SiteMinder shares soar as free cash flow result outstrips estimates
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More news: SiteMinder was the top performer on the ASX 200 this morning after the hotel commerce platform topped estimates for unlevered free cash flow (FCF) for FY25.
Shares were up 26.2% to $6.88 at 11:15am AEST, extending gains to 33.6% over the last 12 months.
Jarden analysts Ed Woodgate and Christian Waked said SiteMinder's unlevered FCF of $4.7 million came in comfortably above their estimates of $2.7 million and consensus forecasts of negative $3.2 million.
Jarden has a 'buy' rating on the stock with a price target of $4.45.
What they said: "Our view in May was SiteMinder presented FCF upside risk, a meet = equals a beat and that risks of downgrades to FY26/27 were in the price, with SiteMinder's multiple implying investors got the new products for free and, arguably, the transaction business," the analysts said.
"While SiteMinder's stock price has rallied, the travel environment has also continued to improve, with a spate of travel companies and data highlighting improving conditions in August, which should act as a relative tailwind in FY26 for SiteMinder."
SiteMinder revenue up 18% as losses narrow
The news: SiteMinder reported $224 million in revenue for the financial year, up 17.7% from the prior year. The hotel commerce company is crawling to profitability, with its $24.5 million in losses being a 2.5% improvement year-on-year.
There was a more dramatic jump in SiteMinder's underlying EBITDA, which grew to $14.3 million from just $900,000 in FY24.
The numbers: SiteMinder reported underlying free cash flow of $4.7 million, its first full year of free cash flow being in the black. Its free cash flow for the prior year was negative $6.4 million.
The company's underlying net loss was $17.2 million, with the gap between that and its reported loss of $24.5 million largely due to $6.7 million in restructuring costs.
SiteMinder reported annualised recurring revenue of $273 million, a 30.6% increase from the prior period. Expenses for the year rose 14% to $247.7 million. A third of that came from direct transaction costs, while employee benefits rose $5.8 million.
The amount of hotels subscribed to SiteMinder's commerce platform rose 12.6% year on year to just over 50,000.
The EMEA region is SiteMinder's strongest, bringing in $92.3 million for the year. Its Americas business generated $60.9 million, while $71.1 came in from Asia Pacific.
What they said: "These results, alongside strong property additions of 5.6k across our broader platform, demonstrates our execution capability," said CEO Sankar Narayan. "Since our IPO, we've improved underlying EBITDA by $36.7 million — from a $22.4 million loss to a $14.3 million profit — while maintaining strong revenue growth."
The sources: ASX, Jarden research
