Catapult Sports Ltd. · ASX:CAT
Catapult Sports — FY2020 Earnings Presentation
38 slides from Catapult Sports's earnings presentation, Aug 19, 2020
Slide 1: FY20 Results
H1 FY20 RESULTS FY20 RESULTS 19 AUGUST 2020 Will Lopes Chief Executive Officer Hayden Stockdale Chief Financial Officer CATAPULTSPORTS.COM �
Slide 2: Important Notice
FY20 RESULTS IMPORTANT NOTICE This document may contain forward looking statements including plans and objectives. Do not place undue reliance on them as actual results may differ, and may do so materially. They reflect Catapult’s views as at the time made, are not guarantees of future performance a
Slide 3: 2019/20 Champions Use Catapult
FY20 RESULTS 2019/20 CHAMPIONS USE CATAPULT K A N SAS C I T Y C H I E F S LO U I S I A N A S TAT E REAL MADRID F C P O R TO R OYA L A N T W E R P F C B E E R S C H OT W I L R I J K D I N A M O Z AG R E B SYDNEY ROOSTERS RICHMOND TIGERS C A N T E R B U RY NFL UNIVERISTY LA LIGA PRIMEIRA LIGA CROKY CU
Slide 4: FY20 Achievements
FY20 RESULTS FY20 ACHIEVEMENTS → D E L I V E R E D $ 9 M O F P O S I T I V E F R E E C A S H F L O W, A YEAR EARLIER THAN EXPECTED → FIFTH CONSECUTIVE HALF OF CONSISTENT EBITDA GROW TH, UP $9.2M TO $13.3M → 26 CUSTOMER-FACING SOLUTIONS/UPGRADES → MANAGEMENT OF COVID-19 CRISIS CATAPULTSPORTS.COM 4
Slide 5: Financial Highlights
FY20 RESULTS FINANCIAL HIGHLIGHTS CATA P U LT ’S G LO BA L S CA L E A N D O P E RAT I N G L E V E RAG E FY20 FY19 % CHANGE (AUD $M) (AUD $M) ARR 1 72.6 66.2 10% RECURRING REVENUE SUBSCRIPTION REVENUE 7 7. 6 64.0 21% REVENUE 100.7 95.4 6% EBITDA 2 13.3 4 .1 225% O P E R AT I N G L E V E R A G E FREE
Slide 6: Operational Highlights
FY20 RESULTS OPERATIONAL HIGHLIGHTS SALES TECHNOLOGY CO R P O RAT E → Major marquee team signings → Delivered 26 customer-led → US appointments including → Another successful year with innovative solutions CEO, COO and SVP of league-wide deals → Vector take up rate of Product → Growth in multi-solut
Slide 7: We Are Weathering COVID-19 Well
FY20 RESULTS WE ARE WEATHERING COVID-19 WELL → COV I D -1 9 I N N OVAT I O N S N OW U S E D BY OV E R 2 ,000 AT H L E T E S → C U S TO M E R U T I L I SAT I O N O F O U R SOLUTIONS IS NOW HIGHER THAN A YEAR AGO → CASH COLLECTIONS WERE STRONG THROUGH H2 → C O S T M E A S U R E S W E R E S W I F T LY
Slide 8: Just Some of Our FY20 Major Signings
FY20 RESULTS JUST SOME OF OUR FY20 MAJOR SIGNINGS REAL MADRID MAJOR LEAGUE CAROLINA UNIVERSITY UNIVERSITY ENGLAND AND CF RUGBY PA N T H E RS OF NORTH OF SOUTH WALES CRICKET (LEAGUE-WIDE) CAROLINA CAROLINA BOARD CHICAGO FC RIGA ANAHEIM UNIVERSITY OF UNIVERSITY S TA N FO R D BEARS DUCKS MISSISSIPPI OF
Slide 9: Growth in Customers with 2+ Solutions of 39%
FY20 RESULTS GROWTH IN CUSTOMERS WITH 2+ SOLUTIONS OF 39% G R O W T H I N TOTA L C U S TO M E R S O F OV E R 2 0 % S I N C E J U N E 2 0 1 9 SOLUTIONS 2+ 235 1 3011 CUSTOMERS CATAPULTSPORTS.COM 9
Slide 10: Revenue Growth Driven by Subscription Revenue
FY20 RESULTS REVENUE GROWTH DRIVEN BY SUBSCRIPTION REVENUE SUBSCRIPTION REVENUE +21% O U R M A J O R Q 4 S E L L I N G S E A S O N W A S D I S R U P T E D B Y C O V I D - 1 9 , L I K E L Y, P U S H I N G SALES INTO H1 FY21. C A P I TA L S A L E S ( -2 7. 6 % ) W E R E M O S T A F F E C T E D . O U R
Slide 11: Strong Subscription Revenue Growth Across All Solutions
FY20 RESULTS STRONG SUBSCRIPTION REVENUE GROWTH ACROSS ALL SOLUTIONS D E S P I T E C O V I D - 1 9 , S U B S C R I P T I O N R E V E N U E G R E W S T R O N G LY I N 4 Q F Y 2 0 W I T H P E R F O R M A N C E & H E A LT H U P 2 5 % A N D TAC T I C S & C OAC H I N G U P 1 1 % O N 4 Q F Y 1 9. (AUD $M)
Slide 12: EBITDA Growth Momentum
FY20 RESULTS EBITDA GROWTH MOMENTUM D E L I V E R E D F I V E C O N S E C U T I V E H A LV E S O F C O N S I S T E N T E B I T D A G R O W T H 14.8 EBITDA (AUD $M) 10.8 64 % G R + CA 6.8 2.8 0 -1.2 H1 -5.2 H2 FY17 FY18 FY19 FY20 CATAPULTSPORTS.COM 12
Slide 13: Introducing Four New SaaS Metrics
FY20 RESULTS INTRODUCING FOUR NEW SAAS METRICS 1 . A N N UA L I S E D CO N T R AC T VA LU E ( AC V ) ACV is the annualised value of contracted subscription revenue in effect at a particular date. ACV differs to ARR by excluding revenue that’s recurring but not ARR contracted (e.g. content licensing)
Slide 14: Financial Highlights with New Metrics
FY20 RESULTS FINANCIAL HIGHLIGHTS WITH NEW METRICS FY20 FY19 % CHANGE (AUD $M) (AUD $M) ARR 72.6 66.2 10% ACV 62.5 55.6 12% ACV CHURN (%) 6.7% 6.3% 6% RECURRING REVENUE SUBSCRIPTION REVENUE 7 7. 6 64.0 21% L I F E T I M E D U R AT I O N ( Y E A R S ) 6.5 6.7 (3%) REVENUE 100.7 95.4 6% EFFICIENCY AND
Slide 15: Large and Growing Stream of Subscription Revenue
FY20 RESULTS LARGE AND GROWING STREAM OF SUBSCRIPTION REVENUE C A T A P U L T I S A C T I V E LY S W I T C H I N G N O N - S U B S C R I P T I O N R E V E N U E T O S U B S C R I P T I O N REVENUE AND FOCUSED ON DRIVING CONTINUED GROWTH IN SUBSCRIPTIONS REVENUE ARR (AUD $M) ACV (AUD $M) 80 80 + 17%
Slide 16: Long-Term Duration to ACV
FY20 RESULTS LONG-TERM DURATION TO ACV SUCCESS IN NEW-SELL, UP-SELL AND CROSS-SELL. N E T C H U R N M O D E S T. AC V BY C U S T O M E R D U R AT I O N ( A U D $ M ) AC V BY C U S T O M E R D U R AT I O N ( A U D $ M ) 3 0 Ju n e 2 01 9 3 0 J une 2 02 0 2 4 .1 25.0 25.0 1 9.9 1 9. 6 1 9. 0 20.0 20.0
Slide 17: Operating Expense Continues to Decline with Scale
FY20 RESULTS OPERATING EXPENSE CONTINUES TO DECLINE WITH SCALE O P E R AT I N G E X P E N S E S TO R E V E N U E R AT I O ( % ) CONTRIBUTION MARGIN (%) 90% 50% 80% 40% 70% 30% $ 4 9. 0 m $32.3m $38.4m 60% 20% 50% 10% 40% 0 FY17 FY18 FY19 FY20 FY18 FY19 FY20 CATAPULTSPORTS.COM 17
Slide 18: Solution Development Costs Stable with Scale
FY20 RESULTS SOLUTION DEVELOPMENT COSTS STABLE WITH SCALE AUD $M % OF REVENUE 14.2% 11.2% 12 20 9. 2 % 10 15 8 6 10 4 5 PRO 2 PROSUMER 0 0 DEVELOPMENT COST AS FY18 FY19 FY20 A% OF REVENUE (RHS) CATAPULTSPORTS.COM 18
Slide 19: Global Footprint Continues to Scale
FY20 RESULTS GLOBAL FOOTPRINT CONTINUES TO SCALE D E L I V E R I N G H I G H VA L U E C U S T O M E R S A N D H I G H R E V E N U E TEAMS BY REGION REVENUE BY REGION 5% 11% 6% Australia Australia 8% APAC APAC 47% 19% EMEA Americas EMEA Americas 34% 70% CATAPULTSPORTS.COM 19
Slide 20: Prosumer Business: Reset Progressing
FY20 RESULTS PROSUMER BUSINESS: RESET PROGRESSING REVENUE (AUD $M) EBITDA (AUD $M) → Prosumer sales impacted by 0 COVID-19 lockdowns around 6 -1 the world (revenue -7.7%) 5 → Prosumer business reset -2 continues + 8 7. 9 % 4 -3 → Reduced cash burn from 3 opex containment and lower -4 marketing spend
Slide 21: Profit & Loss Statement
FY20 RESULTS PROFIT & LOSS STATEMENT → Revenue growth of 6% driven by growth in the FY20 (AUD $M) FY19 (AUD $M) % CHANGE Americas Pro Segment REVENUE 100.7 95.4 6% → Major Q4 selling season was disrupted (capital sales 28% lower than pre-COVID-19 estimate) COGS 26.5 25.8 3% → COGS grew less than rev
Slide 22: Strong Cash Flow Positivity
FY20 RESULTS STRONG CASH FLOW POSITIVITY FREE CASHFLOW FY19 TO FY20 $000s (AUD) 15,000 10,000 4 ,9 2 7 9, 0 1 8 1 ,9 6 8 4,092 5,000 4,837 - 1 7, 0 8 4 - 1,051 13,319 -5,000 -10,000 -15,000 -20,000 FY19 U N D E R LY I N G INVESTING WORKING AASB16 FY20 COVID-19 FY20 CASH EBITDA CASHFLOW C A P I TA L
Slide 23: EBITDA Growth Momentum
FY20 RESULTS EBITDA GROWTH MOMENTUM O P E R AT I N G L E V E R AG E I S P O W E R I N G E B I T DA G R O W T H REVENUE INCREMENT (AUD $M) EBITDA INCREMENT (AUD $M) EBITDA GROWTH YIELD 18.6 16.0 135%* 7. 3 * 6.0 32% 5.4 1.8 11% FY18 FY19 FY20 FY18 FY19 FY20 FY18 FY19 FY20 * E XC L U D E S T H E I M P
Slide 24: EBITDA Growth Drivers
FY20 RESULTS EBITDA GROWTH DRIVERS EBITDA FY19 to FY20 (AUD $000s) 1 ,9 4 2 13,277 3,435 7, 2 2 7 700 1,516 1 ,1 9 2 4,081 FY19 NET SALES VOLUME INVESTMENT LOWER R&D REDUCED OTHER ITEMS AASB16 FY20 I M PAC T IN LABOUR TO C A P I TA L I S AT I O N I N INVESTMENT IN SUPPORT GROWTH PRO SEGMENT CONSUMER
Slide 25: Pro Segment: Strong Subscription Revenue Growth Driving Total Revenue Growth
FY20 RESULTS PRO SEGMENT: STRONG SUBSCRIPTION REVENUE GROWTH DRIVING TOTAL REVENUE GROWTH REVENUE FY19 TO FY20 (AUD $000s) 110,000 3,001 2 ,1 6 0 1,093 100,000 7, 4 2 7 9 5 ,9 0 7 -4,803 9 0 ,1 0 2 -3,073 90,000 80,000 70,000 SUBSCRIPTION REVENUE C A P I TA L R E V E N U E +$13.7M - $ 7. 9 M 60,000
Slide 26: Pro Segment: Performance and Health
FY20 RESULTS PRO SEGMENT: PERFORMANCE AND HEALTH → Total Pro Performance & Health segment revenue up 6% → Strong subscription revenue up 27% reflecting our focus on creating long-term value → Subscription revenue 70% of revenue; capital revenue declined 22% due to expected deferment of sales into FY
Slide 27: Pro Segment: Tactics and Coaching
FY20 RESULTS PRO SEGMENT: TACTICS AND COACHING VIDEO REVENUE FY19 TO FY20 (AUD $M) 25 SaaS high margin → Revenue down 3% to $29.8m, comprising strong subscription 20 growth of 10% to $23.5m and a decline in hardware (non recurring) revenue of 33% due 15 to sales deferred into 1H FY21 Low margin hard
Slide 28: Capital Expenditure Focus on Differentiation of Pro Products
FY20 RESULTS CAPITAL EXPENDITURE FOCUS ON DIFFERENTIATION OF PRO PRODUCTS → Delivered 26 new solutions and A S S E T C AT E G O R Y FY20 (AUD $000s) enhancements to existing products (including Vector, Vision and Openfield) C A P I TA L I S E D D E V E L O P M E N T → Reduced investment in Consumer
Slide 29: Outlook
HY F 1 2F0Y 2R 0 E SRUELSTUSL T S OUTLOOK CATAPULTSPORTS.COM 29
Slide 30: Our Customer Solution-Based Strategy
FY20 RESULTS OUR CUSTOMER SOLUTION-BASED STRATEGY P L AT F O R M SEGMENTS PERFORMANCE & TA C T I C S & PROFESSIONAL MANAGEMENT MEDIA & ENGAGEMENT H E A LT H COACHING SERVICES OPPORTUNITY STRONG POSITION STRONG POSITION OPPORTUNITY OPPORTUNITY PRO AMS WEARABLES VIDEO CONTENT LICENSING OPPORTUNITY OPP
Slide 31: FY21 Outlook
FY20 RESULTS FY21 OUTLOOK → FY21 will be a shorter financial year comprising nine months with Catapult changing to a 31 March year end. The change of year end and switch to a USD currency will better reflect the Company’s underlying successful operating and earnings profile driven by its growth in t
Slide 32: Appendices
HY F 1 2F0Y 2R 0 E SRUELSTUSL T S APPENDICES CATAPULTSPORTS.COM 32 32
Slide 33: Appendix 1: Key Metric Restatements for Change of Year End and USD
FY20 RESULTS APPENDIX 1: KEY METRIC RESTATEMENTS FOR CHANGE OF YEAR END AND USD USD $M MARCH 2020 MARCH 2019 % CHANGE ARR $ 4 7. 5 $42.8 11% ACV $41.5 $38.0 9% ACV CHURN (%) 6.4% 6.5% (1%) L I F E T I M E D U R AT I O N ( Y E A R S ) 6.5 6.2 5% FREE CASH FLOW $2.8 ( $ 9. 0) 131% CATAPULTSPORTS.COM 3
Slide 34: Appendix 2: Profit and Loss Restatements for Change of Year End and USD
FY20 RESULTS APPENDIX 2: PROFIT AND LOSS RESTATEMENTS FOR CHANGE OF YEAR END AND USD HALF YEAR ENDED YEAR ENDED USD $M MAR 2020 SEP 2019 MAR 2019 SEP 2018 MAR 2020 MAR 2019 REVENUE 3 3 .9 38.8 30.6 35.6 72.7 66.2 COGS 9. 0 10.8 7. 7 9. 8 1 9. 8 1 7. 5 GROSS MARGIN 73% 72% 75% 72% 73% 74% VA R I A B
Slide 35: Appendix 3: Balance Sheet Restatements for Change of Year End and USD
FY20 RESULTS APPENDIX 3: BALANCE SHEET RESTATEMENTS FOR CHANGE OF YEAR END AND USD HALF YEAR ENDED USD $M MAR 2020 SEP 2019 MAR 2019 SEP 2018 CASH 1 9. 5 18.2 1 3 .9 24.2 T R A D E & O T H E R R E C E I VA B L E S 13.4 1 7. 3 11.4 12.7 INVENTORY 4 .9 5.8 4.7 3.2 PPE 8 .9 6.2 6.0 6.4 GOODWILL 41.4 41
Slide 36: Appendix 4: Cash Flow Restatements for Change of Year End and USD
FY20 RESULTS APPENDIX 4: CASH FLOW RESTATEMENTS FOR CHANGE OF YEAR END AND USD HALF YEAR ENDED YEAR ENDED USD $M MAR 2020 SEP 2019 MAR 2019 SEP 2018 MAR 2020 MAR 2019 O P E R AT I N G C A S H F L O W RECEIPTS FROM CUSTOMERS 31.3 42.6 28.2 3 9.7 7 3 .9 6 7. 8 P AY M E N T S T O S TA F F A N D S U P P
Slide 37: Appendix 5: Continuing Innovation Is Delivering New Solutions for Customers
FY20 RESULTS APPENDIX 5: CONTINUING INNOVATION IS DELIVERING NEW SOLUTIONS FOR CUSTOMERS → ClearSky received ‘FIFA quality’ → New video exchange platform → Vision can now import or export certification with best-performing engineered for Division 1 college third-party XML files, making wearable tech
Slide 38: investor.relations@catapultsports.com
INVESTOR.REL ATIONS@CATAPULTSPORTS.COM CATA P U LTS P O R TS .CO M 38