The tech sector has been under pressure this year, and some former market favourites have fallen a long way from their highs.
But I think that can create opportunities when the business is still growing, improving, and building a stronger platform for the future.
One ASX tech share that looks interesting to me today is SiteMinder Ltd (ASX: SDR).
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A big fall from the highs
SiteMinder shares are trading at $3.14 on Friday.
That compares to a 52-week high of $7.96, meaning the share price is down around 60% from that level.
A fall like that should not be ignored. It tells me the market has become far more cautious on the stock, whether because of valuation pressure, weaker sentiment toward technology shares, or concerns about how long it will take for the company to prove its growth story.
But it also means investors today are looking at the business from a very different starting point.
At $3.14, a $3,000 investment would buy around 955 shares. At its high, it would have only bought around 377 shares.
Why I like the business
SiteMinder provides hotel commerce technology.
Its platform helps accommodation providers manage distribution, bookings, pricing, revenue, and connections across different online channels and hotel systems.
I think that is an attractive niche.
Hotels are operating in a more complex world. They need to manage direct bookings, online travel agencies, wholesalers, metasearch, pricing changes, availability, and guest demand across multiple markets.
That is a lot for independent and mid-market hotels to handle.
SiteMinder sits in the middle of that complexity. In my view, that gives the company an important role in the hotel technology stack.
The company's recent investor presentation showed it had 53,000 properties on the platform, more than 2.5 million rooms, 450-plus distribution partners, and annual activity of more than 135 million reservations. It also highlighted more than $85 billion of gross booking value across the platform.
Those numbers suggest to me that SiteMinder already has meaningful scale.
The growth story is still alive
What I like most is that SiteMinder is not just adding customers. It is also trying to increase the value it earns from each customer.
The company's Smart Platform strategy is central to that.
This includes initiatives such as Smart Distribution, Channels Plus, and Dynamic Revenue Plus. The aim is to help hotels make better revenue decisions, improve distribution, and automate more of the process.
I think this is important because it gives SiteMinder more ways to grow than simply signing up new hotels.
Strong metrics
With its half-year results, the company reported annual recurring revenue growth of 27.4%, total revenue growth of 23%, and adjusted EBITDA of $12.3 million, which more than doubled from the prior corresponding period.
It also reported monthly revenue churn of 1%, average revenue per user (ARPU) growth of 11.3%, and LTV/CAC of 6.7 times.
Those are the kinds of metrics I want to see from a software business. They suggest customers are valuable, acquisition economics are improving, and the company is becoming more efficient as it scales.
AI could be an advantage
I also think SiteMinder is an interesting artificial intelligence (AI)-related stock, but not in the obvious hype-driven way.
AI could make hotel distribution and pricing even more complex. More dynamic pricing, more personalised offers, and more AI-driven discovery could increase the need for reliable systems that keep inventory, rates, and channels synchronised.
That is where SiteMinder's infrastructure could become more valuable.
The company argues that AI increases complexity and raises the cost of errors. I think that makes sense. Hotels cannot afford overbookings, incorrect rates, or broken distribution links.
If SiteMinder can use AI to improve insights, automate workflows, and help hotels capture more revenue, then the Smart Platform could become a more important part of the business over time.
Foolish takeaway
SiteMinder is not risk-free.
The share price has fallen heavily, tech sentiment remains fragile, and the company still needs to keep proving that its Smart Platform strategy can turn strong activity levels into durable earnings growth.
But I think the ingredients are attractive.
The business has scale, recurring revenue, improving profitability, strong unit economics, and a large opportunity to monetise more of the hotel bookings flowing through its platform.
After a 60% fall from its 52-week high, I think a $3,000 investment in SiteMinder shares could be a worthwhile move for investors who are comfortable with growth stock volatility and willing to take a long-term view.
