The share price of ASX 200 technology stock Siteminder Ltd (ASX: SDR) is 0.095% higher at $5.25 after the company released its full-year FY24 results.
The Siteminder share price opened at $5.24 and initially dropped to an intraday low of $5.10 before rebounding sharply to an intraday high of $5.28.
Meantime, the S&P/ASX 200 Index (ASX: XJO) is slightly in the red at 8,084 points.
SiteMinder provides an e-commerce management software platform for hotels and other accommodation businesses.
The company described FY24 as a "landmark year" with its earnings before interest, taxes, depreciation, and amortisation (EBITDA) turning positive following a $21.9 million loss in FY23.
Let's take a closer look at the report.
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SiteMinder share price higher as EBITDA turns positive
Here are the highlights of the report:
- Total revenue up 26% (or 20.8% in constant currency terms) to $190.7 million
- Annual recurring revenue (ARR) rose 20.8% (or 21.3% in constant currency) to $209 million
- Reported group gross margin was in line with FY23, at 66.7%
- Underlying subscription gross margin improved from 83.2% to 85.1%
- Underlying transaction gross margin moderated from 34.8% to 32%
- Underlying EBITDA turned positive, improving from ($21.9 million) in FY23 to $900,000 in FY24
- Net loss improved from ($49.3 million) to ($25.1 million)
- Underlying free cash outflow improved from ($34 million) to ($6.4 million)
- Available funds of $72.3 million, including $42.3 million in cash and funds on deposit and $30 million in undrawn debt facilities
- 'Rule of 40' performance improved 230%, from 5 to 17, and reached 21 in H2 FY24. SiteMinder's Rule of 40 is the sum of the company's revenue growth and profit margin
What else happened in FY24?
SiteMinder said it had achieved key financial milestones in FY24 while also progressing all three pillars of its Smart Platform strategy.
The company said the strategy was on track for release in H1 FY25, and it had strong partner support.
SiteMinder's growth in market capitalisation saw it become an ASX 200 stock in March this year. The SiteMinder share price lifted 3.71% on the day of the news.
What did SiteMinder management say?
SiteMinder CEO and Managing Director Sankar Narayan said:
Not only did we sustain strong growth and execute a significant turnaround in profitability to deliver a 230% improvement on the Rule of 40; it was achieved while embarking on an ambitious Smart Platform strategy, leveraging our platform and go-to-market capabilities, and forging significant new partnerships that have reinforced our global leadership and future growth outlook.
SiteMinder has never been better positioned to deliver high, sustainable organic growth and progress towards industry-leading SaaS economics.
What's next for SiteMinder?
The company said its Smart Platform strategy would deliver significant new products and programs for launch in FY25.
SiteMinder is targeting 30% organic annual revenue growth in the medium term.
SiteMinder share price snapshot
The SiteMinder share price has risen 18% over the past 12 months.
By comparison, ASX 200 stocks have lifted by 12.9% collectively over the period.
