Catapult Sports Ltd. · ASX:CAT
Catapult Sports — FY2023 Earnings Presentation
36 slides from Catapult Sports's earnings presentation, May 22, 2023
Slide 1: FY23 Results
FY23 RESULTS MAY 22, 2023 WILL LOPES Chief Executive Officer HAYDEN STOCKDALE Chief Financial Officer BOB CRUICKSHANK Chief Financial Officer
Slide 2: Important Notice
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 performance a
Slide 3: We Are the Standard for Professional Sports
FY23 RESULTS WE ARE THE STANDARD FOR PROFESSIONAL SPORTS 40+ SPORTS 100+ COUNTRIES 3,800+ E L I T E T E A M S G L O B A L LY 3
Slide 4: Key Financial Highlights
FY23 RESULTS KEY FINANCIAL HIGHLIGHTS ON PLAN TO BE FCF+ IN FY24 HIGH SAAS GROWTH H2 US$2.2M EBITDA on US$42.8M Revenue SaaS Revenue +21.8% YoY (CC) H2 Gross margin rebounded to 81% from 71% Record H2 sales; FY23 ACV +20.2% YoY (CC) Variable costs lowered by US$8.3M* in H2 P&H (Wearables
Slide 5: Key Business Highlights
FY23 RESULTS KEY BUSINESS HIGHLIGHTS UNIQUE CUSTOMER WINS NEW PRODUCT RELEASES Expanded NRL and NRLW agreement Vector T7 for indoor sports XFL League Wide Deal Smart American Football with wireless charging McLaren F1 Wearable/Video integration for Basketball and Ice Hockey FC St. Paul
Slide 6: Margins
r< CATAPULT MARGINS
Slide 7: Our SaaS Approach to Cash Generation
FY23 RESULTS OUR SAAS APPROACH TO CASH GENERATION LONG-TERM METRIC KEY ITEMS TARGET Revenue 100% SaaS model creates predictable revenue. ACV is the leading indicator • Wearables Inventory • Video Hardware COGS 20% Data & Hosting Variable Cost • • License Royalty • Support Delivery • Customer Success
Slide 8: Variable Costs Improved by US$8.3M and Now 56% of Revenue
FY23 RESULTS VARIABLE COSTS IMPROVED BY US$8.3M AND IS NOW 56% OF REVENUE Variable Costs as a % of Revenue 90% 80% 77% 70% 68% 63% 32% S&M costs expected to improve with go-to-market 60% 56% efficiencies 28% 50% 25% 45% 22% 40% Delivery costs expected to rise slower than revenue as 16% 15% 12% p
Slide 9: Fixed Costs Improved by US$3.6M and Now 47% of Revenue
FY23 RESULTS FIXED COSTS IMPROVED BY US$3.6M AND IS NOW 47% OF REVENUE Fixed Costs as a % of Revenue 70% 60% 58% 57% 51% 50% 47% The absolute cost of G&A can now support the 28% 28% business at scale and is expected to rise modestly 40% 25% 24% The absolute cost of R&D can deliver our organic 30
Slide 10: On Plan to Deliver Positive Free Cash Flow in FY24
FY23 RESULTS ON PLAN TO DELIVER POSITIVE FREE CASH FLOW IN FY24 Free Cash Flow* Elements (US$M) 70 60 H2 cash outflows dropped by US$12M and are well contained 50 1H23 would have been borderline FCF+ on 2H23 cash outflows 40 Despite seasonality, H2 had multiple positive FCF months 30 Cash in
Slide 11: We Are at an Inflection Point
FY23 RESULTS WE ARE AT AN INFLECTION POINT Exiting our growth investment phase we anticipate that every additional $1 of revenue generates ~30%+ of profit margin FY23 H2 Increment Hypothetical Annualized Example Case Revenue (US$M) 86 14 100 Variable Costs 48 8 56 (COGS, S&M, Delivery) Further lever
Slide 12: Growth
4 CATAPULT GROWTH
Slide 13: SaaS Is Key to Our Growth
FY23 RESULTS SAAS IS KEY TO OUR GROWTH FY23 GROSS VERTICAL FY23 ACV GROWTH DYNAMICS MARGIN* (CC) Customer relationships begin here (Land strategy) High-growth (+30% CAGR last 3 years) P&H (Wearables) $47.0 28% >70% Massive greenfield opportunities (Pro & Prosumer) SaaS Cross sell focus capit
Slide 14: Record SaaS Sales During the Second Half
FY23 RESULTS RECORD SAAS SALES DURING THE SECOND HALF TOTAL ACV (US$M CC) 80.0 75.0 6.8 70.0 6.1 65.0 6.3 76.8 60.0 55.0 5.7 63.9 50.0 51.9 45.0 Mar-21 1H22 2H22 Mar-22 1H23 2H23 Mar-23 ACV is on a constant currency basis and pro forma including acquisitions. Important Note: ACV denoted as “Mar 21”,
Slide 15: P&H SaaS Sales Accelerated During the Second Half
FY23 RESULTS P&H SAAS SALES ACCELERATED DURING THE SECOND HALF P&H ACV (US$M CC) 55.0 50.0 5.7 45.0 5.2 40.0 35.0 49.9 30.0 39.0 25.0 28.0 20.0 Mar-21 Mar-22 1H23 2H23 Mar-23 ACV is on a constant currency basis. Important Note: ACV denoted as “Mar 21”, “Mar 22”, “Mar 23” has been calculated as at Ma
Slide 16: T&C SaaS Sales Accelerated Rapidly in New Markets
FY23 RESULTS T&C SAAS SALES ACCELERATED RAPIDLY IN NEW MARKETS Tactics & Coaching ACV (US$M CC) T&C YoY ACV Growth (CC) 25.0 35.0% 30.0% 24.0 25.0% 23.0 20.0% 22.0 31.3% 32.1% 24.4 15.0% 21.0 10.0% 22.0 14.1% 5.0% 9.5% 20.0 20.9 7.1% 5.7% - 19.0 Americas EMEA APAC Mar 21 Mar 22 Mar 23 % Growth to Ma
Slide 17: Cross Selling Accelerated Multi-Vertical Customer Base
FY23 RESULTS CROSS SELLING ACCELERATED MULTI-VERTICAL CUSTOMER BASE Multi-Vertical Customers % of Customer With 2+ Verticals 450 0.1 400 9.5% 350 0.09 300 68 0.08 250 38 200 7.4% 366 0.07 150 253 6.6% 100 214 0.06 50 - 0.05 Mar 21 Mar 22 Mar 23 Mar 21 Mar 22 Mar 23 Run-Off Products Normalised Multi
Slide 18: Minimal Loss of SaaS Revenue with ACV Churn of 3.8%
FY23 RESULTS MINIMAL LOSS OF SAAS REVENUE WITH ACV CHURN OF 3.8% 12 Month Rolling ACV Churn % 6.0% 5.0% 4.0% 3.0% 5.5% 2.0% 4.1% 4.0% 3.8% 3.4% 1.0% - Mar 21 Sep 21 Mar 22 Sep 22 Mar 23 Important Note: ACV Churn denoted as “Mar 21”, “Mar 22”, “Mar 23”, “Sep 21” or “Sep 22” in this slide: (i) has bee
Slide 19: Customer Lifetime & Contract Value Improved Even with Growth
FY23 RESULTS CUSTOMER LIFETIME & CONTRACT VALUE IMPROVED EVEN WITH GROWTH Lifetime Duration by Half (Years) Average ACV/Pro Customer (US$k CC) 6.25 24.50 6.04 24.00 6.00 6.00 23.50 5.82 5.75 23.00 24.08 5.55 22.50 5.50 22.00 22.55 5.25 21.50 Sep-21 Mar-22 Sep-22 Mar-23 Mar 22 Mar 23 ACV is on a cons
Slide 20: SaaS Revenue Continues to Outpace Overall Revenue Growth
FY23 RESULTS SAAS REVENUE CONTINUES TO OUTPACE OVERALL REVENUE GROWTH Revenue by Type YoY (US$M) 100.0 90.0 87.7 6.7 80.0 77.0 10.5 8.4 70.0 67.3 10.7 60.0 13.9 50.0 8.6 40.0 70.5 30.0 57.9 44.8 20.0 10.0 - FY21 FY22 FY23 SaaS Media Capital Revenue for FY23 is on a constant currency basis. Important
Slide 21: COGS Capitalization Update
FY23 RESULTS COGS CAPITALIZATION UPDATE Following the move from Capital to Subscription sales (January 2021), "COGS" costs from wearable hardware sales has been recorded in depreciation A small portion (approx. 1% of gross margin) remained in COGS relating to "hotswap units" (used mainly for ser
Slide 22: Profit & Loss Statement – Full Year
FY23 RESULTS PROFIT & LOSS STATEMENT – FULL YEAR US$M FY23 FY22 Change % Change On a CC basis, Revenue increased 14% driven by growth in SaaS revenue of 21.8%, capital revenue was down 20% (as the REVENUE 84.4 77.0 7.3 9.5% Company fully transitioned to SaaS), and Media & Other COGS 20.5 19.6 0.9
Slide 23: Profit & Loss Statement – H2 v H1
FY23 RESULTS PROFIT & LOSS STATEMENT – H2 V H1 US$M 2H 23 1H 23 Change % Change Revenue was 3.0% higher in 2H, with capital revenue down 56% REVENUE 42.8 41.6 1.2 3.0% and SaaS Subscription revenue up 9% ($2.9M) as a result of increasing ACV. COGS 8.3 12.2 (3.9) -31.9% GROSS PROFIT 34.5 29.4 5.1 1
Slide 24: Revenue: Strong SaaS Revenue Growth
FY23 RESULTS REVENUE: STRONG SAAS REVENUE GROWTH FY22 to FY23 Revenue (US$k) 86,000 291 722 1,028 40 84,000 2,482 82,000 84,360 80,000 78,000 6,866 77,013 76,000 FY22 Performance Tactics Media & Other Performance Tactics Media & Other FY23 Revenue & Health & Coaching & Health & Coaching Revenue Subs
Slide 25: Free Cashflow
FY23 RESULTS FREE CASHFLOW Free cash flow improved $6.8M in 2H23 compared to 2H22 2H free cash flow included +$3.7M of operating cash flow and -$11.9M of investing cash flow (8165) Operating Cash Flows Investing Cash Flows * Excl. Acquisition related payments -US$0.8M 25 +US$7.7M
Slide 26: Key Financial Highlights Recap
FY23 RESULTS KEY FINANCIAL HIGHLIGHTS RECAP ON PLAN TO BE FCF+ IN FY24 HIGH SAAS GROWTH H2 US$2.2M EBITDA on US$42.8M Revenue SaaS Revenue +21.8% YoY (CC) H2 Gross margin rebounded to 81% from 71% Record H2 sales; FY23 ACV +20.2% YoY (CC) Variable costs lowered by US$8.3M* in H2 P&H (Wea
Slide 27: Outlook
FY23 RESULTS OUTLOOK Our objective is to deliver on our strategic priorities with a focus on cash generation while preserving growth opportunities in the medium/long term. In FY24, we expect: • ACV growth to remain strong with low churn • Continued improvement in cost margins towards our long- term
Slide 28: Appendices
€ CATAPULT APPENDICES
Slide 29: Appendix – Balance Sheet
FY23 RESULTS APPENDIX – BALANCE SHEET AS AT MARCH 31 (US$M) 2023 2022 CASH 16.225 26.108 TRADE AND OTHER RECEIVABLES 16.612 18.230 INVENTORY 2.243 2.990 PPE 21.209 15.606 GOODWILL 51.372 51.806 OTHER INTANGIBLE ASSETS 48.764 48.338 DEFERRED TAX ASSETS 6.621 7.893 TOTAL ASSETS 163.046 170.971 TRADE A
Slide 30: Appendix – Profit & Loss
FY23 RESULTS APPENDIX – PROFIT & LOSS FOR THE 12 MONTHS ENDED MARCH 31 (US$M) 2023 2022 REVENUE 84.360 77.013 OTHER INCOME 1.186 1.761 COST OF GOODS SOLD (20.534) (19.607) EMPLOYEE BENEFITS EXPENSE (44.173) (41.342) EMPLOYEE SHARE-BASED PAYMENT EXPENSE * (12.103) (13.592) CAPITAL RAISING AND LISTING
Slide 31: Appendix – Cash Flow
FY23 RESULTS APPENDIX – CASH FLOW FOR THE 12 MONTHS ENDED MARCH 31 (US$M) 2023 2022 OPERATING CASH FLOW RECEIPTS FROM CUSTOMERS 91.785 84.540 PAYMENTS TO STAFF AND SUPPLIERS (88.578) (81.936) OTHER OPERATING CASH FLOW 0.527 0.069 NET CASH FLOW FROM OPERATING ACTIVITIES 3.734 2.673 INVESTING CASH FLO
Slide 32: Capex Table
FY23 RESULTS CAPEX TABLE FY23 development cost includes an extra 3 months of SBG software labor capitalization and Accelerated Growth investment in 1H The capitalized COGS increase reflects increased P&H sales and added "hotswap" COGS capitalization CAPITALIZED DEVELOPMENT (US$M) US$M FY23 FY22
Slide 33: Appendix – Segment Note P&L
FY23 RESULTS APPENDIX – SEGMENT NOTE P&L Important Note: While the financial information denoted as 2H FY22 forms part of FY22 (which has been audited), 2H FY22 itself has not been separately independently audited or reviewed, and do not independently form part of Catapult’s FY23 financial results.
Slide 34: Management Operating Profit to Underlying EBITDA Reconciliation
FY23 RESULTS MANAGEMENT OPERATING PROFIT TO UNDERLYING EBITDA RECONCILIATION 2H 23 2H 23 RevOps Staff Supply Chain Operations Labour Stock Based Other Other US$M Management Underlying Costs Staff Costs Staff Costs Capitalization Compensation Expenses Income Operating Profit EBITDA Revenue 42.79 42.7
Slide 35: An Established Track Record of Strong and Consistent Growth
* Proforma for the inclusion of acquisitions, and calculated at reporting date. ** These are constant currency, so may not reconcile to the growth rates in the underlying raw metric. For the half years, growth rates represent annualized growth FY23 RESULTS AN ESTABLISHED TRACK RECORD OF STRONG AND C
Slide 36: Unleash Potential
UNLEASH POTENTIAL • CATAPULTSPORTS.COM