SiteMinder edges closer to break-even as annual recurring revenue tops $200m

The Sydney-based group, which operates a global software platform that aims to unlock the full revenue potential of hotels, recorded free cashflow of $2.5 million in the June quarter driven by a 20.8 per cent increase in recurring annual revenue to $209 million.

While the company has yet to deliver its FY24 earnings results, SiteMinder is set to record negative free cashflow of $6.4 million for the year although the latest quarter’s performance has affirmed investor expectations of profitability in the second half.

The company reported an underlying EBITDA improvement of $13.4 million in the first half of FY24 to a loss of $1.2 million. SiteMinder is forecasting a positive EBITDA result for FY24.

Adding to the momentum, SiteMinder has reported a successful run for two key products, Channels Plus and Dynamic Revenue Plus, which are designed to assist hoteliers in revenue management.

Dynamic Revenue Plus, which equips hoteliers with the ability to assess and react to changes in demand quickly and accurately, began its pilot in July in Australia and New Zealand. The phased development of the product is scheduled for release throughout the region in the current quarter.

The pilot for Channels Plus was launched in April and since then has drawn interest from about 25 distribution partners including travel brands Agoda, Hopper, Trip.com and Grupo Viajes el Corte Ingles.

SiteMinder today launched Smart Distribution Program, a third pillar designed to accelerate and expand the revenue potential of SiteMinder’s Smart Platform.

SiteMinder says it has secured commitments from key global distribution partners to jointly improve the distribution configurations of hoteliers through the Smart Platform.

“There is already high engagement on distribution on the SiteMinder platform, with users averaging three sessions per workday,” says SiteMinder CEO 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.

“Our ecosystem partnerships with industry heavyweights serves as recognition of SiteMinder’s scale and technology leadership as a distribution and revenue platform, and our ability to leverage these capabilities to deliver win-win-win outcomes to partners and hotels.”

During the year, SiteMinder also extended the reach and capabilities of its payments offering, while its metasearch solution is progressing as planned.

SiteMinder’s payment solution has now been extended into Singapore and Hong Kong, with plans for other markets to go live this financial year.

While annual recurring revenue topped $200 million in FY24, SiteMinder has today revealed it will post annual revenue of $190.7 million for the year, up 26 per cent from the previous year.

The company is targeting 30 per cent organic annual revenue growth in the medium term, aided by contributions from the Smart Platform.

“SiteMinder has significantly improved its long-term growth trajectory with the three-pillar Smart Platform strategy expanding the company’s monetisation opportunities and strengthening its already enviable position as the default choice for the convergence of distribution, revenue optimisation and market intelligence,” says Narayan.

“Our business has never been better positioned to deliver high, sustainable organic growth and progress towards industry-leading SaaS (Software-as-a-Service) economics.”

SiteMinder was founded in 2006 by Mike Ford and Mike Rogers as a solution for hotels to exchange booking information with the websites on which they listed their rooms.

The company, which is backed by the likes of Bailador Technology Investments (ASX: BTI), has a market value of more than $1.5 billion and in March the company was included in the ASX 200.