SiteMinder Earnings: Slow Product Rollout, but Holidays Aren’t Canceled

We maintain our AUD 10 per share fair value estimate for narrow-moat SiteMinder. Revenue growth during the first half of fiscal 2025 is tracking below our and management’s expectations for the full year, coming in at 17% on the previous corresponding period, or PCP, on a constant-currency basis. Management’s guidance is for 30% organic annual revenue growth over the medium term. Shares sold off sharply on the result and screen as materially undervalued. We continue to expect revenue growth to reaccelerate in the near to medium term and achieve management’s 30% target in fiscal 2027.