Sabre Corporation

The conference will begin shortly. To raise and lower your hand during Q&A, you can dial star 1 1. Good morning, ladies and gentlemen, and welcome to the Sabre fourth quarter and full year 2022 earnings conference call. My name is Livia and I'll be your operator. As 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, Livia, and good morning, everyone. Welcome to Sabre's fourth quarter and full year 2022 earnings call. This morning we issued an earnings press release which is available on our website at investors.saber.com. A slide presentation which accompanies today's prepared remarks is also available during this call on the Saber 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 10Q and 2021 Form 10K. 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 have been adjusted to exclude certain items. 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.saber.com. Participating with me are Sean Menke, our chair of the board and chief executive officer, Kurt Eckert, our president, and Mike Randolphie, 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 Curt, 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. Curt 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 reviewed 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 SABR team members worldwide. 2022 was 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 SABR. 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 won new business. I'm 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. SABRE 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 deliver 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 in 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 Sabre 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 and 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 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. As 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?