Catapult Sports Ltd. · ASX:CAT
Catapult Sports — H1 FY21 Earnings Presentation
37 slides from Catapult Sports's earnings presentation, Feb 24, 2021
Slide 1: H1 FY21 Results
H1 FY21 RESULTS H1 FY21 ACHIEVEMENTS H1 FY21 RESULTS FEBRUARY 24, 2021 Will Lopes Chief Executive Officer Hayden Stockdale Chief Financial Officer CATAPULTSPORTS.COM CATAPULTSPORTS.COM 1
Slide 2: Important Notice
H1 FY21 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 performanc
Slide 3: Delivered Improvements on All Key Metrics Despite COVID
H1 FY21 RESULTS DELIVERED IMPROVEMENTS ON ALL KEY METRICS DESPITE COVID → ACV Growth of 8.3% - our key subscription revenue metric → ACV Churn reduced to 4.5% - the best we’ve seen, despite the severe Covid challenges → Customers with 2 or more solutions grew 19% - highlighting the value of Catapult
Slide 4: Hardest Period Ever in Sports Industry
H1 FY21 RESULTS HARDEST PERIOD EVER IN SPORTS INDUSTRY → Huge challenges for professional sport which reported revenue losses in the tens of billions - most leagues have seen revenue declines of between 10% and 30% → NCAA (US collegiate sports), a major source of Catapult revenue, was particularly i
Slide 5: Our Goal During This Unprecedented Period Was To
H1 FY21 RESULTS OUR GOAL DURING THIS UNPRECEDENTED PERIOD WAS TO → Prioritise high-margin subscription sales over capital → Reflected in lifting ACV, our most important leading indicator of growth, to strengthen our long-term market position (even at the cost of losing revenue in the short-term) → A
Slide 6: Delivered on Our Goals Despite the Difficult Climate
H1 FY21 RESULTS DELIVERED ON OUR GOALS DESPITE THE DIFFICULT CLIMATE → We achieved all of our objectives → ACV is up → Cross-sell is up → Churn is down → Cash was generated, and → Product development pipeline grew → We proved to be essential for teams despite slashed budgets and staff retrenchments
Slide 7: Strong Progress Against All Our Key SaaS Growth Metrics
H1 FY21 RESULTS STRONG PROGRESS AGAINST ALL OUR KEY SAAS GROWTH METRICS → All financials are in USD (not AUD as previously reported) → ACV growth up 8.3% - Amazing achievement during such a challenging period → ACV Churn down to 4.5% - Showing customer loyalty USD ($M) A S AT D E C 2 0 A S AT D E C
Slide 8: Strong Progress Against All Our Key SaaS Efficiency Metrics
H1 FY21 RESULTS STRONG PROGRESS AGAINST ALL OUR KEY SAAS EFFICIENCY METRICS → Lifetime duration up by 1.6% to 6.1 years - We are deeply embedded in customers’ daily workflows → Multi-Solution Customers grew 19.3% - Existing customers seeing value in our solutions → Contribution Margin increased to 5
Slide 9: Financial Highlights
H1 FY21 RESULTS FINANCIAL HIGHLIGHTS → Revenue is slightly down on last year due to the switch away from capital sales and → Delivering a positive free cash flow of $8.8m ($8.4m including the acquisition of a fall in content licencing due to COVID-19 impact. Science for Sport) → Strong subscription
Slide 10: Operational Highlights
H1 FY21 RESULTS OPERATIONAL HIGHLIGHTS SALES WINS E X PA N D I N G P R E PA RAT I O N S SAAS SOLUTIONS TO SCALE → NFL Productions, Bleacher → Record customer usage levels of → “SaaS’ifying” and scaling Report and College Football our cloud-based SaaS solutions continues - reporting new SaaS Playoff
Slide 11: Stayed Customer-Focused Through COVID-19 Challenges
H1 FY21 RESULTS STAYED CUSTOMER-FOCUSED THROUGH COVID-19 CHALLENGES → COVID has proven Catapult’s cloud-based SaaS solutions are an essential service for thousands of professional sport teams → As part of our customers’ critical daily workflows, usage of our SaaS solutions rose to record levels acro
Slide 12: Our Customers Continue to Recognise Catapult's Value
H1 FY21 RESULTS AND OUR CUSTOMERS CONTINUE TO RECOGNISE CATAPULT’S VALUE “We use [Catapult] “Catapult has been “Catapult has become “Catapult means we on all of our players in incredible in assisting such a key part of what have more objective every single practice, our needs for Vision. we do in tr
Slide 13: Some of Our H1 FY21 New Customers Signed During COVID Period
H1 FY21 RESULTS SOME OF OUR H1 FY21 NEW CUSTOMERS SIGNED DURING COVID PERIOD H U N GA R I A N FULHAM CHONGQING HC CZECH NATIONAL SHANGHAI C LU B AT L É T I CO M ACC A B I M I N I S T RY O F S P O R T AC A D E M Y FC L I FA N F C S PA R TA K REPUBLIC FOOTBALL WO M E N ’S PORTEÑO N E TA N YA F C FA DE
Slide 14: Large and Growing Stream of Recurring SaaS Revenue
H1 FY21 RESULTS LARGE AND GROWING STREAM OF RECURRING SAAS REVENUE → Catapult is focused on ACV (USD $M) driving continued growth in recurring revenue and 50 actively switching non- subscription revenue to + 9% CAGR subscription revenue 40 → ACV, our core leading indicator of future recurring revenu
Slide 15: Continued Shift Towards High-Quality SaaS Revenue
H1 FY21 RESULTS CONTINUED SHIFT TOWARDS HIGH-QUALITY SAAS REVENUE S U B S C R I P T I O N R E V E N U E A S A % O F TOTA L R E V E N U E → We are successfully shifting one-time capital sales to long-term higher- margin subscription sales 78% 80% → We are accelerating this 78% 76% shift from 1 Januar
Slide 16: Pro Segment: Performance and Health
H1 FY21 RESULTS PRO SEGMENT: PERFORMANCE AND HEALTH → Strong subscription REVENUE GROWTH % R E V E N U E M I X S T R O N G LY growth 14% SKEWED TO SUBSCRIPTION → Subscription revenue accounts for 73% of total 15 P&H revenue C A P I TA L (up from 70% in H1 FY20) 10 → We are accelerating the 5 shift f
Slide 17: Pro Segment: Tactics and Coaching
H1 FY21 RESULTS PRO SEGMENT: TACTICS AND COACHING TAC T I C S & C OAC H I N G R E V E N U E 1 H F Y 2 0 TO 1 H F Y 2 1 → Subscription revenue was maintained → The only revenue loss was SaaS high margin in low margin hardware 8 capital deals 1H 20 1H 21 6 (USD $M) 4 Low margin hardware 2 COAC H I N G
Slide 18: Customer ACV Retention the Best We've Seen
H1 FY21 RESULTS CUSTOMER ACV RETENTION THE BEST WE’VE SEEN → Churn rate at world class SaaS levels → Low churn provides a strong tailwind for accelerated ACV growth → Reflects strong customer engagement and the embedded nature of Catapult’s SaaS solutions in its customers’ critical daily workflows A
Slide 19: ACV Grows as Customers Lifetime Duration Increases
H1 FY21 RESULTS ACV GROWS AS CUSTOMERS LIFETIME DURATION INCREASES AC V BY C U S TO M E R D U R AT I O N ( U S D $ M ) 20.0 18.0 16.5 1 5 .1 16.2 → We grew ACV across all key 16.0 customer lifetime cohorts 14.0 12.2 1 2 .9 12.7 1 2 .9 1 1 .9 12.6 12.0 → Recent customer cohort 10.0 (under 2 years) in
Slide 20: Successful Cross-Sell Momentum as More Teams Subscribe to Multiple Products
H1 FY21 RESULTS SUCCESSFUL CROSS-SELL MOMENTUM AS MORE TEAMS SUBSCRIBE TO MULTIPLE PRODUCTS → 19% growth in customers with 2 or more solutions since Dec. 2019 CUSTOMERS WITH 2 OR MORE SOLUTIONS % OF CUSTOMERS WITH 2 OR MORE SOLUTIONS 8.0% 50% CAGR 7. 5 % 300 7. 0 % 6.5% 200 6.0% 5.5% 100 5.0% 4.5% 0
Slide 21: Catapult Is Highly Efficient with a Scalable Business Model
H1 FY21 RESULTS CATAPULT IS HIGHLY EFFICIENT WITH A SCALABLE BUSINESS MODEL 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 (%) 80% 70% 60% 60% 50% 50% 40% 40% 30% 30% 20% 20% 10% 10% 0% 0% 1H 19 2H 19 1H 20 2H 20 1H 21 1H 19 2H 19 1H 20 2H 20 1H 21 → Increased i
Slide 22: Solution Development Costs Stable with Scale
H1 FY21 RESULTS SOLUTION DEVELOPMENT COSTS STABLE WITH SCALE Pro $ US M Prosumer 4.0 15.0% 3.5 3.0 12.2% 10.0% 10.0% 10.0% 2.5 9. 4 % 2.0 8.6% 1.5 5.0% 1.0 0.5 0 0.0% 1H 19 2H 19 1H 20 2H 20 1H 21 DEVELOPMENT COST AS A % OF REV (RHS) CATAPULTSPORTS.COM 22
Slide 23: Catapult Has a High Quality Global Customer Base
H1 FY21 RESULTS CATAPULT HAS A HIGH QUALITY GLOBAL CUSTOMER BASE → Delivering high value global customers and recurring revenue → Total customers (teams) grew to 3,158 TEAMS BY REGION H1 FY21 ACV BY REGION H1 FY21 APAC 12% APAC 20% EMEA Americas Americas 23% 46% 65% EMEA 34% CATAPULTSPORTS.COM 23
Slide 24: The Prosumer Business Reset Is Progressing Well
H1 FY21 RESULTS THE PROSUMER BUSINESS RESET IS PROGRESSING WELL → Since 1H19 PROSUMER REVENUE BY EBITDA ($M USD) MARKETING EXPENSE we’ve managed to maintain Prosumer revenue while reducing our REVENUE EBITDA 1.0 Cost to Acquire 1.0 Customers (CAC) 3 more than 90%, 0.8 and eliminating 2 the cash burn
Slide 25: Profit & Loss Statement
H1 FY21 RESULTS PROFIT & LOSS STATEMENT → Revenue was lower with higher one- USD $M H1 FY21 H1 FY20 % (USD $M) (USD $M) CHANGE off M&E revenues in the prior year → COGS was lower due to lower capital REVENUE 33.3 34.7 -4.1% sales and the impact of the Vector COGS 8.2 9.6 -14.7% launch last year GROS
Slide 26: Subscription Revenue Growth by Solution
H1 FY21 RESULTS SUBSCRIPTION REVENUE GROWTH BY SOLUTION → Despite Covid-19, subscription revenue grew strongly in the largest solution, +14% H1 FY20 15 Performance & Health H1 FY21 → Media and Engagement was impacted by a fall 10 0% in content licencing -27% due to COVID-19, and the non-recurrence 5
Slide 27: Pro Segment: Strong P&H Subscription Revenue Growth
H1 FY21 RESULTS PRO SEGMENT: STRONG P&H SUBSCRIPTION REVENUE GROWTH PRO REVENUE 1H 20 TO 1H 21 35,000 1,527 -1,516 34,000 -8 -81 -449 -7 6 3 33,000 32,688 9 31,406 32,000 31,000 30,000 29,000 C A P I TA L R E V E N U E RECURRING SUBSCRIPTION REVENUE +$0.7M O N E T I M E S U B S C R I P T I O N R E V
Slide 28: Strong Free Cash Flow Despite COVID-19 Impact
H1 FY21 RESULTS STRONG FREE CASH FLOW DESPITE COVID-19 IMPACT FREE CASHFLOW FY19 TO FY20 $000s (USD) 10,000 9, 4 3 1 8,822 9,000 8,372 113 -431 8,000 -897 607 -450 7,000 6,000 5,000 4,000 3,000 1H20 FCF CASH EBITDA LOWER INVESTING COVID GOVT AID NET WORKING 1H21 FCF SFS ACQUISITION 1H21 FCF GROWTH C
Slide 29: Underlying EBITDA Flat Despite COVID-19 Impact
H1 FY21 RESULTS UNDERLYING EBITDA FLAT DESPITE COVID-19 IMPACT EBITDA 1H 20 TO 1H 21 ($000) 4,500 4,000 3 ,9 3 9 3,818 3,854 3,500 -85 131 -326 278 2,601 3,000 -432 -1,217 2,500 607 -698 404 2,000 1,500 1,000 500 1H20 EBITDA U N D E R LY I N G 1H20 INCREASE IN ONE OFF M&E INVESTMENT NET SALES VA R I
Slide 30: Capital Expenditure Focus on Differentiation of Pro Solutions
H1 FY21 RESULTS CAPITAL EXPENDITURE FOCUS ON DIFFERENTIATION OF PRO SOLUTIONS → Delivered 24 new A S S E T C AT E G O R Y H1 FY21 solutions and enhancements to C A P I TA L I S E D D E V E L O P M E N T ($M) existing products P E R F O R M A N C E & H E A LT H 1.707 → Investment in Consumer TA C T I
Slide 31: Outlook with Increasing Shift to Subscriptions
H1 FY21 RESULTS OUTLOOK WITH INCREASING SHIFT TO SUBSCRIPTIONS → From 1 January 2021 the majority of P&H deals will be recorded as subscription revenue (not capital revenue) → The P&H technology platform and customer terms and conditions have been modified to enable a significant shift towards subsc
Slide 32: Similarly Strong Results Since COVID Started
H1 FY21 RESULTS SIMILARLY STRONG RESULTS SINCE COVID STARTED USD ($M) DECEMBER H1 H1 % PROFORMA PROFORMA % FY21 FY20 CHANGE 9 MONTHS 9 MONTHS CHANGE TO 31/12/20 TO 31/12/19 ACV 44.5 41.1 8.3% 44.5 41.1 8.3% ACV CHURN % 4.5% 4.6% -2.2% 4.0% 5.2% -23.1% RECURRING REVENUE SUBSCRIPTION REVENUE 26.1 26.5
Slide 33: Appendix 1: Key Metric Restatements for Change of Year End and USD
H1 FY21 RESULTS APPENDIX 1: KEY METRIC RESTATEMENTS FOR CHANGE OF YEAR END AND USD A S AT USD ($M) SEPT MARCH SEPT MARCH 2020 2020 2019 2019 ACV $41.2 $41.5 $38.3 $38.0 ACV CHURN %* 4.8% 6.4% 6.5% 6.5% L I F E T I M E D U R AT I O N ( Y E A R S ) 6.3 6.5 6.1 6.2 M U LT I - S O L U T I O N C U S T O
Slide 34: Appendix 2: Profit and Loss Restatements for Change of Year End and USD
H1 FY21 RESULTS APPENDIX 2: PROFIT AND LOSS RESTATEMENTS FOR CHANGE OF YEAR END AND USD H A L F -Y E A R E N D E D YEAR ENDED USD $M SEP 2020 MAR 2020 SEP 2019 MAR 2019 SEP 2018 MAR 2020 MAR 2019 REVENUE 33.3 3 3 .9 38.8 30.6 35.6 72.7 66.2 COGS 8.2 9. 0 10.8 7. 7 9. 8 1 9. 8 1 7. 5 GROSS MARGIN 75%
Slide 35: Appendix 3: Balance Sheet Restatements for Change of Year End and USD
H1 FY21 RESULTS APPENDIX 3: BALANCE SHEET RESTATEMENTS FOR CHANGE OF YEAR END AND USD A S AT USD $M SEP 2020 MAR 2020 SEP 2019 MAR 2019 SEP 2018 CASH 2 7. 0 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 18.0 13.4 1 7. 3 11.4 12.7 INVENTORY 4.7 4 .9 5.8 4.7 3.2 PPE 8 .1 8 .9 6.2
Slide 36: Appendix 4: Cashflow Restatements for Change of Year End and USD
H1 FY21 RESULTS APPENDIX 4: CASHFLOW RESTATEMENTS FOR CHANGE OF YEAR END AND USD HALF YEAR ENDED YEAR ENDED USD $M SEP 2020 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 3 7. 0 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
Slide 37: Investor.relations@catapultsports.com
INVESTOR.REL ATIONS@CATAPULTSPORTS.COM