Siteminder extends first-half loss, misses top line estimates

The news: Hotel booking company SiteMinder missed estimates for the first-half, extending its net loss from $13.9 million to $14.9 million, dragged down by nearly $5 million in restructuring costs.

The numbers: Half-year revenue of $142.4 million was up 13.9% compared to the prior corresponding period but fell short of average forecasts of 20% growth and SiteMinder's medium-term guidance for a 30% compound annual growth rate.

SiteMinder shares plunged 18.4% to $5.20 in early trade.

The context: SiteMinder saw an uptick in first-half subscription revenue but said the contribution was impacted by increased short-term new customer incentives, as part of the company's strategy to pursue larger hotel properties with higher room count and transaction value.

RBC Capital Markets analyst Wei-Weng Chen noted that the lower-than-expected revenue growth is the first time SiteMinder has posted six-month growth below 20% since the Covid pandemic.