Catapult Sports Ltd. · ASX:CAT
Catapult Sports — FY2021 Earnings Presentation
39 slides from Catapult Sports's earnings presentation, May 26, 2021
Slide 1: FY21 Results
FY21 RESULTS M AY 2 6 , 2 0 2 1 Will Lopes Chief Executive Officer Hayden Stockdale Chief Financial Officer CATAPULTSPORTS.COM
Slide 2: Important Notice
FY21 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: Accelerating & Strong SaaS Growth Momentum
FY21 RESULTS ACCELERATING & STRONG SAAS GROWTH MOMENTUM ➔ Accelerating growth across our key SaaS metrics: Our key leading indicator, ACV grew at 35% annualized across Q3 and Q4 ➔ Delivering subscription revenue momentum Q4 subscription revenue grew 12.5% on the previous corresponding (non-Covid
Slide 4: Global Pandemic's Severe Impact on Sports Industry
FY21 RESULTS GLOBAL PANDEMIC'S SEVERE IMPACT ON SPORTS INDUSTRY ➔ Worst global sports industry conditions since WW2 ➔ The pandemic began to impact sport in March 2020 ➔ The impact was at its most severe in H1 FY21 ➔ Sport has since found a way to return SPORTS IMPACT 1Q21 2Q21 3Q21 4Q21 • Sport conf
Slide 5: Our Focus Captured Momentum Shift
FY21 RESULTS OUR FOCUS CAPTURED MOMENTUM SHIFT ➔ P&H ACV grew almost 3x faster in FY21 than in FY20 P&H ACV grew faster during Covid than FY20, with annualized Q4 ACV growth of 55% Growth momentum accelerated globally in Q4 (all regions >40% annualized) ➔ ACV churn was lower in H2 versus H1 (5.5
Slide 6: Strong Progress Against Our Key SaaS Growth Metrics
FY21 RESULTS STRONG PROGRESS AGAINST OUR KEY SAAS GROWTH METRICS ➔ We delivered 16.5% ACV growth and lower churn ACV in EMEA up 57% ACV in APAC up 34% ACV in Americas up 4% USD $M FY21 FY20 % CHANGE ACV 48.4 41.5 16.5% ACV CHURN % 5.5% 6.4% -1 4 .1 % SAAS SUBSCRIPTION GROWTH AND QUALITY L I F
Slide 7: Strong Progress Against Our Key SaaS Efficiency Metrics
FY21 RESULTS STRONG PROGRESS AGAINST OUR KEY SAAS EFFICIENCY METRICS ➔ Cross sell was up, as customers recognize the value in a combination of our solutions ➔ We are deeply embedded in our customers workflows with an average customer duration of almost 6 years; down slightly as we add new customers
Slide 8: Financial Highlights
FY21 RESULTS FINANCIAL HIGHLIGHTS ➔ Free Cash Flow of $4.9M up 68.6% - second consecutive year of positive free cash flow while maintaining our level of R&D investment ➔ Our focus on growing recurring revenue delivered subscription revenue growth of 3.3%, buoyed by 16% growth in Performance & Health
Slide 9: Two Consecutive Quarters of 35% ACV Growth
FY21 RESULTS TWO CONSECUTIVE QUARTERS OF 35% ACV GROWTH 35% growth for H2 annualized as growth momentum shifts 48.4 CATAPULTSPORTS.COM 9
Slide 10: Momentum in ACV Growth Driven by APAC and EMEA
FY21 RESULTS MOMENTUM IN ACV GROWTH DRIVEN BY APAC AND EMEA ➔ COVID still impacting US ACV by Region (US$M) ACV Growth by Region customers relatively more 60 60% 57% than customers in other regions 50 50% ➔ Significant potential for ACV growth in the US, our largest market, once COVID 40 40% impacts
Slide 11: ACV Healthy as Customers Lifetime Duration Increases
FY21 RESULTS ACV HEALTHY AS CUSTOMERS LIFETIME DURATION INCREASES ➔ Reduction in the 2-9 and 10+ year customer duration categories was the result of lapsed renewals due to COVID ➔ Recaptured (and now classified in <2-year category) ACV (US$M) ACV by Customer Duration (US$M) 50 20 18.3 17.6 17.7 18 1
Slide 12: ACV Momentum Creates High-Quality SaaS Revenue
FY21 RESULTS ACV MOMENTUM CREATES HIGH-QUALITY SAAS REVENUE Subscription Revenue % of Total Revenue 80% ➔ 12% growth in the 78% percentage of revenue which is subscription 76% reflects the strategic focus on growing ACV 74% ➔ ACV growth is the lead 72% indicator for growth in subscription sales 70%
Slide 13: Revenue Shift Is Accelerating Entering FY22
FY21 RESULTS REVENUE SHIFT IS ACCELERATING ENTERING FY22 Subscription Revenue as a % of Total Revenue 90 ➔ Subscription revenue grew 12.5% in Q4 85 ➔ We are prioritizing contracted recurring revenue over one-time capital sales 80 75 70 65 4Q20 1Q21 2Q21 3Q21 4Q21 CATAPULTSPORTS.COM 13
Slide 14: Capital Revenue Being Replaced by Subscription Revenue
FY21 RESULTS CAPITAL REVENUE BEING REPLACED BY SUBSCRIPTION REVENUE Subscription v Capital Revenue by Quarter (US$M) ➔ COVID impacted capital $25.0 sales in Q1 FY21 ➔ We began to deliberately $20.0 taper capital sales throughout FY21 $15.0 ➔ Conversion into subscription revenue is starting to take e
Slide 15: Positive Momentum in Multi-Solution Customers
FY21 RESULTS POSITIVE MOMENTUM IN MULTI-SOLUTION CUSTOMERS ➔ Last two quarters saw positive shift in growth 41% annualized growth for H2 FY21 ➔ Significant upside remains for further multi-solution growth Multi-Solution Customers % of Customers with 2 or more Multi-Solution Customers – 300 Solutio
Slide 16: ACV Retention at World Class SaaS Levels
FY21 RESULTS ACV RETENTION AT WORLD CLASS SAAS LEVELS ACV Churn 6.6% ➔ Churn is at world class SaaS levels 6.4% ➔ A reduction in ACV Churn was 6.2% achieved during an extremely challenging year for our 6.0% customers ➔ Low churn reflects strong 5.8% customer engagement and the embedded nature of Cat
Slide 17: Business Model Efficiency Improving with Growth
FY21 RESULTS BUSINESS MODEL EFFICIENCY IMPROVING WITH GROWTH ➔ Vector device upgrades reduced Gross Margins slightly in FY20 ➔ We expect Gross Margins to improve with the shift to a higher concentration of subscription sales ➔ In the short term, we expect Contribution Margins to be negatively impact
Slide 18: Pro Segment ACV Growth
FY21 RESULTS PRO SEGMENT ACV GROWTH ➔ ACV within our Pro Segment had strong growth supported by our largest vertical: Performance & Health ➔ Tactics & Coaching ACV was stable with new customer growth showing rebound momentum in Q4 Pro Segment ACV (US$M) 60 50 40 30 20 10 0 FY19 FY20 FY21 Others T&C
Slide 19: Performance & Health ACV Growth Accelerated During COVID
FY21 RESULTS PERFORMANCE & HEALTH ACV GROWTH ACCELERATED DURING COVID ➔ P&H ACV grew almost 3x faster in FY21 than in FY20 (32% versus 12%), ➔ ACV growth was strong across H2 FY21 with our increased focus on high- despite COVID (note COVID’s impact commenced near the end of quality recurring revenue
Slide 20: Tactics & Coaching ACV Growth
FY21 RESULTS TACTICS & COACHING ACV GROWTH ➔ T&C ACV was -1% across FY21, being slightly down on a historic growth ➔ Vision solution - Current “land then expand” strategy driving high customer rate of approx. 5%, due to COVID. T&C is a “late cycle” solution, growth. dependent more on return-to-play
Slide 21: Prosumer Reset Progressed Well Despite COVID
FY21 RESULTS PROSUMER RESET PROGRESSED WELL DESPITE COVID US$M 5.0 ➔ Despite the impacts of the pandemic in FY21 and our pull back on marketing 4.0 from FY19 levels (in FY20-21) 3.0 we've managed to maintain Prosumer 2.0 revenue above $3M 1.0 ➔ Our Cost to Acquire Customers (CAC) has reduced more th
Slide 22: Operational Highlights
FY21 RESULTS FY21 OPERATIONAL HIGHLIGHTS ➔ Sales Highlights ➔ Tech Highlights Achieved 100% penetration of teams in the Covid solutions, including our Remote Athlete Solution NFL and Athlete Proximity Reporting are all heavily utilized New multi-solution customers in FY21 New solutions for A
Slide 23: Building a World Class SaaS Business
FY21 RESULTS BUILDING A WORLD CLASS SAAS BUSINESS ➔ We are delivering on the things we said we would accomplish to scale Catapult to the next level End of FY21 Measure The Right Things Improve Governance Reset Prosumer Business Expand Platform Growth Metrics – ACV, ACV Churn, Changed reporting curre
Slide 24: Profit & Loss Statement
FY21 RESULTS PROFIT & LOSS STATEMENT ➔ For the 12-month year revenue was 7.4% lower due to COVID and our USD $M FY21 FY20 % CHANGE shift from capital to subscription sales REVENUE 67.3 72.7 -7.4% COGS 17.6 19.8 -10.9% ➔ However, for our audited nine-month year, which excludes April-June GROSS PROFIT
Slide 25: Subscription Revenue Growth by Vertical
FY21 RESULTS SUBSCRIPTION REVENUE GROWTH BY VERTICAL ➔ Performance & Health growth US$M driven by new subscription sales in 30.0 +15.8% EMEA and APAC 25.0 ➔ T&C up strongly in EMEA and APAC with the US business impacted by 20.0 +1.6% COVID, especially NCAA -15.7% 15.0 ➔ Management and M&E both down
Slide 26: Pro Segment Revenue: Strong P&H Subscription Revenue Growth
FY21 RESULTS PRO SEGMENT REVENUE: STRONG P&H SUBSCRIPTION REVENUE GROWTH Recurring Subscription revenue +$2.2m Capital revenue -$5.0m One time subscription revenue -$0.7m CATAPULTSPORTS.COM 26
Slide 27: Underlying EBITDA Impacted by One Off Impacts
FY21 RESULTS UNDERLYING EBITDA IMPACTED BY ONE OFF IMPACTS WITH COVID IMPACTS MITIGATED CATAPULTSPORTS.COM 27
Slide 28: Strong Free Cashflow Despite COVID-19 Impact
FY21 RESULTS STRONG FREE CASHFLOW DESPITE COVID-19 IMPACT CATAPULTSPORTS.COM 28
Slide 29: Capex Table
FY21 RESULTS CAPEX TABLE ➔ Solution development costs stable on FY20 US$M 8.0 15.0% 6.0 4.0 10.1% 10.0% 9.2% 2.0 - 5.0% FY20 FY21 Pro Prosumer Development Cost as a % of Revenue CATAPULTSPORTS.COM 29
Slide 30: Catapult's Competitive Advantage and Technology Leadership
FY21 RESULTS CATAPULT’S COMPETITIVE ADVANTAGE AND TECHNOLOGY LEADERSHIP U N I Q U E LY P O S I T I O N E D T O E X P A N D A C V • LARGE CUSTOMER BASE • WORKING WITH 3,254 PRO SPORTS TEAMS • OUR EXPERIENCE IS UNIQUE, HAVING WORKED WITH PRO SPORTS TEAMS SINCE 2007 • MOST COMPREHENSIVE DATA SET • WE C
Slide 31: We Work with the Very Best
FY21 RESULTS WE WORK WITH THE VERY BEST CATAPULTSPORTS.COM 31
Slide 32: FY21 Recap
FY21 RESULTS FY21 RECAP ➔ COVID impacted pro sport globally – worst industry conditions since WW2 ➔ Nonetheless we’ve proven the importance of our solutions to our customers’ critical daily workflows ACV Churn fell despite the poor industry conditions Performance & Health ACV grew faster during
Slide 33: Outlook
FY21 RESULTS OUTLOOK ➔ Increasingly confident in the short- to medium-term, for continued strong organic ACV growth ➔ Confident in our long-term strategy of expanding ACV to 10x our current size ➔ This confidence sharpens our focus on accelerating opportunities we are uniquely positioned to capture
Slide 34: Appendices - Pro Forma Financial Information
FY21 RESULTS 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 slides 35 to 38 (inclusive) is pro forma, non-IFRS, and has not been independently audited or reviewed. It does
Slide 35: Appendix – Profit & Loss (Unaudited)
FY21 RESULTS APPENDIX – PROFIT & LOSS (UNAUDITED) FOR THE 12 MONTHS ENDED MARCH 31 (US$M) 2021 2020 REVENUE 67.340 72.719 OTHER INCOME 1.006 0.600 COST OF GOODS SOLD (17.635) (19.786) EMPLOYEE BENEFITS EXPENSE (31.299) (30.292) EMPLOYEE SHARE OPTION COMPENSATION EXPENSE (2.674) (0.556) CAPITAL RAISI
Slide 36: Appendix – Balance Sheet (Unaudited)
FY21 RESULTS APPENDIX – BALANCE SHEET (UNAUDITED) Important Note: Financial information in this slide is pro forma, has not been independently audited or reviewed, is provided solely to illustrate the effects of Catapult’s change in financial year end and presentation currency, and is based on the b
Slide 37: Appendix – Cash Flow (Unaudited)
FY21 RESULTS APPENDIX – CASH FLOW (UNAUDITED) Important Note: Financial information in this slide is pro forma, has not been independently audited or reviewed, is provided solely to illustrate the effects of Catapult’s change in financial year end and presentation currency, and is based on the backg
Slide 38: Appendix – Background
FY21 RESULTS APPENDIX – BACKGROUND ➔ The unaudited financial statements in these Appendices have been compiled from management accounts. They comprise the audited financial statements for the nine-month period ended March 31, 2021 and the unaudited accounts for the three-month period ending June 30,
Slide 39: Play Smart
I PLAY SMART CATAPULTSPORTS.COM