Latest / What the Flux / Telstra forced to cut its mobile coverage claims | Canva's late but huge revenue spike | Shein wants to run Aussie wardrobes

Transcript

Telstra forced to cut its mobile coverage claims | Canva's late but huge revenue spike | Shein wants to run Aussie wardrobes · What the Flux

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  Speaker 1: This is what the Flux. I'm Brett and I'm Justin
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  Speaker 1: and it's Wednesday, the first of April, flox fam. If
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  Speaker 1: you're aged between eighteen and twenty, you might just be
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  Speaker 1: in the money. The Fairwork Commission has abolished junior race
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  Speaker 1: in fast food, retail and pharmacies and this will mean
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  Speaker 1: that more than five hundred thousand young workers between eighteen
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  Speaker 1: and twenty will get pay rises of as much as
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  Speaker 1: forty two percent. Very good pay rise, plam. If you
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  Speaker 1: set some new goals yourself to start saving more to
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  Speaker 1: spend less, but you don't know where to start, a
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  Speaker 1: Flux budgeting tool is the right place at tracks all
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  Speaker 1: your spending and saving, identifies all your subscriptions and categorize
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  Speaker 1: your spending as well. So if you want to commit
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  Speaker 1: to a better April of spending and saving a short
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  Speaker 1: download the Flex app and check out the budgeting tool.
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  Speaker 1: Three fantastic stories today, jusy boy, it's for our first.
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  Speaker 1: Telstra has just lost one of its key marketing angles
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  Speaker 1: as it is forced to cut its mobile coverage claims
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  Speaker 1: by a third. Everyone knows that Telstra's biggest flex is
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  Speaker 1: their coverage. So what happens now? Man So Telstra is
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  Speaker 1: Australia's largest telco with just under twenty five million retail
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  Speaker 1: mobile customers. And don't forget it's a network which supposedly
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  Speaker 1: covers ninety nine point seven percent of the population and
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  Speaker 1: roughly three million square kilometers. It pretty much built its
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  Speaker 1: whole personality around this staff bet juzzy Boy. For a
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  Speaker 1: little while, Telstra's competitors Optus and TPG Telecom have claimed
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  Speaker 1: that this was actually quite misleading. You see d Man.
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  Speaker 1: They claim that Telstra had a very low signal in
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  Speaker 1: some remote areas, but they still claimed it it's actual coverage.
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  Speaker 1: And now the government stepped in to standardize how coverage
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  Speaker 1: is measured. This how it works. The regulators have now
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  Speaker 1: set a hard cutoff of negative one hundred and fifteen
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  Speaker 1: decidel mill watts the usable signal. Anything weak is officially
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  Speaker 1: no coverage and with that definition, it means Telstra will
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  Speaker 1: have to remove one million square kilometers from its coverage maps.
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  Speaker 1: Just to put that into perspective, that's an area bigger
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  Speaker 1: than New South Wales or nearly thirty three percent of
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  Speaker 1: all coverage, and it means that Telstra's most competitive advantage
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  Speaker 1: its coverage has been squashed all thanks to the standardization
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  Speaker 1: of metrics. So what is the key leading here? Standardization
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  Speaker 1: is when a regulator forced a companies to measure and
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  Speaker 1: present information in the same way, and that means consumers
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  Speaker 1: can make their comparison. Think about a Jazzi boy. Without
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  Speaker 1: the standardization, companies can cherry pick definitions that make them
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  Speaker 1: look better. Yeah. Intelstra's case, it's ultra weak signal areas
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  Speaker 1: were included in its coverage stats and that creates confusion
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  Speaker 1: for customers. So regulators like the Australian Communications and Media
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  Speaker 1: Authority or AKMA, they step in to set consistent benchmarks
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  Speaker 1: and this happens across industries. Yeah, think about energy star
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  Speaker 1: ratings for appliances, or nutrition labels on food, or even
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  Speaker 1: financial disclosures for listed companies. The goal is pretty simple,
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  Speaker 1: make comparisons apples for apples, because once everything is measured
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  Speaker 1: the same way, companies, can't you say they're better. They
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  Speaker 1: actually have to be better. For our second story, Canvas
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  Speaker 1: has released its latest Australian financial results very delayed and
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  Speaker 1: its local revenue has cracked over two billion US dollars.
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  Speaker 1: Canver a little tardy on these financials, be man so
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  Speaker 1: what's going on here? So we all know Canvas as
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  Speaker 1: the humble Aussie growing business that started as a school
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  Speaker 1: yearbook tool all the way back in twenty thirteen, and
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  Speaker 1: slowly but surely it shifted into a design tool. They
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  Speaker 1: made junior accountants turn into senior designers, and it's now
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  Speaker 1: used by over two hundred and sixty five million people
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  Speaker 1: every month. In fact, be Man, a leading VC fund,
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  Speaker 1: announced that Canvas is the third most used AI company globally,
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  Speaker 1: behind chat CHVT and Gemini. But as where Canvas Australian
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  Speaker 1: financial reports for FI twenty four they've just been released,
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  Speaker 1: talk about it late lodgements and because Canvas is still private,
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  Speaker 1: stuff is pretty ducy. Get this. In that financial year,
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  Speaker 1: Canvas revenue hit two billion US dollars, which was up
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  Speaker 1: around six hundred and sixty million dollars a year on year,
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  Speaker 1: but its expenses also jumped to around two point three
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  Speaker 1: billion US dollars, leading to a net loss of two
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  Speaker 1: hundred and forty two million US dollars. Okay, but the
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  Speaker 1: interesting part, b Man, is it canvas operating cash flow
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  Speaker 1: nearly doubled and it's over two hundred and sixty mili
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  Speaker 1: all right, So if its cash flow is positive but
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  Speaker 1: still generating net losses, what is going on here? Well,
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  Speaker 1: the head of a three hundred and fifty million dollars
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  Speaker 1: in costs for employee share based compensation. So what is
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  Speaker 1: the key learning year? When you hear that a company
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  Speaker 1: is profitable, it usually refers to accounting profit that's revenue
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  Speaker 1: minus expenses based on strict accounting rule for those rules
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  Speaker 1: include non cash items like depreciation or share based compensation
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  Speaker 1: all the fun stuck. Cash flow, on the other hand,
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  Speaker 1: tracks the actual money moving in and out of the business.
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  Speaker 1: In Canvas case, the biggest difference comes from their stock
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  Speaker 1: based compensation YEP. Instead of paying employees entirely on cash,
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  Speaker 1: Canvas gives them shares, and under strict accounting rules, these
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  Speaker 1: are treated as an expense, which reduces profit, but no
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  Speaker 1: cash leaves the business and be men. This is common
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  Speaker 1: in high growth tech companies. They use equity to attract
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  Speaker 1: talent or preserving their cash. For example, at Lassian's annual
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  Speaker 1: stock based compensation for twenty twenty five was one point
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  Speaker 1: thirty six billion US dollars, or twenty six percent of
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  Speaker 1: their entire revenue for the twenty twenty five financial years,
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  Speaker 1: but for Canvas, paying stock based compensation is helping them
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  Speaker 1: attract talent and helping them keep a juicy cash balance
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  Speaker 1: in their bank account. For our third and final story,
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  Speaker 1: she In has rolled out a supply chain as a
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  Speaker 1: service offering and he's trying to get OUSSI fashion brands
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  Speaker 1: to jump on board. Move over sas it's all about
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  Speaker 1: s cass these days. Tell me more. Okay. So She's
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  Speaker 1: the ultra fast fashion giant found in two thousand and
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  Speaker 1: eight as a wed dress dropped chipping business, and then
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  Speaker 1: it became a global fast fashioned behemoth. We're talking one
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  Speaker 1: hundred and sixty countries, hundreds of millions of customers. But
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  Speaker 1: despite producing forty thousand to fifty thousand new items each week,
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  Speaker 1: she and has introduced a new division of its business
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  Speaker 1: and it's pushing it in Australia. Go on, well, it's
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  Speaker 1: trying to offer Australian fashion brands access to its supply chain,
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  Speaker 1: logistics and e commerce platforms. The brands just focused on
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  Speaker 1: their design and their branding. Yep, and she In will
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  Speaker 1: do manufacturing distribution the man. Given Shein's reputation and the
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  Speaker 1: perception of quality of their clothes, Aussie brands are a
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  Speaker 1: little hesitant not to mention its controversies around labor, sustainability,
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  Speaker 1: intellectual property. But for some companies, the supply chain is
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  Speaker 1: a service option would be appealing to get to market quickly.
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  Speaker 1: So what's the key learning here? The as a service
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  Speaker 1: model started with software, but he's evolving into new categories
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  Speaker 1: all the time. Yeah. Companies like Salesforce and Adobe turned
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  Speaker 1: tools into simple subscriptions that businesses could access via the cloud.
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  Speaker 1: Then as a service expanded into infrastructure with platforms like
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  Speaker 1: Amazon Web Services, and today over ninety four percent of
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  Speaker 1: businesses you some sort of cloud services. But now juzzy
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  Speaker 1: boy as a service has moved into entirely new industries.
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  Speaker 1: You've got payments to the service, fire strike or even
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  Speaker 1: supply chain as a service through players like she In
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  Speaker 1: and be Man. Some businesses now run over one hundred
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  Speaker 1: SaaS tools each and that means they can launch and
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  Speaker 1: scale faster without owning much of the infrastructure. But that
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  Speaker 1: speed comes with the trade off. The more you rely
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  Speaker 1: on external platforms, the less control you have over your margins,
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  Speaker 1: your quality and even your brand. And clearly be Man
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  Speaker 1: Australian brands are a little iffy now giving away their
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  Speaker 1: quality control to a brand like Chindam. It's April first
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  Speaker 1: and it is the time to get your finances for
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  Speaker 1: April in check. The Flux Budgeting Tool tracks all your spending,
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  Speaker 1: all your saving and all these subscriptions in the one
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  Speaker 1: place and it takes less than thirty seconds to set up.
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  Speaker 1: So if you want to start April on a high
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  Speaker 1: to start your saving journey, make sure to download the
• 6:45
  Speaker 1: Flux app and check out the budgeting tool. Thanks for listening,
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  Speaker 1: enjoy Easter and we'll see you on Wednesday.