SiteMinder APAC revenue and customer growth hit by pandemic

Hotel booking company SiteMinder reported a slight uptick in its total revenue and customer base for its first-half results, however, APAC experienced some pandemic related losses for its revenue and customer base. 

Its total revenue was up 9 percent at $55 million, whereas APAC revenue dropped 5 percent. The company’s global customer base increased 6 percent, however, APAC experienced no growth or losses.

The company posted its inaugural first-half results after listing on the ASX last November.

SiteMinder launched its IPO on the ASX and shares surged 38 percent on the first day. For its initial public offering, 123,913,043 shares were offered at AU$5.06 per share, bringing its market capitalisation to $1.36 billion, based on the offer price. Its value has risen to $1.59B despite retreating 3 per cent by lunchtime today as investors absorbed its results.

Sankar Narayan, CEO and managing director at SiteMinder said in line with the continued reopening of travel markets and the rebuilding of our go-to-market capacity, SiteMinder’s growth is accelerating once again.

“Our performance over the past six months stands as a testament to our ability to withstand the ongoing challenges presented by travel globally. We continue to exhibit our resilience through growth in total revenue and our subscription base, as well as ARR, ARPU and improved unit economics,” Narayan said

“Our performance also reflects the scale and breadth of our global business, with both the Americas and EMEA driving Company growth, and we are hopeful that the Asia Pacific will continue to reopen during 2022, to provide additional strength to our growth recovery.”

Narayan said as the company continues to deliver on its growth objectives, it has recently relaunched the Little Hotelier mobile app to free the world’s small hotels and to deepen its ability to service that critical segment of the market.

“Particularly during a time when hoteliers are increasingly relying on technology more than ever to help sell, market, manage and grow their business, the launch of our next generation platform over the coming months puts us in an even greater position to capitalise on the opportunity that is uniquely available to us,” he said.

Following a global resumption of travel, SiteMinder is targeting pre-COVID-19 revenue growth rates of 31 percent from 2017 to 2019 in the future but realisation of this target will depend on many factors outside of the Company’s control, including the substantial abatement of COVID-19 related influences on the accommodation and travel industry.