are supportive of continued air traffic growth through 2023.

Yes, my capacity is expected to rise.

Aircraft deliveries accelerate and operational constraints that have curtailed growth abate.

We believe this additional capacity is likely to unlock robust consumer and corporate demand.

Evident from higher or excuse me from elevated airfares.

Not limited industry load factor improvement.

As we look at the balance of 2023, we are optimistic on overall demand and recovery levels moving forward.

But prepared for the possibility of further unevenness in 2023.

Accordingly, we will be responsive to changes in volume growth.

And control cost as needed to focus on achieving positive free cash flow this year.

And while we will adjust as needed to external market conditions.

We remain focused on the key long term strategic opportunities for our business.

We are confident in our ability to grow our distribution business.

Underpinned by our solid partnerships with many.

The largest travel management companies.

Brick and mortar and online agencies in the world.

We are winning consistently across both retention and conversion opportunities.

And are pleased with our strategic positioning in our core GDS business.

We believe the investments we are making in product and sales should continue to drive growth in our air bookings.

To illustrate this note that we have realized increased share.

With nearly three quarters of the largest 20 travel agencies so far in 2023.

Turning to <unk> it solutions passion.

Passengers boarded recovered 90% in Q4 versus the same period in 2019.

Looking ahead, we are encouraged by the opportunities to grow our PSS and airline commercial product offerings.

Including our innovation and next generation retailing and merchandising.

And hotel Crs transactions in Q4 were 104% compared to the same period in 2019.

We believe our hospitality solutions business is primed for strong growth.

Both in its core Crs offerings as well as the new retail studio and new vault products.

As I mentioned previously 2023 year to date volumes across each of our key businesses improved from December .

Specifically through February nine.

Year to date air distribution bookings were 62% versus the same period in 2019.

It solutions passengers boarded with 94% at.

Crs transactions were 125%.

Now please turn to slide number eight.

I am pleased with the progress we made in 2022 on our two key technology milestones for the year.

Gration to Google cloud.

And the Offloading of passenger name record.

During 2022, we completed the exit of our Sabre managed data centers, including Plano, Lewisville Carrollton and Austin.

All told during 2022.

We decommissioned approximately 13000 servers from these sites.

And another 500 servers from our from our Tulsa data centers operated by Dfc.

We ended the year with approximately 66% of our total compute capacity in Google Cloud ahead.

Ahead of our original goal.

Our mainframe offload program continued to make great strides.

And we significantly exceeded our 2022.

Offload savings goal.

Development work for Offloading passenger name record our primary customer reservations database.

Has been completed.

And customer migrations are on track to complete this year.

Additional key accomplishments during the year included moving all air shopping to Google Cloud.

Which enabled us to realize our planned savings in data processing costs due.

Due to the reduced cost of Google cloud compute.

And multiple shopping optimization efforts.

We also migrated our Sonexus central reservation system and.

In property management system to Google Cloud.

Thus fully completing the transition of our hospitality solutions business to the cloud.

The chart on the right hand side of the slide <unk>.

We reiterate the significant savings and margin improvement that.

We expect our technology transformation to deliver in the coming years.

Turning to slide nine.

Consistent with our strategy our unit cost of compute has continued to decline as we migrate our systems to our lowest cost infrastructure.

<unk> cloud.

In Q4, our average monthly unit cost of compute fell 8% sequentially from the third quarter and.

And we finished 2020% to 25% below our 2021 unit cost of compute.

I am please keep in mind. This savings does not include the long term opportunity to optimize our systems on Google cloud.

Which we believe can drive additional cost efficiencies.

Okay.

Turning to slide number 10.

This slide again shows how Sabres computing volume has changed over the past three years and how we expect it to change by the end of 2024.

During Q4, we increased the proportion of our total compute volume on Google cloud by 16 points from the third quarter.

By the end of 2024 as per our original plan.

We expect Google cloud to represent nearly all of our computing volume.

We continue to expect that by significantly reducing the complexity and increasing the agility of our technology architecture.

We can better serve our customers at a significantly lower overall cost.

Before I turn the call over to Mike I want to highlight some of our many commercial accomplishments in 2022.

Last year, we signed distribution agreement renewals with several global flagship carriers, including American and United.

These agreements extend and enhance our partnerships with these carriers and.

And we plan to collaborate to utilized sabre technology and solutions to help them enhance their product offerings.

And to respond faster to consumer demands and the evolving travel marketplace.

We remain confident in the value, we bring to our customers and expect to win additional distribution agreements in 2023.

And beyond.

We also recently announced the extension of our long term.

And deep Jetblue, PSS and distribution relationships.

And should their proposed merger be approved.

We believe we are very well positioned to help jetblue expand.

Back in November we also announced a new partnership with Mastercard.

To accelerate the use of virtual cards for business to business travel payments.

This announcement builds upon our acquisition of confirm.

Which we acquired in August 2022.

And furthers our strategy to create an open and independent travel payment ecosystem.

We are excited to work with an industry leader with the scale and capabilities of Mastercard.

And believe that the growth opportunity from virtual cards in the coming years will be substantial.

We also strengthened our relationships with.

With travel agency leaders, such as American Express global business travel.

BCD travel and Hopper.

Our new agreements and joined technology partnerships with GBT and BCD are providing incremental bookings to safer network.

And are expected to continue to drive additional growth as migration continues.

While also yielding opportunities to improve our customers overall experience.

The key takeaway for the many partnerships that we expanded in 2022 is that many of the largest travel providers in the world want to do business with Sabre.

And we continue to focus on providing the highest level of service.

And product innovation to our many global partners.

Sabre processed over 1 billion total transactions in 2022.

And we are excited to continue playing a central role in the global travel recovery in 2023 and beyond.

Mike over to you.

Thanks, Kurt and good morning, everyone. Please turn to slide 11.

As we discuss Q4 I'd like to begin by reiterating some context on recent trends specifically, how we saw volumes evolved throughout the quarter and how that influences our plans going forward.

During our third quarter conference call, we indicated expectations of a Q4 air bookings recovery and the low 60% range and adjusted EBITDA for the fourth quarter of approximately $30 million.

As Sean and Kurt stated volume trends in late November and December were not as strong as expected, which was the primary reason, we missed our Q4 recovery and adjusted EBITDA guidance.

What we have learned over the last three years is that the volume recovery trajectory remains upward but uneven.

We expect to be free cash flow positive on an annual basis in 2023 and believe we are on track for our 2025 targets.

Net debt to adjusted EBITDA.

Total Q4 revenue was $631 million.

An increase of $130 million or 26% versus last year.

Distribution revenue totaled $417 million.

A 46% increase compared to $286 million in Q4 2021.

Our distribution bookings totaled $76 million in the quarter, a 32% increase compared to $58 million in Q4 2021.

Our average booking fee was $5 49 in the fourth quarter, which compares to $5 38 last quarter $5 35 in Q2, 2022, and $4 90 success in the fourth quarter of 2021.

We continue to see favorable mix into more profitable regions and types of travel, resulting in higher booking fees and we believe this trend is likely to continue in 2023.

It solutions revenue totaled $157 million in the quarter. This.

This is a decline versus revenue of $165 million last year.

Passengers boarded totaled 168 million, a 30% improvement from $129 million in Q4 2021.

Q4 2021.

We realize the migration of our Russia Russian airline business in Q4, as a result of changes in Russian law.

Looking forward in 2023, we expect an approximate $100 million headwind to our it solutions revenue. The vast majority of which is the result of the impact of the Russian law.

Additionally, as a reminder, we sold our air Centre business at the end of February 2022, and in Q1, 2022, we realized approximately $35 million and revenue from this business.

Please note that these impacts are incorporated into the guidance that we're providing to that.

Hospitality solutions revenue totaled $65 million an.

That improvement versus revenue of $54 million in Q4 2021.

Central reservation system transactions totaled $27 million in the quarter and were 16% above $23 million in Q4 2021.

Adjusted EBITDA of $1 million was better year over year as compared to negative $26 million in Q4 2021.

The year over year improvement in revenue in the quarter was partially offset by increased travel solutions incentives expense and hospitality solutions transaction fees from higher volumes.

As expected our technology cost increased due to higher variable hosting costs associated with the volume recovery and higher labor and professional service expenses associated with our technology transformation.

Free cash flow was $22 million in the fourth quarter, which benefited from seasonally strong working capital inflows.

Our team also successfully refinanced the remainder of our term loan B in November with our nearest debt maturity now being April 2025.

In addition, we entered into an accounts receivable securitization on February 14, 2023, which we expect to contribute approximately $100 million to our available liquidity base when funded.

This transaction will be recorded in the financing section of our cash flow statement.

We view this securitization program as a very efficient financing that is largely debt neutral when taking into account the paydown associated with the Arizona proceeds.

As a reminder, pursuant to our sale of their center, we are required to pay down debt with any uninvested proceeds from that sale by may 24th 2023.

Currently we expect that amount to be approximately $80 million.

We ended the fourth quarter with a cash balance of $816 million.

Turning to slide 12 moving to guidance.

We look to our earning cadence earnings cadence throughout the year, we remind you that the first quarter is the seasonally strongest bookings quarter of the year with that we expect first quarter 2023 revenue of approximately $725 million.

And adjusted EBITDA of approximately $50 million.

As we discussed last quarter the fourth quarter is typically the most favorable from a working capital and free cash flow perspective.

Following that the first quarter typically experiences higher working capital and cash outflows. Therefore.

Therefore, it is typically the weakest quarter from a from a free cash flow perspective.

This seasonality is driven primarily by timing of when we receive partner receipts in the fourth quarter versus when we make agency payments to partners in the first quarter.

Additionally, during the first quarter, we will have cash outflows of approximately $60 million for our 2020 to annual incentive compensation payments.

Hence, we expect negative free cash flow of between $80 million to $90 million in the first quarter.

As we progressed through the year, we expect meaningful sequential improvement in free cash flow generation.

For the full year 2023, we expect revenue between $2 8 billion and $3 billion.

And adjusted EBITDA between $300 million and $320 million.

Regarding IP solutions as a result of the $100 million headwind and the impact of the Air Center disposition. In Q1, 2022 mentioned earlier, we would expect modest year over year declines in it solutions revenue throughout 2023 with the year over year decline being greatest in Q1.

2023.

For hospitality solutions revenue, we expect it to exceed 2019 levels.

We expect our 2023 total revenue growth to have strong flow through to adjusted EBITDA.

Given that at current volume levels, our cost structure is roughly 40% variable.

60% fixed.

Additionally, we see efficiency, including the benefit of a lower cost of compute helping to offset other inflationary pressures.

We expect our 2023 capital expenditures to be between 50 and $60 million.

Our annual net cash interest expense based on our current debt profile and expected interest rates.

Approximately $390 million.

Our net fixed to floating debt is about 70% to 30%.

Every change in interest rates of 25 basis points changes, our annual interest expense by about $3 million.

Collectively we expect to generate positive free cash flow in 2023.

Fuel basis thereafter.

As we look at our 2025 targets that we have previously provided and are reiterating.

We expect adjusted EBITDA to grow at least $600 million.

Between 2023, and 2025 and to be greater than $900 million.

In 2025.

At a high level the contributions to adjusted EBITDA growth are expected to come from three key drivers each having a roughly equal contribution to our goal.

For the first driver, we expect a continued travel industry recovery and ultimately higher distribution and passenger boarded volumes into that.

For our second driver our technology transformation, which we expect will enhance our product development cycle.

<unk> to also result in meaningful expense reductions by 2025 as compared to today.

The third driver is an expected mix of additional opportunities supported by recent agency wins.

Growth in it solutions or shifts to adjusted EBITDA generation for hospitality solutions growth in virtual payments from confirm and a continued emphasis on cost control.

Global travel recovery will continue.

And to be responsive if necessary to ensure we achieve positive free cash flow in 2023.

Operator can you. Please open the line for questions.

And our first one.

Coming from the line of Matthew Broome with Mizuho Group. Your line is now open.

Thanks, so much for taking my questions.

I guess firstly could.

Could you maybe provide a little bit more context as to what impacted the recovery in November and December .

Wasn't limited to corporate in APAC and really what were the reasons for that.

Matthew Thank you this is Kurt.

So as I discussed during the prepared remarks.

What we saw was basically an interruption in one corporate travel and to Asia Pacific travel there were certainly some other.

Changes, but those were the two primary factors. The good news as I indicated is that as you look at the first five to six weeks of this year we're.

We are seeing trading returned to the trend levels that existed before that back half of Q4, and so we believe that what we experienced in Q4 was an interruption and a long standing recovery that we expect to continue going forward.

Okay. Thanks, Scott and then sort of looking ahead.

In terms of your guidance what level of bookings growth is sort of baked into that.

I guess, how confident are you that the capacity constraint in travel that we saw last summer have now been resolved.

So in terms of the bookings recovery incorporated in our guidance. We're basically if you look at where we ended the year. We ended the year in the fourth quarter with our bookings are covering around 78% we entered the year.

We're right around 60% inherent in our guidance today is the assumption of a steady incremental recovery from where we are we're not assuming a big inflection upward just assuming a steady incremental.

A study of incremental recovery in terms of constraints on the airline side.

When we listen to our airline partners.

They're working diligently to remove those constraints, which are primarily.

Pilot training hiring pilots and new aircraft, but they have also indicated it's going to take time to.

When you move those constraints. So what we see is that the airlines are responding by.

I tried to address those constraints and as we move forward there'll be consistent increases in capacity likely as those constraints are behind us, but they will continue to take time to test all and Matt can you just let me add one last point, which is if you look at our GTS or distribution business. Historically, we had about a 50 50 mix of corporate versus leisure.

And about a 50 50 mix on domestic versus international.

Flights.

Those obviously are very different numbers that you see in the broader airline distribution marketplace and so as capacity begins to come back. We believe the benefit will accrue relatively more towards corporate travel Android international bookings and that our distribution business is actually outgrow the airline distribution marketplace overall.

Okay very helpful. Thank you.

Thank you one moment. Please our next question.

And our next question coming from the line of John .

<unk> from Morgan Stanley Your line is open.

Okay.

Great. Thanks for the question.

I wanted to ask a couple on.

The non GDS bookings segments. So.

Assuming there is some.

Sort of near term Tech Tech.

Cost headwinds or something else like what how should we think about the normalized margins for the segment.

Yeah. Thank you. This is Kurt good question. So as you look at hospitality solutions.

And you look at 2022.

The revenue and the.

Trending that we were seeing as a result, one of our strong sector recovery add hospitality to as a result of us taking more properties and growing our Crs business.

Okay got it and then just wanted to.

Dig in on.

The it solutions headwinds.

I guess, so air Center closed in Q1 of 'twenty two rate.

Correct, Yes, thats in the February .

So just thinking through the.

Okay.

The impact like passengers boarded grew 30% and then in Q2 and Q3, we saw some nice growth year over year and it solutions that also didn't have air centre.

Yes, I'm not sure the $4 million alone from from Russia.

Sort of explains that is there any more context to help sort of piece together.

What happened in Q4 with ITG solutions revenue.

And then also.

I'm wondering about the.

Just for <unk>.

Where the 100 million headwind is coming from on the Russian law like any more context, there and I think there was some commentary that it's like the vast majority is from of.

The 100 million headwind as Russia lasso, what else is in there. Thank you.

Thanks, Let me start then I'll pass it over to Mike <unk> to finish up so I think it support and take a step back as you look at airline.

What we experienced in Russia with the carrier D. Migration. There was a consequence of local Russian law that was enacted last year that had nothing to do with our performance or the quality of our technology. If you normalize that out and look out over the last three years to four years.

Our wins and losses on a PV basis, a relatively neutral for the company.

And we believe going forward there is a good growth opportunity within.

The airline solutions suite.

I'll.

No pest, Mike, Yes, So let me just.

Dive into a couple of different pieces first as you noted on their center there was about $35 million in revenue in Q1 of last year that we will not have this year due to the sale.

Secondly, with regards to the $100 million, which the vast majority of which is Russia and there are some other D migrations in there, but the vast majority of that is Russia.

Given the change in Russian law occurred during the fourth quarter.

Majority of the revenue that was recognized associated with Robert with Russia was in the first three quarters of this year. So what you see going from Q3 to Q4.

Is the step down.

Largely attributable to Russia now as we look at the $100 million.

<unk> referenced because.

Most of that was revenue that was generated in the first three quarters of this.

This year.

That will create the greatest headwind in the first three quarters of 2023.

Okay. Thank you.

Thank you and as a reminder, ladies and gentlemen, if you would like to ask a question. Please press star one on your Touchtone telephone.

Our next question.

Next question coming from the line of Victor Cheng from Bank of America. Your line is now open.

Hi, Thanks for taking my questions.

A couple if I may but first on Russia, and Pat all the $100 million and then you stay at the $100 million is coming from mostly from the first three quarters the themes.

Just look at the Russian carrier PBS.

It seen disproportionately.

In terms of the $100 million revenue I would expect a much smaller amount so I am not sure whether you can.

Shed some light into that.

And then the other one is on Tech savings, obviously, you talked about $100 million 150 million tax savings by 2025, but remember correctly is that based on the 80% recovery.

So, presumably we would not expect that 80% recovery by 25. So what are your expectations on top of a recovery in.

In 'twenty, five and given that level of recovery as the actual tax savings that we should be looking at.

Yeah. So with regard to your first question as you think about the $100 million of impact, but one thing I would point you to and we call this out.

And what you are contemplating.

Now our financial objectives are not predicated upon a full recovery, but we do believe one ultimately is likely to assume.

<unk> recovery levels, we would expect the tax savings to be about $100 million.

But obviously that would be welcome to have that rate of recovery.

Got it that's very clear and then maybe one follow up if I may.

How should we think about the revenue per booking trend going forward as that room.

Roomful inflation related to uplift and.

Again, as Ed Roomful of mix improvement I guess as APAC reopens.

Victor Thank you.

Yeah.

Got it thank you.

Thank you and I'm showing no further questions at this time I will now turn the call back over to Mr. Mcgee for any closing remarks.

Great. Thank you very much and I want to thank everybody for joining us today.

I am excited about what we're doing as it relates to the product side, what we're doing on airline hospitality as well as distribution curve walk you through.

Most things that are taking place there and again I think we're very focused on what we look at it as the recovery continues to take place in the marketplace.

Which will allow us to really focus on free cash flow generation in the year. So again, a lot to talk about throughout the year and thank you for joining us today.

Ladies and gentlemen that does conclude our conference for today. Thank you for your participation you may now disconnect.

Q4 2022 Sabre Corp Earnings Call

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