ASX:SDR
Siteminder Ltd
Investment Summary
The fund managers believe that SiteMinder (SDR) represents a high-quality investment opportunity in the hotel technology sector, servicing approximately 44,500 properties across over 150 countries. They highlight the company’s innovative platforms targeted at both small and medium-large hotel operators, which allow management of rooms and rates across 400 booking channels. With a total addressable market exceeding 1 million properties globally, SDR is considered significantly underpenetrated at around 4%. The fund managers project a potential revenue growth rate of greater than 20% CAGR through FY29, with attractive margins expected to result in strong free cash flow starting FY26. However, despite a recent dip in share price and missed revenue expectations due to discounting strategies, they see potential for long-term upside, bolstered by a robust subscription-driven demand model. As a result, Endeavor Asset Management has increased its position during the recent weakness.
Commentary From The Managers
Endeavor Asset Management
28 Feb 2025
$4.96
- Endeavor Asset Management notes that SiteMinder (SDR) experienced a decline in February due to lower than expected first half revenue.
- The revenue miss was attributed to discounting strategies aimed at attracting larger hotel clients.
- Market attention is now focused on the success of upcoming product launches.
- SDR has reaffirmed its $5–10 million Smart Products forecast for 2H25.
- The company remains on track for 30% growth by the end of the year.
- Endeavor Asset Management identifies long-term upside potential resulting from SiteMinder's strong competitive positioning.
- In light of recent price weakness, Endeavor has increased their position in SiteMinder.
Endeavor Asset Management
31 Jan 2025
$6.00
- Endeavor Asset Management initiated a position in SiteMinder (SDR), a high-quality technology business.
- SDR services approximately 44,500 properties across more than 150 countries.
- It operates two hotel management platforms targeting small operators (less than 20 rooms) and medium-large operators (20+ rooms).
- The core technology enables hotel operators to manage rooms, rates, and availability across over 400 booking channels.
- SDR offers complementary services including a hotel website builder, performance reporting, payments capabilities, and a white-label booking engine.
- The total addressable market for SDR exceeds 1 million properties globally, indicating significant room for growth at ~4% market penetration.
- With a strong track record and innovative product suite, SDR is expected to achieve over 20% revenue CAGR through to FY29.
- Beginning in FY26, anticipated revenue growth is expected to lead to significant net profit after tax (NPAT) as operating margins of 40-50% are realized.
- This growth is expected to culminate in attractive free cash flow (FCF) generation for the business.
Endeavor Asset Management
31 Jan 2025
$6.00
- Endeavor Asset Management initiated a position in SiteMinder (SDR), a high-quality technology business.
- SDR services approximately 44,500 properties across more than 150 countries.
- It operates two hotel management platforms targeting small operators (less than 20 rooms) and medium-large operators (20+ rooms).
- The core technology enables hotel operators to manage rooms, rates, and availability across over 400 booking channels.
- SDR offers complementary services including a hotel website builder, performance reporting, payments capabilities, and a white-label booking engine.
- The total addressable market for SDR exceeds 1 million properties globally, indicating significant room for growth at ~4% market penetration.
- With a strong track record and innovative product suite, SDR is expected to achieve over 20% revenue CAGR through to FY29.
- Beginning in FY26, anticipated revenue growth is expected to lead to significant net profit after tax (NPAT) as operating margins of 40-50% are realized.
- This growth is expected to culminate in attractive free cash flow (FCF) generation for the business.
Blackwattle Investment Partners
31 Aug 2024
$4.86
- Blackwattle Investment Partners continues to hold their position in SiteMinder Ltd.
- Siteminder shares fell 10% in the past month, despite delivering an in-line result.
- The decline in share price is associated with an outlook for travel expenditure.
- Global and domestic travel agents have reported softness in leisure demand.
- Approximately 90% of SiteMinder’s demand is driven by subscription fees from hotel partners.
- This demand is not linked to the underlying revenues of hotels.
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.