SDR.ASX: H1FY25 Earnings Release

H1FY25 Earnings Release

Stock	Siteminder Ltd (SDR.ASX)
Release Time	26 Feb 2025, 8:08 a.m.
Price Sensitive	Yes

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SiteMinder delivers acceleration in ARR growth, room additions and improved unit economics

Key Points

Annualised recurring revenue (ARR) increased 18.4% or 22.0% (cc,organic) to $216.2m
Total revenue increased 13.9% or 17.2% (cc,organic) to $104.5m
Net customer additions increased to 2.7k, with over 50% y/y growth in net rooms added

Full Summary

SiteMinder Limited (ASX:SDR) has released its results for the six months ended 31 December 2024 (H1FY25), demonstrating building momentum with accelerating annualised recurring revenue (ARR) growth, over 50% y/y growth in net rooms added, and strong unit economics. The results show the company's transformative Smart Platform strategy is delivering results, with the Smart Platform contributing to transaction ARR growth of 31.5% or 37.0% (cc,organic) to $73.8m. Total revenue increased 13.9% or 17.2% (cc,organic) to $104.5m, with subscription revenue up 9.9% or 11.8% (cc,organic) to $66.3m and transactional revenue, including Smart Platform contributions, up 21.4% or 27.8% (cc,organic) to $38.1m. Net customer additions increased to 2.7k, with the company's strategy of pursuing larger hotel properties driving the over 50% y/y growth in net rooms added. Unit economics also improved, with LTV/CAC increasing from 5.3x in H1FY24 to 6.1x, and underlying gross margin up 118bps from H2FY24 to 66.9%. The company's Smart Platform initiatives, including the Smart Distribution Program, Channels Plus, and Dynamic Revenue Plus, are positioning SiteMinder to accelerate its growth and make sustained progress on the Rule of 40.

Guidance

SiteMinder, with the Smart Platform strategy, is targeting 30% organic annual revenue growth in the medium term. SiteMinder expects to be underlying EBITDA and underlying free cash flow positive in FY25, and make continued progress on the Rule of 40.

Outlook

SiteMinder's Smart Platform initiatives are positioning the Company to accelerate its growth and make sustained progress on the Rule of 40. The company has made significant progress in delivering the Smart Platform, with the Smart Distribution Program commencing implementation, Channels Plus pilot and general release successfully completed, and Dynamic Revenue Plus on track for its Northern Hemisphere release at ITB Berlin in March 2025.