Catapult Sports Ltd. · ASX:CAT
Catapult Sports — FY2019 Earnings Presentation
29 slides from Catapult Sports's earnings presentation, Aug 22, 2019
Slide 1: FY19 Results
FY19 RESULTS FY19 RESULTS 22 AUGUST 2019 Dr. Adir Shiffman, Executive Chairman Jim Orlando Interim CFO CATAPULTSPORTS.COM 1
Slide 2: We exist to build and improve the performance of athletes and teams
FY19 RESULTS WE EXIST TO BUILD AND IMPROVE THE PERFORMANCE OF ATHLETES AND TEAMS. Cover image: This photo was taken during the semi-finals of the Série A: Campeonato Carioca state championship between Clube de Regatas do Flamengo and Fluminense FC. The game was 1-0 in favour of Fluminense when in th
Slide 3: FY19 Results
3 FY19 RESULTS CATAPULTSPORTS.COM 3
Slide 4: Catapult's global scale and emerging operating leverage
FY19 RESULTS CATAPULT’S GLOBAL SCALE AND EMERGING OPERATING LEVERAGE A high-growth The global market leader Scalability: delivering recurring revenue with the best products profitability and business generating and service transitioning to high gross margins positive free cash and low churn • 24% AR
Slide 5: Continued strong revenue growth and first positive EBITDA
FY19 RESULTS FY19 CONTINUED STRONG REVENUE GROWTH AND FIRST POSITIVE EBITDA $6M INCREASE CATAPULTSPORTS.COM 5
Slide 6: EBITDA growth momentum
FY19 RESULTS EBITDA GROWTH MOMENTUM DELIVERED FIRST POSITIVE EBITDA DRIVEN BY RECURRING REVENUE AND NEW BUSINESS GROWTH EBITDA ($M) EBITDA ($m) REVENUE INCREMENT EBITDA INCREMENT 6 $18.6M 4 2 $12.4M $6.0M 0 FY17 FY18 FY19 $2.0M -2 FY18 FY19 FY18 FY19 -4 16% YIELD 32% YIELD -6 CATAPULTSPORTS.COM 6
Slide 7: FY19 achievements
FY19 RESULTS FY19 ACHIEVEMENTS CUSTOMER PRODUCT →→ 2,970 teams, up more than 1,100 vs last year →→ Launched 7th generation wearables product, Vector, with first sales →→ 153 teams with more than one product →→ First sales of new video product, Catapult Vision across all geo →→ Continued to sign leag
Slide 8: Catapult has extended its global leadership
FY19 RESULTS CATAPULT HAS EXTENDED ITS GLOBAL LEADERSHIP TEAMS BY REGION TEAMS BY SPORT Total customer base of 2,970 teams, up more than 7% 1,100 in FY19 24% 12% APAC Catapult will continue to achieve 221 growth in three key areas: AUS OTHER →→ Greenfield opportunities with 349 SPORTS teams that are
Slide 9: Catapult is unique in providing world-class solutions across the stack
FY19 RESULTS CATAPULT IS UNIQUE IN PROVIDING WORLD-CLASS SOLUTIONS ACROSS THE STACK V I D E O A N A LY S I S Following the strategic acquisition of video market-leader XOS Digital, Catapult has invested in a scalable, needs-driven video platform, Vision, that is revolutionising how coaches edit, sha
Slide 10: Growing momentum of teams with more than one product
FY19 RESULTS GROWING MOMENTUM OF TEAMS WITH MORE THAN ONE PRODUCT Teams with 2 or 3 products spend an average of 8x p.a. more with Catapult than NUMBER OF PRODUCTS 3 15 single product teams 2 138 1 2817 TEAMS CATAPULTSPORTS.COM 10
Slide 11: Improving scale and leverage across the business
FY19 RESULTS IMPROVING SCALE AND LEVERAGE ACROSS THE BUSINESS O P E R AT I N G E X P E N S E LABOUR EXPENSE TO REVENUE TO REVENUE 90% 60% 80% 50% 70% 60% 40% FY17 FY18 FY19 FY17 FY18 FY19 CATAPULTSPORTS.COM 11
Slide 12: Prosumer resized to achieve potential while managing cash flow
FY19 RESULTS PROSUMER RESIZED TO ACHIEVE POTENTIAL WHILE MANAGING CASH FLOW →→ Revenue growth of 54% to $5.3 million →→ Online channels delivering most of the FY19 sales. →→ NPS score of 65.8 PROSUMER UNITS (0 0 0 ’s ) 14.0 47% INCREASE CATAPULTSPORTS.COM 12
Slide 13: Headcount: positioned to deliver on Catapult strategy
FY19 RESULTS HEADCOUNT: POSITIONED TO DELIVER ON CATAPULT STRATEGY HEADCOUNT BY FUNCTION HEADCOUNT BY REGION SALES EMEA: 81 & MARKETING: 94 TECHNOLOGY & PRODUCT: 119 APAC: 20 AMERICAS: 165 OPERATIONS: 98 AUSTRALIA: 89 CORPORATE: 44 TOTA L H E A D C O U N T 355 UP 14% CATAPULTSPORTS.COM 13
Slide 14: FY19 profit & loss
FY19 RESULTS FY19 PROFIT & LOSS Delivered positive EBITDA while FY19$M FY18 $M % CHANGE investing in future growth REPORTED REPORTED YOY →→ FY19 revenue driven by 33% ARR 66.1 53.4 24% growth in core elite wearables →→ Elite video delivered 14% growth Total revenue 95.4 76.8 24% →→ Two thirds of all
Slide 15: Large & growing stream of accelerating revenue
FY19 RESULTS LARGE & GROWING STREAM OF ACCELERATING REVENUE RECURRING REVENUE ARR ($m) 80.0 Drivers of continued strong growth in ARR include; 1 9. 6 % o f →→ New products focused on R -1 9 C AG 34.1m subscription contracts 60.0 F Y 1 7 →→ Greenfield and cross sell opportunities 28.4m →→ Continued l
Slide 16: Strong growth across all revenue streams
FY19 RESULTS STRONG GROWTH ACROSS ALL REVENUE STREAMS R E V E N U E B R I D G E F Y 1 8 t o F Y 1 9 ( $ 0 0 0 ’s ) 100,000 1,850 95,000 95,375 2,807 1,931 90,000 4,230 85,000 7,763 80,000 76,793 75,000 70,000 FY18 Revenue Americas recurring ROW recurring Americas non recurring ROW non recurring Pros
Slide 17: Americas video product strength in US sports
FY19 RESULTS AMERICAS VIDEO PRODUCT STRENGTH IN US SPORTS →→ $44.8m Revenue, up 14% vs last year →→ 544 teams 30 →→ Traditionally this was a North American business 30 25 →→ Developing global footprint: Catapult Vision in early sales process 25 →→ High margin recurring revenue growth 20 in Coaching/
Slide 18: Elite wearable analysis
FY19 RESULTS ELITE WEARABLE ANALYSIS R E C O R D E W S A L E S W I T H P L AY E R T E K + S A L E S M E E T I N G A M A R K E T O P P O R T U N I T Y A N D C R E AT I N G U P S E L L P OT E N T I A L C U M U L AT I V E E L I T E U N I T S (0 0 0 ’S ) 38.5 40.0 →→ $45.3m revenue up 33% →→ 5.2% subs c
Slide 19: We make the right investments in the right regions
FY19 RESULTS WE MAKE THE RIGHT INVESTMENTS IN THE RIGHT REGIONS REVENUE CONTRIBUTION BY REGION WE HAVE INVESTED IN FUTURE GREENFIELD GROWTH Asia Pac 5% Australia 6% AMERICAS EMEA AUSTRALIA ASIA PAC GROUP REVENUE $65.4m $19.6m $5.4m $5.0m $95.4m EMEA 20% REVENUE +19% +44% +20% +40% +24% GROWTH FY19 H
Slide 20: Investment focus on core elite products
FY19 RESULTS FY19 INVESTMENT FOCUS ON CORE ELITE PRODUCTS FY19 →→ Capital investment program in FY20 is DESCRIPTION focused on delivering new products in Elite ($000's) Wearables (Vector) and Elite Video (Vision) →→ AMS investment focused on target markets Elite Wearables: New (Vector), Clearsky, PT
Slide 21: Strong seasonal cash receipts drive improved current balance
FY19 RESULTS STRONG SEASONAL CASH RECEIPTS DRIVE IMPROVED CURRENT BALANCE R E C O R D E W S A L E S W I T H P L AY E R T E K + S A L E S M E E T I N G A M A R K E T O P P O R T U N I T Y A N D C R E AT I N G U P S E L L P OT E N T I A L FCF BRIDGE FY18 VS FY19 ($000’S) 35,000 31,715 30,000 (4,650) 2
Slide 22: FY19 recap
FY19 RESULTS FY19 RECAP →→ First positive EBITDA of $4.1m, a $6m improvement →→ 1,100 new teams to 2,970 →→ ARR growth 24% to $66.1m →→ Revenue growth 24% to $95.4m →→ Slowing OPEX growth, 14% to 9% →→ Lower EW subscription churn, 5.2% from 8.4% →→ New products in market: Vector, Vision, PlayerTek+,
Slide 23: Outlook
FY19 RESULTS OUTLOOK →→ The Board expects continued strong revenue growth, with a further reduction in operating expense growth →→ Catapult is committed to subscription sales and ARR growth, with high quality, high margin, revenue →→ 3 key drivers exist to support growth: →→ Greenfield sales to new
Slide 24: Thank you
FY19 RESULTS THANK YOU CATAPULTSPORTS.COM 24
Slide 25: Appendix 1: Elite wearables – subscription units reconciliation
FY19 RESULTS APPENDIX 1: ELITE WEARABLES – SUBSCRIPTION UNITS RECONCILIATION UNITS ELITE SUBSCRIPTION FLEET (30 JUNE 2018) 17,098 NEW SUBSCRIPTION UNITS SOLD 5,605 CHURN - SUBSCRIPTION CONTRACTS NOT RENEWED (895) TEAMS REDUCING NUMBER OF UNITS UNDER SUBSCRIPTION (216) TEAMS SWITCHING TO PLAYERTEK OR
Slide 26: Appendix 2: EBITDA to underlying core EBITDA
FY19 RESULTS APPENDIX 2: EBITDA TO UNDERLYING CORE EBITDA E B I T D A B R I D G E F Y 1 9 S TAT U T O R Y E B I T D A T O C O R E U N D E R LY I N G E B I T D A ( $ 0 0 0 ’ S ) CATAPULTSPORTS.COM 26
Slide 27: Appendix 3: Stronger balance sheet provides platform for growth
FY19 RESULTS APPENDIX 3: STRONGER BALANCE SHEET PROVIDES PLATFORM FOR GROWTH →→ Working capital decrease driven by use of 30 JUNE 19 30 JUNE 18 funds for capital investment as operating $M $M cash flows are used to fund one off investments in core labour and consumer Cash and cash equivalents 11.7 3
Slide 28: FY19 Results
28 FY19 RESULTS CATAPULTSPORTS.COM 28
Slide 29: catapultsports.com
CATA P U LTS P O R TS .CO M @catapultsports catapult-sports 29