Weaker Aussie Dollar Offers Siteminder a Currency Tailwind
SiteMinder (ASX:SDR), a hotel software provider, has seen its share price fall despite reporting a record operating result. The company earns most of its billings offshore, making currency fluctuations significant to its revenue.
The Australian dollar eased against the US greenback this week, which could benefit SiteMinder's reported revenue and earnings if the trend persists. A weaker local currency lifts the value of foreign-denominated customer billings when translated back into AUD.
SiteMinder's latest full-year result was impacted by a stronger Australian dollar, which eroded part of its reported earnings. The company has consistently met or exceeded its targets in recent years, but investors have taken a pessimistic view on its future performance.