Slide 1: Financial Results
Financial Results Unaudited financial results for the half year ending 30 September 2024 Investor Presentation • 28 October 2024
Slide 2: Important notice
Important notice • This presentation has been prepared by Serko Limited ("Serko"). All information is current at the date of this presentation, unless stated otherwise. All currency amounts are in NZ dollars unless stated otherwise. • Information in this presentation • is for general information pur
Slide 3: Accelerating Serko's growth trajectory
Accelerating Serko’s growth trajectory Booking.com for Business acceleration in the second quarter Total income $m $42.7m $36.3m $34.8m Up 18% to $42.7m, with $28.6m Total income growth total online bookings up 11% $19.4m 1H23 2H23 1H24 2H24 1H25 Acceleration in completed Booking.com for Business ro
Slide 4: Delivery of positive EBITDAF and cash flow in 1H
Delivery of positive EBITDAF and cash flow in 1H Results deliver to our objective of scaled growth and operational efficiency Revenue Costs Profit (loss) Balance sheet $42.7m $44.3m $50.6m $(5.1m) $82.0m Total Operating Net loss Cash Total spend income expenses after tax on hand 5% increase 18% incr
Slide 5: Booking.com for Business plans delivering results
UNM ANAGED TR AV EL Booking.com for Business plans delivering results Volume growth follows targeted customer acquisition • Completed room nights on Booking.com for Business were 1.6 million, up 17% on 1H24 and up 29% on 2H24 • Increases in Booking.com for Business metrics reflect close collaboratio
Slide 6: Completed room nights accelerated in Q2
UNM ANAGED TR AV EL Completed room nights accelerated in Q2 • Serko saw an acceleration in growth versus PCP in the Completed Room Nights (CRN) September quarter with CRNs up 27% over the quarter 799k 757k • Customer acquisition increased in the quarter, and we 698k saw higher levels of engagement w
Slide 7: Strong performance in Australasia
M AN AGED TRAV EL Strong performance in Australasia Online bookings up 8% in Australia and New Zealand • Online bookings were up 8% Australasia Online bookings (m) Australasia ARPB ($) on 1H24 in Australia and $5.68 New Zealand to 2.1 million. 2.1m $5.06 $5.02 $5.33 2.0m $4.87 1.9m • The combination
Slide 8: We delivered positive free cash flow for the period
We delivered positive free cash flow for the period This achievement reflects disciplined execution delivering continued operating leverage with total income growth far outpacing total spend growth Adjusted Free Cash Flow 1H23 2H23 1H24 2H24 1H25 • Serko achieved positive $2.3m free cash flow of $1.
Slide 9: We have consistently improved operational efficiency
We have consistently improved operational efficiency Total spend as a percentage of total income decreased from 116% to 104% • Total spend of $44.3m was up 5%. A 5% increase in total spend primarily reflected acquisition-related costs with volume and inflation-related costs offset by efficiency init
Slide 10: Financial Update
Financial Update Unaudited financial results for the six months to 30 September 2024 Serko 10
Slide 11: Net profit summary / EBITDAF reconciliation
Net profit summary / Net Profit Summary EBITDAF Reconciliation 1H25 #039;m 1H24 #039;m change #039;m change % 2024 #039;m EBITDAF reconciliation Revenue 41.5 35.8 5.7 16% 68.8 Other income 1.3 0.6 0.7 122% 2.4 Total income 42.7 36.3 6.4 18% 71.2 • Continuing to achieve operating leverage as revenue grows Operat
Slide 12: Revenue analysis
Revenue analysis Revenue and other Income by Type 1H25 1H24 change change 2024 #039;m #039;m #039;m % #039;m • Booking.com for Business partnership Revenue – transaction and usage fees: continues to drive growth in the Travel platform booking revenue 11.7 9.6 2.2 23% 19.2 Supplier Commissions category and Expen
Slide 13: Total spend
Total spend Increases driven by one-off acquisition-related costs • Total spend for the half increased by $2.2m, due to acquisition related expenditure for the Total Spend 1H25 1H24 change change 2024 US expansion plan #039;m #039;m #039;m % #039;m • Despite volume growth of 11% third party Operating Expenses 5
Slide 14: Operating expenses
Operating expenses Driven by lower capitalisation and acquisition-related costs Operating Expenses 1H25 vs 1H24 $52m $51m $50m $1.9m $49m $0.6m $48m $47m $2.5m $46m $50.6m $45m $0.6m $0.8m $48.7m $44m $45.4m $45.6m $43m $42m $41m 1H24 Operating 3rd party Other Lower Amortisation and Acquistion 1H25
Slide 15: Operating expenses
Operating expenses Cost control has been a continued focus including successful efficiency initiatives • Lower capitalisation of development has Operating expenses 1H25 1H24 change change 2024 increased operating expenses from 1H24 #039;m #039;m #039;m % #039;m without increased cash spend Total remuneration an
Slide 16: Total income growth with lower headcount
Total income growth with lower headcount We have delivered material productivity improvements $42.7m 600 $36.3m $34.8m 37000 $28.6m 500 27000 $19.4m 400 17000 363 364 345 347 321 7000 300 -3000 200 -13000 -23000 100 -33000 - -43000 1H23 2H23 1H24 2H24 1H25 Employees Contractor Total Income Serko 16
Slide 17: Product design and development
Product design and development Slight decrease in contractor expenditure as projects completed • Product design and development Product Design and Development Expenditure 1H25 1H24 Change Change 2024 (PD&D) costs is a non-GAAP measure #039;m #039;m #039;m % #039;m representing the internal and external costs re
Slide 18: Free cash flow
Free cash flow We achieved free cash flow for 1H25 of $1.3 million Free cash flow 1H25 1H24 Change Change 2024 • Free cash flow excludes movements #039;m #039;m #039;m % #039;m between cash and short term investments, cash flows related to Movement in cash 7.8 8.6 (0.8) (9%) (1.1) capital raises and unusual ite
Slide 19: Balance sheet
Balance sheet We have a strong balance sheet with total cash in hand of $82.0 million • Serko’s balance sheet remains strong Balance Sheet 1H25 1H24 Change Change 2024 with cash and short-term investments #039;m #039;m #039;m % #039;m of $82.0 million and no debt • Intangibles decreased as the Group's Cash and
Slide 20: Outlook
Outlook Serko 20
Slide 21: FY25 Outlook
FY25 Outlook • Serko affirms its total income guidance from its FY24 results announced in May 2024, anticipating total income to be in the range of $85 million to $92 million for FY25. This does not take into account any expected revenue from the acquisition of GetThere as announced today. • Based o
Slide 22: Appendix
Appendix Serko 22
Slide 23: Definitions
Definitions Non-GAAP (generally accepted accounting practices) financial measures do not have standardised meanings prescribed by GAAP and therefore may not be comparable to similar financial information presented by other entities. Non-GAAP measures are used by management to monitor the business an
Slide 24: Definitions (continued)
Definitions (continued) • Headcount is a non-GAAP measure comprising of the number of employees (excluding casual workers and employees on maternity leave) and contractors employed on the last day of the period. • Managed customers is a non-GAAP term referring to companies that make online bookings
Slide 25: 1H25 results summary
1H25 results summary 1H24 2H24 FY24 1H25 1H25 v 1H24 1H25 v 1H24 % 1H25 v 2H24 % Financial ($m) Total income $36.3m $34.8m $71.2m $42.7m $6.4m 18% 23% Total operating expenses $45.4m $44.4m $89.7m $50.6m $5.3m 12% 14% Total spend $42.2m $41.8m $83.9m $44.3m $2.2m 5% 6% EBITDAF gain/(loss) ($0.8m) ($