ASX 200 tech stock SiteMinder Ltd (ASX: SDR) is in the red on Wednesday following the company's H1 FY25 earnings results.

Shares in the software platform are currently trading at $5.70 each, more than 10% lower from the open.

Let's jump in and see what the company reported for H1.

ASX 200 tech stock slips on first-half numbers

SiteMinder put up several growth numbers in the first half. Here's some of the main data points from the results:

• Annualised recurring revenue (ARR) grew 18.4%, reaching $216.2 million
• This was driven by a 31.5% increase in transaction ARR
• Total revenue increased by 13.9% year over year to $104.5 million
• Underlying pre-tax income came to $5.3 million, up from a loss of $1.2 million in H1 FY24
• Net customer additions rose to 2,700, with a 50% growth in net rooms added
• Net loss of $13.9 million, similar to last year's $14.9 million loss

What else happened in H1 FY25?

SiteMinder said it made "continued progress" throughout the first half, with the ASX 200 tech stock booking an 18% growth in ARR.

Subscription revenues were up nearly 10% year over year, whereas transactional revenues stole the show, up 31% over the year.

The Smart Distribution Program is underway, and the Channels Plus product is now generally available, more than doubling the number of participating hotels.

Meanwhile, the ratio of customer lifetime value (LTV) to customer acquisition cost (CAC) improved as CAC narrowed to $4,463 versus over $4,800 this time last year.

SiteMinder also pressed on in the ongoing development of its "Smart Platform", with its "Dynamic Revenue Plus" service set for a March 2025 release in Berlin. This may or may not impact the ASX 200 tech stock.

What did management say?

Sankar Narayan, CEO and Managing Director of SiteMinder, said the company had laid "the foundations" for continued growth.

The last six months have seen us focus our efforts on laying the foundations for strong top line and bottom line performance in the future. Pleasingly, our results show that our Smart Platform strategy has begun delivering revenue and is driving acceleration in ARR growth.

And, it's just the beginning. We continue to make strong progress with the impending Northern Hemisphere release of Dynamic Revenue Plus incorporating dynamic pricing recommendations from IDeaS. Channels Plus is now released everywhere, and the Smart Distribution Program commenced.

All of these programs have been designed to help fulfill our mission of making sophisticated revenue management accessible to every hotel in the world and realise the full potential of our ecosystem, which today delivers over 125 million annual reservations for our hotelier customers.

What's next?

Management reaffirmed previously outlined guidance on growth and profitability in today's release.

This includes "targeting a 30% organic annual revenue growth" over the mid-term.

It also expects to be free cash flow (FCF) positive by the end of FY25 and to make further progress on "the Rule of 40", a key software industry metric.

According to consulting firm McKinsey, the Rule of 40 is where a software company's "growth rate when added to its free cash flow rate should equal 40% or higher".

The company says it has made "significant progress in globalising its workforce".

This includes increasing the share of employees in Asia and Latin America to around half of the entire workforce.

ASX 200 tech stock snapshot

This ASX 200 tech stock is in the red today following the release of its first-half results for FY25.

Zooming out, the stock is still up 11% over the past year of trade.