Pinned straw:
Following the post on SDR's 1HFY24 results earlier, here is the summary of the SDR 3QFY24 Appendix 4C. More of the same from 1HFY24 ...
Very excited with progress on the 2 new capabilities currently in pilot release ahead of 1QFY25 release as this will propel SDR's next phase of growth, in parallel to the ongoing growth in the current base products.
Discl: Held IRL and in SM
KEY POINTS FROM THE ANNOUNCEMENT
- Revenue increase driven by SDR’s metasearch offering, Demand Plus, driven by accelerated adoption and strong booking activity
- Net subscriber addition momentum continued from 1HFY24, focused on larger properties (vs the target market of small, independent hotels)
- Continued improvement in FCF - underlying FCF was ($0.2m), now only (0.4% of revenue) - accelerating throughout FY24 thus far - continuing benefits of sustained strong organic growth and operating leverage
- Liquidity remains strong at $72.2m
- No change to FY24 guidance - (1) organic revenue growth of 30% in medium term (2) underlying EBITDA profitable in 2HFY24 (3) underlying FCF positive in 2HFY2024.
- On track for mid-CY2024 release of 2 Smart Platform products
- Channels Plus:
- Signed up Trip.com Group to participate in the Channels Plus Program
- Channel Plus continues to gain traction - 14 distribution partners have signed up
- Channel Plus pilot commenced 29 April 2024, limited to 1,000 hotels, has drawn strong registered expression of interest from existing customers
- Dynamic Revenue Plus:
- Mobile App launched in March well received by users
Mujo
Nice analysis and post. SDR is among the biggest holders of some good managers so starting to looking into it.
Is the decline in cash receipts from customers since the 1Q a result of cyclicality with the Northern Hemisphere travel season (With the transactional revenue)? Or is it their billing cycle?
With the subscription model just didn't expect to see that - having only just started looking at the company.
jcmleng
@Mujo , there was no commentary on customer receipts at all in the 3 Appendix 4C's this FY that I can recall. The commentary focus was on the sharp improvement in Underlying FCF from Operations, which has not only turned positive, but is growing more positive.
Thanks for the your last point - prompted me to add the % of the revenue mix into my spreadsheet - see below. In the past year, Sankar has increasingly talked about the growth in the transaction product uptake, volumes and monetising opportunities, particularly with the Smart Platform. The numbers show the gradual shift in the revenue mix towards transaction revenue.
This is exciting as the increasing transaction revenue is sweet icing on top of a growing subscription cake, with a huge untapped TAM to go ...
