Siteminder (SDR) H1 2025 earnings summary

Executive summary

• Achieved H1FY25 ARR of $216.2m, up 22.0% year-over-year (cc, organic), with total revenue of $104.5m, up 17.2% year-over-year (cc, organic).

• Underlying EBITDA turned positive at $5.3m, improving from ($1.2m) in H1FY24; net loss after tax improved to ($13.9m), and underlying net loss after tax was ($9.0m).

• Subscriber base expanded 13.5% year-over-year to 47,200 properties, with net property additions up 8% and net room additions up over 50%, focusing on larger, high-value hotels.

• Smart Platform monetisation commenced, accelerating ARR growth and improving gross margins.

• 85% of revenue generated outside Australia, with a growing global workforce and expanded operations in EMEA, Asia, and Latin America.

Financial highlights

• ARR grew 22.0% year-over-year (cc, organic) to $216.2m; subscription ARR up 15.3%, transaction ARR up 37.0%.

• Total revenue rose 17.2% year-over-year (cc, organic) to $104.5m; subscription revenue up 11.8%, transaction revenue up 27.8%.

• Underlying group gross margin increased 118bps from H2FY24 to 66.9%; subscription gross margin at 85.5%, transaction gross margin at 34.5%.

• Underlying free cash outflow improved to ($0.6m), with seasonality due to staff incentive payments in H1.

• Cash and term deposits totaled $36.5m, with an undrawn credit facility of $32.2m.

Outlook and guidance

• Targeting 30% organic annual revenue growth in the medium term, supported by Smart Platform contributions.

• Expects to be underlying EBITDA and free cash flow positive in FY25, with continued progress on the Rule of 40.