1 00:00:05,160 --> 00:00:07,600 Speaker 1: This is what the Flux. I'm Brett and I'm Justin 2 00:00:07,720 --> 00:00:09,920 Speaker 1: and it's Wednesday, the first of April, flox fam. If 3 00:00:09,920 --> 00:00:12,520 Speaker 1: you're aged between eighteen and twenty, you might just be 4 00:00:12,720 --> 00:00:15,400 Speaker 1: in the money. The Fairwork Commission has abolished junior race 5 00:00:15,440 --> 00:00:17,840 Speaker 1: in fast food, retail and pharmacies and this will mean 6 00:00:17,840 --> 00:00:20,720 Speaker 1: that more than five hundred thousand young workers between eighteen 7 00:00:20,760 --> 00:00:23,639 Speaker 1: and twenty will get pay rises of as much as 8 00:00:23,760 --> 00:00:27,440 Speaker 1: forty two percent. Very good pay rise, plam. If you 9 00:00:27,480 --> 00:00:29,840 Speaker 1: set some new goals yourself to start saving more to 10 00:00:29,960 --> 00:00:31,760 Speaker 1: spend less, but you don't know where to start, a 11 00:00:31,840 --> 00:00:34,040 Speaker 1: Flux budgeting tool is the right place at tracks all 12 00:00:34,040 --> 00:00:37,480 Speaker 1: your spending and saving, identifies all your subscriptions and categorize 13 00:00:37,520 --> 00:00:39,160 Speaker 1: your spending as well. So if you want to commit 14 00:00:39,240 --> 00:00:41,520 Speaker 1: to a better April of spending and saving a short 15 00:00:41,560 --> 00:00:43,560 Speaker 1: download the Flex app and check out the budgeting tool. 16 00:00:43,640 --> 00:00:47,440 Speaker 1: Three fantastic stories today, jusy boy, it's for our first. 17 00:00:47,520 --> 00:00:50,960 Speaker 1: Telstra has just lost one of its key marketing angles 18 00:00:51,000 --> 00:00:53,280 Speaker 1: as it is forced to cut its mobile coverage claims 19 00:00:53,280 --> 00:00:55,880 Speaker 1: by a third. Everyone knows that Telstra's biggest flex is 20 00:00:55,920 --> 00:00:58,560 Speaker 1: their coverage. So what happens now? Man So Telstra is 21 00:00:58,560 --> 00:01:02,040 Speaker 1: Australia's largest telco with just under twenty five million retail 22 00:01:02,120 --> 00:01:05,040 Speaker 1: mobile customers. And don't forget it's a network which supposedly 23 00:01:05,080 --> 00:01:07,959 Speaker 1: covers ninety nine point seven percent of the population and 24 00:01:08,040 --> 00:01:10,959 Speaker 1: roughly three million square kilometers. It pretty much built its 25 00:01:11,000 --> 00:01:13,440 Speaker 1: whole personality around this staff bet juzzy Boy. For a 26 00:01:13,480 --> 00:01:17,480 Speaker 1: little while, Telstra's competitors Optus and TPG Telecom have claimed 27 00:01:17,480 --> 00:01:20,040 Speaker 1: that this was actually quite misleading. You see d Man. 28 00:01:20,080 --> 00:01:22,600 Speaker 1: They claim that Telstra had a very low signal in 29 00:01:22,640 --> 00:01:25,560 Speaker 1: some remote areas, but they still claimed it it's actual coverage. 30 00:01:25,560 --> 00:01:28,320 Speaker 1: And now the government stepped in to standardize how coverage 31 00:01:28,360 --> 00:01:30,679 Speaker 1: is measured. This how it works. The regulators have now 32 00:01:30,720 --> 00:01:33,360 Speaker 1: set a hard cutoff of negative one hundred and fifteen 33 00:01:33,520 --> 00:01:37,200 Speaker 1: decidel mill watts the usable signal. Anything weak is officially 34 00:01:37,280 --> 00:01:39,880 Speaker 1: no coverage and with that definition, it means Telstra will 35 00:01:39,880 --> 00:01:43,520 Speaker 1: have to remove one million square kilometers from its coverage maps. 36 00:01:43,560 --> 00:01:45,720 Speaker 1: Just to put that into perspective, that's an area bigger 37 00:01:45,720 --> 00:01:48,200 Speaker 1: than New South Wales or nearly thirty three percent of 38 00:01:48,320 --> 00:01:51,520 Speaker 1: all coverage, and it means that Telstra's most competitive advantage 39 00:01:51,560 --> 00:01:55,440 Speaker 1: its coverage has been squashed all thanks to the standardization 40 00:01:55,640 --> 00:01:58,520 Speaker 1: of metrics. So what is the key leading here? Standardization 41 00:01:58,840 --> 00:02:01,200 Speaker 1: is when a regulator forced a companies to measure and 42 00:02:01,280 --> 00:02:04,600 Speaker 1: present information in the same way, and that means consumers 43 00:02:04,600 --> 00:02:07,120 Speaker 1: can make their comparison. Think about a Jazzi boy. Without 44 00:02:07,240 --> 00:02:10,960 Speaker 1: the standardization, companies can cherry pick definitions that make them 45 00:02:11,040 --> 00:02:14,320 Speaker 1: look better. Yeah. Intelstra's case, it's ultra weak signal areas 46 00:02:14,320 --> 00:02:17,520 Speaker 1: were included in its coverage stats and that creates confusion 47 00:02:17,520 --> 00:02:20,720 Speaker 1: for customers. So regulators like the Australian Communications and Media 48 00:02:20,760 --> 00:02:24,280 Speaker 1: Authority or AKMA, they step in to set consistent benchmarks 49 00:02:24,320 --> 00:02:26,760 Speaker 1: and this happens across industries. Yeah, think about energy star 50 00:02:26,880 --> 00:02:30,160 Speaker 1: ratings for appliances, or nutrition labels on food, or even 51 00:02:30,200 --> 00:02:33,000 Speaker 1: financial disclosures for listed companies. The goal is pretty simple, 52 00:02:33,040 --> 00:02:36,560 Speaker 1: make comparisons apples for apples, because once everything is measured 53 00:02:36,560 --> 00:02:38,880 Speaker 1: the same way, companies, can't you say they're better. They 54 00:02:38,960 --> 00:02:42,360 Speaker 1: actually have to be better. For our second story, Canvas 55 00:02:42,440 --> 00:02:46,200 Speaker 1: has released its latest Australian financial results very delayed and 56 00:02:46,240 --> 00:02:49,240 Speaker 1: its local revenue has cracked over two billion US dollars. 57 00:02:49,280 --> 00:02:51,440 Speaker 1: Canver a little tardy on these financials, be man so 58 00:02:51,440 --> 00:02:53,080 Speaker 1: what's going on here? So we all know Canvas as 59 00:02:53,080 --> 00:02:55,640 Speaker 1: the humble Aussie growing business that started as a school 60 00:02:55,680 --> 00:02:58,200 Speaker 1: yearbook tool all the way back in twenty thirteen, and 61 00:02:58,240 --> 00:03:00,600 Speaker 1: slowly but surely it shifted into a design tool. They 62 00:03:00,600 --> 00:03:03,760 Speaker 1: made junior accountants turn into senior designers, and it's now 63 00:03:03,840 --> 00:03:06,160 Speaker 1: used by over two hundred and sixty five million people 64 00:03:06,160 --> 00:03:08,200 Speaker 1: every month. In fact, be Man, a leading VC fund, 65 00:03:08,200 --> 00:03:11,520 Speaker 1: announced that Canvas is the third most used AI company globally, 66 00:03:11,639 --> 00:03:14,840 Speaker 1: behind chat CHVT and Gemini. But as where Canvas Australian 67 00:03:14,919 --> 00:03:18,120 Speaker 1: financial reports for FI twenty four they've just been released, 68 00:03:18,160 --> 00:03:21,080 Speaker 1: talk about it late lodgements and because Canvas is still private, 69 00:03:21,160 --> 00:03:24,000 Speaker 1: stuff is pretty ducy. Get this. In that financial year, 70 00:03:24,040 --> 00:03:27,760 Speaker 1: Canvas revenue hit two billion US dollars, which was up 71 00:03:27,880 --> 00:03:30,480 Speaker 1: around six hundred and sixty million dollars a year on year, 72 00:03:30,560 --> 00:03:33,400 Speaker 1: but its expenses also jumped to around two point three 73 00:03:33,480 --> 00:03:36,080 Speaker 1: billion US dollars, leading to a net loss of two 74 00:03:36,200 --> 00:03:38,640 Speaker 1: hundred and forty two million US dollars. Okay, but the 75 00:03:38,680 --> 00:03:41,160 Speaker 1: interesting part, b Man, is it canvas operating cash flow 76 00:03:41,280 --> 00:03:43,240 Speaker 1: nearly doubled and it's over two hundred and sixty mili 77 00:03:43,240 --> 00:03:46,040 Speaker 1: all right, So if its cash flow is positive but 78 00:03:46,160 --> 00:03:48,440 Speaker 1: still generating net losses, what is going on here? Well, 79 00:03:48,440 --> 00:03:50,160 Speaker 1: the head of a three hundred and fifty million dollars 80 00:03:50,160 --> 00:03:53,120 Speaker 1: in costs for employee share based compensation. So what is 81 00:03:53,120 --> 00:03:54,760 Speaker 1: the key learning year? When you hear that a company 82 00:03:54,800 --> 00:03:58,560 Speaker 1: is profitable, it usually refers to accounting profit that's revenue 83 00:03:58,600 --> 00:04:01,680 Speaker 1: minus expenses based on strict accounting rule for those rules 84 00:04:01,760 --> 00:04:05,600 Speaker 1: include non cash items like depreciation or share based compensation 85 00:04:05,760 --> 00:04:07,880 Speaker 1: all the fun stuck. Cash flow, on the other hand, 86 00:04:07,960 --> 00:04:11,120 Speaker 1: tracks the actual money moving in and out of the business. 87 00:04:11,160 --> 00:04:13,600 Speaker 1: In Canvas case, the biggest difference comes from their stock 88 00:04:13,640 --> 00:04:16,640 Speaker 1: based compensation YEP. Instead of paying employees entirely on cash, 89 00:04:16,760 --> 00:04:19,600 Speaker 1: Canvas gives them shares, and under strict accounting rules, these 90 00:04:19,600 --> 00:04:22,039 Speaker 1: are treated as an expense, which reduces profit, but no 91 00:04:22,120 --> 00:04:24,360 Speaker 1: cash leaves the business and be men. This is common 92 00:04:24,360 --> 00:04:26,839 Speaker 1: in high growth tech companies. They use equity to attract 93 00:04:26,839 --> 00:04:30,039 Speaker 1: talent or preserving their cash. For example, at Lassian's annual 94 00:04:30,080 --> 00:04:33,120 Speaker 1: stock based compensation for twenty twenty five was one point 95 00:04:33,120 --> 00:04:35,400 Speaker 1: thirty six billion US dollars, or twenty six percent of 96 00:04:35,440 --> 00:04:37,960 Speaker 1: their entire revenue for the twenty twenty five financial years, 97 00:04:37,960 --> 00:04:40,680 Speaker 1: but for Canvas, paying stock based compensation is helping them 98 00:04:40,680 --> 00:04:43,719 Speaker 1: attract talent and helping them keep a juicy cash balance 99 00:04:43,800 --> 00:04:46,799 Speaker 1: in their bank account. For our third and final story, 100 00:04:46,920 --> 00:04:49,000 Speaker 1: she In has rolled out a supply chain as a 101 00:04:49,080 --> 00:04:51,680 Speaker 1: service offering and he's trying to get OUSSI fashion brands 102 00:04:51,720 --> 00:04:53,960 Speaker 1: to jump on board. Move over sas it's all about 103 00:04:54,160 --> 00:04:56,800 Speaker 1: s cass these days. Tell me more. Okay. So She's 104 00:04:56,839 --> 00:04:59,280 Speaker 1: the ultra fast fashion giant found in two thousand and 105 00:04:59,320 --> 00:05:02,000 Speaker 1: eight as a wed dress dropped chipping business, and then 106 00:05:02,040 --> 00:05:04,560 Speaker 1: it became a global fast fashioned behemoth. We're talking one 107 00:05:04,640 --> 00:05:07,200 Speaker 1: hundred and sixty countries, hundreds of millions of customers. But 108 00:05:07,240 --> 00:05:10,840 Speaker 1: despite producing forty thousand to fifty thousand new items each week, 109 00:05:11,000 --> 00:05:13,599 Speaker 1: she and has introduced a new division of its business 110 00:05:13,600 --> 00:05:16,080 Speaker 1: and it's pushing it in Australia. Go on, well, it's 111 00:05:16,120 --> 00:05:19,880 Speaker 1: trying to offer Australian fashion brands access to its supply chain, 112 00:05:20,080 --> 00:05:22,680 Speaker 1: logistics and e commerce platforms. The brands just focused on 113 00:05:22,680 --> 00:05:25,320 Speaker 1: their design and their branding. Yep, and she In will 114 00:05:25,320 --> 00:05:29,000 Speaker 1: do manufacturing distribution the man. Given Shein's reputation and the 115 00:05:29,040 --> 00:05:31,520 Speaker 1: perception of quality of their clothes, Aussie brands are a 116 00:05:31,560 --> 00:05:35,400 Speaker 1: little hesitant not to mention its controversies around labor, sustainability, 117 00:05:35,800 --> 00:05:39,000 Speaker 1: intellectual property. But for some companies, the supply chain is 118 00:05:39,000 --> 00:05:41,359 Speaker 1: a service option would be appealing to get to market quickly. 119 00:05:41,680 --> 00:05:43,719 Speaker 1: So what's the key learning here? The as a service 120 00:05:43,760 --> 00:05:47,000 Speaker 1: model started with software, but he's evolving into new categories 121 00:05:47,080 --> 00:05:49,880 Speaker 1: all the time. Yeah. Companies like Salesforce and Adobe turned 122 00:05:49,880 --> 00:05:53,440 Speaker 1: tools into simple subscriptions that businesses could access via the cloud. 123 00:05:53,480 --> 00:05:56,440 Speaker 1: Then as a service expanded into infrastructure with platforms like 124 00:05:56,520 --> 00:05:59,040 Speaker 1: Amazon Web Services, and today over ninety four percent of 125 00:05:59,080 --> 00:06:02,000 Speaker 1: businesses you some sort of cloud services. But now juzzy 126 00:06:02,040 --> 00:06:05,200 Speaker 1: boy as a service has moved into entirely new industries. 127 00:06:05,240 --> 00:06:07,400 Speaker 1: You've got payments to the service, fire strike or even 128 00:06:07,400 --> 00:06:09,960 Speaker 1: supply chain as a service through players like she In 129 00:06:10,120 --> 00:06:12,680 Speaker 1: and be Man. Some businesses now run over one hundred 130 00:06:12,720 --> 00:06:15,279 Speaker 1: SaaS tools each and that means they can launch and 131 00:06:15,279 --> 00:06:17,800 Speaker 1: scale faster without owning much of the infrastructure. But that 132 00:06:17,920 --> 00:06:20,120 Speaker 1: speed comes with the trade off. The more you rely 133 00:06:20,200 --> 00:06:23,400 Speaker 1: on external platforms, the less control you have over your margins, 134 00:06:23,600 --> 00:06:25,960 Speaker 1: your quality and even your brand. And clearly be Man 135 00:06:26,000 --> 00:06:28,600 Speaker 1: Australian brands are a little iffy now giving away their 136 00:06:28,640 --> 00:06:32,040 Speaker 1: quality control to a brand like Chindam. It's April first 137 00:06:32,080 --> 00:06:34,080 Speaker 1: and it is the time to get your finances for 138 00:06:34,240 --> 00:06:37,120 Speaker 1: April in check. The Flux Budgeting Tool tracks all your spending, 139 00:06:37,200 --> 00:06:39,360 Speaker 1: all your saving and all these subscriptions in the one 140 00:06:39,400 --> 00:06:41,640 Speaker 1: place and it takes less than thirty seconds to set up. 141 00:06:41,680 --> 00:06:43,240 Speaker 1: So if you want to start April on a high 142 00:06:43,320 --> 00:06:45,200 Speaker 1: to start your saving journey, make sure to download the 143 00:06:45,200 --> 00:06:47,679 Speaker 1: Flux app and check out the budgeting tool. Thanks for listening, 144 00:06:47,880 --> 00:06:50,280 Speaker 1: enjoy Easter and we'll see you on Wednesday.