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); reported revenue growth was 13.9% year-over-year.

• Underlying EBITDA turned positive at $5.3m, improving from ($1.2m) in H1FY24; reported EBITDA at $0.3m after $4.9m restructuring costs.

• Net property additions increased 8% year-over-year to 2.7k, with net room additions up over 50% year-over-year, reflecting a focus on larger, higher-value hotels.

• Subscriber base expanded 13.5% year-over-year to 47,200 properties, with strong transaction product uptake up 36% to 30.6k.

• Smart Platform monetisation and launches, including Channels Plus and Dynamic Revenue Plus, contributed to ARR growth and improved gross margins.

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 loss after income tax improved to ($8.98m) from ($13.81m) year-over-year; reported net loss narrowed to ($13.9m) from ($14.9m).

• Underlying free cash flow improved to ($0.6m), with available funds at $68.6m, including $36.5m cash and $32.2m undrawn debt.

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.