1 00:00:02,440 --> 00:00:05,280 Speaker 1: Welcome to Shared Lunch. I'm Luke Smith of Chas's and 2 00:00:05,480 --> 00:00:09,039 Speaker 1: today we're going to be talking to Stuart Dickinson, CEO 3 00:00:09,280 --> 00:00:13,800 Speaker 1: of Vista Group, a global software provider that's powering many 4 00:00:13,880 --> 00:00:17,439 Speaker 1: of the world's cinemas, and we're doing that here at 5 00:00:17,480 --> 00:00:21,920 Speaker 1: the Silky Otter, a cozy boutique cinema in Ponsonby, Auckland. 6 00:00:22,360 --> 00:00:25,959 Speaker 1: We've just had a tour, we've watched the new Avatar trailer. 7 00:00:26,360 --> 00:00:29,080 Speaker 1: We just ordered some fancy nibbles online. But before we 8 00:00:29,080 --> 00:00:30,840 Speaker 1: get started, has some important information. 9 00:00:31,080 --> 00:00:33,640 Speaker 2: Investing involves the risk you might lose the money you 10 00:00:33,680 --> 00:00:37,000 Speaker 2: start with. We recommend talking to a licensed financial advisor. 11 00:00:37,720 --> 00:00:41,519 Speaker 2: We also recommend reading product disclosure documents before deciding to invest. 12 00:00:41,800 --> 00:00:44,199 Speaker 2: Everything you're about to see and here is current at 13 00:00:44,200 --> 00:00:45,080 Speaker 2: the time of recording. 14 00:00:45,360 --> 00:00:47,240 Speaker 1: Well, Stuart, welcome to the show. 15 00:00:47,560 --> 00:00:51,720 Speaker 3: Thank you. It's always great to see our clients come 16 00:00:51,720 --> 00:00:55,040 Speaker 3: to life and where our software comes to life in 17 00:00:55,160 --> 00:00:58,880 Speaker 3: physical venues and manifestations. And Silky Otta is one of 18 00:00:58,880 --> 00:01:03,040 Speaker 3: the cool New Zealand cinema groups use full Vista Cloud, 19 00:01:03,040 --> 00:01:04,959 Speaker 3: which is the latest generation of our software, so it's 20 00:01:04,959 --> 00:01:05,880 Speaker 3: great to have you here today. 21 00:01:06,040 --> 00:01:11,560 Speaker 1: Vista is obviously one of New Zealand's more successful software 22 00:01:11,640 --> 00:01:14,560 Speaker 1: exporting stories, But unlike some of the others that are 23 00:01:14,600 --> 00:01:18,720 Speaker 1: pretty well known, I think it's not super obvious what 24 00:01:18,760 --> 00:01:20,800 Speaker 1: you do to the public. Can you tell us what 25 00:01:20,880 --> 00:01:25,320 Speaker 1: Vista does and how do we as moviegoers interact with Vista, 26 00:01:25,360 --> 00:01:26,960 Speaker 1: But we might not know that we are. 27 00:01:27,160 --> 00:01:30,440 Speaker 3: So yeah, Vista has been around for almost thirty years. 28 00:01:30,440 --> 00:01:34,679 Speaker 3: We'll celebrate our thirty year anniversary next year. And it 29 00:01:34,800 --> 00:01:37,880 Speaker 3: started in New Zealand with a pretty simple idea. Really, 30 00:01:37,920 --> 00:01:40,880 Speaker 3: when you went to the movies, originally you went to 31 00:01:41,360 --> 00:01:43,759 Speaker 3: a box office and you might have gone and bought 32 00:01:43,800 --> 00:01:46,960 Speaker 3: some concessions, and that was two very different experiences. And 33 00:01:47,440 --> 00:01:50,160 Speaker 3: the big idea for Vista software was to bring those 34 00:01:50,160 --> 00:01:55,520 Speaker 3: two things together so that a cinema could service a 35 00:01:55,640 --> 00:01:59,440 Speaker 3: movie goer, sell them some popcorn and a ticket at 36 00:01:59,440 --> 00:02:02,040 Speaker 3: the same time. And so that's where it started. And 37 00:02:02,080 --> 00:02:06,160 Speaker 3: so today almost half of the cinemas in the world 38 00:02:06,640 --> 00:02:09,800 Speaker 3: use our software, which is a pretty amazing achievement. And 39 00:02:09,840 --> 00:02:14,800 Speaker 3: so if you go across New Zealand and Australia, event 40 00:02:14,919 --> 00:02:19,720 Speaker 3: Hoytz Village, Silkiota, Reading all use our software to power 41 00:02:19,800 --> 00:02:22,920 Speaker 3: the experiences that we as moviegoers have and so whether 42 00:02:23,000 --> 00:02:27,120 Speaker 3: or not that's selling the ticket, it's powering the mobile applications, 43 00:02:27,160 --> 00:02:30,119 Speaker 3: the websites, the kiosks, But then also in the back 44 00:02:30,160 --> 00:02:33,320 Speaker 3: office of the cinema, it's all about how does a 45 00:02:33,360 --> 00:02:36,600 Speaker 3: film actually get to be on screen, how does that 46 00:02:36,639 --> 00:02:40,720 Speaker 3: get programmed, how does that showtime appear to make sure 47 00:02:41,360 --> 00:02:44,480 Speaker 3: that when we go as movie goers, that experience is 48 00:02:44,520 --> 00:02:49,280 Speaker 3: actually really cool. And so our software supports all of 49 00:02:49,320 --> 00:02:52,720 Speaker 3: that part of the industry. So, yeah, pretty cool. 50 00:02:53,280 --> 00:02:55,919 Speaker 1: And the scale is amazing. I'm nearly fifty percent market share, 51 00:02:55,919 --> 00:02:58,520 Speaker 1: and we'll get to that founding story. So take us back. 52 00:02:58,560 --> 00:02:59,880 Speaker 1: How would that have been done. 53 00:02:59,680 --> 00:03:06,680 Speaker 3: Pre so it was traditionally done with two different software applications, 54 00:03:06,800 --> 00:03:08,919 Speaker 3: or in some cases for some cinemas, it was as 55 00:03:08,919 --> 00:03:11,800 Speaker 3: simple as I can kind of remember getting it admit 56 00:03:11,919 --> 00:03:14,720 Speaker 3: one ticket when I went to a mall. You get 57 00:03:14,760 --> 00:03:17,079 Speaker 3: a ticket, somebody tore it off as you walked into 58 00:03:17,120 --> 00:03:20,680 Speaker 3: the auditorium. There was no such thing as numbered seating. 59 00:03:20,720 --> 00:03:24,480 Speaker 3: You basically sat wherever you wanted and that was your experience. 60 00:03:25,720 --> 00:03:30,399 Speaker 3: And so software has really revolutionized that. With Vista software, 61 00:03:30,480 --> 00:03:33,240 Speaker 3: we can work out where somebody's going to sit, we 62 00:03:33,280 --> 00:03:36,480 Speaker 3: can have them choose those seats in the auditorium. We 63 00:03:36,560 --> 00:03:40,160 Speaker 3: can then differentiate that experience, whether or not it's own lounges, 64 00:03:40,280 --> 00:03:45,280 Speaker 3: so the recliners, all those different types of experience is 65 00:03:45,600 --> 00:03:49,320 Speaker 3: are enabled through our software and so that's changed a lot. 66 00:03:49,400 --> 00:03:52,080 Speaker 3: And then on the food and beverage side, which is 67 00:03:52,120 --> 00:03:56,200 Speaker 3: for many cinemas and operators today just as important as 68 00:03:56,280 --> 00:03:58,600 Speaker 3: the movie experience, and in some cases even more as 69 00:03:58,600 --> 00:04:02,160 Speaker 3: they wrap our whole experiences around it. Traditionally it was 70 00:04:02,160 --> 00:04:03,480 Speaker 3: you went to the bar, you might have bought a 71 00:04:03,480 --> 00:04:07,200 Speaker 3: coke and popcorn, taken that back to your seat. Today 72 00:04:07,280 --> 00:04:10,520 Speaker 3: is we've just experienced the ability to order food in seat, 73 00:04:10,880 --> 00:04:14,480 Speaker 3: to have a much more sophisticated food and beverage menu, 74 00:04:14,600 --> 00:04:18,120 Speaker 3: to have that delivered to you is all part of 75 00:04:18,240 --> 00:04:24,280 Speaker 3: the great experience of what a cinema outing looks like today, 76 00:04:25,320 --> 00:04:27,279 Speaker 3: and that's something that our software powers. 77 00:04:27,440 --> 00:04:31,200 Speaker 1: You must see some fascinating statistics through the platform. Maybe 78 00:04:31,200 --> 00:04:33,839 Speaker 1: one can you allude to how many tickets are going 79 00:04:33,880 --> 00:04:36,080 Speaker 1: through the platform in the last six months? 80 00:04:36,880 --> 00:04:39,640 Speaker 3: A lot is a lot, is the answer, and so 81 00:04:40,960 --> 00:04:45,920 Speaker 3: we know that across our market share globally, there's about 82 00:04:46,040 --> 00:04:50,280 Speaker 3: fifteen odd billion US dollars of transactions that go through 83 00:04:50,279 --> 00:04:55,360 Speaker 3: our solutions each year, and that's continuing to increase as 84 00:04:55,920 --> 00:04:59,640 Speaker 3: the market changes. The experiences that people want when they 85 00:04:59,680 --> 00:05:01,960 Speaker 3: go to the cinema is becoming a lot more expansive, 86 00:05:02,080 --> 00:05:06,560 Speaker 3: and so the spend per admission is increasing because it's 87 00:05:06,560 --> 00:05:09,080 Speaker 3: gone from the coke and the popcorn to hey, I 88 00:05:09,120 --> 00:05:12,640 Speaker 3: want burgers, I want wine, I want the whole experience, 89 00:05:12,640 --> 00:05:15,000 Speaker 3: maybe some brownie or something like that to finish it off. 90 00:05:15,240 --> 00:05:19,359 Speaker 3: What we're seeing and cinema experiences is that it's catering 91 00:05:19,400 --> 00:05:22,800 Speaker 3: for all types of people. One of my earliest memories 92 00:05:22,920 --> 00:05:25,960 Speaker 3: as a boy growing up, first time my parents let 93 00:05:26,000 --> 00:05:27,960 Speaker 3: me sort of go to the mall alone was go 94 00:05:28,000 --> 00:05:30,559 Speaker 3: to them all with your friends, go to see a movie. 95 00:05:30,920 --> 00:05:33,440 Speaker 3: And that was safe and it was something to do, 96 00:05:33,640 --> 00:05:36,760 Speaker 3: and I really remember that as an experience. That experience 97 00:05:36,760 --> 00:05:42,080 Speaker 3: still exists today, but there's also a whole heap more sophisticated, 98 00:05:42,200 --> 00:05:47,480 Speaker 3: like really sophisticated experiences. And I was just in read 99 00:05:47,480 --> 00:05:50,880 Speaker 3: in Saudi Arabia in Dubai a couple of weeks ago 100 00:05:51,080 --> 00:05:54,040 Speaker 3: and touring some of the cinemas there, and they are 101 00:05:54,040 --> 00:05:59,839 Speaker 3: the most beautiful facilities that you've ever seen, and they 102 00:06:00,120 --> 00:06:03,760 Speaker 3: wrap a movie and this really really high end food 103 00:06:03,800 --> 00:06:10,000 Speaker 3: and beverage plus seating type experience, and so cinemas of 104 00:06:10,080 --> 00:06:14,680 Speaker 3: today are very different to what we saw in the past. 105 00:06:15,760 --> 00:06:19,200 Speaker 1: So speaking to the scale of vista, where are you 106 00:06:19,240 --> 00:06:21,680 Speaker 1: across the globe and you know how many sites, for 107 00:06:21,720 --> 00:06:22,839 Speaker 1: example you operating it? 108 00:06:23,040 --> 00:06:26,159 Speaker 3: Yeah, so we think about the market two ways. We 109 00:06:26,240 --> 00:06:30,120 Speaker 3: think about what we call enterprise cinemas, and so that's 110 00:06:31,200 --> 00:06:33,719 Speaker 3: our clients who have more than twenty screens, which is 111 00:06:33,720 --> 00:06:36,760 Speaker 3: actually quite quite a large number of screens. And so 112 00:06:37,600 --> 00:06:41,800 Speaker 3: about forty six percent of the world of those cinemas, 113 00:06:42,240 --> 00:06:46,240 Speaker 3: and if we exclude India, Russia and China, so forty 114 00:06:46,279 --> 00:06:48,680 Speaker 3: six percent of the rest of the world use our software. 115 00:06:48,760 --> 00:06:52,720 Speaker 3: So we are very very present. And then we have 116 00:06:52,800 --> 00:06:57,360 Speaker 3: what's called the small market, which is for operators less 117 00:06:57,400 --> 00:07:00,600 Speaker 3: than twenty screens, and we have a product there that's 118 00:07:00,640 --> 00:07:04,960 Speaker 3: called VS which is our small market or indie product, 119 00:07:05,000 --> 00:07:09,400 Speaker 3: and we've got about twelve hundred sites running on that 120 00:07:09,520 --> 00:07:14,360 Speaker 3: platform as well. So forty six percent equates for us 121 00:07:14,400 --> 00:07:17,840 Speaker 3: to about forty seven hundred cinema sites, which is pretty 122 00:07:17,840 --> 00:07:20,400 Speaker 3: big number when you think about it. You put the 123 00:07:20,480 --> 00:07:25,040 Speaker 3: VS number together, so there's almost six thousand cinema sites 124 00:07:25,080 --> 00:07:27,720 Speaker 3: around the world who use Vista software. 125 00:07:27,920 --> 00:07:30,600 Speaker 1: I do want to go to industry trends and hear 126 00:07:30,600 --> 00:07:33,680 Speaker 1: more about your strategy. But before we do, founding story, 127 00:07:33,960 --> 00:07:36,840 Speaker 1: can we start up here that we're about to hit 128 00:07:36,880 --> 00:07:39,960 Speaker 1: the thirtieth anniversary very shortly, can you take us through 129 00:07:39,960 --> 00:07:40,720 Speaker 1: that founding story? 130 00:07:40,840 --> 00:07:41,080 Speaker 2: Yeah. 131 00:07:41,160 --> 00:07:46,160 Speaker 3: So Vista Group was founded by Murray Holdaway and a 132 00:07:46,200 --> 00:07:50,200 Speaker 3: group of other kei We entrepreneurs and it really started 133 00:07:50,280 --> 00:07:54,720 Speaker 3: they were running a software development company and they got 134 00:07:54,720 --> 00:07:57,920 Speaker 3: an opportunity as Village Australia was expanding and looking to 135 00:07:57,920 --> 00:08:04,240 Speaker 3: come into New Zealand to build the ticketing application for them. 136 00:08:04,480 --> 00:08:07,400 Speaker 3: And so that's where the idea comes from. And if 137 00:08:07,440 --> 00:08:11,200 Speaker 3: you go right back to the name Vista, it stands 138 00:08:11,280 --> 00:08:16,280 Speaker 3: for this Village Integrated Ticketing Application is how you get 139 00:08:16,280 --> 00:08:20,200 Speaker 3: through it. And so they then built the company continue 140 00:08:20,240 --> 00:08:23,640 Speaker 3: to expand, so followed Village around the world as it expanded, 141 00:08:23,680 --> 00:08:28,240 Speaker 3: but also started to create the offer for more and 142 00:08:28,240 --> 00:08:31,920 Speaker 3: more organizations. Company listed on the New Zealand Stock Exchange 143 00:08:31,960 --> 00:08:36,120 Speaker 3: in twenty fourteen and that gave the company a lot 144 00:08:36,240 --> 00:08:39,440 Speaker 3: more equity. We went through a process of acquiring a 145 00:08:39,559 --> 00:08:43,560 Speaker 3: number of add ons and additional components to the business. 146 00:08:43,559 --> 00:08:46,719 Speaker 3: We went further into film and distribution, which is really 147 00:08:46,800 --> 00:08:51,000 Speaker 3: the studio side of this industry and supporting that as well, 148 00:08:51,040 --> 00:08:54,640 Speaker 3: and so those products are what's been stitched together today 149 00:08:54,840 --> 00:08:57,559 Speaker 3: to really power the ecosystem that we're building. 150 00:08:57,880 --> 00:09:01,800 Speaker 1: So revenue wise, I think the last results was six 151 00:09:01,840 --> 00:09:05,480 Speaker 1: months to thirty June about seventy seven million revenue, So 152 00:09:05,520 --> 00:09:08,760 Speaker 1: that makes you a run rate full year of Circo 153 00:09:08,760 --> 00:09:11,480 Speaker 1: one hundred and fifty million, And I guess in simple terms, 154 00:09:11,520 --> 00:09:12,720 Speaker 1: how does Vista make money? 155 00:09:12,880 --> 00:09:13,280 Speaker 2: Yeah, so. 156 00:09:14,800 --> 00:09:17,880 Speaker 3: We're guiding this year public company, we're guiding to around 157 00:09:17,880 --> 00:09:20,400 Speaker 3: one hundred and sixty seven of a million. Is one 158 00:09:20,480 --> 00:09:25,000 Speaker 3: hundred and sixty seven million. Key we of revenue and 159 00:09:25,360 --> 00:09:28,720 Speaker 3: the way we make money. Traditionally when we started the 160 00:09:28,720 --> 00:09:32,680 Speaker 3: business was on selling perpetual licenses for the software, so 161 00:09:33,000 --> 00:09:35,240 Speaker 3: a client would want to buy the software, would charge 162 00:09:35,240 --> 00:09:39,000 Speaker 3: them fee for that and some maintenance associated with that. Today, 163 00:09:39,040 --> 00:09:43,640 Speaker 3: we're transforming that model into a subscription model, so it's 164 00:09:43,800 --> 00:09:47,200 Speaker 3: what we call SaaS or software as a service revenue. 165 00:09:47,880 --> 00:09:51,280 Speaker 3: The client pays a subscription. That subscription has a component 166 00:09:51,400 --> 00:09:54,959 Speaker 3: that's fixed based on usually the number of sites that 167 00:09:55,000 --> 00:09:57,840 Speaker 3: we're supporting or something like that metric, and then it 168 00:09:57,880 --> 00:10:00,840 Speaker 3: also has a variable component associated with it as well, 169 00:10:01,480 --> 00:10:04,160 Speaker 3: which is really about the revenue that's going through our 170 00:10:04,200 --> 00:10:08,880 Speaker 3: platform that we're enabling the cinema. So that's how we're 171 00:10:08,920 --> 00:10:13,360 Speaker 3: growing the business. And our big sort of focus at 172 00:10:13,400 --> 00:10:16,240 Speaker 3: the moment is moving all of those on premise clients 173 00:10:16,360 --> 00:10:19,599 Speaker 3: or the clients we sold that perpetual license to to 174 00:10:19,960 --> 00:10:23,319 Speaker 3: SAS into the cloud as we call it. That means 175 00:10:23,320 --> 00:10:25,240 Speaker 3: that we're doing a whole lot more for them. We're 176 00:10:25,280 --> 00:10:29,880 Speaker 3: actually starting to run the software. We're starting to really 177 00:10:30,640 --> 00:10:33,840 Speaker 3: enable and deliver that for them rather than just shipping 178 00:10:33,880 --> 00:10:37,839 Speaker 3: them the CD and keeping that keeping that upgrading. So 179 00:10:38,400 --> 00:10:40,440 Speaker 3: transforming the business and growing quite quickly. 180 00:10:40,559 --> 00:10:42,400 Speaker 1: Yeah, and I imagine one of the benefits of doing 181 00:10:42,400 --> 00:10:45,880 Speaker 1: that is it's on a scalable product that the whole 182 00:10:45,880 --> 00:10:50,199 Speaker 1: team are developing that all sites get to use. Then 183 00:10:50,320 --> 00:10:53,480 Speaker 1: on the flip side, helps grow a higher margin, higher 184 00:10:53,520 --> 00:10:54,400 Speaker 1: growth business. 185 00:10:54,559 --> 00:10:58,200 Speaker 3: Yeah, that's absolutely the ambition, and we're still early on 186 00:10:58,240 --> 00:11:00,560 Speaker 3: the journey in terms of moving the client to the cloud. 187 00:11:00,600 --> 00:11:02,520 Speaker 3: At the end of this year, we'll have about thirty 188 00:11:03,040 --> 00:11:05,920 Speaker 3: just over thirty five percent of the client base who 189 00:11:06,000 --> 00:11:08,400 Speaker 3: are on some step of the journey in terms of 190 00:11:08,440 --> 00:11:10,440 Speaker 3: moving them to cloud, but it's going to take us 191 00:11:10,440 --> 00:11:12,160 Speaker 3: a number of years to get all the way through, 192 00:11:12,160 --> 00:11:15,240 Speaker 3: and I think that's what's exciting. We're continuing to accelerate 193 00:11:16,000 --> 00:11:21,760 Speaker 3: the business and really enable that transformation performance wise. 194 00:11:21,840 --> 00:11:24,520 Speaker 1: What are some of the things that retail investors should 195 00:11:24,559 --> 00:11:26,680 Speaker 1: be keeping an eye on the signal? What are some 196 00:11:26,720 --> 00:11:29,280 Speaker 1: of the metrics that you and the team are really 197 00:11:29,280 --> 00:11:29,839 Speaker 1: focused on. 198 00:11:30,280 --> 00:11:34,280 Speaker 3: So we're focused on what we call recurring revenue growth, 199 00:11:34,480 --> 00:11:37,800 Speaker 3: and so we have two types of revenue in our business. 200 00:11:37,800 --> 00:11:38,120 Speaker 2: We have. 201 00:11:39,760 --> 00:11:44,480 Speaker 3: Recurring revenue, which is really the SaaS or the maintenance revenue, 202 00:11:44,480 --> 00:11:46,600 Speaker 3: and so that's what we're really trying to grow quickly. 203 00:11:47,320 --> 00:11:49,760 Speaker 3: And then we have what's called non recurring revenue, and 204 00:11:49,760 --> 00:11:54,000 Speaker 3: that's for things like services, hardware, etc. That will stay 205 00:11:54,080 --> 00:11:58,199 Speaker 3: relatively flat over time. Our ambition is to grow those 206 00:11:58,280 --> 00:12:02,559 Speaker 3: recurring revenue streams. That's really a good sign of how 207 00:12:02,600 --> 00:12:06,160 Speaker 3: we're going in terms of getting clients onto the new platform, 208 00:12:06,240 --> 00:12:08,000 Speaker 3: growing our reach, and growing our market. 209 00:12:08,440 --> 00:12:12,360 Speaker 1: And churn. How does churn compare to a typical business 210 00:12:12,400 --> 00:12:15,880 Speaker 1: software benchmark? Is there you know, is there a risk 211 00:12:16,080 --> 00:12:18,679 Speaker 1: of that migration that they could be going to are 212 00:12:18,720 --> 00:12:20,079 Speaker 1: the many competitors. 213 00:12:20,200 --> 00:12:23,320 Speaker 3: Yeah, So I think when you ask a client to 214 00:12:23,600 --> 00:12:26,760 Speaker 3: move to cloud software, regardless of whether or not it's 215 00:12:26,800 --> 00:12:30,800 Speaker 3: Vista or anybody, you create a churn moment. You're effectively 216 00:12:30,840 --> 00:12:34,520 Speaker 3: asking the client to think about that purchase again. So 217 00:12:34,559 --> 00:12:38,600 Speaker 3: there's always there's always a risk. We're really focused on 218 00:12:38,760 --> 00:12:42,040 Speaker 3: making that process as easy and as simple as possible 219 00:12:42,080 --> 00:12:45,000 Speaker 3: for them to make that decision to get onto the 220 00:12:45,080 --> 00:12:49,680 Speaker 3: new platform. In terms of global competitors, there are not 221 00:12:49,720 --> 00:12:52,360 Speaker 3: a lot. In fact, there isn't really another global competitor 222 00:12:52,400 --> 00:12:56,439 Speaker 3: given our market share. Certainly within specific countries, there are 223 00:12:56,440 --> 00:13:01,600 Speaker 3: some competitors for parts of our product suite, or there 224 00:13:01,640 --> 00:13:05,320 Speaker 3: may be a country specific version of the competitor as well, 225 00:13:05,320 --> 00:13:08,839 Speaker 3: and so we try to be really thoughtful about that. 226 00:13:09,679 --> 00:13:12,240 Speaker 1: I think it's important to address the elephant in the room, 227 00:13:12,640 --> 00:13:16,439 Speaker 1: which is what impact is streaming having on the cinema industry. 228 00:13:16,440 --> 00:13:18,319 Speaker 1: And you look at there's a cost of living crisis. 229 00:13:18,480 --> 00:13:19,960 Speaker 1: You know, you might just squeeze it in from the 230 00:13:19,960 --> 00:13:23,720 Speaker 1: couch because it's convenient, but is it really having an impact? 231 00:13:23,760 --> 00:13:25,560 Speaker 1: What are the numbers saying and what's your view? 232 00:13:26,000 --> 00:13:29,840 Speaker 3: Yeah, I think all parts, all parts of the world 233 00:13:29,840 --> 00:13:32,360 Speaker 3: are in slightly different places, and so Vista as a 234 00:13:32,360 --> 00:13:37,280 Speaker 3: global company is exposed to box office and trends that 235 00:13:37,440 --> 00:13:41,840 Speaker 3: exist in the Middle East and Europe and North America 236 00:13:42,000 --> 00:13:45,080 Speaker 3: and in this land, and so each market is growing 237 00:13:45,240 --> 00:13:50,360 Speaker 3: differently and is having different different outcomes. If you take 238 00:13:50,400 --> 00:13:55,000 Speaker 3: a step up and think about entertainment or out of 239 00:13:55,040 --> 00:13:59,840 Speaker 3: home entertainment or experiences. Shared experiences something that we as 240 00:14:00,080 --> 00:14:02,160 Speaker 3: humans like, whether or not it's going to the restaurant, 241 00:14:02,200 --> 00:14:05,720 Speaker 3: to the cinema, out to do some sort of type 242 00:14:05,720 --> 00:14:09,600 Speaker 3: of experience. And so I think what's happening with cinema 243 00:14:09,760 --> 00:14:12,439 Speaker 3: as well is that we've proved and continue to prove 244 00:14:12,880 --> 00:14:16,960 Speaker 3: that when there's great content, a great movie like Barbie Oppenheimer, etc. 245 00:14:17,840 --> 00:14:20,200 Speaker 3: People come out and droves. And so we're seeing that 246 00:14:20,280 --> 00:14:24,000 Speaker 3: at the moment with the second installment A Wicked we've 247 00:14:24,040 --> 00:14:27,560 Speaker 3: seen it as Zootopia has just opened really recently as well, 248 00:14:27,760 --> 00:14:29,640 Speaker 3: and I know there's a whole heap of people looking 249 00:14:29,720 --> 00:14:32,720 Speaker 3: forward to the third installment in the Avatar series when 250 00:14:32,760 --> 00:14:37,760 Speaker 3: that comes. And so that shared experience is something that 251 00:14:37,800 --> 00:14:41,320 Speaker 3: people come out for and really want to continue to embrace, 252 00:14:41,720 --> 00:14:44,160 Speaker 3: and you then see it down in genres as well, 253 00:14:44,520 --> 00:14:47,480 Speaker 3: and so one of the most interesting things I learned 254 00:14:47,600 --> 00:14:52,080 Speaker 3: is that moviegoer attendance over indexes on horror. And so 255 00:14:52,160 --> 00:14:54,440 Speaker 3: when you go in and think about that a little 256 00:14:54,480 --> 00:14:58,320 Speaker 3: bit more, it's because ultimately, when if you're a horror fan, 257 00:14:58,760 --> 00:15:00,520 Speaker 3: you want to be in a dark groom and you 258 00:15:00,560 --> 00:15:03,160 Speaker 3: want to scream with somebody else because it's a pretty 259 00:15:03,160 --> 00:15:07,440 Speaker 3: cool experience. And so horror movies perform super well as 260 00:15:07,440 --> 00:15:10,600 Speaker 3: a genre in theater, and we're seeing that with Five 261 00:15:10,720 --> 00:15:13,960 Speaker 3: Nights at Freddy two, which just opened last weekend. It's 262 00:15:14,040 --> 00:15:16,560 Speaker 3: overachieving on what they thought it was going to do. 263 00:15:16,920 --> 00:15:19,800 Speaker 3: And so I think the reasons we got a cinema 264 00:15:20,400 --> 00:15:22,960 Speaker 3: are still there. It's a great experience and it's a 265 00:15:23,080 --> 00:15:25,760 Speaker 3: night out. It's something that we can really joy and 266 00:15:25,840 --> 00:15:29,400 Speaker 3: enjoy in terms of that shared experience. What's been wrapped 267 00:15:29,440 --> 00:15:32,240 Speaker 3: round it now in terms of food and entertainment and 268 00:15:32,240 --> 00:15:34,960 Speaker 3: all of those things is making it a much more 269 00:15:35,000 --> 00:15:38,400 Speaker 3: complete experience. What I can say is that you know, 270 00:15:38,760 --> 00:15:41,120 Speaker 3: you can't get an Imax screen in your front room. 271 00:15:41,760 --> 00:15:44,600 Speaker 3: You cannot have the earth shaking sound and the big 272 00:15:44,600 --> 00:15:48,560 Speaker 3: screen of that experience, and so you're unlikely to have 273 00:15:48,680 --> 00:15:52,920 Speaker 3: somebody delivering food and beverage right to your seat as 274 00:15:52,960 --> 00:15:56,360 Speaker 3: well at home, and so all of those things transform 275 00:15:56,440 --> 00:15:59,760 Speaker 3: the experience and make for something make for something pretty 276 00:15:59,840 --> 00:16:04,880 Speaker 3: union in terms of streaming, and so streaming is convenience, 277 00:16:05,240 --> 00:16:08,560 Speaker 3: and so I think we all probably have one or 278 00:16:08,640 --> 00:16:12,240 Speaker 3: multiple different streaming services at home. What we do know 279 00:16:12,800 --> 00:16:16,200 Speaker 3: is that when a movie has a theatrical release, and 280 00:16:16,240 --> 00:16:19,120 Speaker 3: so that's when it appears in a cinema first, it's 281 00:16:19,160 --> 00:16:24,080 Speaker 3: more likely to perform better in streaming. And that's because 282 00:16:24,200 --> 00:16:27,200 Speaker 3: the cultural moment that happened when the movie was launched 283 00:16:27,200 --> 00:16:29,440 Speaker 3: in the theater, the marketing that was put behind it, 284 00:16:29,920 --> 00:16:32,720 Speaker 3: and all of that sort of social buzz that was 285 00:16:32,800 --> 00:16:37,400 Speaker 3: created by the launch of the movie that then flows 286 00:16:37,440 --> 00:16:41,920 Speaker 3: into streaming as well. Because if something just shows up 287 00:16:41,920 --> 00:16:44,160 Speaker 3: on a streaming platform other than appearing on a tile, 288 00:16:44,600 --> 00:16:47,680 Speaker 3: you're probably not necessarily likely to know a lot about it. 289 00:16:47,800 --> 00:16:51,120 Speaker 3: And so what we're seeing now is a lot of 290 00:16:51,720 --> 00:16:54,120 Speaker 3: movies have been made, they've been put in theaters first, 291 00:16:54,200 --> 00:16:57,000 Speaker 3: and then they go to streaming, and so I think 292 00:16:57,000 --> 00:17:01,440 Speaker 3: that trend's probably going to continue the way. And if 293 00:17:01,480 --> 00:17:03,720 Speaker 3: you think about box office, the way to make money 294 00:17:03,800 --> 00:17:05,919 Speaker 3: is to put a movie in a theater. First you 295 00:17:06,000 --> 00:17:08,080 Speaker 3: make the box office money, and then you make more 296 00:17:08,119 --> 00:17:12,520 Speaker 3: money from a streaming perspective, So it makes commercial sense 297 00:17:13,200 --> 00:17:15,280 Speaker 3: to put it in a theater, and then it makes 298 00:17:15,800 --> 00:17:17,840 Speaker 3: I think audience sense as well. 299 00:17:18,040 --> 00:17:21,200 Speaker 1: Interesting too that you know, people love a fright, but 300 00:17:21,560 --> 00:17:22,639 Speaker 1: they want someone to cling to. 301 00:17:23,320 --> 00:17:24,439 Speaker 3: They turned out they do. 302 00:17:24,720 --> 00:17:26,600 Speaker 1: One of the things we talked about earlier was that 303 00:17:26,760 --> 00:17:31,119 Speaker 1: rich personalized experience. And I think even Silkiota, you know, 304 00:17:31,160 --> 00:17:34,000 Speaker 1: the intimacy and the experience that you're providing here alludes 305 00:17:34,040 --> 00:17:35,760 Speaker 1: to where things are going. But what are some of 306 00:17:35,800 --> 00:17:39,200 Speaker 1: the cool innovations that you're delivering that support that. 307 00:17:39,880 --> 00:17:43,080 Speaker 3: I think it starts with. And if you think about 308 00:17:43,080 --> 00:17:47,000 Speaker 3: the Silkiota experience, it's highly curated. Each week I get 309 00:17:47,040 --> 00:17:49,480 Speaker 3: an email from Silkiota which tells me what movies are 310 00:17:49,480 --> 00:17:51,920 Speaker 3: going to come out and I can and that it's 311 00:17:51,960 --> 00:17:55,040 Speaker 3: thoughtfully targeted towards me and what I like to see. 312 00:17:55,080 --> 00:17:59,399 Speaker 3: And so our software enables that it understands the type 313 00:17:59,400 --> 00:18:03,359 Speaker 3: of movie like it then starts to create personalization for 314 00:18:03,480 --> 00:18:06,679 Speaker 3: me with other titles and what they may be coming 315 00:18:07,480 --> 00:18:10,760 Speaker 3: coming out. And so I think it just goes to 316 00:18:11,320 --> 00:18:14,960 Speaker 3: much more of a trend around software that enables that 317 00:18:15,080 --> 00:18:20,600 Speaker 3: personalized experience and really delivering that outcome as opposed to 318 00:18:20,760 --> 00:18:22,760 Speaker 3: just fronting up to say, hey, I want to see 319 00:18:22,760 --> 00:18:25,280 Speaker 3: a movie and not really being sure what you're going 320 00:18:25,280 --> 00:18:29,480 Speaker 3: to see. And so moviegoers we like to know from 321 00:18:29,520 --> 00:18:34,840 Speaker 3: a loyalty perspective, maybe we're subscribing. Particularly in the US 322 00:18:35,040 --> 00:18:39,800 Speaker 3: and parts of Europe now subscription programs are really really 323 00:18:39,840 --> 00:18:43,320 Speaker 3: taking off. And so what that means is you might 324 00:18:43,320 --> 00:18:46,720 Speaker 3: buy a subscription, maybe a monthly payment, unlimited movies or 325 00:18:46,720 --> 00:18:49,240 Speaker 3: a certain number of movies really resonating. 326 00:18:49,280 --> 00:18:51,960 Speaker 1: Well, so where your business model is a subscription to 327 00:18:52,040 --> 00:18:54,679 Speaker 1: those cinemas is allowing them to create this creating a 328 00:18:54,720 --> 00:18:57,840 Speaker 1: subscription model cool as well if you pull off what 329 00:18:57,880 --> 00:19:00,720 Speaker 1: you want to do, what does vist like over the 330 00:19:00,720 --> 00:19:04,160 Speaker 1: next sort of five years. Yeah, So we've set a 331 00:19:04,440 --> 00:19:09,000 Speaker 1: financial ambition for the organization to deliver what we call 332 00:19:09,119 --> 00:19:12,120 Speaker 1: as one hundred percent platform and so that's about three 333 00:19:12,240 --> 00:19:16,199 Speaker 1: hundred and fifteen million dollars a year of arr or 334 00:19:16,240 --> 00:19:21,680 Speaker 1: annualized recurring revenue. That's just over double where we're at 335 00:19:21,800 --> 00:19:26,879 Speaker 1: at the moment. And also while delivering that, to deliver 336 00:19:26,960 --> 00:19:29,879 Speaker 1: about six thousand sites. And so if you think today 337 00:19:29,880 --> 00:19:32,480 Speaker 1: we've got about forty seven hundred enterprise sites. We want 338 00:19:32,480 --> 00:19:35,359 Speaker 1: to grow that as well, so we've got some pretty 339 00:19:35,400 --> 00:19:40,600 Speaker 1: powerful financial outcomes that we're looking for. But I really 340 00:19:40,640 --> 00:19:44,080 Speaker 1: think from my perspective, the role that we play in 341 00:19:44,119 --> 00:19:50,840 Speaker 1: this industry cinema, film distribution, connecting those experiences is really 342 00:19:50,880 --> 00:19:54,119 Speaker 1: really important, and so I think as an industry, we 343 00:19:54,160 --> 00:19:57,040 Speaker 1: have a role to help enable that, to help power 344 00:19:57,040 --> 00:20:01,159 Speaker 1: that ecosystem, to provide the data, the ends sites, to 345 00:20:01,240 --> 00:20:05,119 Speaker 1: let people make better decisions around what movies go and 346 00:20:05,119 --> 00:20:08,480 Speaker 1: what cinemas at what time, and then how they stay 347 00:20:08,560 --> 00:20:12,720 Speaker 1: there and how that whole experience is monetized. Because ultimately, 348 00:20:12,720 --> 00:20:16,080 Speaker 1: we want a healthy and growing ecosystem, and if we 349 00:20:16,119 --> 00:20:19,480 Speaker 1: can help power that, then that's pretty exciting as well. 350 00:20:19,600 --> 00:20:22,080 Speaker 1: Speaking of culture, I mean one of the things I'm 351 00:20:22,080 --> 00:20:24,520 Speaker 1: imagining working in the cinema industry as a group of 352 00:20:25,000 --> 00:20:29,600 Speaker 1: movie buffs, there's posters of movies and actors on the wall. 353 00:20:29,720 --> 00:20:33,719 Speaker 1: But what is it like working in a technology company 354 00:20:33,720 --> 00:20:35,280 Speaker 1: that services the cinema industry. 355 00:20:35,359 --> 00:20:37,720 Speaker 3: I can definitely tell you that, yes, we have lots 356 00:20:37,760 --> 00:20:41,159 Speaker 3: of movie posters in our Auckland acront office, so they 357 00:20:41,200 --> 00:20:47,200 Speaker 3: expected that is that's great and I think ultimately we're 358 00:20:47,240 --> 00:20:52,760 Speaker 3: a technology company. We're delivering services and solutions to the 359 00:20:52,880 --> 00:20:56,760 Speaker 3: entertainment industry, or specifically the out of home entertainment industry, 360 00:20:57,520 --> 00:21:01,720 Speaker 3: and for us, that's a pretty unique privilege. It's pretty 361 00:21:01,720 --> 00:21:03,840 Speaker 3: cool to be to be able to do that. There 362 00:21:03,960 --> 00:21:07,960 Speaker 3: is absolutely no doubt that there are some pretty out 363 00:21:07,960 --> 00:21:10,919 Speaker 3: there moments in the industry. I've had an opportunity to 364 00:21:10,960 --> 00:21:14,119 Speaker 3: be in the same room as Leonardo DiCaprio and some 365 00:21:14,160 --> 00:21:15,040 Speaker 3: other pretty cool acts. 366 00:21:15,080 --> 00:21:16,439 Speaker 1: I was going to ask you if you've got some 367 00:21:16,480 --> 00:21:17,560 Speaker 1: good celeb gos. 368 00:21:17,640 --> 00:21:22,880 Speaker 3: Yeah, no, goss, but certainly through industry events and experiences, 369 00:21:22,960 --> 00:21:25,920 Speaker 3: we get to see and share in some pretty cool stories. 370 00:21:26,040 --> 00:21:29,639 Speaker 1: Running a global software company from New Zealand, obviously forty 371 00:21:29,680 --> 00:21:34,080 Speaker 1: six percent global share in an industry is huge. What 372 00:21:34,240 --> 00:21:37,040 Speaker 1: does the day to day look like? And I guess 373 00:21:37,080 --> 00:21:41,560 Speaker 1: alluding to investors just to understand what it really takes 374 00:21:41,600 --> 00:21:45,240 Speaker 1: to run a business of that scale from little al 375 00:21:45,280 --> 00:21:45,560 Speaker 1: tel Ad. 376 00:21:45,880 --> 00:21:49,840 Speaker 3: Yeah, so today we've got about seven hundred and fifty 377 00:21:50,000 --> 00:21:53,240 Speaker 3: in the Vista team. About three hundred ish of those 378 00:21:53,280 --> 00:21:55,560 Speaker 3: are based in New Zealand, the rest of them based 379 00:21:55,560 --> 00:21:58,639 Speaker 3: around the world, and so it is a truly twenty 380 00:21:58,640 --> 00:22:02,160 Speaker 3: four x seven business. And the interesting thing about our 381 00:22:02,200 --> 00:22:05,240 Speaker 3: business is that it peaks towards the end of the week, 382 00:22:05,560 --> 00:22:09,560 Speaker 3: and so it peaks on Friday Saturday nights as more 383 00:22:09,600 --> 00:22:12,760 Speaker 3: and more people go to the go to the movies, 384 00:22:12,840 --> 00:22:16,320 Speaker 3: and so the opportunities are amazing because we get to 385 00:22:16,359 --> 00:22:20,560 Speaker 3: have really cool conversations with different clients and different parts 386 00:22:20,600 --> 00:22:24,520 Speaker 3: of the world and different languages. Our software is multi language. 387 00:22:24,800 --> 00:22:28,280 Speaker 3: It is what's called physicalized, so it's able to be 388 00:22:28,359 --> 00:22:30,920 Speaker 3: operated in different parts of Europe where there's a whole 389 00:22:30,960 --> 00:22:36,040 Speaker 3: lot of different legislation, and that is really powerful in 390 00:22:36,119 --> 00:22:39,240 Speaker 3: terms of differentiation for the software. It's what makes Vista 391 00:22:39,320 --> 00:22:43,840 Speaker 3: really unique. And in terms of running that it means 392 00:22:43,880 --> 00:22:46,280 Speaker 3: that we spend a lot of time. My leadership team 393 00:22:46,359 --> 00:22:50,720 Speaker 3: is global. We spend a lot of time communicating, get 394 00:22:50,720 --> 00:22:53,040 Speaker 3: to spend a lot of time on planes out talking 395 00:22:53,080 --> 00:22:54,920 Speaker 3: to clients and our team to make sure that we're 396 00:22:54,920 --> 00:22:55,800 Speaker 3: heading in the right direction. 397 00:22:56,280 --> 00:23:00,359 Speaker 1: Finally, most people who are listening, hopefully they're to go 398 00:23:00,440 --> 00:23:04,160 Speaker 1: off on their well earned summer break. What's a top 399 00:23:04,200 --> 00:23:06,320 Speaker 1: flick you're recommending for the summer holidays, Stuart. 400 00:23:06,720 --> 00:23:09,200 Speaker 3: Look, if you've got a young family, you can't go 401 00:23:09,240 --> 00:23:12,000 Speaker 3: past Utopia. I think it's going to be Oh, that 402 00:23:12,119 --> 00:23:12,840 Speaker 3: is very cool. 403 00:23:12,960 --> 00:23:14,800 Speaker 1: I'll have to put that one down on my list. 404 00:23:14,760 --> 00:23:18,439 Speaker 3: Playing it's playing really well. If you have been following 405 00:23:18,520 --> 00:23:21,240 Speaker 3: the Avatar saga, the third one is going to look great. 406 00:23:21,880 --> 00:23:25,600 Speaker 3: Wicked is out there and doing really well. And I 407 00:23:25,640 --> 00:23:28,959 Speaker 3: think what the message this summer would be is that 408 00:23:29,000 --> 00:23:31,800 Speaker 3: there's something for everybody at the movies and so get 409 00:23:31,840 --> 00:23:35,240 Speaker 3: out there enjoy it. There is totally different experiences you 410 00:23:35,280 --> 00:23:37,359 Speaker 3: can have in New Zealand, whether or not it's at 411 00:23:37,359 --> 00:23:41,399 Speaker 3: the end of a mall and really enjoying that experience 412 00:23:41,520 --> 00:23:46,159 Speaker 3: or in the super curated gold class type experience that 413 00:23:46,240 --> 00:23:49,679 Speaker 3: is available in some of our cinemas. You can have 414 00:23:49,760 --> 00:23:51,359 Speaker 3: it all in New Zealand. So go have fun and 415 00:23:51,440 --> 00:23:52,720 Speaker 3: enjoy it and we'll see you at the movies. 416 00:23:53,119 --> 00:23:55,439 Speaker 1: Hey, look, Shure, really thanks for having us. This has 417 00:23:55,440 --> 00:23:58,560 Speaker 1: been a really fun conversation. Really enjoyed learning about the 418 00:23:58,640 --> 00:24:03,040 Speaker 1: story and obviously thanks for hosting us at the Silkyota. 419 00:24:03,040 --> 00:24:04,399 Speaker 1: Look at this, Look at this the food. 420 00:24:04,560 --> 00:24:06,639 Speaker 3: The food has arrived. That is great, and look I 421 00:24:06,880 --> 00:24:09,040 Speaker 3: might knock off for the day. Well, this is just 422 00:24:09,080 --> 00:24:11,080 Speaker 3: an example of some of the restaurant quality food you 423 00:24:11,080 --> 00:24:12,800 Speaker 3: get when you go to the cinema nowadays, and so 424 00:24:12,840 --> 00:24:14,679 Speaker 3: it's pretty cool to be able to experience out here 425 00:24:14,720 --> 00:24:15,000 Speaker 3: as well. 426 00:24:15,400 --> 00:24:15,560 Speaker 2: Well. 427 00:24:15,600 --> 00:24:26,960 Speaker 1: Thank you, thank you.