Catapult Sports Ltd. · ASX:CAT
Catapult Sports — H1 FY22 Earnings Presentation
38 slides from Catapult Sports's earnings presentation, Nov 17, 2021
Slide 1: H1 FY22 Results
H1 FY22 RESULTS N O V E M B E R 1 7, 2 0 2 1 Will Lopes Chief Executive Officer Hayden Stockdale Chief Financial Officer 1
Slide 2: Important Notice
H1 FY22 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: Key Highlights
H1 FY22 RESULTS KEY HIGHLIGHTS STRONG SAAS ACCELERATING REBOUND OF GROWTH SUBSCRIPTION NORTH AMERICA REVENUE Annualized Contracted Value Subscription Revenue Americas ACV up 28% year- (ACV) +43% year-on-year +29% year-on-year on-year Performance & Health Now 86% of total revenues P&H in
Slide 4: Subscription Revenue Catching Up to Our Leading Indicator
H1 FY22 RESULTS SUBSCRIPTION REVENUE CATCHING UP TO OUR LEADING INDICATOR ACV is the leading indicator to Subscription Revenue growth, the lagging metric YoY ACV Growth Rate 45% 43% 40% 35% 30% 29% 25% 20% 17% 15% 10% 8% 6% 5% 0% 0% H1 FY21 H2 FY21 H1 FY22 ACV Subscription Revenue Note: Chart incl
Slide 5: Shift to High-Quality Subscription Revenue Nears Completion
H1 FY22 RESULTS SHIFT TO HIGH-QUALITY SUBSCRIPTION REVENUE NEARS COMPLETION Subscription Revenue % of Total Revenue 90% 9% growth since FY21 in the percentage of revenue which is subscription: reflects the strategic focus on growing 85% ACV 80% Strong subscription revenue growth is expected to c
Slide 6: We Work With the Very Best Teams and Leagues Globally
H1 FY22 RESULTS WE WORK WITH THE VERY BEST TEAMS AND LEAGUES GLOBALLY HIGHLIGHTS 3,425+ ELITE TEAMS GLOBALLY 40+ SPORTS GLOBALLY 130+ COUNTRIES 6
Slide 7: Our Key SaaS Growth Metrics Continue to Accelerate
H1 FY22 RESULTS OUR KEY SAAS GROWTH METRICS CONTINUE TO ACCELERATE We delivered 43% ACV growth year-on-year, which includes $5.1m as a one-time increase from the SBG acquisition. ACV growth was 30% on a pro forma basis, and by region: • ACV growth in EMEA was 34% • ACV growth in Americas was 28%
Slide 8: Strong Performance Against Our Key SaaS Efficiency Metrics
H1 FY22 RESULTS STRONG PERFORMANCE AGAINST OUR KEY SAAS EFFICIENCY METRICS Lower gross margin and contribution margin in line with expectations: • Impacted by transition from a capital to subscription sales model • Non-repetition of Covid-related savings • Slightly unfavorable revenue mix USD $M A
Slide 9: Financial Highlights
H1 FY22 RESULTS FINANCIAL HIGHLIGHTS Subscription revenue grew strongly at 29% (up from 3.3% in FY21), as the lagging metric catches up to leading indicator ACV Total revenue grew strongly at 13%, despite the discontinuation of capital P&H deals (a significant improvement from -7.4% in FY21) E
Slide 10: ACV Growth Continues Strong Momentum: Rising 30%
H1 FY22 RESULTS ACV GROWTH CONTINUES STRONG MOMENTUM: RISING 30% ACV (US$M) 70.0 Growth in ACV was broad-based, across: • All regions 60.0 • Key verticals 5.4 • New and existing customers 50.0 7.9 • Mixture of organic and inorganic 0.1 3.2 Professional sports in North America and 40.0 the NCAA b
Slide 11: Strong ACV Growth Across All Regions
H1 FY22 RESULTS STRONG ACV GROWTH ACROSS ALL REGIONS ACV growth in Americas ACV by Region (US$M) ACV Growth by Region (YoY) rebounded strongly from 4% in 70.0 40% FY21 to 28% 58.8 35% 60.0 EMEA ACV grew 34%. EMEA has 53.4 been Catapult’s highest growth 50.0 18.3 30% 45.5 market in the last 18 mo
Slide 12: ACV Grew Across All Customer Duration Bands
H1 FY22 RESULTS ACV GREW ACROSS ALL CUSTOMER DURATION BANDS ACV grew across all customer durations, with the addition of new logos as well as up- and cross-selling to well-established customers 33% of organic growth came from up- and cross-sell to customers of >2 years duration Increase in the
Slide 13: Subscription Revenue More Than Replacing Capital Revenue
H1 FY22 RESULTS SUBSCRIPTION REVENUE MORE THAN REPLACING CAPITAL REVENUE Subscription v Capital Revenue by Half (US$M) 45.0 The cessation of P&H capital deals is expected to negatively impact total revenue from FY22 through 40.0 to FY24 35.0 5.2 Despite this, total revenues still grew 13% YoY 13
Slide 14: Positive Momentum in Multi-Vertical Customers
H1 FY22 RESULTS POSITIVE MOMENTUM IN MULTI-VERTICAL CUSTOMERS Very strong acceleration in cross sell, growing 50% over 12 months Continued success in driving additional sales into our large P&H customer base. Almost three-quarters of cross-sold customers in H1 were generated by Performance & Hea
Slide 15: ACV Retention Pushes Beyond World Class SaaS Levels
H1 FY22 RESULTS ACV RETENTION PUSHES BEYOND WORLD CLASS SAAS LEVELS ACV Churn % 7.0% Churn improved 40% and is at near all-time lows 6.0% A reduction in ACV Churn was achieved during an extremely challenging year for our customers 5.0% We anticipated improved retention as part of our shift to
Slide 16: Long-Term Cash Generating Ability Remains Strong
H1 FY22 RESULTS LONG-TERM CASH GENERATING ABILITY REMAINS STRONG Gross margin remains strong despite the negative impact of revenue mix resulting from the strong return to activity in the US market Contribution margin better than expected despite accelerating cost of sales & service to drive gro
Slide 17: Pro Segment Had Strong ACV Growth of 28%
H1 FY22 RESULTS PRO SEGMENT HAD STRONG ACV GROWTH OF 28% Pro ACV by Vertical (US$M) 70.0 Pro Segment Total ACV growth included 60.0 57.7 52.8 2.8 Growth in our largest vertical, Performance 50.0 3.0 & Health, up 39% YoY 44.0 45.0 41.5 2.9 21.6 3.1 40.0 3.1 20.9 Tactics & Coaching growth of 20% Y
Slide 18: P&H Had Strong ACV Growth of 43% YoY in Americas Region
H1 FY22 RESULTS P&H HAD STRONG ACV GROWTH OF 43% YOY IN AMERICAS REGION Strong P&H ACV growth continues as Catapult deepens its customer penetration to win market share Market rebound drove strong Americas growth of 43% Market share is 5x our closest competitor and significant opportunity rema
Slide 19: Tactics & Coaching Provides Significant Growth Opportunity
H1 FY22 RESULTS TACTICS & COACHING PROVIDES SIGNIFICANT GROWTH OPPORTUNITY Momentum in T&C has accelerated following the SBG acquisition • New deals (e.g., Brisbane Bullets, NASCAR, and eSports) have been won significantly earlier than expectations T&C ACV growth is also benefiting from the “lan
Slide 20: Catapult One Launch Driving Prosumer Switch to Subscription
H1 FY22 RESULTS CATAPULT ONE LAUNCH DRIVING PROSUMER SWITCH TO SUBSCRIPTION Catapult One launched late in H1 FY22, and we are already seeing strong interest from individuals and teams Activations, usage, and cancellation rates are all very positive at this early stage Like our Pro segment, the
Slide 21: Operational Highlights
H1 FY22 RESULTS H1 FY22 OPERATIONAL HIGHLIGHTS Sales Highlights Tech Highlights Customer penetration of the EPL now at 80% and Teaming up Super League (SLE) and Sky Sports to break new ground with a UK first in delivering real-time player Bundesliga 78% statistics direct to the viewer at home on
Slide 22: Profit & Loss Statement
H1 FY22 RESULTS PROFIT & LOSS STATEMENT % Total revenue increased 12.6% YoY with growth in USD $M H1 FY22 H1 FY21 Change Change subscription outpacing the decline in capital revenue REVENUE 37.5 33.3 4.2 12.6% COGS 9.9 8.2 1.8 21.4% COGS grew more quickly than revenue at 21.4% due to GROSS PROFI
Slide 23: Subscription Revenue Growth by Vertical
H1 FY22 RESULTS SUBSCRIPTION REVENUE GROWTH BY VERTICAL Subscription Revenue Growth By Vertical (US$M) Key verticals are seeing high rates of subscription 18.0 30% revenue growth 16.0 Subscription revenue growth is benefiting from new 14.0 logos, as well as up- and cross-selling success 12.0 27%
Slide 24: Pro Segment Revenue: Strong P&H Subscription Revenue Growth
H1 FY22 RESULTS PRO SEGMENT REVENUE: STRONG P&H SUBSCRIPTION REVENUE GROWTH Switch from Capital to SaaS sales model Subscription revenue +$7.1M Capital revenue -$2.8M 24
Slide 25: EBITDA Impacted by Normalisation of Covid Impacts and Accelerated Investment
H1 FY22 RESULTS EBITDA IMPACTED BY NORMALISATION OF COVID IMPACTS AND ACCELERATED INVESTMENT At the commencement of the accelerated investment strategy, expense growth exceeds revenue growth – This impact is exacerbated by the shift from Capital to Subscription revenue but is expected to reverse as
Slide 26: Free Cashflow Reflects Accelerated Investment Strategy
H1 FY22 RESULTS FREE CASHFLOW REFLECTS ACCELERATED INVESTMENT STRATEGY Accelerated investment strategy Switch to SaaS sales model contributing to lower EBITDA but cash impact is softened by Catapult’s negative working capital position Operating Cash Flows Investing Cash Flows -$0.6M -$5.6M * Excludi
Slide 27: Capex Table
H1 FY22 RESULTS CAPEX TABLE The return to a positive trading environment for sport, combined with the commencement of the accelerated investment strategy has resulted in an increase in capitalised software development costs across verticals A renewed focus on platform development will facilitate
Slide 28: Investor Day Key Takeaways
H1 FY22 RESULTS INVESTOR DAY KEY TAKEAWAYS WE HAVE A LARGE WE ARE UNIQUELY WE HAVE A ADDRESSABLE MARKET POSITIONED TO TAKE SOPHISTICATED ADVANTAGE OF IT EXECUTION STRATEGY $2.6B Pro TAM Leaders in Performance Strong product strategy Technology $1.4B Pro SAM is available Go-to-market with m
Slide 29: Our Confidence to Capture Market Opportunity Increased
H1 FY22 RESULTS OUR CONFIDENCE TO CAPTURE MARKET OPPORTUNITY INCREASED Our shift to a full SaaS is now driving strong subscription revenue growth and low churn Sport market recovery are accelerating new sales opportunities globally Our core vertical of P&H is growing rapidly with ACV +40% YoY
Slide 30: We Are Investing for Near- and Long-Term Growth
H1 FY22 RESULTS WE ARE INVESTING FOR NEAR- AND LONG-TERM GROWTH In the $128B sports tech market we have a $2.6B Pro TAM and $41B Prosumer TAM that are expected to grow at 26% CAGR • Only 2.3% of our Pro TAM has been penetrated, including <30% of Level 1 teams We are investing selectively to deliver
Slide 31: H1 FY22 Recap
H1 FY22 RESULTS H1 FY22 RECAP Strong SaaS growth • Annualized Contracted Value (ACV) +43% year-on-year with all regions performing strongly • Performance & Health +40% year-on-year • Tactics & Coaching +57% year-on-year Accelerating Subscription Revenue • Our lagging metric, subscription revenue
Slide 32: Outlook
H1 FY22 RESULTS OUTLOOK We are confident in our long-term strategy of expanding and penetrating our large TAM. We are confident that our ACV growth will be strong in the short to medium term, and that this growth will accelerate subscription revenue growth in the short to medium term. We antic
Slide 33: Appendices - Pro Forma Financial Information
H1 FY22 ESULTS APPENDICES - PRO FORMA FINANCIAL INFORMATION I M P O R TA N T N O T I C E R E GA R D I N G P R O F O R M A F I N A N C I A L I N F O R M AT I O N The financial information in columns headed “2019”, “2020” or denoted as “2019:”, “2020:” or “March 2020” in this document is pro forma, no
Slide 34: Appendix – Profit & Loss (Unaudited)
H1 FY22 RESULTS APPENDIX – PROFIT & LOSS (UNAUDITED) FOR THE 6 MONTHS ENDED SEPTEMBER 30 (US$M) 2021 2020 REVENUE 37.464 33.258 OTHER INCOME 1.703 0.864 COST OF GOODS SOLD (9.945) (8.191) EMPLOYEE BENEFITS EXPENSE (19.123) (13.987) EMPLOYEE SHARE-BASED PAYMENT EXPENSE * (5.032) (0.286) CAPITAL RAISI
Slide 35: Appendix – Balance Sheet (Unaudited)
H1 FY22 RESULTS APPENDIX – BALANCE SHEET (UNAUDITED) AS AT SEPTEMBER 30 (US$M) 2021 2020 CASH 42.102 27.003 TRADE AND OTHER RECEIVABLES 23.064 18.029 INVENTORY 2.336 4.722 PPE 12.149 8.146 GOODWILL 69.682 41.884 OTHER INTANGIBLE ASSETS 23.523 22.860 DEFERRED TAX ASSET 7.356 7.320 TOTAL ASSETS 180.21
Slide 36: Appendix – Cash Flow (Unaudited)
H1 FY22 RESULTS APPENDIX – CASH FLOW (UNAUDITED) FOR THE 6 MONTHS ENDED SEPTEMBER 30 (US$M) 2021 2020 OPERATING CASH FLOW RECEIPTS FROM CUSTOMERS 45.768 37.025 PAYMENTS TO STAFF AND SUPPLIERS (39.032) (29.598) OTHER OPERATING CASH FLOW (0.126) 1.396 NET CASH FLOW FROM OPERATING ACTIVITIES 6.610 8.82
Slide 37: Appendix – Background
H1 FY22 RESULTS APPENDIX – BACKGROUND The unaudited financial statements in these Appendices have been compiled from management accounts and comprise the unaudited accounts for the six-month period ended September 30, 2020 Revenue consists of subscription revenue of $32.298M (2021: $25.071M) and
Slide 38: Unleash Potential
UNLEASH POTENTIAL • CATAPULTSPORTS.COM