Catapult Sports Ltd. · ASX:CAT
Catapult Sports — H1 FY2020 Earnings Presentation
30 slides from Catapult Sports's earnings presentation, Feb 26, 2020
Slide 1: H1 FY20 Results
H1 FY20 RESULTS H1 FY20 RESULTS 26 FEBRUARY 2020 Will Lopes Chief Executive Officer James Orlando Executive Director Hayden Stockdale Chief Financial Officer CATAPULTSPORTS.COM 1
Slide 2: We exist to improve the performance of athletes and teams
H1 FY20 RESULTS WE EXIST TO IMPROVE THE PERFORMANCE OF ATHLETES AND TEAMS CATAPULTSPORTS.COM 2
Slide 3: Catapult's global scale and emerging operating leverage
H1 FY20 RESULTS CATAPULT’S GLOBAL SCALE AND EMERGING OPERATING LEVERAGE HIGHLIGHTS IN H1 FY20 High-growth Efficiency in OPEX growth Scalability recurring revenue 20% ARR Growth OPEX % of Revenue High growth EBITDA +512%** 2nd Subscriptions: improving from 74% H1 FY19 consecutive half of positive EBI
Slide 4: First half achievements
H1 FY20 RESULTS FIRST HALF ACHIEVEMENTS CUSTOMER PRODUCT • League-wide deals – NRL, ARU, • Cross-sell success Colombian Football, MLR • FIFA certification • Marquee team signings across NFL, MLB, NBA and European football • Low churn CATAPULTSPORTS.COM 4
Slide 5: What successful subscription businesses share in common
H1 FY20 RESULTS WHAT SUCCESSFUL SUBSCRIPTION BUSINESSES SHARE IN COMMON PHILOSOPHY ON GROWTH 1. Customer obsession FINANCIAL GOAL 2. Capital investment with a long-term focus Long-term free cash flow 3. Deeply analytical decision making CATAPULTSPORTS.COM 5
Slide 6: The vision: platform of solutions for teams and athletes
H1 FY20 RESULTS THE VISION TO CREATE THE PLATFORM OF SOLUTIONS FOR TEAMS AND ATHLETES CATAPULTSPORTS.COM 6
Slide 7: Evolution of our strategy
H1 FY20 RESULTS EVOLUTION OF OUR STRATEGY P R O D U C T- B A S E D S T R AT E GY C U S TO M E R S O L U T I O N - B A S E D S T R AT E GY T E C H N O LO GY S TAC K SEGMENTS P L AT F O R M W E A R A B L E T E C H N O LO GY PERFORMANCE TA C T I C S & PROFESSIONAL MEDIA & MANAGEMENT & H E A LT H COACHI
Slide 8: Why evolve the strategy?
H1 FY20 RESULTS WHY EVOLVE THE STRATEGY? 1. Platform Expansion = Increase Value for Customers 2. Subscription Focus = Long-Term Relationship with Customers 3. Efficient Cost Structure = Free Cash Flow CATAPULTSPORTS.COM 8
Slide 9: Continued strong revenue and EBITDA growth
H1 FY20 RESULTS H1 FY20 CONTINUED STRONG REVENUE AND EBITDA GROWTH C ATA P U LT H1 FY20 $M H1 FY19 $M % CHANGE ARR 68.8 57.4 20% REVENUE 50.7 43.0 18% EBITDA 5.7* (1.4) 512% ($7.1M increase) FREE CASH FLOW 13.6* (1.6) 937% * EBITDA and Free Cashflow includes the impact of AASB16 of 1.0m. The corresp
Slide 10: Pro segment: large and growing stream of recurring revenue
H1 FY20 RESULTS PRO SEGMENT: LARGE AND GROWING STREAM OF RECURRING REVENUE ARR ($M) 80 21. 4% A G R Catapult is actively switching non-recurring 9 C - D EC 1 revenue to recurring revenue and focused on 17 DEC driving continued growth in recurring revenue. 60 40 20 0 DECEMBER 2017 DECEMBER 2018 DECEM
Slide 11: Pro segment: improving scale and leverage across the business
H1 FY20 RESULTS PRO SEGMENT: IMPROVING SCALE AND LEVERAGE ACROSS THE BUSINESS O P E R AT I N G E X P E N S E S T O R E V E N U E R AT I O * 90% * H1 FY19 and FY20 OPEX excludes ESP expenses. H1 FY20 excludes the first time AASB16 adoption 80% 70% 60% 15.2 12.3 36.2m 50% H1 FY18 H1 FY19 H1 FY20 CATAP
Slide 12: Pro segment: continued strong revenue growth
H1 FY20 RESULTS PRO SEGMENT: CONTINUED STRONG REVENUE GROWTH REVENUE ($M) 7 % 50 R 23. G 47.7 CA → Revenue growth H1 FY19 to H1 FY20 19% driven by strategic focus to grow recurring revenue and Vector. 40.3 → Performance & Health grew 21% of which Vector contributed 26% → Tactics and Coaching Solutio
Slide 13: Catapult: Americas continues to be our growth engine
H1 FY20 RESULTS CATAPULT: AMERICAS CONTINUES TO BE OUR GROWTH ENGINE → Delivering high value customers and high revenue growth TEAMS BY REGION REVENUE BY REGION 7% 5% 5% APAC Australia 12% APAC AUS AMERICAS 20% EMEA 45% EMEA Americas 70% 36% CATAPULTSPORTS.COM 13
Slide 14: Growth in customers with more than one solution
H1 FY20 RESULTS CATAPULT: GROWTH IN CUSTOMERS WITH MORE THAN ONE SOLUTION → +66% to 212 customers 3 20 (up 18 from Dec 2018) SOLUTIONS 2 192 (up 66 from Dec 2018) 2,931 1 (up 404 from Dec 2018) TEAMS CATAPULTSPORTS.COM 14
Slide 15: Prosumer segment: reduced cash burn in line with strategy
H1 FY20 RESULTS PROSUMER SEGMENT: REDUCED CASH BURN INLINE WITH STRATEGY REVENUE AND OPEX ($M) → Revenue growth 9% to $3m inline with 5 expectations → Within Prosumer: 4 → B2B grew 21% 3 → Consumer grew 1% → Delivered strong EBITDA improvement from 2 $3.6m loss to $0.4m loss as committed → Reduction
Slide 16: The Catapult platform provides world class solutions
H1 FY20 RESULTS THE CATAPULT PLATFORM PROVIDES WORLD CLASS SOLUTIONS CATAPULTSPORTS.COM 16
Slide 17: CFO handover
H1 FY20 RESULTS CFO HANDOVER CATAPULTSPORTS.COM 17
Slide 18: Profit & loss statement
H1 FY20 RESULTS PROFIT & LOSS STATEMENT → ARR growth of 20% driven by new elite wearables subscription sales → Revenue growth of 18% driven by strong result in elite wearables up 21% → Elite Video revenue has also performed strongly, up 16% → Employee expenses grew 2%, down from 13% in H1 FY19 follo
Slide 19: Catapult: EBITDA growth momentum
H1 FY20 RESULTS CATAPULT: EBITDA GROWTH MOMENTUM Delivered second consecutive half of positive EBITDA growth EBITDA ($M) REVENUE INCREMENT ($M) EBITDA INCREMENT ($M) 6 EBITDA ($M) 5.7 Revenue Increment EBITDA Increment ($M)* ($M)** 5.6 4 10.6 3.8 2 7.7 0 -2 -1.4 H1 H Y FY19 FY19 H1 H Y FY20 FY20 H1
Slide 20: Catapult: EBITDA growth drivers
H1 FY20 RESULTS CATAPULT: EBITDA GROWTH DRIVERS EBITDA BRIDGE H1 FY19 to H1 FY20 ($000s) 4,745 1,266 3,841 3,479 1,066 REDUCED REDUCTION IN FY19 H1 NET SALES VOLUME INVESTMENT IN PRO INVESTMENT IN E M P LOY E E S H A R E AASB16 FY20 H1 EBITDA EBITDA G M I M PAC T SPro E G segment M E N T L ALabour B
Slide 21: Pro segment: strong recurring revenue growth driving total revenue growth
H1 FY20 RESULTS PRO SEGMENT: STRONG RECURRING REVENUE GROWTH DRIVING TOTAL REVENUE GROWTH REVENUE BRIDGE H1 FY19 to H1 FY20 ($000s) 50,000 45,000 40,000 35,000 30,000 25,000 FY19 H1 AMERICAS ROW AMERICAS NON ROW NON FY20 H1 REVENUE RECURRING RECURRING RECURRING RECURRING REVENUE CATAPULTSPORTS.COM 2
Slide 22: Pro segment: tactics and coaching solutions [video] analysis
H1 FY20 RESULTS PRO SEGMENT: TACTICS AND COACHING SOLUTIONS [VIDEO] ANALYSIS SaaS high margin 14 → Revenue +16% to $24.0m → Global demand for Catapult Vision 12 growing (all subscription revenue). Vision has grown 508% → Americas has grown 16% of which 10 Legacy Coaching/Recruiting/ lower margin Off
Slide 23: Pro segment: performance and health [wearables] analysis
H1 FY20 RESULTS PRO SEGMENT: PERFORMANCE AND HEALTH [WEARABLES] ANALYSIS → Total Pro segment revenue $23.7m up 21% → Strong subscription revenue up 28% reflecting our focus on creating long-term value → Subscription revenue 71% of revenue and 89% of revenue growth → Positive customer demand for Vect
Slide 24: Capital expenditure focus on differentiation of Pro products
H1 FY20 RESULTS CATAPULT: CAPITAL EXPENDITURE FOCUS ON DIFFERENTIATION OF PRO PRODUCTS → Capital investment program in FY20 is focused on delivering new solutions → Capital investment in H1 FY20 of 14%/ revenue vs 16% in H1 FY19 CATAPULTSPORTS.COM 24
Slide 25: First half recap
H1 FY20 RESULTS FIRST HALF RECAP → Scale and operating leverage driving profitable growth and free cash growth → EBITDA $5.7 million up 512%* → ARR $68.8 million up 20% → Revenue $50.7 million up 18% → Free cash flow of $13.6 million up 937%* → Global market leadership → 66% growth in customers with
Slide 26: Outlook
H1 FY20 RESULTS OUTLOOK → The company is committed to growing ARR as our platform expands, improving operating cost efficiencies as it grows, and generating free cash flow. → The Company reiterates its commitment to positive free cash flow by FY21. Catapult is focused on bringing forward this positi
Slide 27: Thank you
H1 FY20 RESULTS THANK YOU CATAPULTSPORTS.COM 27
Slide 28: Stronger balance sheet provides platform for growth
H1 FY20 RESULTS STRONGER BALANCE SHEET PROVIDES PLATFORM FOR GROWTH → Cash up $13.0m following seasonal cash collections → Trade and other receivables reduction of $13.2m aligned to seasonal collections → Goodwill and other intangibles associated with transformational XOS and PlayerTek acquisitions
Slide 29: Cash flow statement
H1 FY20 RESULTS CASH FLOW STATEMENT → Cash collections of $65.9m in H1 FY20 consistent H1 FY20 H1 FY19 with seasonality and up 19% on prior period which is $M $M consistent with revenue growth Receipts from customers 65.9 55.5 → Operating payments of $45.4m are down 10% on prior Payments to staff an
Slide 30: CATA P U LTS P O R TS .CO M
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