Delayed results announced today for the WebBeds business.
As previously telegraphed, TTV is up 25%, but due to increased discounting in an attempt to drive up volumes (which didn't work out as planned), revenue margin has declined, and revenue in dollar terms is only up 1%.
Even worse, expenses are up 14%, meaning 'underlying' EBITDA is down 8%.
Guiding for $5b TTV for the full year, which would be a YoY increase of 25%, but the guide for 'underlying' EBITDA is only $117m to $122m, compared to $162m in FY24. It looks like lower margins may be the new normal, although we are promised some margin recovery as well as reduction in the growth of expenses in FY26.
On the face of it this is a business growing and taking market share at the expense of profitability, yet the market seems to like the story and shares rebounded 13% today.
Held IRL, but my conviction is not as high as it once was.