Catapult Sports Ltd. · ASX:CAT

Catapult Sports — H1 FY2023 Earnings Presentation

40 slides from Catapult Sports's earnings presentation, Nov 16, 2022

  1. Slide 1: 1H FY23 Results

    1H FY23 RESULTS NOVEMBER 16, 2 02 2 WILL LOPES Chief Executive Officer HAYDEN STOCKDALE Chief Financial Officer

  2. Slide 2: Important Notice

    1H FY23 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

  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

    1H FY23 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 a

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

    1H FY23 RESULTS WE WORK WITH THE VERY BEST TEAMS AND LEAGUES GLOBALLY HIGHLIGHTS 3,650+ ELITE TEAMS GLOBALLY 40+ SPORTS GLOBALLY 100+ COUNTRIES 6

  7. Slide 7: Half Year Highlights

    1H FY23 RESULTS HALF YEAR HIGHLIGHTS IMPROVED REVENUE QUALITY LEADING KPIS EXPANDING RETURN TO GENERATING CASH  Record revenue half-year of  ACV growth of 21% YoY (CC) in 1H  Resized and reprioritized business US$41.6M (A$59.6M) FY23, reaching US$70M (A$108M) to be FCF positive in FY24  Subscrip

  8. Slide 8: Record Revenue Half Despite FX Pressures

    1H FY23 RESULTS RECORD REVENUE HALF DESPITE FX PRESSURES  First ever half-year revenue exceeds US$40M  Revenue grew 16% YoY to US$43.3M (CC), or 11% on non-CC  P&H subscription revenue grew 28% YoY (CC) and total revenue grew 22% YoY (CC) Total Revenue by Half (US$M) P&H Revenue by Half (US$M) 45

  9. Slide 9: ACV Growth Remains Consistently Strong

    1H FY23 RESULTS ACV GROWTH REMAINS CONSISTENTLY STRONG ACV (US$M) 80.0  ACV grew 21% YoY (CC) in 1H FY23, reaching US$70M (A$108M) 70.0  ACV has grown at a 25% CAGR over the last two years 60.0 50.0 40.0 70.0 30.0 63.9 57.6 51.9 45.0 20.0 10.0 - 1H FY21 2H FY21 1H FY22 2H FY22 1H FY23 Note: ACV is

  10. Slide 10: Future Growth in Subscription Revenues Is Well Supported

    1H FY23 RESULTS FUTURE GROWTH IN SUBSCRIPTION REVENUES IS WELL SUPPORTED  Future Revenue Under Contract (FRUC) grew 27.7%  Outpaced ACV growth, providing strong future support to Catapult's subscription revenue base  In the last 12 months ACV has grown US$12.4M (CC), while FRUC has grown US$23.6M

  11. Slide 11: ACV Churn Remains at All-Time Lows

    1H FY23 RESULTS ACV CHURN REMAINS AT ALL-TIME LOWS 12 Month Rolling ACV Churn % 7.0%  Annual ACV Churn improved 3% YoY, and remains at all-time lows following our busiest renewal period 6.0%  For our North American customers ACV Churn was even lower at 2.4% 5.0%  Reflects strongly on Catapult’s c

  12. Slide 12: Recent Product Integration Driving X-Selling Success

    1H FY23 RESULTS RECENT PRODUCT INTEGRATION DRIVING X-SELLING SUCCESS  Multi-vertical customer numbers grew 33% YoY (excluding run-off products)  87% of cross-sold customers took a video product, emphasizing the expanding strength of the integrated solution strategy  66% of cross-selling was due t

  13. Slide 13: Customer ACV Expanded Across All Customer Cohorts

    1H FY23 RESULTS CUSTOMER ACV EXPANDED ACROSS ALL CUSTOMER COHORTS  Customer ACV growth driven by upsell during renewals and cross-sell of new products  Average ACV/Pro Customer grew 18% YoY (CC) to $23.5k ACV By Customer Duration (US$M) 30.0 27.7 25.2 25.0 21.0 21.3 20.0 16.5 17.1 16.0 15.0 13.5 1

  14. Slide 14: Lowering Cash Burn to Return to Positive Free Cash in FY24

    1H FY23 RESULTS LOWERING CASH BURN TO RETURN TO POSITIVE FREE CASH IN FY24 Costs as % of Revenue R&D Costs S&M Costs G&A Costs 60%  In September 2022 we announced a reprioritization 50% of our accelerated investment program to concentrate on key product verticals which continue 40% to be our core g

  15. Slide 15: Margins Poised to Increase in FY24

    1H FY23 RESULTS MARGINS POISED TO INCREASE IN FY24  Gross margins were temporarily impacted by increases in shipping costs and inventory, which are now improving as the supply chain normalizes  US$1.1M, or 2.6%, is attributable to these supply chain pressures  The contraction in contribution marg

  16. Slide 16: Fully Funded with Strong Balance Sheet

    1H FY23 RESULTS FULLY FUNDED WITH STRONG BALANCE SHEET  Closing cash of US$15.6M for 1H FY23m (US$17.3M adjusted for FX movements)  The strengthening of our revenue quality and predictive nature has dramatically improved our credit and access to debt financing  Despite the macro credit market con

  17. Slide 17: Company-Wide SaaS Metrics Are Strong and Consistent

    1H FY23 RESULTS COMPANY-WIDE SAAS METRICS ARE STRONG AND CONSISTENT  We delivered 21% ACV growth year-on-year to US$70.0M on a constant currency basis (13% excluding constant currency adjustments).  P&H Pro up 26% YoY (CC)  T&C Pro up 8.5% YoY (CC)  Prosumer ACV up 559% YoY (CC)  Average custom

  18. Slide 18: Improved Margins Expected Following Temporary Impacts

    1H FY23 RESULTS IMPROVED MARGINS EXPECTED FOLLOWING TEMPORARY IMPACTS  Consistently high gross margins in the mid-70s impacted by supply chain pressures in early 1H FY23 and revenue mix  The contraction in contribution margin is consistent with the planned Accelerated Growth investment program  T

  19. Slide 19: Subscription Revenue Grew 20% YoY (CC)

    1H FY23 RESULTS SUBSCRIPTION REVENUE GREW 20% YOY (CC)  High-quality revenue growth driven by increase in multi-year subscription deals.  Subscription revenue grew 19.5% YoY (14.5% non-CC basis). Excluding the media business, subscription revenue growth was 24% YoY (CC), in-line with the higher AC

  20. Slide 20: Pro Segment

    PRO SEGMENT • CATAPULTSPORTS.COM 20

  21. Slide 21: Pro Segment ACV Up 18% YoY

    1H FY23 RESULTS PRO SEGMENT ACV UP 18% YOY Pro ACV by Vertical YoY (US$M) 80.0  Total Pro Segment grew 18% YoY (CC) 70.0 67.6 2.5  P&H Pro up 26% YoY (CC) 60.0 57.3  T&C up 8.5% YoY (CC) 2.7 23.3 50.0 45.0  ACV in Management is down slightly as we continue to focus on 2.8 21.4 P&H and T&C and wi

  22. Slide 22: Pro P&H Grew 26% YoY Globally with Americas Up 32% YoY

    1H FY23 RESULTS PRO P&H GREW 26% YOY GLOBALLY WITH AMERICAS UP 32% YOY  Strong global ACV growth of 26% YoY (CC)  Americas delivered an impressive 32% YoY (CC) growth  EMEA growth lagged slightly as we revamped the sales team Pro P&H Annualized ACV Growth by Region Pro P&H ACV (US$M) 30.0% 45.0 4

  23. Slide 23: 99% of Pro P&H Revenue Is Now Contracted and Recurring

    1H FY23 RESULTS 99% OF PRO P&H REVENUE IS NOW CONTRACTED AND RECURRING  Transition to a recurring revenue model complete with 99% of Pro P&H revenue being subscription  The drag on revenue growth (from the switch to subscription) is behind us  Our best 1st half subscription revenue result Subscri

  24. Slide 24: T&C Growth Rate Expanding

    1H FY23 RESULTS T&C GROWTH RATE EXPANDING  T&C growth rates expanding with 11% annualized ACV growth (up from 6.5% in FY22)  EMEA benefited from our Soccer and Rugby products delivering an annualized ACV growth of 13.3%  Total customers using new video solutions (SBG) grew over 100%  Delivered n

  25. Slide 25: Prosumer Segment

    PROSUMER SEGMENT • CATAPULTSPORTS.COM 25

  26. Slide 26: Prosumer ACV Up 559% YoY

    1H FY23 RESULTS PROSUMER ACV UP 559% YOY  Catapult One soft launched in late 1H 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 559% YoY (CC) reaching US$2.4M Prosumer A

  27. Slide 27: Key Wins for Half-Year

    1H FY23 RESULTS KEY WINS FOR HALF-YEAR  STAND OUT MULTI-YEAR DEALS:  STAND OUT INNOVATION:  Expanded NRL and NRLW deal  Continued to release integrated video analysis solution with wearables data integration  Bahrain FA (wearables + video) providing elite organizations with an all-in-one  XFL

  28. Slide 28: Path to Free Cashflow Positivity

    1H FY23 RESULTS PATH TO FREE CASHFLOW POSITIVITY Free Cashflow Burn 1H FY23 (US$M) Drivers of cashflow burn in 1H FY23 include:  Supply chain pressures (since improved) added $1.8M to costs 14.0 FCF – US$13.4M  $6.0M of costs ($12.0M annualized) eliminated in the recent restructure  Employment co

  29. Slide 29: Profit & Loss Statement

    1H FY23 RESULTS PROFIT & LOSS STATEMENT USD $M 1H FY23 1H FY22 Change % Change  On a CC basis, total revenue increased 16% YoY driven by REVENUE 41.6 37.5 4.1 10.9% growth in CC P&H subscription revenue of 28%. COGS 12.2 9.9 2.3 23.2%  COGS was impacted by increased shipping and device GROSS PROFI

  30. Slide 30: Revenue: Strong P&H Subscription Revenue Growth Continues

    1H FY23 RESULTS REVENUE: STRONG P&H SUBSCRIPTION REVENUE GROWTH CONTINUES 1H FY22 to 1H FY23 Revenue (US$'000) 43,000 - - - 21 41 - 249 42,000 - 310 427 12 - 157 - - 41,000 1,819 - 316 - 40,000 41,566 39,000 38,000 2,847 37,464 37,000 1H FY22 Performance Prosumer Tactics Management Professional Medi

  31. Slide 31: EBITDA Impact: Reflects Accelerated Investment

    1H FY23 RESULTS EBITDA IMPACT: REFLECTS ACCELERATED INVESTMENT Will decrease in 2H following business restructure Change relative to revenue Important Note: This slide contains forward looking statements including plans and objectives. Do not place undue reliance on them as actual results may differ

  32. Slide 32: Free Cashflow

    1H FY23 RESULTS FREE CASHFLOW Continued Growth Investment Operating Cash Flows Inventory Related Investing Cash Flows -US$6.6M Investing Cash Flows -US$1.8M -US$2.1M * Excl. Acquisition related payments 32

  33. Slide 33: Capex Table

    1H FY23 RESULTS CAPEX TABLE  The continued Accelerated Growth investment strategy, including extra technology staff as a result of the SBG acquisition, resulted in an increase in capitalized software development costs across verticals.  Capitalized COGS increase is reflective of our P&H vertical t

  34. Slide 34: Half Year Recap

    1H FY23 RESULTS HALF YEAR RECAP IMPROVED REVENUE QUALITY LEADING KPIS EXPANDING RETURN TO GENERATING CASH  Record revenue half-year of  ACV growth of 21% (CC) YoY in 1H  Resized and reprioritized business US$41.6M (A$59.6M) FY23, reaching US$70M (A$108M) to be FCF positive in FY24  Subscription

  35. Slide 35: Outlook

    1H FY23 RESULTS OUTLOOK  We are confident that our ACV growth (based on CC at end FY22) will be strong in the short to medium term and expect ACV growth of at least 20% 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 t

  36. Slide 36: Appendix – Balance Sheet

    1H FY23 RESULTS APPENDIX – BALANCE SHEET AS AT SEPTEMBER 30 (US$M) 2022 2021 CASH 15.578 42.102 TRADE AND OTHER RECEIVABLES 23.562 23.064 INVENTORY 1.787 2.336 PPE 18.089 12.149 GOODWILL 51.037 69.682 OTHER INTANGIBLE ASSETS 47.395 23.523 DEFERRED TAX ASSETS 2.270 4.251 TOTAL ASSETS 159.718 177.107

  37. Slide 37: Appendix – Profit & Loss

    1H FY23 RESULTS APPENDIX – PROFIT & LOSS FOR THE 6 MONTHS ENDED SEPTEMBER 30 (US$M) 2022 2021 REVENUE 41.566 37.464 OTHER INCOME 0.943 1.703 COST OF GOODS SOLD (12.215) (9.945) EMPLOYEE BENEFITS EXPENSE (24.625) (19.123) EMPLOYEE SHARE-BASED PAYMENT EXPENSE * (7.326) (5.032) CAPITAL RAISING AND LIST

  38. Slide 38: Appendix – Cash Flow

    1H FY23 RESULTS APPENDIX – CASH FLOW FOR THE 6 MONTHS ENDED SEPTEMBER 30 (US$M) 2022 2021 OPERATING CASH FLOW RECEIPTS FROM CUSTOMERS 49.448 45.768 PAYMENTS TO STAFF AND SUPPLIERS (49.832) (39.032) OTHER OPERATING CASH FLOW 0.387 (0.126) NET CASH FLOW FROM OPERATING ACTIVITIES 0.003 6.610 INVESTING

  39. Slide 39: Appendix – Segment Note P&L Restatement

    1H FY23 RESULTS APPENDIX – SEGMENT NOTE P&L RESTATEMENT US$'000 1H FY23 2H FY22 1H FY22 OPERATING SEGMENT - PERFORMANCE & HEALTH REVENUE - EXTERNAL CUSTOMERS 20,046 18,885 17,612 EBITDA (8,105) (6,982) (2,437) OPERATING PROFIT (LOSS) (11,801) (9,419) (5,624) OPERATING SEGMENT - TACTICS & COACHING RE

  40. Slide 40: Unleash Potential

    UNLEASH POTENTIAL • CATAPULTSPORTS.COM

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