Vista Group International Limited Analysis

Overview

Vista Group is the global leader in software and technology solutions to the international film industry.

Vista Group's cinema solutions, including Vista, Veezi, Movio Cinema EQ and MovieXchange, are used by over 50%+ of enterprise cinema circuits globally outside of India and China. Vista Group's studio solutions, including Maccs, Numero, Movio Media, MX and Powster, are used by all of the major studios.

Vista Group's headquarters are in Auckland, New Zealand, with offices in Sydney, Cape Town, London, Amsterdam, Beijing, Shanghai, Kuala Lumpur, Los Angeles and Mexico City.

Performance

The following information was extracted from Vista Group International Limited's half year results, released 6 August 2024:

Vista Group International Limited (NZX & ASX: VGL) reported its half year results for the six months ending 30 June 2024 today, demonstrating benefits of its 2023 business transformation – delivering a significant operating improvement over 1H23, growing momentum of cloud client transitions, and reaffirmed it will be free cash flow positive for the fourth quarter of 2024.

Financial overview

• EBITDA1 of $7.2m (up $4.7m on 1H23)
• ARR2 of $129.4m (up 9% on 30 June 2023)
• Total revenue of $69.6m (in line with 1H23), with Recurring Revenue3 of $63.4m (up 5% on 1H23) and SaaS Revenue3 of $25.4m (up 20% on 1H23)
• Operating cashflow of $3.0m, or $6.1m after adjusting for movements in working capital4 (up $8.5m on 1H23 on a like for like basis)
• Loss for the period of $2.7m (a 68% improvement on 1H23).

Group results

Vista Group’s reported revenue of $69.6m was consistent with 1H23, with Recurring Revenue3 up 5% and SaaS Revenue up 20%. EBITDA of $7.2m was up 188% or $4.7m on 1H23, with the new business structure delivering significant operating leverage improvement. The EBITDA margin for 1H24 was 10%, up from 4% on 1H23