Siteminder Limited · ASX:SDR
Siteminder — Investor Presentation (February 2024)
36 slides from Siteminder's investor presentation, Feb 27, 2024
Slide 1: Investor Briefing: Half-year results to 31 December 2023
Investor Briefing Half-year results to 31 December 2023 SiteMinder customer Anantara Al Jabal Al Akhdar Resort, Oman 27 February 2024
Slide 2: Important notice and disclaimer
Important notice and disclaimer 2 This presentation is given on behalf of SiteMinder Limited (SiteMinder) (ASX: SDR) (ACN 121 931 744). By accepting, accessing or reviewing this presentation, you acknowledge and agree to the terms set out in this Important Notice and Disclaimer. Disclaimer To the ma
Slide 3: Important notice and disclaimer (continued)
Important notice and disclaimer (continued) 3 Past performance Past performance information, including past share price information, given in this presentation is given for illustrative purposes only and should not be relied upon as an indication of future performance. Future performance Forward-loo
Slide 4: Presenters
4 Presenters Sankar Narayan Jonathan Kenny Tim Howard CEO & Managing COO CFO Director
Slide 5: Business update and key initiatives, Financial results, Q&A
5 Business update and key initiatives Financial results Q&A SiteMinder customer Tierra Chiloé, Chile
Slide 6: Business update
6 Business update Sankar Narayan CEO & Managing Director
Slide 7: H1FY24 key metrics
7 Total annual recurring revenue (ARR) Subscription properties Total revenue Monthly ARPU $182.5m 41.6k $91.7m $383 +27.2% y/y +13.7% y/y +27.9% y/y +13.0% y/y LTV/CAC Monthly revenue churn Transaction product uptake Free cash outflow 5.3x 1.0% 22.5k (9.5)% Up from 4.8x in H2FY23. In line with last
Slide 8: Strong growth, progressing towards profitability and Smart Platform
8 Strong growth, progressing towards profitability and Smart Platform H1FY24 revenue of $91.7m, up 22.4% y/y (cc, organic). Subscription revenue growth improved from 18.0% in H2FY23 H1FY24 revenue (cc) was to 18.5% (cc, organic). Strong revenue growth in all regions. 56% higher than pre-Covid levels
Slide 9: Growth momentum sustained across all regions
Growth momentum sustained across all regions 9 Americas 1H22 2H22 1H23 2H23 1H24 Revenue ($m) 14.0 15.9 19.3 21.1 24.3 y/y (cc) 24.9% 29.6% 26.8% 23.7% 22.2% Properties (‘000) 6.2 6.6 7.1 7.6 8.1 y/y 9.8% 13.7% 14.0% 15.2% 14.1% APAC 1H22 2H22 1H23 2H23 1H24 Revenue ($m) 17.0 19.8 23.8 25.9 30.1 y/y
Slide 10: Unit economics continue to improve
Unit economics continue to improve 10
Slide 11: Key initiatives
11 Key initiatives Sankar Narayan Jonathan Kenny CEO & Managing COO Director
Slide 12: Smart Platform
12 Smart Platform Revenue Optimisation Derived rates Rate plan management Convergence of distribution, intelligence and revenue Intelligence optimisation. Local and global Channel performance Competitor rates Distribution Events OTAs Pace GDS Wholesalers Booking engine Unified experience maximising
Slide 13: Delivering Dynamic Revenue Management
13 Delivering Dynamic Revenue Management A LOT more than pricing: Revenue Optimisation Dynamic open pricing Dynamic rate plans Intelligence Dynamic channels Distribution Dynamic inventory With speed, reliability, automation and leading proprietary global market intelligence. Our first two capabiliti
Slide 14: Dynamic Revenue Plus on track
14 Dynamic Revenue Plus on track Dynamic Revenue Plus V1 Capabilities Progress Targeted notifications and actionable recommendations SiteMinder mobile app currently in Beta with public launch planned for March. The mobile app will be used for real time notifications and actionable recommendations. R
Slide 15: Channels Plus update - major partners signed
15 Channels Plus update - major partners signed One connection, agreement, Distribution channels configuration Properties effortlessly access more effortlessly expand distribution inventory and up-to-date content More than 41,600 properties GBV in excess of $70b HOSTEL HOP Attractive economics for a
Slide 16: Initiatives to further accelerate Pay and Demand Plus
16 Initiatives to further accelerate Pay and Demand Plus Little Hotelier Expanding Pay’s SiteMinder Pay Demand Plus auto pay global availability terminals for enterprise Helping reduce Extending Pay’s Roll-out of Stripe Demand Plus solution manual effort and availability to key payment terminals to
Slide 17: Market-leading and innovative product suite
17 Market-leading and innovative product suite SiteMinder again has the most awarded product suite and #1 hotel e-commerce platform.
Slide 18: Financial results
18 Financial results Tim Howard CFO
Slide 19: Strong revenue growth sustained
Strong revenue growth sustained 19 % growth (cc, organic) H1 FY23 H2FY23 H1FY24 Subscription revenue 13.4% 18.0% 18.5% Transaction revenue 85.1% 44.2% 30.5% Total revenue 29.6% 25.2% 22.4% % growth H1 FY23 H2FY23 H1FY24 Subscription revenue 14.1% 23.1% 23.8% Transaction revenue 87.1% 49.9% 36.5% Tot
Slide 20: Growth in all regions
Growth in all regions 20 % growth (cc) H1 FY23 H2FY23 H1FY24 APAC 39% 28% 26% EMEA 25% 25% 20% Americas 27% 24% 22% Group 30% 26% 22% % growth H1 FY23 H2FY23 H1FY24 APAC 41% 31% 26% EMEA 19% 29% 30% Americas 38% 33% 26% Total 30% 31% 28% All regions delivered strong growth despite cycling abnormal l
Slide 21: Subscriber growth momentum sustained
Subscriber growth momentum sustained 21 Incl 0.2k of Covid property churn Subscriber growth Transaction product uptake Net additions increased 56% y/y to +2.5k in H1FY24. Added +2.6k transaction products during H1FY24. Additions This was despite the impact from 0.2k of churn driven by were focused o
Slide 22: Unit economics continue to improve
Unit economics continue to improve 22 SiteMinder initiatives to improve efficiency and LTV/CAC Unit economics breakdown H1 FY23 H2FY23 H1FY24 Improving customer Properties (000s) 36.6 39.1 41.6 acquisition cost: Monthly ARPU (A$) 339 352 383 1 Introducing new GTM processes to improve scalability. Mo
Slide 23: Subscription margins improve 306 bps to 85%
Subscription margins improve 306 bps to 85% 23 H1 FY23 H1FY24 Subscription gross margin Underlying group gross margin (GM) increased by Subscription revenue 48,721 60,333 69 bps to 67.4% reflecting higher subscription margin. Subscription-related expenses 8,898 9,031 Subscription gross margin (%) 81
Slide 24: Operating leverage continues across sales, marketing and product
Operating leverage continues across sales, marketing and product 24 Sales & marketing as a % of revenue Product development cost (opex and capex) as a % of revenue Sales, marketing, and product development costs have benefitted from increasing global scale and operating leverage as revenue has incre
Slide 25: Underlying functional income statement
Underlying functional income statement 25 A$‘000 H1FY23 H1FY24 Revenue 71,722 91,722 Sales and marketing costs increased 6% y/y in H1FY24, Cost of sales (23,680) (29,857) reflecting efficiency in lead generation and operating leverage. Gross profit 48,042 61,864 Sales & marketing (27,430) (29,007) R
Slide 26: Cash flow – operating cash flow turns positive
Cash flow – operating cash flow turns positive 26 A$‘000 H1FY23 H1FY24 Underlying EBITDA (14,553) (1,215) Underlying FCF as a percent of revenue improved from Non-cash items in EBITDA 4,623 6,493 (28)% in H1FY23 to (9)% in H1FY24. Changes in working capital & other 2,586 (3,050) Underlying operating
Slide 27: Outlook
27 Outlook SiteMinder’s growth guidance is unchanged and continues to target organic revenue growth of 30% in the medium term. The Company expects to be underlying EBITDA profitable and underlying free cash flow positive for H2FY24. SiteMinder customer Anantara Al Jabal Al Akhdar Resort, Oman
Slide 28: Q&A
28 Q&A Sankar Narayan Jonathan Kenny Tim Howard CEO & Managing COO CFO Director
Slide 29: Appendix
29 Appendix SiteMinder customer Tierra Chiloé, Chile
Slide 30: Underlying income statement
Underlying income statement 30 A$‘000 H1FY23 H1FY24 y/y (%) y/y ($'000) Revenue 71,722 91,722 28% 20,000 Direct transaction costs increased by $5.7 million or 38.1% y/y to $20.6 million in H1FY24. This was in line Other income & Net FX gain 350 361 3% 11 with the growth in transaction revenue, which
Slide 31: Income statement – reconciliation of underlying and reported income
Income statement – reconciliation of underlying and reported income 31 A$‘000 Notes H1FY23 H1FY24 Reported loss after income tax (25,527) (14,859) Notes Net costs / (gain) related to M&A 1 592 1. M&A-related costs of $0.6 million in H1FY23 Restructuring costs 2 240 434 related to the acquisition of
Slide 32: Cash flow – reconciliation of underlying and reported free cash flow
Cash flow – reconciliation of underlying and reported free cash flow 32 A$‘000 Notes H1FY23 H1FY24 Notes Reported Operating Cash Flows (8,474) 744 Reported Investment Cash Flows 22,254 (10,911) 1. Restructuring costs relate to the cost management program announced on 31 January 2023. Reported Operat
Slide 33: Channels Plus partner profiles
33 Channels Plus partner profiles One of Asia’s leading travel tech companies and a subsidiary of The #1 most downloaded travel Booking Holdings. Services more app in North America serving than 4 million hotels and homes hundreds of millions of travellers. worldwide. A UK-based premium leisure tour
Slide 34: Glossary
Glossary 34 Annual Recurring Revenue (ARR) Monthly ARPU ARR is the prior month’s recurring subscription revenue multiplied by 12 and the prior Average revenue per user (or property) measures the average revenue from quarter’s transaction revenue from subscriber customers multiplied by four (assuming
Slide 35: Investor relations
35 35 Investor relations Media enquiries Paul Wong Maria Cricchiola investor.relations@siteminder.com media@siteminder.com
Slide 36: siteminder.com/investor-relations
siteminder.com/investor-relations