Catapult Sports Ltd

ASX:CAT

Catapult Sports Ltd

ASX:CAT
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$4.57 (-1.5%)
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#5
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71
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Forum Topics CAT CAT CEO Meeting

Pinned straw:
Strawman
Added 6 months ago

The recording for our chat with Will Lopes is now up on the meetings page, or you can access it here

You can also find the transcript here CAT Transcript.pdf

I was encouraged by Will’s focus on customer success, and particularly how that’s being balanced with cost management. What stood out was the emphasis on efficient profit generation -- not just chasing growth for its own sake, but doing so in a way that’s sustainable and cash-generative. Hitting profitability while continuing to innovate isn’t easy, and it’s clear that’s been a deliberate part of the strategy.

The shift to a true platform model is also a big deal. The product suite has been reengineered not just to be better, but to be broader. It's able to integrate a wider array of data sources (he mentioned things like hydration sensors or smart footwear) and designed for remote monitoring. This opens up a lot more possibilities in terms of what Catapult can measure and how it can support teams.

It was also interesting to hear Will describe the business as still being in “year one” of data-driven sports science. That’s a strong signal that he sees a long runway ahead, not just in signing new teams, but in deepening the value proposition for existing ones. There’s clear greenfield opportunity, and the upsell potential from layering on more data and video capabilities looks real.

At this stage, it feels like the heavy lifting (ie. the foundational restructuring and the product overhaul) is largely done. What’s left now is consistent execution and scaling what’s already in place.

All up, there’s still plenty of growth ahead, strong product optionality, and a much firmer financial base to build from.

[held]

mikebrisy
Added 6 months ago

@Strawman I've just caught up with the $CAT meeting with Will (travelling in Europe for a bit, so not expecting to be saying much on here for a while.)

I agree with the comments made by others about Will's candour and clarity. While he has always been that way in previous interviews, my sense is there is a growing ease and confidence in his responses, as the track record builds.

I'm glad he gave a fair bit of insights on longer term margin drivers, (beyond the 30% / c. $200m), and when I get back to Brisy in late July, I'll take another look at my valuation assumptions, and replay his remarks.

Although I'm a relative latecomer to this party, my conviction continues to grow with each year. ($CAT now a top-3 RL holding for me.)

Disc: Held in RL and SM

31
mushroompanda
Added 6 months ago

That was an awesome interview @Strawman - very much appreciate your efforts!

My main takeways

  • Will elaborated quite a bit on competition and Hudl specifically. I always had the impression that Hudl is very acquisition heavy and a lot of its market expansion had come from this. E.g. their new wearables product had also been acquired. Hudl now has a hodge-podge of products, and while they've been successful with their expansion so far - the challenge for them is whether they can develop the muscle to continuously improve the key product lines.
  • Vector's compatibility with 3rd party sensors is super exciting and management have obviously thought about the approach. As someone who's just got back into running recently I want to sensor the crap out of myself - lactic threshold, hydration/electrolyte, etc - so no doubt the pros will want it too!
  • The "Rule of 40" may seem a bit cringe-y when seen on powerpoint packs, but Will frames it very well. It's about growing, but also improving the efficiency of the growth. Asking the team to grow the business, but being very explicit about the constraints they're under (costs), if you will.


Disc: Held in RL

33
jcmleng
Added 6 months ago

Agree @mushroompanda . It was a briiliant interview. I took the away the following points:

1. The new hardware is no longer a device, it is more a PLATFORM - allows us to see everything from anywhere in the world, have a device connect to multiple devices on the body - opens up opportunities to go beyond measuring the athlete workload 

This is an interesting perspective into the 2nd tier of the "CAT Platform”. This opens up a lot of technical opportunities as it is not single device -> infrastructure (point to point), but rather many sensors -> device -> infrastructure (many points to infrastructure) .... this could get very exciting in terms of what data can be captured and transmitted.

2. CAT’s discipline around profitability is driven by Will’s lived learning experience from the Dot Comm bust - reinforces what a difference Will has made to the company.

3. The reality is that the technology is sport is still fairly nascent - “still like day one for us, pretty early days”. Mixture of improving the current technology and using that to up-sell is more important rather than pricing power. Both these means that pulling the pricing lever is further away - a really good thing (am thinking.comparing with XRO in making this comment).

4. HUDL is able to find its way into the professional market by acquisition, they are not really innovating - in sports technology, innovation always wins in the long term as you “cannot buy your way in, have to innovate” which is where CAT’s focus is. It is clear from Will's comments that they have a healthy respect and a good handle/understanding of HUDL as a competitor - that was very good to hear when Will could have come across dismissive and arrogant, which would have not been a good thing.

Super happy given that this is now my highest portfolio holding!

Held: IRL and in SM

27
Clio
Added 6 months ago

I could wish that all CEOs were as clear as Will. You ask a question and he answers it both directly and with a breadth of understanding and supporting information that, to me at least, is very impressive.

Held in SM and RL.

33