SiteMinder : Quarterly Activities/Appendix 4C Cash Flow Report

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ASX ANNOUNCEMENT

July 29, 2022

SiteMinder accelerates in Q4 across key growth metrics

with ARR1 growing 25% y/y (cc2) to $129.7m

SiteMinder Limited (ASX:SDR) ("SiteMinder" or "the Company") has released its Activities Report and Appendix 4C Cash Flow Report for the quarter ended 30 June 2022.

Additionally, the Company is releasing an interim trading update and more detailed information ahead of its full year reporting on 23 August 2022.

Q4FY22 (unaudited) Trading Update - Performance Highlights:

• Annualised recurring revenue (ARR) increased 25.3% y/y (cc) to $129.7m, which is 27% (cc) higher than the pre-COVID ARR at 30 June 2019
• Revenue increased 23.4% y/y (cc) to $32.0m, taking FY22 revenues to $116.0m
• • Subscription revenues grew 9.7% y/y (cc) accelerating from 1% y/y (cc) during 1HFY22
  • Transaction revenues grew 86.3% y/y (cc). The number of transaction products subscribed by our customers increased 51% y/y to 13k products at the end of FY22
• Number of properties increased 7% y/y to 34.7k
• Underlying free cash outflow of ($18.4)m for H2FY22, representing 30% of revenue
• Available Liquidity of $117.7m consisting of $26.6m of cash and cash equivalents, $62.1m of funds on deposit, and $29.0m of undrawn debt facilities

"It's great to see the business accelerate driven by the initiatives delivered over the last 3 years. We have been assisted by the overall global travel recovery, even with Asia still in the early phases of reopening. Our strong success in increasing the customer uptake of our transaction products is paying off with 86% y/y (cc) transaction revenue growth in Q4FY22. Subscription revenues are starting to accelerate as we rebuild our Go To Market capacity. I want to thank all our staff, partners and customers for the resilience they have shown over the last couple of years and we are optimistic for the continued recovery of travel around the world." says Sankar Narayan, CEO & Managing Director at SiteMinder.

• ARR is the prior month's recurring subscription revenue multiplied by 12 and the prior quarter's transaction revenue from subscriber customers (assuming any promotions have ended) multiplied by four. ARR provides a 12-month calculation of revenue at a point in time, assuming other factors such as subscriber numbers, transaction volumes, pricing and foreign exchange remain unchanged. Readers should note that ARR does not represent our actual results, is not a financial forecast and should not be used in isolation as a forward-looking indicator of revenue.
  2 (cc) is constant currency

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Q4FY22 (unaudited) Trading Summary

$m	Q4FY22	y/y	y/y (cc)
Revenue	32.0	23.9%	23.4%
Annualised Recurring Revenue (ARR)	129.7	23.6%	25.3%
Number of Properties	34.7k	7%	7%
Available Liquidity (incl. Undrawn Debt)	117.7	n/a	n/a

Accelerating ARR Growth (y/y, cc)

Key Product Initiatives

During the quarter we launched our next generation Platform with overwhelmingly positive feedback from our customers. Our customers are excited to take advantage of the Platform's more intuitive user experience, improved workflow, increased connectivity, and access to deep insights on business performance.

We expanded Little Hotelier Basics (LH Basics) on 28-June to our major English speaking regions. Featuring digital sales and on-boarding, and a hybrid pricing model, LH Basics makes SiteMinder's technology more accessible to small accommodation providers whose uptake of modern technology solutions remain low.

Our transaction products were also enhanced to drive customer adoption and usage. During 4QFY22 we further optimised our Demand Plus bidding engine helping deliver more bookings for our customers.

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H2FY22 (unaudited) Cash Flow - Underlying Free Cash Outflow3 at (30)% of Revenue

SiteMinder's underlying free cash outflow (FCF) for H2FY22 was ($18.4)m and represented (30%) of revenue. Underlying FCF for Q4FY22 was ($9.9)m. There were modest working capital timing differences between Q3FY22 and Q4FY22.

Underlying operating cash outflows were ($6.2)m and investment cash outflows were ($12.2)m during H2FY22.

H2FY22 underlying free cash outflow excludes ($0.6)m of cash payments related to pre-IPO historical commitments, ($4.0)m of IPO costs and ($2.1)m of funds invested in term deposits.

The cash usage was driven by the rebuilding of our Go to Market (GTM) capacity during FY22 following the COVID driven reductions in March 2020, and new product initiatives including the Platform launch in Q4FY22. These investments are laying the foundations for improved unit economics and for SiteMinder to become free cash flow positive with high organic growth in the future.

SiteMinder ended FY22 with $117.7m of liquidity consisting of $88.74m of available cash balance and funds on deposit, and undrawn debt facilities of $29.0m. The business is well capitalised to achieve its strategic objectives.

Reconciliation of Reported to Underlying Free Cash Flow
$000s	H2FY22
Reported Operating Cash Flows	(10,750)
Reported Investment Cash Flows	(14,293)
Reported Operating and Investment Cash Flows	(25,043)
Pre-IPO historical commitments	562
Transaction costs relating to IPO and excess insurance cost	3,655
Payment for employee incentives on IPO	314
Financial assets	2,123
Underlying Free Cash Flow	(18,389)

• Free cash outflow is the sum of operating and investment cash flows

• Comprising cash and cash equivalents of $26.6m and funds on deposit of $62.1m

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Growth Guidance Re-iterated

SiteMinder is targeting pre-COVID-19 revenue growth rates (31% from FY17-FY19) 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.

Use of Funds

SiteMinder's initial public offering (Offer) raised $627m. Primary IPO proceeds of $90m were received during Q2FY22.

SiteMinder remains well capitalised with cash and funds on deposit of $88.7m and no debt.

The table below sets out SiteMinder's expenditures since the completion of the Offer in Q2FY22. All expenditures are aligned with SiteMinder's expected use of funds as outlined in its Prospectus dated 21 October 2021.

Uses of funds	Funds received	Expenditure	Status
	per Prospectus	since IPO
	($m)	($m)
Costs of the Offer borne by	10.2	9.4	Paid in full
SiteMinder
Employee incentive close-out	9.6	9.8	Paid in full
Sales and marketing	29.6	12.2	On track
Research and development	25.4	10.6	On track
General and admin	15.1	6.7	On track
Payments to selling	537.0	537.0	Paid in full
shareholders
Total uses	627.0	585.7

As noted in the Appendix 4C, payments totalling $0.21m were made to related parties of SiteMinder during Q4FY22, consisting of Non-Executive Director fees and consultancy fees.

This ASX announcement was authorised by SiteMinder's Board of Directors.

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-ENDS-

Investor information	Media enquiries
Paul Wong	Gemma Garkut
[e-mail]	[e-mail]

About SiteMinder

SiteMinder Limited (ASX:SDR) is the world's leading open hotel commerce platform, ranked among technology pioneers for opening up every hotel's access to online commerce. It's this central role that has earned SiteMinder the trust of tens of thousands of hotels, across 150 countries, to sell, market, manage and grow their business. The global company, headquartered in Sydney with offices in Bangkok, Berlin, Dallas, Galway, London and Manila, generated more than 100 million reservations worth over US$35 billion in revenue for hotels in the last year prior to the start of the pandemic. For more information, visit siteminder.com.

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