Vista Group the latest Kiwi tech company to lay off staff

Vista Group stock has staged a modest recovery this year, but is still off well off its pre-pandemic high of $5.84. Photo / 123RF

Vista Group, the Auckland-based maker of software for running and marketing cinemas, is the latest local tech firm to lay off staff.

A restructure will see a reduction in its global workforce of between 6 and 8 per cent, the firm said in an NZX filing this morning.

Last December, Vista said it had 800 staff across six main offices in NZ (home of its headquarters), the US, the UK, South Africa, the Netherlands, and Mexico - implying around 64 roles will be culled.

“The business change will see Vista Group move from the current multiple companies approach to operate as a single business with segment-based expertise focused on Vista Group’s studio and cinema clients,” the firm said.

The restructure is expected to be complete by year’s end.

Vista also said that a “capex bump” (as it was called today) outlined in its 2022 investor day (when it was called an “investing in R&D bump”) would now take place over four years instead of two.

“This updated, more stable, development programme should result in a modest reduction in the total spend over time and a lower cash consumption in the near term”.

Total capex is now expected to be around $20 million per year.

In its investor day presentation, the “bump” was put at $25m to $30m per year.

Vista said that as a result of the restructure, it now expects to be free cashflow positive during the fourth quarter of 2024, 12 months earlier than previous guidance.

The firm said it remains on target to achieve its long-term guidance of ARR (monthly recurring revenue extrapolated to an annual figure) of between $175m and $205m and ebidta margin above 15 per cent by the end of 2025.

In December, Vista said its longtime CEO Kimbal Riley was retiring, with Stuart Dickinson - NZ country manager for NYSE-listed IT services firm DXC Technology - named as the new chief executive.

In March, Vista reported a net loss that doubled to $21.4m for the 12 months to December 31, 2022, as spending on new products increased.

Revenue increased 38 per cent to $135m as the total global box office recovered to 60 per cent of its pre-Covid level.

Vista Group shares closed on Wednesday at $1.69.

The stock has staged a modest recovery this year, but is still off well off its pre-pandemic high of $5.84.