Catapult Sports Ltd. · ASX:CAT

Catapult Sports — FY2022 Earnings Presentation

40 slides from Catapult Sports's earnings presentation, May 26, 2022

  1. Slide 1: FY22 Results

    FY22 RESULTS M AY 2 5 , 2 0 2 2 WILL LOPES Chief Executive Officer HAYDEN STOCKDALE Chief Financial Officer

  2. Slide 2: Important Notice

    FY 22 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

  3. Slide 3: Our Vision

    OUR VISION UNLEASH THE POTENTIAL OF EVERY LEAGUE, ATHLETE, AND TEAM ON EARTH 3

  4. Slide 4: Our Mission

    OUR MISSION BUILD THE LEADING DATA & ANALYTICS PLATFORM FOR SPORTS PERFORMANCE 4

  5. Slide 5: Platform Driven by Cutting-Edge Technology

    FY 22 RESULTS PLATFORM DRIVEN BY CUTTING-EDGE TECHNOLOGY SOFTWARE & ANALYTICS VIDEO ANALYSIS (T&C) & + PERFORMANCE WEARABLE ATHLETE MONITORING + MEDIA & SERVICES ATHLETE MANAGEMENT SYSTEM (P&H)  End-to-end platform designed for  Elite wearable solutions that track  Content Licensing efficient ana

  6. Slide 6: We Work with the Very Best Teams and Leagues Globally

    FY 22 RESULTS WE WORK WITH THE VERY BEST TEAM AND LEAGUES GLOBALLY HIGHLIGHTS 3,400+ ELITE TEAMS GLOBALLY 40+ SPORTS GLOBALLY 100+ COUNTRIES 6

  7. Slide 7: Catapult Has Reached a Major Inflection Point

    FY 22 RESULTS CATAPULT HAS REACHED A MAJOR INFLECTION POINT SAAS MOVE COMPLETE LEADERSHIP IN PRO ATHLETE VIDEO INTEGRATION OPENS MONITORING ACCELERATED NEW GROWTH ENGINE  Subscriptions are 92% of total revenues  ACV growth rate climbed from 16% in  Integration of MatchTracker and Vector FY20 to 3

  8. Slide 8: 92% of Revenue Is Now Contracted and Recurring

    FY 22 RESULTS 92% OF REVENUE IS NOW CONTRACTED AND RECURRING  Transition to a recurring revenue model is now complete with 98% of P&H Pro revenue being subscription  The drag on total revenue growth (from the switch to subscription) is now behind us Subscription Revenue % of Total Revenue Subscrip

  9. Slide 9: Full SaaS Shift Has Strongly Grown Customers & Average ACV

    FY 22 RESULTS FULL SAAS SHIFT HAS STRONGLY GROWN CUSTOMERS & AVERAGE ACV  We grew our base of Pro customers that contributes to ACV by 16.3% in FY22  The average ACV / Pro customer has also grown by 4.2% to $24.2k  Churned legacy capital customers along with new customers are being recaptured und

  10. Slide 10: Pro Performance & Health Vertical Growth Accelerating

    FY 22 RESULTS PRO PERFORMANCE & HEALTH VERTICAL GROWTH ACCELERATING  FY22 ACV up 32% YoY  Subscription revenue now aligned with ACV growth Pro P&H Growth Model P&H Pro Growth Rates YoY 35% Attractive Market 20K+ Pro teams 32% 32% 30% Large opportunity remains <10% market penetration 26% 25% 22% Es

  11. Slide 11: Tactics & Coaching Becoming a New Growth Engine

    FY 22 RESULTS A MAJOR CATALYST WITH TACTICS & COACHING BECOMING A NEW GROWTH ENGINE  Leadership in P&H vertical provides the perfect launching pad to grow T&C (i.e., “land and expand”)  Integrated solution offering is unique and poised to achieve success in this market T&C Growth Model T&C YoY ACV

  12. Slide 12: Growth Strategy to Reach $400M+ ACV Starting to Deliver

    FY 22 RESULTS GROWTH STRATEGY TO REACH $400M+ ACV STARTING TO DELIVER Indicative ACV Growth Vectors Catapult has multiple growth vectors which it plans to 500 continue executing on:  Continue to expand Pro P&H into a large and untapped market 400  Integration with Video has finally been delivered,

  13. Slide 13: Company-Wide SaaS Metrics Are Converging Strongly

    FY 22 RESULTS COMPANY-WIDE SAAS METRICS ARE CONVERGING STRONGLY  We delivered 20% ACV growth year-on-year (pro-forma for SBG acquisition) and 23% (to $65.6M) on a constant currency basis  P&H Pro up 32% YoY (CC)  T&C Pro up 6.5% YoY (CC). This excluded the key selling season in EMEA for new integ

  14. Slide 14: Shift to SaaS Is Improving Overall Gross Margin

    FY 22 RESULTS SHIFT TO SAAS IS IMPROVING OVERALL GROSS MARGIN  Gross margin expanded to 74.5% with the increased proportion of subscription revenue  As we increase sales of T&C we anticipate our gross margin to improve  Contribution margin decline in line with planned investment in sales, product

  15. Slide 15: Input SaaS Metrics Starting to Drive Top Line Growth

    FY 22 RESULTS INPUT SAAS METRICS STARTING TO DRIVE TOP LINE GROWTH  Subscription revenue grew 29% (up from 3.3% in FY21), as ACV growth accelerated  Total revenue growth accelerated to 14.4% (up from a -7.4% decrease in FY21) as the proportion of high growth subscription revenue continued to offse

  16. Slide 16: Input Metric ACV Is Driving Lagging Metric of Subscription Revenue

    FY 22 RESULTS INPUT METRIC ACV IS DRIVING LAGGING METRIC OF SUBSCRIPTION REVENUE  ACV is the leading indicator to Subscription Revenue growth, the lagging metric YoY ACV Growth Rate P&H Subscription Revenue v ACV 25% 45.0 23% 40.4 40.0 20% 34.6 35.0 29.4 15% 30.0 15% 25.9 25.0 22.4 23.5 11% 20.0 10

  17. Slide 17: Subscription Revenue Is More Than Replacing Capital Revenue

    FY 22 RESULTS SUBSCRIPTION REVENUE IS MORE THAN REPLACING CAPITAL REVENUE Subscription vs Capital Revenue by Half  Subscription revenue grew 29% and is now (US$M) 45.0 outstripping the deliberate contraction of capital revenue 40.0 3.1  Subscription revenue in H2FY22 is already 35.0 5.2 higher tha

  18. Slide 18: Where Is ACV Growth Coming From?

    WHERE IS ACV GROWTH COMING FROM? • CATAPULTSPORTS.COM 18

  19. Slide 19: P&H Pro Is Our Land Strategy for Growth

    FY 22 RESULTS P&H PRO IS OUR LAND STRATEGY FOR GROWTH ACV by Vertical (US$M) 70.0  Total ACV growth for the company was 20% (pro-forma) 65.6 2.4  23% (to $65.6M) on a constant currency basis 2.9 60.0 53.4 0.6 50.0 3.0 46.7 22.3  Total Pro Segment grew 16.6%, or 19.6% on a constant currency 0.7 3.

  20. Slide 20: P&H Pro Grew 32% Globally with Americas Up 51%

    FY 22 RESULTS P&H PRO GREW 32% GLOBALLY WITH AMERICAS UP 51%  Strong global growth of 27% (32% CC)  The Americas delivered impressive growth of 51%, with new customers and upsell of major NCAA customers  In APAC, there was ACV upsell from major customers in the region.  EMEA growth lagged, impac

  21. Slide 21: T&C Potential to Become a Second Major Growth Engine

    FY 22 RESULTS T&C POTENTIAL TO BECOME A SECOND MAJOR GROWTH ENGINE  APAC was the only region to benefit from integrated solution in late FY22 and delivered 29.6% growth in ACV  Exciting momentum was seen in other regions before their key selling seasons:  Marquee new deals (e.g., NASCAR, eSports,

  22. Slide 22: X-Selling Becoming a Key Capability Bodes Well for T&C Growth

    FY 22 RESULTS X-SELLING BECOMING A KEY CAPABILITY BODES WELL FOR T&C GROWTH  Strong acceleration in cross sell, growing 27% over 12 months.  Growth in multi-vertical customers was 50% when normalizing for run-off products (e.g., Vision)  24% of new multi-vertical customers were completely new cus

  23. Slide 23: Succeeding in Expanding ACV as We Integrate Solutions

    FY 22 RESULTS AND WE ARE SUCCEEDING IN EXPANDING ACV AS WE INTEGRATE SOLUTIONS  Average ACV/Pro Customer grew 4.2% to $24.2k  28% of organic growth was movement in new customers, while an impressive 71% was net up and cross sell to current customers with an LTD of greater than 2 years ACV By Custo

  24. Slide 24: Positive Indicators Expanding to Mass Market – ACV Up 303%

    FY 22 RESULTS POSITIVE INDICATORS EXPANDING TO MASS MARKET – ACV UP 303%  Catapult One soft launched in late H1 FY22 as a subscription-only offering for prosumer teams and consumers (replacing PLAYR and PlayerTek)  ACV, the leading indicator for future subscription revenue growth, was up 303% YoY

  25. Slide 25: Our Products Are Very Sticky - ACV Retention Now at 3.4%

    FY 22 RESULTS OUR PRODUCTS ARE VERY STICKY - ACV RETENTION IS NOW AT 3.4% Annual ACV Churn % 7.0%  Annual ACV Churn improved 38%, and is now at another new all-time low 6.0%  Excluding customers lost to run-off products, ACV Churn was 5.0% even lower at 2.7%  For our North American customers ACV

  26. Slide 26: Our Solutions Generate Long Term Cash

    FY 22 RESULTS OUR SOLUTIONS GENERATE LONG TERM CASH  Gross margin expansion achieved with increased proportion of subscription revenue  Contribution margin lower in FY22 and consistent with additional investment to continue to accelerate ACV growth Gross Margin % Contribution Margin % 80.0% 60% 70

  27. Slide 27: FY22 Key Highlights

    FY 22 RESULTS FY22 KEY HIGHLIGHTS  MAJOR MULTI-YEAR DEALS:  INNOVATION  German Football Association (DFB-Akademie)  Integration of video analysis with wearables provide elite  The National Rugby League (NRL) organizations with an all-in-one video and data analysis  Football Association of Wale

  28. Slide 28: Profit & Loss Statement

    FY 22 RESULTS PROFIT & LOSS STATEMENT USD $M FY22 FY21 Change % Change  Total revenue increased 14.4% YoY with growth in REVENUE 77.0 67.3 9.7 14.4% subscription outpacing the decline in capital revenue COGS 19.6 17.6 2.0 11.4%  COGS grew slower than revenue at 11.4% due to revenue GROSS PROFIT 57

  29. Slide 29: Pro Segment Revenue: Strong P&H Subscription Revenue Growth

    FY 22 RESULTS PRO SEGMENT REVENUE: STRONG P&H SUBSCRIPTION REVENUE GROWTH FY21 to FY22 Pro Revenue (USD $'000) 80,000 - 78,000 1,986 - 346 234 - - 76,000 6,529 103 4,785 - - 74,000 2,213 72,000 - - 70,000 68,000 7,829 Switch from Capital to SaaS 74,559 66,000 sales model now complete 64,000 62,000 6

  30. Slide 30: EBITDA Impact: Accelerated Investment & Normalisation of Covid

    FY 22 RESULTS EBITDA IMPACT: ACCELERATED INVESTMENT & NORMALISATION OF COVID Change relative to revenue Important Note: The financial information denoted as “FY21” in this slide is pro forma, has not been independently audited or reviewed, and does not form part of Catapult’s FY22 financial results.

  31. Slide 31: Free Cashflow Reflects Accelerated Investment Strategy

    FY 22 RESULTS FREE CASHFLOW REFLECTS ACCELERATED INVESTMENT STRATEGY Accelerated Growth investment strategy Operating Cash Flows Inventory Related Investing Investing Cash Flows -$11.5M Cash Flows -$6.5M -$4.8M Important Note: The financial information denoted as “FY21” in this slide is pro forma, h

  32. Slide 32: Capex Table

    FY 22 RESULTS CAPEX TABLE  The commencement of the Accelerated Growth investment strategy resulted in an increase in capitalised software development costs across verticals  The transition to a SaaS sales model has resulted in an increase to capitalised COGS as these expenses are recognised in lin

  33. Slide 33: Accelerated Growth Investment Is Fully Funded

    FY 22 RESULTS ACCELERATED GROWTH INVESTMENT IS FULLY FUNDED  Catapult is approximately half way through our Accelerated Growth investment program  All investment is guided by the Rule of 40  Investments made in projects with a range of return horizons  Technology initiatives: with returns commen

  34. Slide 34: Recap - Catapult Has Reached a Major Inflection Point

    FY 22 RESULTS RECAP - CATAPULT HAS REACHED A MAJOR INFLECTION POINT SAAS MOVE COMPLETE LEADERSHIP IN PRO ATHLETE VIDEO INTEGRATION OPENS MONITORING ACCELERATED NEW GROWTH ENGINE  Subscriptions are 92% of total revenues  ACV growth rate climbed from 16% in  Integration of MatchTracker and Vector F

  35. Slide 35: Outlook

    FY 22 RESULTS OUTLOOK  We are confident that our ACV growth will be strong in the short to medium term and expect ACV growth between 20%-25% in FY23 with ACV Churn in the range of 4.5% to 6.0%.  We are confident in our ability to generate strong operating cash flow in the short to long term. We ex

  36. Slide 36: Appendices – Pro Forma Financial Information

    FY 22 RESULTS APPENDICES – PRO FORMA FINANCIAL INFORMATION IMPORTANT NOTICE REGARDING PRO FORMA FINANCIAL INFORMATION Catapult changed its financial year end from June 30 to March 31, with a nine-month transitionary FY21 consisting of an interim period ended December 31, 2020 and a final period ende

  37. Slide 37: Appendix – Balance Sheet (Unaudited)

    FY 22 RESULTS APPENDIX – BALANCE SHEET (UNAUDITED) AS AT MARCH 31 (US$M) 2022 2021 CASH 26.108 22.171 TRADE AND OTHER RECEIVABLES 18.230 13.634 INVENTORY 2.990 3.884 PPE 15.606 9.437 GOODWILL 51.806 41.994 OTHER INTANGIBLE ASSETS 48.338 23.183 DEFERRED TAX ASSETS 10.421 7.503 OTHER ASSETS - 0.001 TO

  38. Slide 38: Appendix – Profit & Loss (Unaudited)

    FY 22 RESULTS APPENDIX – PROFIT & LOSS (UNAUDITED) FOR THE 12 MONTHS ENDED MARCH 31 (US$M) 2022 2021 REVENUE 77.013 67.340 OTHER INCOME 1.761 1.006 COST OF GOODS SOLD (19.607) (17.635) EMPLOYEE BENEFITS EXPENSE (41.342) (31.299) EMPLOYEE SHARE-BASED PAYMENT EXPENSE * (13.592) (2.674) CAPITAL RAISING

  39. Slide 39: Appendix – Cash Flow (Unaudited)

    FY 22 RESULTS APPENDIX – CASH FLOW (UNAUDITED) FOR THE 12 MONTHS ENDED MARCH 31 (US$M) 2022 2021 OPERATING CASH FLOW RECEIPTS FROM CUSTOMERS 84.539 72.501 PAYMENTS TO STAFF AND SUPPLIERS (81.936) (60.020) OTHER OPERATING CASH FLOW 0.070 1.735 NET CASH FLOW FROM OPERATING ACTIVITIES 2.673 14.216 INVE

  40. Slide 40: Unleash Potential

    UNLEASH POTENTIAL • CATAPULTSPORTS.COM

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