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The Good
The Not So Good
What To Watch
Watch Status
Valuation Status
Board
Inside Ownership Ordinary Shares %SDR Issued Net Value at $5.40
Pat O’Sullivan 65,976 0.02% $356K
Sankar Narayan 7,147,691 2.58% $38.598m
Jenny Macdonald 54,525 0.02% $294K
Paul Wilson 16,760,807 6.05% $90.508m
Les Szekely 15,549,072 5.61% $83.965m
Kim Anderson 24,500 0.01% $132K
Dean A. Stoecker 20,000 0.01% $108K
Total 39,622,571 14.3% $213.962m
Recent Board Buying
Kim Anderson
· 28 November 2023
5,000 shares at $4.58 ($22,949.81)
· 2 November 2023
4,500 shares at $4.265 ($19,192.50)
Board Bios
Pat O’Sullivan - Independent, Non-Executive Chairman
Pat was appointed independent non-executive Chairman of the Company in October 2021.
Pat has extensive experience as a Director of both listed and unlisted entities. Pat is currently the non-executive Chair of both carsales.com Limited (ASX:CAR) and TechnologyOne. He was previously a non-executive Director of APN Outdoor (ASX: APO), iSentia (ASX:ISD), Marley Spoon (ASX:MMM), iSelect (ASX:ISU) and iiNet (ASX: IIN).
Pat has over 30 years’ commercial and business management experience, including holding various senior financial and operational roles in Ireland, the US, Australia and New Zealand across a number of industries including traditional and online media, telecommunications, fast moving consumer goods and professional accounting. He was the Chief Financial Officer of Optus from 2001 to 2006 and was the Chief Operating Officer and Finance Director of Nine Entertainment Co Pty Limited from 2006 until 2012.
Pat is a member of the Institute of Chartered Accountants in Ireland and Australia. He is a graduate of the Harvard Business School’s Advanced Management Program.
Sankar Narayan -Chief Executive Officer and Managing Director
For more than 20 years, Sankar Narayan has delivered change management, operational rigour and business growth across the travel, technology, media and telecommunications sectors, with particular expertise in company transformations and business strategy to achieve strong shareholder outcomes. Following several senior management roles at Virgin Australia, Fairfax Media and Foxtel, and having also worked at Vodafone Australia, Boston Consulting Group and Schlumberger prior, in 2015 Sankar joined Xero where he went on to serve in the dual capacity of Chief Operating and Financial Officer.
Today, Sankar leads SiteMinder’s internationalised software and multilingual teams across 20 locations globally, and which see more than 80% of revenue sourced from outside the company’s home market of Australasia.
Sankar holds a Masters in Business Administration with Honours from the Booth School of Business at the University of Chicago and a Masters in Electrical Engineering from the State University of New York. He is a Certified Practising Accountant and a Fellow of CPA (Australia), and has been a regular contributor to Forbes.com on the crucial topics of strategy, disruption and managing high growth businesses.
Jenny Macdonald - Non-Executive Director, Audit and Risk Committee Chair
Jenny was appointed as an independent non-executive Director of the Company in October 2021.
Jenny has a background in financial and general management roles across a range of industry sectors including fast moving consumer goods, resources, travel and digital media. She has a proven track record in developing and implementing strategy with a focus on risk management, growth and value creation. Jenny was previously Chief Financial Officer and Interim Chief Executive Officer at Helloworld Travel and Chief Financial Officer and General Manager International at REA Group.
Jenny is currently non-executive director of Redbubble (ASX:RBL) and Australian Pharmaceutical Industries (ASX:API), and is Chair of Healius Limited (ASX:HLS).
Jenny is a member of the Institute of Chartered Accountants ANZ, has a Masters of Entrepreneurship and Innovation from Swinburne University and is Graduate member of the Australian Institute of Company Directors.
Paul Wilson - Non-Executive Director
Paul was appointed a non-executive director of the Company in 2012. Paul held the role of SiteMinder Chair from 2012 to 2018, and was previously Chair of the People and Culture Committee. He is a member of the Audit and Risk Committee.
Paul is a co-founder and Managing Partner of ASX-listed Bailador Technology Investments (ASX:BTI) (which is a substantial shareholder of SiteMinder). Paul’s business background includes positions with leading Australian private equity house CHAMP Private Equity in Sydney and New York, with MetLife in London, media and technology focussed investment group, Illyria and with Ernst & Young.
Paul’s other non-executive director roles include ASX-listed Vita Group (ASX:VTG) and Straker Translations (ASX:STG), as well as private companies InstantScripts and the Rajasthan Royals IPL cricket franchise.
Paul has a Bachelor of Business, from Queensland University of Technology and is a Fellow of the Financial Services Institute of Australia, a Member of the Institute of Chartered Accountants of Australia and a Member of the Australian Institute of Company Directors.
Les Szekely - Non-Executive Director
Les was appointed a non-executive director of the Company in 2012. He was the first angel investor in SiteMinder.
Les was a tax consulting partner with Horwaths Chartered Accountants for 20 years, until the company merged with Deloitte, when he became a Director of Taxation in Deloitte Growth Solutions.
Since leaving Deloitte in 2008, Les has dedicated his time to angel and venture capital investing. He is the Chairman of Grand Prix Capital, Equity Venture Partners and Microequities Asset Management Group Limited (ASX: MAM). These businesses are engaged in venture investment at the angel, venture capital and early listed stages, respectively. Les is also is a director of several venture backed growth companies.
Les holds a Bachelor of Law and Arts from the University of New South Wales, a Master of Laws from the University of Sydney.
Kim Anderson -Non-executive Director, People & Culture Chair
Kim was appointed a non-executive director of the company in April 2022. She is the Chair of the People and Culture Committee.
Kim brings more than 30 years’ board and executive expertise to SiteMinder from a range of media and e-commerce companies. Kim is the former CEO and founder of Reading Room Inc (bookstr.com), CEO of Southern Star Entertainment, and has held senior executive positions at PBL and Ninemsn.
She is currently a non-executive director of Carsales (ASX:CAR), Marley Spoon AG (ASX:MMM), Invocare Ltd (ASX:IVC) and Infomedia (ASX:IFM). She serves as Chair of the Remuneration, People and Culture Committee on all her boards.
Dean A. Stoecker - Non-Executive Director
Dean Stoecker is an American entrepreneur and businessman, who co-founded software giant Alteryx (NYSE:AYX) in 1997, a company specialising in automating analytics, which today plays a key role in making data-driven tools accessible at all levels of the world’s leading organisations.
Currently Alteryx’s Executive Chairman, Dean was previously the company’s Chief Executive Officer. Prior to this, Dean was Director-Enterprise Solutions at Integration Technologies, Principal at Donnelley Marketing Information Services and Vice President of Sales at Strategic Mapping.
Dean holds a bachelor’s degree from the University of Colorado, and a Masters of Business Administration (MBA) from Pepperdine University. He lives in Colorado Springs, Colorado.
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
Belatedly worked through SDR's 1HFY24 results and last week's 3QFY24 Appendix 4C after leaving it aside for about 6M.
The FY2024 slides is an easy read and tells the story very clearly SDR 1HFY24 Preso
Added notes taken during the 1HFY2024 call and a summary of the P&L and KPI's across the halfs, so that I can more clearly see the trend across half's rather than pcp.
SUMMARY
KEY POINTS FROM 1HFY24 INVESTOR CALL
Discl: Held IRL and in SM
As @PeregrineCapital pointed out, BTI's February Update is all about SiteMinder, which is their largest holding in the portfolio. BTI are still quite bullish given the significant portion it makes up of their NTA and for me, any sell downs from the BTI team would be worth paying attention to. (Even though they probably should to move capital into other unlisted ventures).
The update breaks down Short, Medium and Long term prospects for the company, but implies there is value at current levels.
I'm yet to do my review of Q2/H1 but will revisit this when I do.
The Good
The Not So Good
What Status
What To Watch
Siteminder trading update. Business continues to progress
Went through the SDR Investor Day Presentation slide pack released yesterday 16 Oct 2023:
https://www.asx.com.au/markets/company/SDR
It was well worth spending the 25-30 mins working through the 78 slides to get a flavour of the 2 Smart Patform offerings targetted to be released in FY24 and the opportunity ahead to upsell within existing customers, over and above the signing up of new hotels.
Having had some past exposure to cruise ship revenue management and reservation systems, the offerings make complete sense to me. It solves some big problems, especially for smaller hotels that do not have extensive distribution and revenue management capabilities.
Very keen to see how the SDR customer base takes up these new offerings and the resultant financial impact in the coming Q's.
SUMMARY
Discl: Held IRL and in SM.
SDR's FY23 results had no surprises as most of it was revealed during the earlier 4Q Appendix 4C Release. However, these charts in the pack stood out for me as it provided a bit more "colour" on the performance.
It was a strong result and it is executing/delivering on the trajectory Sankar said it would. Will be interesting to see how much this holds up in the next 2Q's as global economies decelerate further, eating into discretionary travel demand.
Discl: Held IRL and in SM.
SDR Director buy from Dean Stoecker - around $50k worth
@Strawman any chance of getting Sankar Narayan back for another update?
Life360 and SiteMinder are among the locally listed companies to have banked with failed VC lender Silicon Valley Bank.
some local fall out
Siteminder Half Yearly Report
Consistent growth rate and has not missed a beat since IPO and subsequent tech sell off. Long growth runway and obvious large TAM. Continue to impress and I continue to add in RL PF.
Siteminder Quarterly report - impressive revenue growth numbers continuing (fastest in 5 years)
I’ve also been watching SiteMinder. This observation is a bit from left field, but it may have an impact on SDR in the short/med term.
Within 2 days, I heard 2 podcast references to hotels operating at low capacity, due to lack of staff availability and the subsequent flow on of price increases for accommodation to ensure operators are profitable.
My initial thought is that this is a headwind for SDR as there are less rooms to clip the ticket on. Alternatively, it could be a positive as operators need to ensure they fill rooms to a predetermined capacity to make a profit/break even. I don’t have a strong view either way, just another data point to consider.
Sources below:
Ref 1: “Imagine that China moves away from zero COVID. I'm not saying they will, I'm saying imagine, then all of a sudden, the demand for all sorts of basic materials, the demand for luxury goods. I'll give you just an example. I just went around Europe visiting clients and the hotel rooms that used to cost me 200 euros now costs 400 euros, and you can't get room service at night because they don't have enough staff anymore. What happens when the Chinese tourists come back? That probably goes from 400 euros to 600 euros.”
Excerpt from podcast, (my emphasis in bold) Louis-Vincent Gave: The Xi Pivot vs. The Powell Pivot October 20th, 2022
Ref 2: On The Call yesterday, Adam and Jun Bei discuss business travel, with hotels running low occupancy due to staffing issues and increasing prices to compensate. They note that business travel is strong but expect it to taper going forward re the higher costs to travel.
https://www.ausbiz.com.au/media/the-call-friday-21-october-?videoId=24901
Adam Dawes & Jun Bei Liu At 20.30
As a side note, the macrovoices podcast is interesting. It refers to a potential Xi pivot. That is, when China loosens covid restrictions, there may be a “flood” of liquidity that will be released from pent up Chinese demand.
Also on my watch list. Liking the model, the management, and the post-covid story. For no particular reason I'd like the comfort of buying this below 5x EV:ARR. Profitability still aways off so might happen ($2.64 by my numbers). If it doesn't no skin lost and there are others out there with more growth and lower multiples.
A solid result from Siteminder. @west has posted the key details, but the company has delivered exactly what they said at their IPO and in line with what CEO Sankar Narayan said we spoke to him in early June.
...and yet shares are down 33% since then!
Yes, they're burning through the cash, but they have +$100m in 'liquidity' ($25m in cash, $50m in term deposits, and a $30m loan facility). Moreover, it's more about what they are spending the cash on and what return they are getting on that -- and investors can't really pretend to have seen any nasty surprises.
Of course, the macro situation has changed a lot, as has general market sentiment. And they are directly related to travel.
Fair to point out too that shares are still on 5x ARR, so certainly some growth priced in.
Still, this is all about a huge market opportunity, high margins and a capacity (it is hoped) to scale effectively.
I don't own, but on my watchlist.
Just a rough cut to draw a line in the sand.
Will assume 25%-odd growth for 5 years to get a FY27 revenue of $400m.
Let's also assume a 20% net margin, and 280m shares on issue to get an EPS of 29cps.
I'll apply a PE of 25 and discount back by 10%pa to get a valuation of $4.50
Hope you found the discussion with Sankar Narayan valuable.
He struck me as a straight shooter with a clear focus on what matters, and as someone who is thinking years into the future.
You can catch the recording on the Meetings page, but a few things that stood out for me:
All told, it looks to me like a well run business that has not only survived a near existential threat, but emerged far stronger on the other side. Management is capable, aligned and thinking long term. The business is very sticky, and should scale well as revenues grow, and is unlikely to need any outside capital for the foreseeable future.
All that being said, despite the drop in the share price, shares are still on something like 10x ARR. Yes, it's growing well with attractive economics, but it feels like a lot in the current market.
Very rough quick Valuation more research to be conduct. Really hard to value at moment due to effect of COVID and how the hotel sector recovers from the pandemic. Overvalue at this stage for us unless we can see some massive future growth in revenue.
CEO Sankar Narayan – joined SiteMinder in January 2019. Previous roles before SiteMinder include CFO and COO at Xero (ASX: XRO), CFO at Virgin Australia, Fairfax media and Foxtel.
Podcast link below from last year interview with Sankar Narayan.
Founders
SiteMinder was co-founded by Michael Ford and Michael Rogers in 2006.
Michael Ford is currently a Non- Executive Director with SiteMinder with approx 12,453,770 or 4.62% shares on issue.
https://podcasts.apple.com/nl/podcast/s03e05-mike-ford-siteminder/id1490231090?i=1000458624547
Michael Rogers is currently SiteMinders Chief Technology Officer with approx. 2,300,353 Share or 0.85% of shares on issue.