Siteminder (SDR) H2 2024 earnings summary

Executive summary

• Achieved FY24 revenue of $190.7m, up 20.8% year-over-year (constant currency, organic), with strong growth in both subscription and transaction revenues.

• Underlying EBITDA turned positive at $0.9m, improving from a loss of ($21.9)m in FY23; H2 EBITDA was $2.1m.

• Annual recurring revenue (ARR) reached $209.0m, up 20.8% year-over-year; property count grew 13.8% to 44.5k.

• Smart Platform strategy advanced, with new products in pilot and phased release planned for FY25.

• Targeting larger properties for greater revenue opportunities and continued progress on the Rule of 40.

Financial highlights

• Total revenue grew 20.8% year-over-year (cc, organic); subscription revenue up 16.2%, transaction revenue up 30.0%.

• Underlying free cash outflow improved to (3.4)% of FY24 revenue; H2 free cash flow was $2.3m (2.4% of revenue).

• Group gross margin was 66.7%, in line with FY23; underlying subscription gross margin improved to 85.1%.

• LTV/CAC ratio increased to 5.4x from 4.1x in FY23, reflecting improved unit economics.

• Monthly revenue churn remained stable at 1.0%, consistent with pre-COVID levels.

Outlook and guidance

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

• Expects to be underlying EBITDA profitable and free cash flow positive in FY25.

• Continued focus on Rule of 40 performance and product innovation.