Vista Group reports strong growth and cloud adoption in 2023

The cinema software company posted a 25% increase in EBITDA and a 6% increase in revenue, driven by its cloud-based solutions and new client signings.

WELLINGTON: Vista Group International Limited (NZX & ASX: VGL), a leading provider of cinema management, film distribution and customer analytics software to the global film industry, announced its full year results for the year ending 31 December 2023 today.

The company reported an EBITDA of $13.3m, up 25% on FY22, and a total revenue of $143.0m, up 6% on FY22. The revenue growth was mainly driven by its recurring revenue, which increased by 10% to $124.0m, and its SaaS revenue, which increased by 20% to $45.9m.

The company also achieved a 7% growth in its annual recurring revenue (ARR) to $126.3m, reflecting its strong retention and expansion of existing customers, as well as its successful acquisition of new customers.

The company’s operating cashflow was $9.0m, down 27% on FY22, due to the impact of the business transformation process, which was completed in 2023. The company incurred a loss for the year of $13.6m, down 35% on FY22, as it continued to invest in its cloud platform and digital solutions.

The company’s average monthly cash usage in 2H23 was $0.6m, down from $1.2m in 1H23, demonstrating its improved cash flow management and operational efficiency. The company expects to become free cash flow positive in 4Q24.

The company provided a revenue guidance for 2024 of $152m – $157m, with non-recurring revenue of ~$18m. The company also reaffirmed its medium-term aspirations of achieving an ARR of $175m+ and an EBITDA margin of 15%+ by the end of 2025.

The company highlighted its operational achievements in 2023, which included:

Launching its first multi-territory client on Vista Cloud, United Cinema (Australia and New Zealand), which operates 60 sites across the two countries.

Signing several large and strategic customers to Vista Cloud, such as Pathé (France, Netherlands, Belgium, Switzerland, 129 sites), Major Cineplex (Thailand, 182 sites) and Cinepolis (Spain, 50 sites).

Expanding its existing customer contracts, such as Vue (Germany and Denmark), which added 25 sites to Vista Cloud.

Completing the business transformation process, which supported Vista Group’s vision and strategy, increased role clarity for its people, and delivered over $10.0m of annualised cost savings.

The company also commented on the industry outlook, which showed signs of recovery and resilience in 2023, despite the ongoing challenges posed by the COVID-19 pandemic. The company noted that:

The global box office reached US$34b in 2023, up ~30% on 2022, driven by the strong performance of markets such as China, Japan, Korea and Russia.

The domestic box office reached US$9b in 2023, up more than 20% on 2022, boosted by the release of blockbuster titles such as Spider-Man: No Way Home, Avatar 2 and Jurassic World: Dominion.

The industry witnessed innovative and diverse content in 2H23, such as the ‘Barbenheimer’ phenomenon, which was a series of original films created by a group of independent filmmakers, and Taylor Swift: The Eras Tour, which was a concert film featuring the pop star’s iconic songs from different eras of her career.