Vista Group International – 2024 Full Year Results Summary
Website: vistagroup.co.nz
Overall Report Tone
Vista Group International (NZX & ASX: VGL) reported strong momentum in 2024, achieving record revenue, positive free cash flow, and increased long-term EBITDA margin aspirations. The transition to cloud-based solutions is accelerating, reinforcing the company’s strategic shift to SaaS.
Financial Results (NZD, unless stated otherwise)
| Metric | 2024 | 2023 | Change YoY |
|---|---|---|---|
| Revenue | $150.0m | $143.0m | +5% |
| Recurring Revenue | $134.6m | $124.0m | +9% |
| SaaS Revenue | $55.7m | $45.9m | +21% |
| Annual Recurring Revenue (ARR) | $145.6m | $126.3m | +15% |
| EBITDA | $21.6m | $13.3m | +62% |
| Operating Cash Flow | $16.8m | $9.0m | +87% |
| Net Profit Before Tax (NPBT) | $1.8m | ($17.5m) | +110% |
| Dividend | No dividend declared | N/A | N/A |
Key Insights & New Developments
💰 Positive free cash flow achieved in 2H24, ahead of 4Q24 guidance.
☁️ Strong transition to cloud – 17 new clients signed, 683 sites live, representing 15% of enterprise client sites.
📈 EBITDA margin aspirations increased to 33-37% (from 25-30%) over the long term.
📊 Vista Cloud adoption accelerating – major new signings include Cine Colombia, Cinema West, and Silky Otter.
🎥 Industry performance boosted by blockbuster releases such as Inside Out 2 (US$1.7b box office) and Deadpool & Wolverine.
Positive Surprises & Potential Concerns
✅ Positive Surprises:
- Record revenue and accelerating cloud adoption, validating SaaS transition.
- Free cash flow positive earlier than expected, boosting financial stability.
- EBITDA margin expansion of 15.5%, exceeding previous guidance.
⚠️ Potential Concerns:
- Non-recurring revenue fell 19% YoY, reflecting reduced on-premise licensing and hardware sales.
- No dividend announced, despite improved cash flow position.
- Box office uncertainty, as 2024 global box office was 7% below 2023 due to fewer major film releases.
Results vs Market Expectations
📈 Above Expectations:
- Revenue growth of 5% YoY was in line with forecasts.
- EBITDA margin of 15.5% (excluding FX losses) exceeded guidance of 13-14%.
- Cloud transition ahead of schedule, strengthening long-term recurring revenue outlook.
📉 Below Expectations:
- No dividend despite strong financial turnaround, which may disappoint some investors.
- Film segment growth of only 5% was softer than anticipated, partly due to industry-wide challenges.
Outlook & Guidance for 2025
📊 Financial Guidance:
- Total Revenue: $167m-$173m
- Recurring Revenue: $152m-$158m
- EBITDA Margin: 16-18%
- Non-Recurring Revenue: ~$15m
🚀 Strategic Priorities:
- Continue Vista Cloud expansion with new and existing clients.
- Drive higher SaaS adoption, increasing recurring revenue streams.
- Expand data analytics and AI capabilities, enhancing customer insights.
- Maintain cost efficiency focus while scaling cloud operations.
Market Positioning
The share price of Vista Group had been trending higher into this result.
Analyst Positioning
Revenue guidance suggests no major revisions should be needed by analysts. Strong EBITDA performance may see slight revisions higher.
Disclaimer: This information is provided purely for educational purposes. It takes no account of an individual’s personal financial circumstances and hence can in no way constitute financial advice. The above data may be subject to errors or inconsistencies for which the author takes no liability. It is imperative that all investors do their own research or, if they need advice, seek it from a qualified financial adviser.
Quick Take: FY2024 ASX:VGL