SiteMinder shares surge on FY revenue rise
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More news: SiteMinder, up 5.9% to $5.79, was the top performing stock across the ASX 200 by 12:30pm AEST. The hotel booking company reported double-digit revenue gains year on year.
What they said: E&P Capital analyst Paul Mason said the result "should broadly please the market" as revenue was roughly in line with consensus and free cash flow (FCF) was ahead of consensus.
"The company has hit its guidance for 2H24 underlying FCF to be positive, which should mark as a catalyst for the stock to re-rate over the coming period," Mason said.
SiteMinder posts double-digit revenue gain, meets FY estimates
The news: SiteMinder's full-year result met market expectations, as the hotel booking company notched double-digit revenue gains year on year.
The numbers: Full-year revenue of $190.7 million was up 26% compared the prior year. Subscription revenue of $122.4 million was a 18.8% gain and transaction revenue of $68.3 million grew 41.2%.
Annual recurring revenue was up 20.8% to $209 million with underlying free cash flow (FCF) turning positive in the second half at $2.3 million.
The context: E&P Capital analyst Paul Mason said that "overall the result should broadly please the market". He noted that revenue is "roughly in line" with consensus, with FCF ahead of average estimates.
The company hit its guidance for second-half underlying FCF to be positive, "which should mark as a catalyst for the stock to re-rate over the coming period", Mason noted.
The Sydney-based e-commerce platform, which allows hotels to sell their rooms on their own websites and through third parties, also launched its 'Smart Distribution Program', designed to "accelerate and expand" the revenue potential of its 'Smart Platform', which allows accommodation providers to forecast revenue performance and take targeted action.
What they said: "There is already high engagement on distribution on the SiteMinder platform, with users averaging three sessions per workday," said SiteMinder CEO and managing director Sankar Narayan.
"It is clear that hoteliers look to SiteMinder as their trusted revenue partner, and our Smart Distribution Program, alongside the rollout of Dynamic Revenue Plus and Channels Plus, amplifies this market position."
The source: ASX announcement
