Catapult Sports Ltd. · ASX:CAT
Catapult Sports — H1 FY2024 Earnings Presentation
38 slides from Catapult Sports's earnings presentation, Nov 14, 2023
Slide 1: 1H FY24 Results
1H FY24 RESULTS NOVEMBER 14, 2023 WILL LOPES Managing Director & Chief Executive Officer 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 4,100+ T E A M S G L O B A L LY 3
Slide 4: Our Vision
OUR VISION UNLEASH THE POTENTIAL OF EVERY TEAM AND ATHLETE ON EARTH 4
Slide 5: Overview
WILL LOPES MANAGING DIRECTOR & CHIEF EXECUTIVE OFFICER OVERVIEW FINANCIAL REVIEW STRATEGY & OUTLOOK Q&A 5
Slide 6: Primary Metrics Demonstrate Strong Financial Results
PRIMARY METRICS DEMONSTRATE STRONG FINANCIAL RESULTS ANNUALIZED CONTRACT VALUE (ACV) TOTAL REVENUE US$79.7M (↑ 20.6% CC) US$49.8M (↑ 21.0% CC) (A$124M) (A$77M) SAAS (ACV) REVENUE CONTRIBUTION MARGIN US$39.5M (↑ 25.0% CC) 44% (↑ from 23%) ACV CHURN FREE CASH FLOW 3.6% (↓ from 4.0%) US$1.4M (↑ from -U
Slide 7: R&D Drove Growth and Our Operating Leverage Delivered Cash
R&D DROVE GROWTH AND OUR OPERATING LEVERAGE DELIVERED CASH PRODUCT GROWTH CASH GENERATION Vector Core – Expanded P&H P&H (wearables) ACV Variable costs lowered by solution beyond the First Team +27% YoY (CC) US$4.1M YoY down to the academy level Pro Video Soccer – Significant New video sol
Slide 8: Leading Key Performance Indicators for Future Revenue Remained Strong
LEADING KEY PERFORMANCE INDICATORS FOR FUTURE REVENUE REMAINED STRONG 1H24 1H23 % CHANGE Reduced expenses and maintained strong ACV growth OPENING ACV (US$M) 73.4 63.9 22.0%* Average ACV per Pro team continued NET INCREMENTAL ACV 7.0 5.7 22.6% to rise, demonstrating success of land FX IMPACT -0.
Slide 9: Overview
BOB CRUICKSHANK CHIEF FINANCIAL OFFICER OVERVIEW FINANCIAL REVIEW STRATEGY & OUTLOOK Q&A 9
Slide 10: SaaS Growth Remains Consistently Strong
SAAS GROWTH REMAINS CONSISTENTLY STRONG Total ACV (US$M) 100 ACV, our leading indicator of future SaaS revenue, grew 79.7 21% YoY (CC), impacted -US$0.8M by foreign currency 80 2.4 movements 66.2 Growth was driven by P&H vertical and the expansion 2.5 25.6 58.8 of new video solutions within T&C
Slide 11: Core SaaS Verticals the Foundation for Continued Growth
CORE SAAS VERTICALS THE FOUNDATION FOR CONTINUED GROWTH Performance & Health ACV (US$M) Tactics & Coaching ACV (US$M) 30 50 25.6 25 22.5 21.8 40 7.9 20 5.2 5.4 30 15 51.7 20 41.2 10 34.2 17.3 17.7 16.4 10 5 1H22 1H23 1H24 1H22 1H23 1H24 Legacy Video Solutions New Video Solutions P&H ACV growth remai
Slide 12: ACV per Team Continued to Rise with Cross Selling
ACV PER TEAM CONTINUED TO RISE WITH CROSS SELLING A CONTRIBUTING FACTOR Average Pro Team ACV (US$K) Multi Vertical Pro Teams 25 406 400 38 351 20 314 75 300 50 15 23.7 200 21.8 368 10 19.7 264 276 100 5 1H22 1H23 1H24 1H22 1H23 1H24 Run Off Products Important Note: “Run Off Products” are products no
Slide 13: Products Critical Nature Highlighted by Best-in-Class Retention Rate
PRODUCTS CRITICAL NATURE HIGHLIGHTED BY BEST-IN-CLASS RETENTION RATE ACV Churn % 5% 4% ACV Churn declined by 10%, at all-time lows following the busiest ever renewal period 3% 2% 4.1% 4.0% 3.6% 1% 1H22 1H23 1H24 Important Note: ACV Churn financial information in this slide has not been independent
Slide 14: SaaS Growth Driving Reliable and Recurring Revenue
SAAS GROWTH DRIVING RELIABLE AND RECURRING REVENUE Revenue Categories (US$M) 60 49.8 50 41.6 25% 40 37.5 SaaS YoY Revenue Growth (CC) 30 39.5 Recurring Revenue 32.1 US$44.6M 90% 27.2 Recurring 20 Revenue 10 5.0 4.8 5.1 5.2 4.7 5.1 1H22 1H23 1H24 Capital Other Recurring SaaS Important Note: SaaS (ACV
Slide 15: SaaS Growth Driving Return to Positive Free Cash Flow
SAAS GROWTH DRIVING RETURN TO POSITIVE FREE CASH FLOW Free Cash Flow improved by US$14.8M in 1H24 compared to 1H23, driven by significant increase in collections from customers and reductions in payments to staff and suppliers Operating Cash Flow Investing Cash Flow +US$15.4M -US$0.6M Important No
Slide 16: Contribution Margin Improved with Lower Variable Costs
CONTRIBUTION MARGIN IMPROVED WITH LOWER VARIABLE COSTS Variable Costs as a % of Revenue 90% 80% 77% 70% 63% Significant improvement in Contribution Margin, 60% 32% 56% increasing from 23% to 44% YoY 50% 25% 45% US$4.1M YoY reduction in variable costs 22% 40% 16% 15% COGS decreased with improve
Slide 17: Fixed Cost Decline Highlights Operating Leverage
FIXED COST DECLINE HIGHLIGHTS OPERATING LEVERAGE Fixed Costs (Inclusive of CAPEX) as a % of Revenue 60% 57% 51% 50% 43% 28% Fixed costs declined 9% YoY (US$2.1M), down to 40% 25% US$21.6M from US$23.7M last year. 22% 30% Total cash costs of R&D (inclusive of capitalized 25% development) reduced
Slide 18: Profit & Loss Summary
PROFIT & LOSS SUMMARY FOR THE 6 MONTHS ENDED 1H24 1H23 Change % Change SEPTEMBER 30 (US$M) REVENUE 49.8 41.6 8.2 19.7% COGS 10.0 12.2 -2.2 -17.9% Management EBITDA, which is inclusive of capitalized GROSS PROFIT 39.7 29.4 10.4 35.4% development, has improved by $13.5M, driven by a reduced expenses
Slide 19: Overview
WILL LOPES MANAGING DIRECTOR & CHIEF EXECUTIVE OFFICER OVERVIEW FINANCIAL REVIEW STRATEGY & OUTLOOK Q&A 19
Slide 20: 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$17.9B National Teams 2021 Olympic Teams Medical market si
Slide 21: Strong Value Proposition
STRONG VALUE PROPOSITION HELP TEAMS MAKE BETTER DECISIONS THROUGH A COMPREHENSIVE ALL-IN-ONE TECHNOLOGY SAVE TIME DISCOVER INSIGHTS Help teams make better use of Contextualize data to increase time with improved workflows access to meaningful insights 21
Slide 22: Differentiated Technology That Is Purpose-Built for Sports
DIFFERENTIATED TECHNOLOGY THAT IS PURPOSE-BUILT FOR SPORTS PERFORMANCE & HEALTH TACTICS & COACHING MEDIA & OTHERS ATHLETE MONITORING PRO VIDEO SUITE (NEW VIDEO SOLUTION) MEDIA SERVICES • Vector Pro (LPS/GPS) • MatchTracker • Content Licensing • Vector Core (GPS) • Focus • Asset Management • Catapult
Slide 23: Focused Go-to-Market Approach
FOCUSED GO-TO-MARKET APPROACH MID-TERM TARGET MARKET OPPORTUNITY LAND 5K PRO TEAMS • Uniquely differentiated in P&H (Wearables) • Largest player in market & 5x nearest competitor EXPAND 50% MULTI-VERTICAL • Cross sell integrated solutions • Attractive economics in T&C RETAIN 95% RETENTION RATE • Pro
Slide 24: Scalable Design for Profitable Unit Economics
SCALABLE DESIGN FOR PROFITABLE UNIT ECONOMICS LONG-TERM METRIC KEY ITEMS TARGET Revenue 100% Focus on SaaS creates predictable revenue w/ ACV being the leading indicator • Wearables Inventory Video Hardware COGS 20% • Data & Hosting Variable Cost • • License Royalty • Support Delivery • Customer S
Slide 25: Strategy Is Delivering on Profitable Unit Economics
STRATEGY IS DELIVERING ON PROFITABLE UNIT ECONOMICS Incremental 2H23 1H24 1H24 Exiting our growth investment phase in FY23, our target is to generate about 30% of Revenue (US$M) 42.8 49.8 7.0 incremental profit margin for every additional US$1 of revenue Variable Costs 23.8 28.0 4.2 1H delivered s
Slide 26: FY24 Outlook
FY24 OUTLOOK Our objective is to deliver on our strategic priorities with a focus on cash generation while preserving growth opportunities in the medium/long term. In FY24, we continue to expect: • ACV growth to remain strong with low churn • Continued improvement in cost margins towards our long-te
Slide 27: Today's Key Take-Aways
TODAY’S KEY TAKE-AWAYS WE INVESTED OUR PRODUCTS AND OUR OPERATING IN OUR ARE DELIVERING LEVERAGE IS PRODUCTS GROWTH GENERATING CASH 27
Slide 28: Uniquely Positioned for a Global Opportunity
UNIQUELY POSITIONED FOR A GLOBAL OPPORTUNITY Significant Global Proven Unparalleled, Resilient & World Class Market Leadership Business Differentiated Reliable Catapult Opportunity Position Model Data Customers Team US$40bn+ Market SaaS revenue is 5x Scalable, Historical datasets Deeply embedded in
Slide 29: Q&A
Q&A The picture can't be displayed. 29
Slide 30: Appendix
APPENDIX The picture can't be displayed. 30
Slide 31: Appendix – Balance Sheet
APPENDIX – BALANCE SHEET AS AT SEPTEMBER 30 (US$M) 1H24 1H23 CASH 10.35 15.58 TRADE AND OTHER RECEIVABLES 25.59 23.56 INVENTORY 1.40 1.79 PPE 25.47 18.09 GOODWILL 51.23 51.04 OTHER INTANGIBLE ASSETS 48.25 47.40 DEFERRED TAX ASSETS 6.25 2.27 TOTAL ASSETS 168.53 159.72 TRADE AND OTHER PAYABLES 8.51 9.
Slide 32: Appendix – Profit & Loss
APPENDIX – PROFIT & LOSS FOR THE 6 MONTHS ENDED SEPTEMBER 30 (US$M) 1H24 1H23 REVENUE 49.76 41.57 OTHER INCOME 0.06 0.94 COST OF GOODS SOLD (10.03) (12.22) EMPLOYEE BENEFITS EXPENSE (23.11) (24.63) EMPLOYEE SHARE-BASED PAYMENT EXPENSE * (3.28) (7.33) CAPITAL RAISING AND LISTING EXPENSES (0.06) (0.06
Slide 33: Appendix – Cash Flow
APPENDIX – CASH FLOW FOR THE 6 MONTHS ENDED SEPTEMBER 30 (US$M) 1H24 1H23 OPERATING CASH FLOW RECEIPTS FROM CUSTOMERS 58.346 49.448 PAYMENTS TO STAFF AND SUPPLIERS (43.145) (49.832) OTHER OPERATING CASH FLOW 0.189 0.387 NET CASH FLOW FROM OPERATING ACTIVITIES 15.390 0.003 INVESTING CASH FLOW PAYMENT
Slide 34: Appendix – Segment Note P&L
APPENDIX – SEGMENT NOTE P&L FOR THE 6 MONTHS ENDING SEPTEMBER 30 (US$K) 1H24 1H23 OPERATING SEGMENT - PERFORMANCE & HEALTH REVENUE - EXTERNAL CUSTOMERS 26,238 20,046 EBITDA 2,278 (8,105) OPERATING PROFIT (LOSS) (3,773) (11,801) OPERATING SEGMENT - TACTICS & COACHING REVENUE - EXTERNAL CUSTOMERS 16,8
Slide 35: Capex Table
CAPEX TABLE Capitalized Development (US$M) 20.1% FOR THE 6 MONTHS 10 20% 1H24 1H23 Change % Change ENDED SEPTEMBER 30 (US$M) 17.2% 16.5% CAPITALIZED DEVELOPMENT 8.2 8.4 (0.2) -2.0% 8 15% PERFORMANCE & HEALTH 3.7 4.4 (0.7) -15.8% 6 TACTICS & COACHING 4.4 3.2 1.2 37.1% 10% OTHER 0.1 0.8 (0.7) -83.3% 4
Slide 36: An Established Track Record of Strong and Consistent Growth
AN ESTABLISHED TRACK RECORD OF STRONG AND CONSISTENT GROWTH FY20** FY21** 1H22 2H22 FY22 1H23 2H23 FY23 1H24 ACV ($M) 45.5 53.4 58.8 63.9 63.9 66.2 73.4 73.4 79.7 ACV ACV GROWTH % (CC)* 11.2% 14.1% 20.3% 21.7% 23.1% 19.1% 19.5% 20.2% 20.0% ACV CHURN 6.4% 5.5% 4.1% 3.4% 3.4% 4.0% 3.8% 3.8% 3.6% LIFET
Slide 37: 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 38: Unleash Potential
< CATAPULT UNLEASH POTENTIAL