Catapult Group International Ltd

ASX:CAT

Catapult Group International Ltd

ASX:CAT
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$3.39 (-3.1%)
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#2
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Forum Topics CAT CAT Industry/competitors

Pinned straw:
mikebrisy
Added 5 months ago

@Strawman Nice short sharp interview with some great insights.

If you add the 43% profit margin (slide 30 of FY Results Preso and referred to by Will) to the $100m incremental sales for medium term growth, the scenarios are more about does it taken them 3, 4, 5 or 6 years to get there. Then what's the exit trajectory to becoming a $1bn company over the longer term.

You can be sure that once every pro player in every code is streaming data fully integrated with video, then there will be scope for huge innovation for both player, team and audience benefits. Imagine a future where in real time, sports commentators can analyse mistakes and run real time what-if video scenarios. Surely that's not far off with AI video generation? Just think what sport broadcasters will pay to be first with that capability.

I couldn't resist the All Blacks dig, as I only realised in my pre-meeting research this morning over breakfast that they have switched to STATSports. What I learned from Will is that the were stolen by a FREE offer. As @Strawman said, this is a race to the bottom, but it is potentially a dangerous situation if your major competitor makes a FREE offer to the market leader, and then uses that credential to sell into the league. Will said they are leaders in Rugby, but the fact is that 10 out of 20 teams in the 2023 RWC (according to STATSports) use the competitor. Now that's a strong calling card for that code.

Therefore, coming back to long term revenue growth and margin, I wonder how that's going to evolve over time. As the "green space" is filled out over the coming small number of years (we can assume all 20,000 Pro Sports Teams use the tech.,) then product innovation, AI adoption/algorithms is going to be key as the market leaders more often go head-to-head to win accounts and try to switch key accounts.

So, with pricing and innovation as two levers, I wonder how well Will has read the market? This is an unaswerable question, and at the end of the day, you have to decide whether to back the CEO. He has certainly earned some credibility with the calls made over the last 3-4 years.

So that's what's going through my head as I crunch the numbers and think about whether to give this a bigger allocation.

Disc: Held in SM and RL and evaluating
Strawman
Added 5 months ago

I agree @mikebrisy -- the optionality here is immense. We are increasingly living in a world where data is one of the most important assets, and that's exactly what they harvest. As you say the potential use cases are mind-boggling.

I have to remain realistic though. I find myself getting very excited by everything Will said but there's still a long way to go. But I am encouraged that he's delivered well so far and seems to be focused on the right things.

23
Valueinvestor0909
Added 5 months ago

Agree but when someone has walked the talk for 3-4 years. you have a level of trust as opposed to a random CEO saying anything.

I just watched the video and I liked Will's comment about "focus", which is evident everywhere. If you have also watched his ausbiz interview, He clearly said there are no acquisitions and the focus is on organic growth.

Strategy is right -- hopefully, execution in the next 3-5 years will be on the money.

21
Strawman
Added 5 months ago

I hear that @NewyRookie -- the CEO is head salesperson in a lot of ways. (But it can make it easy to fall under their spell -- and i have a tendency to do that. It's a definite weakness!)

And I very much second your thoughts @Valueinvestor0909. I give a lot more rope to a CEO that has been consistent in their messaging and delivering on past promises. And was really glad to hear Will say that they were focusing on the immediate goals, rather than chasing too much other stuff at this stage.

If they can demonstrate ongoing success with their strategy, and we see some really good operating leverage emerge, they may finally be able to shake off some of the (not unreasonable) skepticism from many in the market.

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