Vista Group International Ltd (ASX:VGL) Lifts Long-term Margin, Hits Record Revenue
Financial Performance
Vista Group International Limited reported a full-year revenue of $150.0 million for 2024, marking an all-time high and a 5% increase from 2023. Recurring Revenue rose by 9% to $134.6 million, while SaaS Revenue surged by 21% to $55.7 million. Annualised Recurring Revenue (ARR) reached $145.6 million, a 15% uplift from the previous year. The company achieved an EBITDA of $21.6 million, up 62% year-over-year, and Net Profit Before Tax of $1.8 million. Operating cash flow saw a significant increase of 87% to $16.8 million, surpassing prior guidance.
Operational Achievements
The year saw Vista Group expanding its client base with 17 new signings to Vista Cloud, including Cine Colombia, Cinema West, and Silky Otter. The company demonstrated strong cloud momentum with 683 sites live on Vista Cloud solutions, accounting for 15% of total enterprise client sites. Additionally, Vista Cloud achieved SOC 2 Type 1 certification, responding to client demands for cyber and compliance credentials. Vista Group also estimated an annualised Gross Transaction Value (GTV) of US$2.8 billion from clients on the Vista Cloud platform.
Outlook
Looking ahead to 2025, Vista Group forecasts Total Revenue between $167 million and $173 million, with Recurring Revenue projected between $152 million and $158 million, and Non-Recurring Revenue around $15 million. The company maintains its EBITDA margin guidance of 16-18% and upgrades its long-term EBITDA margin aspiration to 33-37%, up from the previous 25-30%.
Executive Comments
Chief Executive Officer Stuart Dickinson stated, “This is an all-time record revenue performance for Vista Group with EBITDA margins exceeding our previous guidance. Additionally, we have achieved our positive free cash flow ambition, not just for the fourth quarter, but the entire second half of 2024, overall profitability before tax, and continued growth in ARR, while delivering strong share price performance for our shareholders.”
Motley Fool contributor Matt Burgess has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Vista Group International. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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