Catapult Group International Ltd (ASX: CAT) has just released its financial results for the first half of FY25, and the company is looking strong. Here’s a quick breakdown of their performance:
Key Highlights:
- Annualized Contract Value (ACV), a leading indicator of future revenue, grew by 20% year-on-year (YoY) on a constant currency basis, reaching US$96.8M (A$143M).
- Revenue for the half-year was US$57.8M (A$85M), a solid 19% increase YoY (constant currency).
- Free Cash Flow (FCF) hit US$4.8M (A$7M), already surpassing the entire amount generated in FY24.
- Profit margin on incremental revenue stood at 75%, a significant boost from the previous year.
CEO’s Perspective:
Will Lopes, Catapult’s CEO, expressed his satisfaction with the company’s performance:
“We’ve started FY25 strong, with another year of robust growth. Our key metric, Annualized Contract Value, grew 20% YoY, and we’re seeing strong demand across both our Performance & Health and Tactics & Coaching verticals. This continued growth has helped us significantly improve our Free Cash Flow and profitability.”
ACV Growth and Market Adoption:
Catapult’s SaaS business continues to drive growth, with ACV up 20% YoY. This is partly thanks to the addition of US$10M in incremental ACV in the second half of FY25, the largest increase seen in any half-year period. The company saw impressive results in both its Performance & Health (P&H) and Tactics & Coaching (T&C) verticals:
- Performance & Health saw 22% YoY ACV growth, driven by deals in soccer leagues across Europe, the Middle East, and Asia, as well as increasing adoption in North America’s college sports.
- Tactics & Coaching grew 18% YoY, with New Video Solutions achieving 42% growth, supported by strong uptake in North America, particularly in soccer and motorsports.
Profitability and Financial Position:
Catapult’s revenue growth has translated into solid profitability, with a 48% contribution margin, up from 44% last year. The company also recorded Management EBITDA of US$6.2M, reflecting its effective cost management.
Additionally, Catapult made notable strides in improving its Free Cash Flow (FCF), which increased by US$3.4M YoY, reaching US$4.8M. The company also reduced its debt by US$6.0M, bringing its debt balance down to US$5.0M.
New Product Solutions:
Catapult didn’t just focus on growing its core business—it’s also continuing to innovate. Some of the exciting new products developed in 1H FY25 include:
- Focus for American Football, which transforms sideline video analysis for NCAA teams.
- Next Gen Video Presentations that improve how coaches share key moments.
- MatchTracker Live for UEFA, which provided live insights during Euro 2024.
- Vector Pro Live for French Rugby League, delivering live performance data for broadcast.
Looking Ahead:
Catapult is confident about its future, with plans to continue its profitable growth strategy. The company expects strong ACV growth to continue throughout FY25, with a focus on higher Free Cash Flow, low churn, and continued cost improvements. As Mr. Lopes puts it:
“We will continue innovating to deliver amazing solutions for our customers, and I’m excited about what’s to come as we help unleash the potential of athletes and teams globally.”
It’s clear that Catapult’s strong performance and strategic investments in innovation are setting the stage for even greater success in the future.
