SiteMinder Hotel Booking shares 4% drop on lagging growth

Talk to The Australian Financial Review, SiteMinder CEO Sankar Narayan said he was pleased with the performance.

“You can see acceleration happening across all parts of the business as regions recover in terms of travel, not just for FY22, but coming into 2023 and 2024,” he said. .

Optimistic about growth

“In America, travel is rebounding very strongly, it’s almost 96%, but EMEA [Europe, the Middle East and Africa] had a hiccup in January around omicron. You see it rebound with the European summer, though.

“APAC had a delayed reopening, Australia is now recovering quite strongly, but part of Asia is still on the mend, and that’s without Chinese travelers at the moment.”

Before the pandemic, SiteMinder posted average revenue growth of 31% between fiscal 2017 and 2019. On Tuesday, Narayan said he was still aiming to get back to that pace, but he couldn’t set a deadline. timetable for when it would be reached.

“We’re pretty optimistic about growth,” he said.

“If you look at the growth of ARR over the last three quarters…it was 13.5% in December and then it went to 18% at the end of March and 25% in June. So you can see the recovery continues and the rebound. The growth trajectory is solid.

Barrenjoey’s co-head of emerging companies research, Josh Kannourakis, said the company continued to execute “everything it set out to do”.

“ARR’s positive results and 51% year-over-year growth in transaction product adoption show that it is further leveraging existing customers and is also well positioned to leverage from the return of world travel,” he said.

“The results show that SiteMinder is executing on its strategy, still has a long streak of growth ahead in the regions where it operates, and the unit economics are starting to improve. This gives us confidence that it can achieve its pre-COVID growth rates.

Barrenjoey was one of three banks to subscribe to SiteMinder’s float last year, joined by UBS and Goldman Sachs.

Since listing in November with an issue price of $5.06 per share, after raising $627 million for a market capitalization of $1.36 billion, the company has climbed to $7.77. , before being overtaken by the tech selloff and falling almost 45% in the year to date.

Mr Narayan was unfazed by the downward spiral, saying the business was doing basically well. “We delivered strongly against our expectations in the IPO, so the business is growing and delivering strongly,” he said.

“Valuations and capital markets will resolve themselves going forward.”

In addition to the result, the company announced a small acquisition of the creator of customer relations tools GuestJoy for 3.25 million euros in equity, with the possibility of an additional 1.75 million euros if various performance milestones are achieved.

Founded by Alar Ülem and Annika Ülem in 2014, GuestJoy helps hoteliers automate and digitize their guest communication.

“Our product and other initiatives, including the acquisition of GuestJoy, enhance our growth opportunities with additional services for existing customers as well as expansion into new customer segments,” Mr. Narayan said.

“With our customer lifetime value in the fourth quarter of FY22 30% higher than pre-COVID levels, despite the resumption of global travel, our initiatives are increasing value for customers and shareholders. ”

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