Siteminder shares rise on Q1 growth, reiterated FY guidance
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The news: Siteminder shares lifted in morning trade after the hotel booking company said it continued to "perform well" in the first quarter of the 2025 financial year and reiterated its full-year guidance.
The numbers: Shares in e-commerce platform, which allows hotels to sell their rooms on their own websites and through third parties, were up 2.6% to $6.68 by 11am AEDT.
The company said it continues to target organic revenue growth of 30% in the medium term, aided by contributions from its 'Smart Platform', which helps accommodation providers forecast revenue performance and take targeted action.
Siteminder also expects to be underlying EBITDA profitable and underlying free cash flow positive in FY25.
The context: In a trading update, Siteminder said it has "continued to perform well" in the first quarter. Net property additions are tracking ahead of last year with continued focus on larger properties which present attractive long-term revenue opportunities, the company said.
Siteminder noted that the adoption of transaction products continues to grow across incoming and existing customers. The company is also progressing with the commencement of its recently announced 'Smart Distribution Program', designed to "accelerate and expand" the revenue potential of its Smart Platform.
Siteminder's new 'Channels Plus' program, which simplifies distribution for hotels by giving access to multiple distribution channels through one setup, is on track for its full commercial launch in January 2025.
'Dynamic Revenue Plus', a suite of revenue-driving capabilities across the SiteMinder platform, is progressing through its staged launch program with positive early industry feedback, the company said.
Citi analysts noted that Siteminder's trading update was "light on detail", but the second quarter is the "key quarter" for property additions. They saw potential for property net additions to be "a bit lighter" than their forecast of 3,000 in the first-half of the year, given the company's skew towards larger properties.
The sources: ASX announcement, Citi research
