WebBeds Reports $4.9bn TTV, EBITDA Falls 14% as Margins Stabilize at 6.7%
WebBeds reported a 22% rise in Total Transaction Value to nearly $5 billion for FY25, while EBITDA fell 14% amid margin pressures and higher costs. The company is targeting $10 billion TTV by FY30 with improved profitability.
- FY25 TTV up 22% to $4.9 billion
- Revenue increased 1%, EBITDA declined 14%
- TTV margins stabilized at 6.7%
- Post-demerger restructuring completed
- FY30 target – $10 billion TTV with ~50% EBITDA margins
Strong Growth Amid Margin Pressures
WebBeds, the global B2B travel marketplace, delivered a robust 22% increase in Total Transaction Value (TTV) to $4.9 billion for the fiscal year ending March 2025. This growth was driven by a 20% rise in bookings and a modest 2% increase in average booking value, reflecting strong demand across all regions. However, revenue growth was more modest, up just 1%, as lower TTV margins weighed on top-line performance.
EBITDA declined 14% to $138.8 million, impacted by both the compression of TTV margins to 6.7% and a roughly 15% increase in operating costs. These margin pressures were attributed to a shift in geographic mix towards lower-margin regions such as Asia Pacific and the Americas, as well as increased use of third-party inventory. Despite these challenges, the company emphasized that margins have now stabilized following a period of adjustment.
Strategic Restructuring and Capital Management
WebBeds completed its post-demerger restructuring during FY25, including divesting its non-core Destination Management Company business. The company also proactively addressed 88% of potential dilution from convertible notes due in April 2026, reflecting a disciplined approach to capital management. Corporate costs remained in line with guidance at $18.2 million, supporting operational efficiency.
Investment in supply expansion is a key focus, particularly in Asia Pacific and the Americas, where the company is increasing directly contracted inventory to optimize margins and deepen market penetration. This multi-supply aggregation strategy aims to balance the mix of direct contracts, global chains, and third-party inventory to sustain growth while protecting profitability.
Outlook and Ambitious Growth Targets
Looking ahead, WebBeds reaffirmed its FY26 outlook with expectations of TTV margins at or above 6.5% and record EBITDA margins between 44% and 47%. The company anticipates expense growth in the high single digits and plans capital expenditure consistent with FY25 levels. Despite a temporary dip in bookings due to geopolitical tensions in the Middle East, trading momentum remains strong, particularly outside Europe.
WebBeds is targeting a bold milestone of $10 billion in TTV by FY30, coupled with EBITDA margins around 50%. This ambition underscores confidence in its global diversification strategy and ongoing market share gains, especially in Asia Pacific and the Americas, which now account for over half of total transaction value.
As the company navigates evolving market dynamics, its focus on supply mix optimization, customer base expansion, and conversion initiatives will be critical to sustaining growth and improving profitability in the coming years.
Bottom Line?
WebBeds’ FY25 results highlight strong growth tempered by margin challenges, setting the stage for a pivotal push toward $10 billion TTV by 2030.
Questions in the middle?
- How will WebBeds manage margin pressures amid geographic expansion?
- What impact will ongoing geopolitical risks have on regional trading?
- Can the company sustain its aggressive TTV growth targets while improving profitability?
