SiteMinder shares lift on strong results
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The news: Shares in SiteMinder lifted 2.7% in early trading after the hotel booking company posted first-half earnings growth and reaffirmed FY24 guidance.
The numbers: SiteMinder increased its total revenue 27.9% to $91.7 million over the six months to December 2023. This was driven by an 18.5% rise in subscription revenue compared to 2H23 and transactional revenue which grew 30.5%.
Underlying EBITDA improved from a $14.6 million loss to a $1.2 million loss, after SiteMinder progressed a cost management program announced in January 2023.
The company restated its guidance of revenue growth of 30% and a positive underlying EBITDA for the second half of fiscal 2024 after reducing losses in the six months to December.
SiteMinder shares were 2.7% higher to $5.35 at 11:45am AEDT.
The context: The Sydney-based e-commerce platform allows hotels to sell their rooms on their own websites and through third parties. Siteminder noted that it signed up six partners for its new Channels Plus offering, including travel agency Agoda.
UBS analysts said that SiteMinder performed well in all markets, with EMEA softening marginally. Revenue growth was slightly lower than analysts expected, with EBITDA in line with forecasts, while Channels Plus experienced "very strong initial signings".
The source: ASX announcement
