Siteminder Limited · ASX:SDR
Siteminder — Investor Presentation (February 2023)
37 slides from Siteminder's investor presentation, Feb 22, 2023
Slide 1: 1
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Slide 2: Investor Briefing
2 Investor Briefing Half year results to 31 December 2022 22 February 2023 *SiteMinder customer La Flora Group, Thailand
Slide 3: Important notice and disclaimer
Important notice and disclaimer 3 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 4: Important notice and disclaimer (continued)
Important notice and disclaimer (continued) 4 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 5: Business Update
Business 5 Update Sankar Narayan CEO & Managing Director *SiteMinder customer Hanging Gardens of Bali, Indonesia
Slide 6: Agenda
Agenda 6 Business and Key Sankar Narayan Initiatives Update CEO & Managing Director Jonathan Kenny Outlook COO Tim Howard CFO Financial results Q&A
Slide 7: Strong H1FY23 results across multiple metrics
Strong H1FY22 results across multiple metrics 7 Total annual recurring revenue (ARR) Subscription properties Total H1FY23 revenue Monthly ARPU $143.5M 36.6K $71.7M $339 +30.1% y/y +10% y/y +30.4% y/y +21% y/y LTV/CAC Monthly revenue churn Transaction product uptake Free cash outflow 3.6x 1.1% 16.5k
Slide 8: Strong growth with improved unit economics from operating leverage
Strong growth with improved unit economics from operating leverage 8 ● H1FY23 ARR grew 28.3% y/y (cc, organic) to $143.5m, with subscription ARR growing 15.8% (cc, organic) and transaction ARR growing 73.5% (cc, organic) ● H1FY23 revenue of $71.7m, up 29.6% y/y (cc, organic). Subscription revenue gr
Slide 9: The Travel Environment (Hotel bookings from Mar 2020 to Jan 2023 vs 2019)
The Travel Environment (Hotel bookings from Mar 2020 to Jan 2023 vs 2019) 9 Americas ● US bookings has remained steady at ~90% of 2019 levels ● Mexico bookings continues to be strong at 132% of 2019 levels ● Canada bookings improved to 108% of 2019 levels after the government ended all COVID related
Slide 10: Strong growth across all regions
Strong growth across all regions 10 Americas 1H22 2H22 1H23 Revenue 14.0m 15.9m 19.3m y/y (cc) 24.9% 29.6% 26.8% Properties (‘000) 6.2 6.6 7.1 +29% (cc) y/y 9.8% 13.7% 14.0% +5% (cc) EMEA 1H22 2H22 1H23 +58% (cc) Revenue 24.1m 25.4m 28.6m y/y (cc) 16.0% 26.8% 24.7% Properties (‘000) 15.6 16.4 17.2 y
Slide 11: Key Initiatives Update
Key Initiatives 11 Update Sankar Narayan CEO & Managing Director Jonathan Kenny COO
Slide 12: SiteMinder's evolution to a Smart Commerce Platform
SiteMinder’s evolution to a Smart Commerce Platform: 12 Solving our customer’s key pain points Indirect & 3rd Party Distribution Direct to Customers Broadest connectivity provider for hoteliers Helping hoteliers build deep customer relationships ● Right channel mix at the right time incorporating ma
Slide 13: Market leading and category defining product suite
13 Market leading and category defining product suite SiteMinder is the most awarded product suite and #1 e-commerce platform
Slide 14: Resilient Business Model
Resilient Business Model 14 Global Air Transport Passengers (1975-2019, y/y) COVID impact* on SiteMinder Revenues vs Travel Tech Peers Travel demand has been resilient across economic cycles SiteMinder delivered stable revenues during COVID * Comparing revenues in FY21 to FY19 **Travel tech peers: B
Slide 15: Scalable growth
15 Scalable growth SiteMinder has invested strategically in product development, and go-to-market capacity and capabilities. The investments made have helped SiteMinder deliver industry leading products, engage with more customers efficiently, capture more value, accelerate our growth, and drive ope
Slide 16: GuestJoy Integration Update and Commercial Launch
16 GuestJoy Integration Update and Commercial Launch Acquisition of GuestJoy completed at end of Sep-2022 Commercial re-launch of GuestJoy in English in February. Other languages to follow in Q4FY23. GuestJoy to be sold as an add-on upgrade Fully integrated experience in FY24.
Slide 17: Little Hotelier - Enhanced capabilities for hoteliers
17 Little Hotelier - Enhanced capabilities for hoteliers HotelTechReport Award - Finalist (#2) in Hotel Management System category. Improved on 2022. Little Hotelier Mobile App: - Rated 4.7 out of 5 on the Apple App Store. - Majority of LH customers have downloaded the app - Additional capabilities
Slide 18: Accelerating customer activation
18 Accelerating customer activation Automation driving increased customer satisfaction and efficiencies Reducing Customer Friction Key Improvements Digital setup tools Auto registration 40% reduction since Jan 2021 Auto channel setup LH Basic supports on-boarding in less than 12 minutes Further auto
Slide 19: Financial Results
Financial 19 Results Tim Howard Chief Financial Officer
Slide 20: Revenue growth continues to be strong
Revenue growth continues to be strong 20 % growth (cc, organic) H1 FY22 H2 FY22 H1 FY23 Subscription revenue 0.7% 6.1% 13.4% Transaction revenue 63.2% 79.5% 85.1% Total revenue 10.2% 19.7% 29.6% % growth H1 FY22 H2 FY22 H1 FY23 Subscription revenue -0.6% 7.5% 14.1% Transaction revenue 62.9% 83.8% 87
Slide 21: Strong growth across all regions
Strong growth across all regions 21 % growth (cc) H1 FY22 H2 FY22 H1 FY23 APAC (5%) 6% 39% EMEA 16% 27% 25% Americas 25% 30% 27% Group 10% 20% 30% % growth H1 FY22 H2 FY22 H1 FY23 APAC (6%) 7% 41% EMEA 15% 25% 19% Americas 22% 38% 38% Total 9% 21% 30% Strong growth across all regions with the easing
Slide 22: Customer additions and product uptake accelerating
Customer additions and product uptake accelerating 22 +3.4k +2.5k +1.9k Subscriber growth - Net additions accelerated to +1.6k (organic) in H1FY23 helped by the easing of COVID restrictions in APAC and the investment in go–to-market capacity. - EMEA impacted by unusually strong and prolonged summer
Slide 23: Improving SaaS economics from operating leverage and ARPU
Improving SaaS economics from operating leverage and ARPU 23 SiteMinder initiatives to improve efficiency and LTV/CAC Unit economics breakdown H1 FY22 FY22 H1 FY23 Improving customer acquisition cost: Properties (000s) 33.4 34.7 36.6 Introduced new GTM Monthly ARPU (A$) 280 291 339 1 processes to im
Slide 24: Gross margins - Expanding on scale benefits
Gross margins - Expanding on scale benefits 24 H1 FY22 H1 FY23 Subscription gross margins Underlying subscription gross margins improved by 97 bps y/y after adjusting for restructuring costs. Subscription revenue 42,699 48,721 The improvement reflects operating leverage with Subscription related exp
Slide 25: Transaction operating margins are strong due to "add-on" nature
Transaction operating margins are strong due to “add-on” nature 25 Cost Subscription Products Transaction Products Cost of Sales ● Subscription underlying gross margin was 82.0% in ● Transaction underlying gross margin was 33.7% in H1FY23 H1FY23 ● Scope to increase via scale and automation ● Opportu
Slide 26: Operating leverage
Operating leverage 26 Sales & marketing as a % of revenue Product development cost (opex and capex) as a % of revenue Sales and marketing as a percentage revenues Product development cost as a percentage of declined even with increased headcount. revenues declined as SiteMinder realised operating le
Slide 27: Underlying functional income statement – expanding GTM
Underlying functional income statement – expanding GTM 27 H1 FY23 H1 FY22 YoY (%) Revenue 71,722 54,993 30% Cost of Sales (23,680) (16,441) 44% Sales and marketing costs include costs incurred from onboarding new customers to the business. Gross Profit 48,042 38,552 25% The increase was driven by th
Slide 28: Cash flow – investing for future growth
Cash flow – investing for future growth 28 $’000s H1FY23 H1FY22 SiteMinder’s underlying free cash outflow for H1FY23 was ($20.3)m, representing 28% of revenue Underlying EBITDA (14,553) (9,958) Non-cash items in EBITDA 4,623 4,681 Underlying operating cash outflows of ($7.3)m in H1FY23 reflected the
Slide 29: Outlook
Outlook 29 SiteMinder continues to target pre-COVID-19 revenue growth rates (31% from FY17-FY19) in the future but realisation of this target will depend on many factors outside of the Company’s control, including the continued abatement of COVID-19 related influences on the accommodation and travel
Slide 30: Q&A
Q&A 30 Sankar Narayan CEO & Managing Director Jonathan Kenny Chief Operating Officer Tim Howard Chief Financial Officer
Slide 31: Appendix
Appendix 31
Slide 32: Underlying income statement
Underlying income statement 32 $000s H1 FY23 H1 FY22 YoY (%) Revenue 71,722 54,993 30% Direct transaction costs increased by 90% y/y or Other income 350 252 39% $7.1 million to $14.9 million in H1FY23. This is in line with the growth in transaction revenue, which Interest revenue calculated using th
Slide 33: Underlying reconciliations to reported financial statements
Underlying reconciliations to reported financial statements 33 $'000s Notes H1 FY23 H1 FY22 Reported loss after income tax (25,527) (87,035) Notes Fair value movement on embedded derivative 1 - 61,759 1. The fair value movements on embedded derivatives Transaction cost related to IPO / capital raise
Slide 34: Underlying cash flows – reconciliation to reported financial statements
Underlying cash flows – reconciliation to reported financial statements 34 Reconciliation to financial statements Notes 1. Transaction costs paid relating to the IPO and capital $000's Notes H1 FY23 H1 FY22 raise of $7.5 million of which $3.4 million is directly attributable to the issue of new share
Slide 35: Glossary
Glossary 35 Monthly ARPU Properties (Customers) Average revenue per user (or property) measures the average revenue from each Properties means each unique property which subscribes to one or more of customer and is used in calculating LTV. It also indicates if the value of a customer is SiteMinder’s
Slide 36: Contact
Contact 36 Investor Relations Media enquiries Paul Wong Gemma Garkut investor.relations@siteminder.com media@siteminder.com
Slide 37: www.siteminder.com/investor-relations
www.siteminder.com/investor-relations 37