Catapult Sports Ltd. · ASX:CAT
Catapult Sports — FY2024 Earnings Presentation
43 slides from Catapult Sports's earnings presentation, May 30, 2024
Slide 1: FY24 Results
FY24 RESULTS MAY 30, 2024 WILL LOPES Chief Executive Officer & Managing Director BOB CRUICKSHANK Chief Financial Officer
Slide 2: Important Notice
IMPORTANT NOTICE Forward-looking statements 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
Slide 3: We Are the Standard for Professional Sports
WE ARE THE STANDARD FOR PROFESSIONAL SPORTS 40+ SPORTS 100+ COUNTRIES 4,200+ TEAMS GLOBALLY 3
Slide 4: Unleash the Potential of Every Team and Athlete on Earth
OUR VISION UNLEASH THE POTENTIAL OF EVERY TEAM AND ATHLETE ON EARTH 4
Slide 5: Will Lopes: Overview
WILL LOPES CHIEF EXECUTIVE OFFICER & MANAGING DIRECTOR OVERVIEW FINANCIAL REVIEW STRATEGY & OUTLOOK Q&A 5
Slide 6: FY24 Was a Year of Strong Profitable Growth
FY24 WAS A YEAR OF STRONG PROFITABLE GROWTH ACV REVENUE FREE CASH FLOW $86.8M (A$132M) $100.0M (A$152M) $4.6M (A$7M) ↑ 20% YoY (CC) ↑ 20% YoY (CC ) ↑ $26.2M YoY Important Note: ACV and ACV YoY Growth (CC, constant currency) financial information in this slide has not been independently audited or re
Slide 7: Driven by an Incredibly Healthy SaaS Growth Engine
DRIVEN BY AN INCREDIBLY HEALTHY SAAS GROWTH ENGINE ACV RETENTION ACV PER PRO TEAM MULTI VERTICAL PRO TEAMS 96.5% ↑7.2% ↑32% Important Note: ACV Retention and ACV per Pro Team financial information in this slide has not been independently audited or reviewed, and does not form part of Catapult’s FY24
Slide 8: Operational Leverage Accelerating Profit Margin
AND WITH OUR OPERATIONAL LEVERAGE IS ACCELERATING OUR PROFIT MARGIN GROSS MARGIN CONTRIBUTION MARGIN MANAGEMENT EBITDA 81% 46% $4.2M ↑ from 76% YoY ↑ from 34% YoY ↑ from –$14.2M YoY Important Note: Gross Margin, Contribution Margin and Management EBITDA financial information in this slide has not be
Slide 9: Positioning Us as a World Class Vertical SaaS Leader in Sports
POSITIONING US AS A WORLD CLASS VERTICAL SAAS LEADER IN SPORTS Exiting our investment phase in 1H23, our focus on Rule of 40* has significantly improved Free Cash Flow Rule of 40 Free Cash Flow ($USD) 30% $6M 26% 25% $4M $3.2M 20% $2M $1.4M 20% 17% $0M 1H23 2H23 1H24 2H24 15% -$2M 10% -$4M 5% -$6M -
Slide 10: Innovating on Behalf of Our Customers
ALL WHILE INNOVATING ON BEHALF OF OUR CUSTOMERS VECTOR AI NEXT CORE FOR F1 GEN VEST Athlete Monitoring system AI solution to help F1 manage Latest generation of vest solution that is designed to track limit violations, with w/ integrated heart rate extend usage beyond the First race reviews now comp
Slide 11: Bob Cruickshank: Financial Review
BOB CRUICKSHANK CHIEF FINANCIAL OFFICER OVERVIEW FINANCIAL REVIEW STRATEGY & OUTLOOK Q&A 11
Slide 12: Strong Results Across All SaaS Key Performance Indicators
STRONG RESULTS ACROSS ALL SAAS KEY PERFORMANCE INDICATORS FY24 FY23 % CHANGE § Strong ACV growth while improving contribution margin OPENING ACV (US$M) 73.4 63.9 § Cross selling accelerated, as more NET INCREMENTAL ACV 14.4 12.9 11.7% customers access Catapult’s New Video FX IMPACT -1.1 -3.4 nm Solu
Slide 13: Both Key Verticals Now Drivers of SaaS Growth
BOTH KEY VERTICALS NOW DRIVERS OF SAAS GROWTH Total ACV (US$M) § ACV, our leading indicator of future SaaS revenue, 100 grew 20% YoY (CC), impacted -US$1.1M by foreign currency movements 86.8 R (CC) CA G 2.4 § Growth was driven by P&H vertical and the expansion 20% 80 of New Video Solutions within T
Slide 14: New Video Solutions Accelerating T&C Growth
NEW VIDEO SOLUTIONS ACCELERATING T&C GROWTH Performance & Health ACV (US$M) Tactics & Coaching ACV (US$M) 60 30 27.7 (CC) R CAG 50 26% 25 23.9 ) C (C 9.3 22.0 % 44 40 6.4 20 5.3 30 15 56.7 47.0 20 39.0 10 17.6 18.4 16.7 10 5 FY22 FY23 FY24 FY22 FY23 FY24 Legacy Video Solutions New Video Solutions Gr
Slide 15: ACV per Team Expanding with Cross Selling Accelerating
ACV PER TEAM EXPANDING W/ CROSS SELLING ACCELERATING Average Pro Team ACV (US$K) Multi Vertical Pro Teams 25 500 483 33 24 400 366 ) C (C 321 62 48 % 23 .2% 300 7 68 450 22 24.1 200 22.8 304 253 21 22.0 100 20 FY22 FY23 FY24 FY22 FY23 FY24 Run Off Products Important Note: “Run Off Products” are prod
Slide 16: Strong Value Proposition Driven by Best-in-Class Retention
STRONG VALUE PROPOSITION DRIVEN BY BEST-IN-CLASS RETENTION ACV Churn% 5% § Catapult’s embeddedness and value proposition in 4% team workflows continue to drive record level ACV retention rates above 96% § ACV Churn well below best-in-class SaaS targets 3% 2% 3.8% 3.4% 3.5% 1% FY22 FY23 FY24 Importan
Slide 17: Revenue from SaaS Accelerating Total Revenue Growth
REVENUE FROM SAAS IS NOW ACCELERATING TOTAL REVENUE GROWTH Revenue Categories (US$M) 120 100.0 100 84.4 SaaS 24% 80 77.0 YoY Revenue Growth (CC) 60 81.9 Recurring Revenue 67.4 92% 58.3 Recurring 40 Revenue 20 10.3 10.3 10.4 8.4 6.7 7.7 FY22 FY23 FY24 Capital Other Recurring SaaS Important Note: SaaS
Slide 18: Driving Better Than Expected Free Cash Flow Growth
…AND DRIVING BETTER THAN EXPECTED FREE CASH FLOW GROWTH FY23 v FY24 Free Cash Flow (US$M) 10 9.6 5 (0.3) 4.6 (1.8) § Free Cash Flow improved by US$26.2M YoY, driven by revenue 0 growth and improved efficiencies 18.6 (5) (10) (15) (20) (21.6) (25) Increased Receipts Other Operating FY24 from Customer
Slide 19: Cost of Growth Declined Dramatically as % of Revenue
COST OF GROWTH DECLINED DRAMATICALLY AS A % OF REVENUE Variable Costs as a % of Revenue 70% 66% 66% § Variable costs associated with growing revenue reduced dramatically- led by improved 60% efficiencies in sales and marketing 54% 27% 27% 50% § Cost to grow revenue lowered by 12pp in one 45% year an
Slide 20: Fixed Cost as % of Revenue Continues to Drop with Scale
AND FIXED COST AS % OF REVENUE CONTINUES TO DROP W/ SCALE Fixed Costs (inclusive of CAPEX) as a % of Revenue 60% 54% § Fixed costs not associated with driving growth 52% continues to improve as the business scales 50% § Absolute expenses decreased 4% YoY 42% (US$1.9M), down to US$41.9M and, along wi
Slide 21: Key Inflection Point Towards Accelerating Profit Margin
HIGHLIGHTING KEY INFLECTION POINT TOWARDS ACCELERATING PROFIT MARGIN Revenue vs. OPEX1 and Profit Margin as a % of Revenue 140.0 140% 120.0 118% 117% 120% § Critical inflection point towards profitability crossed 100.0 100.0 100% § OPEX (Variable + Fixed costs) as a % of revenue 84.4 96% is now belo
Slide 22: Profit & Loss Summary
PROFIT & LOSS SUMMARY FOR THE 12 MONTHS ENDED MARCH 31 FY24 FY23 Change % Change (US$M) REVENUE 100.0 84.4 15.6 18.5% COGS 18.9 20.5 -1.7 -8.2% § Management EBITDA, our measure of profitability, GROSS PROFIT 81.1 63.8 17.3 27.1% which is inclusive of capitalized development, improved by $18.4M, driv
Slide 23: Will Lopes: Strategy & Outlook
WILL LOPES CHIEF EXECUTIVE OFFICER & MANAGING DIRECTOR OVERVIEW FINANCIAL REVIEW STRATEGY & OUTLOOK Q&A 23
Slide 24: Substantial Market for Catapult
SUBSTANTIAL MARKET FOR CATAPULT PRO SPORTS TECHNOLOGY ADJACENT MARKETS US$40.2B 20K Elite Teams High School & Youth Sport Teams Major Sporting Leagues Men & Women First Responders Feeder Divisions NCAA Athletics Pro Team Academies Military US$17.9B National Teams 2021 Olympic Teams Medical market si
Slide 25: Strong Value Proposition
STRONG VALUE PROPOSITION HELP TEAMS MAKE BETTER DECISIONS THROUGH A COMPREHENSIVE ALL-IN-ONE TECHNOLOGY SAVE TIME DISCOVER INSIGHTS Help teams make better use of Contextualize data to increase time with improved workflows access to meaningful insights 25
Slide 26: Differentiated Technology Purpose-Built for Sports
DIFFERENTIATED TECHNOLOGY THAT IS PURPOSE-BUILT FOR SPORTS PERFORMANCE & HEALTH TACTICS & COACHING MEDIA & OTHERS ATHLETE MONITORING PRO VIDEO SUITE (NEW VIDEO SOLUTION) MEDIA SERVICES • Vector Pro (LPS/GPS) • MatchTracker • Content Licensing • Vector Core (GPS) • Focus • Asset Management • Catapult
Slide 27: Focused Go-to-Market Approach
FOCUSED GO-TO-MARKET APPROACH MID-TERM TARGET MARKET OPPORTUNITY LAND 5K PRO TEAMS • Uniquely differentiated in P&H (Wearables) • Largest player in market & 5x nearest competitor EXPAND 50% MULTI-VERTICAL • Cross sell integrated solutions • Attractive economics in T&C RETAIN 95% RETENTION RATE • Pro
Slide 28: Our Approach Is Working as We Welcome Global Icons
AND OUR APPROACH IS WORKING AS WE CONTINUE TO WELCOME GLOBAL ICONS 28
Slide 29: Designed for Profitable Growth at Scale
DESIGNED FOR PROFITABLE GROWTH AT SCALE LONG-TERM METRIC KEY ITEMS TARGET Revenue 100% § Focus on SaaS creates predictable revenue w/ ACV being the leading indicator • Wearables Inventory • Video Hardware COGS 20% Data & Hosting Variable Cost • • License Royalty • Support Delivery • Customer Success
Slide 30: Our Strategy Is Delivering on Our Promise
AND OUR STRATEGY IS DELIVERING ON OUR PROMISE US$M 2H FY23 FY24 Incremental § Exiting our growth investment phase in FY23, our (Annualized) target was to generate about 30% of incremental profit margin for every additional US$1 of revenue Revenue 85.6 100.0 14.4 Variable Costs § In FY24 we exceeded
Slide 31: FY25 Outlook
FY25 OUTLOOK Our objective is to deliver on our strategic priorities with a focus on profitable growth. In FY25, we expect: • ACV growth to remain strong with low churn • Continued improvement in cost margins towards long-term targets • Higher Free Cash Flow as our business scales Important Note: Th
Slide 32: Today's Key Take-Aways
TODAY’S KEY TAKE-AWAYS STRONG & PROFITABLE GROWTH YEAR CROSSED A KEY INFLECTION POINT DELIVERING ON EXPECTATIONS 32
Slide 33: Uniquely Positioned for a Global Opportunity
UNIQUELY POSITIONED FOR A GLOBAL OPPORTUNITY SIGNIFICANT GLOBAL PROVEN MARKET OPPORTUNITY LEADERSHIP POSITION BUSINESS MODEL US$40bn+ Market (2026) SaaS revenue is 5x the Scalable, subscription opportunity in delivering nearest P&H competitor business model driving industry leading solutions for glo
Slide 34: Q&A
Q&A 34
Slide 35: Appendix
APPENDIX 35
Slide 36: Appendix – Balance Sheet
APPENDIX – BALANCE SHEET FOR THE 12 MONTHS ENDED MARCH 31 (US$M) FY24 FY23 CASH 11.59 16.23 TRADE AND OTHER RECEIVABLES 16.62 16.61 INVENTORY 0.99 2.24 PPE 27.84 21.21 GOODWILL 51.31 51.37 OTHER INTANGIBLE ASSETS 49.00 48.76 DEFERRED TAX ASSETS 7.39 6.62 TOTAL ASSETS 164.74 163.05 TRADE AND OTHER PA
Slide 37: Appendix – Profit & Loss
APPENDIX – PROFIT & LOSS FOR THE 12 MONTHS ENDED MARCH 31 (US$M) FY24 FY23 REVENUE 100.00 84.36 OTHER INCOME 0.28 1.19 COST OF GOODS SOLD (18.86) (20.53) EMPLOYEE BENEFITS EXPENSE (44.51) (44.17) EMPLOYEE SHARE-BASED PAYMENT EXPENSE * (9.71) (12.10) CAPITAL RAISING AND LISTING EXPENSES (0.11) (0.12)
Slide 38: Appendix – Cash Flow
APPENDIX – CASH FLOW FOR THE 12 MONTHS ENDED MARCH 31 (US$M) FY24 FY23 OPERATING CASH FLOW RECEIPTS FROM CUSTOMERS 110.42 91.79 PAYMENTS TO STAFF AND SUPPLIERS (78.93) (88.58) OTHER OPERATING CASH FLOW 0.22 0.53 NET CASH FLOW FROM OPERATING ACTIVITIES 31.70 3.73 INVESTING CASH FLOW ACQUISITION OF SU
Slide 39: Appendix – Segment Note P&L
APPENDIX – SEGMENT NOTE P&L FOR THE 12 MONTHS ENDED MARCH 31 (US$'000) FY24 FY23 OPERATING SEGMENT - PERFORMANCE & HEALTH REVENUE - EXTERNAL CUSTOMERS 54,679 42,646 EBITDA 6,739 (6,522) OPERATING PROFIT (LOSS) (5,483) (15,147) OPERATING SEGMENT - TACTICS & COACHING REVENUE - EXTERNAL CUSTOMERS 31,75
Slide 40: Capex Table
CAPEX TABLE Capitalized Development (US$M) 20.0 19.2% 20.0% 18.0 17.3% 18.0% 16.3% FOR THE 12 MONTHS ENDED MARCH 31 (US$M) FY24 FY23 Change % Change 16.0 16.0% 14.0 14.0% CAPITALIZED DEVELOPMENT 16.3 16.2 0.1 0.4% 12.0 12.0% PERFORMANCE & HEALTH 7.1 8.4 (1.3) -15.3% 10.0 10.0% TACTICS & COACHING 8.8
Slide 41: An Established Track Record of Strong and Consistent Growth
AN ESTABLISHED TRACK RECORD OF STRONG AND CONSISTENT GROWTH FY20** FY21** 1H22 2H22 FY22 1H23 2H23 FY23 1H24 2H24 FY24 ACV (US$M) 45.5 53.4 58.8 63.9 63.9 66.2 73.4 73.4 79.7 86.7 86.7 ACV ACV GROWTH (CC)* 11.2% 14.1% 20.3% 21.7% 23.1% 19.1% 19.5% 20.2% 20.0% 17.8% 19.7% ACV CHURN 6.4% 5.5% 4.1% 3.4
Slide 42: Glossary of Terms
GLOSSARY OF TERMS TERM DEFINITION ACV or Annualized Contract Value the annualized value of all active subscription contracts in effect using an average exchange rate to US$ over a 1-month period ending on the ACV Effective Calculation Date ACV Churn the reduction in ACV from the loss of customers ov
Slide 43: Unleash Potential
€ CATAPULT UNLEASH POTENTIAL