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Chart Update thurs 11th July 24
Boy, any stocks that are bullish at the moment, you would put in the Very bullish category, Take Drone Shield and Catapult for example. These 2 stock just haven’t retraced back to what are considered historic Fibonacci levels at all.
It looks like we are seeing a really nice impulsive w(i) of w3 up (I like to ses that). As you know my rule for entry is seeing the 1st 1/2, (i)/(ii) up, then enter as its just climbing out of the bottom of w(ii). That said let me put some numbers to that. It should drop back to 1.83 - 1.88 for w(ii) (as long as it stops today at 1.97 ish which it should). See if targets move ahead more than expected, then so too do the retraces they make.
So once I see what I believe to be the bottom of the next retrace down ( that determined by seeing it starting to climb of its bottom) then I will buy here. That should be around the $1.90 price and ill then put an alert for approx 1.80 in case it drops back below my purchase price. If it drops to this alert then I will re evaluate my decision to stay in or not.
Chart Update Mon 1st July 2024
Well Cat is finally starting its pull back for the 4th wave down. Todays candle is very aggresive to the downside. You can see my target box with the bottom being in the range 1.56 - 1.67. It may not go as low as the 1.56 (or 38.2% of the last wave 3 as a rule) as it's still a bullish stock. Just have to see how it plays out.
Not surprised that this company has catapulted up the strawman rankings since the meeting with Will Lopes last week. And the share price is following.
CATAPULT BECOMES EXCLUSIVE PROVIDER
TO BRAZILIAN NATIONAL FOOTBALL TEAMS
Nice to see management make an announcement and properly not mark it as price sensitive.
Not all our small cap Boards/CEOs quite follow the rules (not mentioning anyone in particular… who might have featured on other posts this morning!)
@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
Catapult referred to the same “rule of 40” in their recent presentation as Xero. Cash flow much better last update, but not much left in the bank. Interesting that their web traffic is steadily increasing. I assume they have real time data access through their website but would be interested in hearing from anyone who has used their platform. Seems like something that would be fairly sticky once it becomes popular. Bought some based on the above recently IRL.
Steve Johnson from Forager covers Catapult in this interview - https://ausbiz.com.au/media/some-of-those-small-caps-are-worth-a-large-interest?videoId=36142&utm_medium=email&_hsmi=310030752&utm_content=310030752&utm_source=hs_email
Drop for w4 before starting wave 5 up.
Is w3 up finished, hard to tell right now. It may push back up to the $2 mark however im now focused on wave 4 down to add again to my remaining position. My next target is the 1.55 - 1.67 target box. I will state though that wave 4 is usually a drawn out wave before it starts wave up. Wave 4 can be so long it can produce fake break outs to the up side then to fall away again. I sold out 3/4 of my position at the recent top and now have the last 1/4 there to add to again at the bottom of wave 4 providing me with a buffer.
I know a lot here leave the bulk of the stock and only sell out small portions. For me however I cant do that as Im getting in on this stock towards the top of a cycle, so I build then take & repeat. If I had got in back in say May 2023 ish for around the 0.65 - 0.70, then I would be playing the long game like yourselves. On the next major pull back which will be somewhere after wave 5, I will enter for more of a long play then.
I got out as last Friday's bar was above/outside the Bollinger Bands, meaning it was at an extreme of more than 2 standard deviations from the norm and also because it hit my Fib target (actually broke above it) and was showing signs late friday afternoon before close that the orders were staking up to get out. I had been watching the order book (buy and sales as well as the size of the orders).
Ill keep an eye on the chart and update as it plays out.
My quick take is that this is very positive.
very low churn (falling)
prolonged lifetime customers
increased saas revenue share (higher quality)
still has a long runway
buying in real life but only topping up a decent position (adding to a winner here)
keen for @ strawman’s thoughts as the longest suffering shareholder in this particular business
UNLEASH POTENTIAL
CATAPULT GROUP INTERNATIONAL LTD ABN 53 164 301 197
75 HIGH STREET, PRAHRAN, VIC, 3181 AUSTRALIA
1
CATAPULT.COM
CATAPULT’S REVENUE UP 20% REACHING US$100M (A$152M)
Free cash flow increased to US$4.6M (A$7M) on SaaS Revenue growth of 24%
M A Y 3 0 , 2 0 2 4
A L L F I N A N C I A L S A R E I N U S D U N L E S S O T H E R W I S E I N D I C A T E D
Catapult Group International Ltd (ASX:CAT, ‘Catapult’ or the ‘Company’), the global leader in
sports technology solutions for professional teams, is pleased to announce its financial results
for the financial year ended March 31, 2024 (FY24).
F Y 2 4 H I G H L I G H T S
• Annualized Contract Value (ACV), Catapult’s leading indicator of future revenue, grew
20% on a constant currency (CC) basis year on year (YoY)
• The Company hit a milestone revenue mark of US$100.0M (A$152M), up 20% (CC) YoY
• Profit Margin improved +125% YoY resulting in US$4.6M (A$7M) of Free Cash Flow
Commenting on the results, Chief Executive Officer and Managing Director, Mr. Will Lopes,
said “FY24 was a historic year for Catapult. Our growth momentum continued, underpinned by
our SaaS solutions, lifting Revenue past $100 million US dollars, or over $150 million Australian
dollars, a major milestone for any ASX listed business. Our SaaS strategy delivered great ACV
growth, driven by new customers but also buoyed by increases in ACV per team as cross selling
accelerated with our New Video Solutions. More importantly, FY24 was a major inflection point
in our journey towards profitability and building a world class SaaS business. We saw strong
growth in our profit margin, accelerating us to improved levels on the Rule of 40 – an important
valuation metric for SaaS companies – as we kept 43% of every new dollar we generated in
Revenue, and increased our Free Cash Flow to $4.6 million US dollars. The foundation is now in
place for top-line growth and bottom-line expansion as we capitalize on the global opportunity
ahead of us.”
S A A S D R I V I N G T O P - L I N E G R O W T H M O M E N T U M
Catapult delivered another strong performance from its core SaaS verticals, with ACV growth
of 20% (CC) YoY. Catapult’s core SaaS metrics demonstrate both the benefits of a scalable
and repeatable business model, and the embeddedness of Catapult’s product solutions into
team workflows, with:
UNLEASH POTENTIAL 2
CATAPULT.COM
• ACV Retention improving to 96.5% up 30 basis points YoY
• Customer Lifetime Duration increasing 15.9% YoY to 7.0 years
• Pro Team Customers increasing 9.4% YoY to 3,317 Teams
In Performance & Health (P&H), its SaaS vertical that includes wearables, ACV grew 23% (CC)
YoY, generated by market segment expansion and geographic success. The Company
experienced success signing new teams and leagues in soccer across LATAM and EMEA regions,
and baseball across North America and APAC. This reinforces that Catapult remains the
partner of choice when teams and leagues are evaluating the best available solution for athlete
monitoring, management, and recovery.
In Tactics & Coaching (T&C), the vertical inclusive of Catapult’s video solutions, ACV grew 15%
(CC) YoY, an increase from its 11% growth the previous year, driven by an acceleration of its
New Video Solutions ACV growing 44% (CC) YoY. Expansion in EMEA and North America with
new customers in soccer and motorsport were highlights. The focus on acquiring new logos
continues to generate strong results, with teams using its New Video Solutions growing 77%
YoY. This acceleration of growth represents an ongoing validation of the Company’s
investment into its Video Solutions, reinforced by the attractiveness of the strong unit
economics they deliver. Further, the Company saw its market segment expand in this vertical
with its entry into Sideline Video analysis in American Football, which was not yet represented
in its FY24 ACV.
Catapult continued to demonstrate the effectiveness of its Land and Expand strategy, with
Multi Vertical Pro Teams, those who adopted more than one Catapult solution, increasing 32%
YoY (48% when run off products are excluded) to 483 Teams. The effectiveness of this strategy
can also be seen in the rise of the average ACV earned from each Pro Team, which increased
more than 7% (CC) in FY24 and is now approaching US$25,000 per Pro Team. With the early
results of this strategy cross-sell remains a significant opportunity for the Company.
R E V E N U E , P R O F I T A B I L I T Y , A N D C A S H F L O W M I L E S T O N E S
Catapult reached several financial milestones in FY24. Total revenue grew to US$100M,
up 20% (CC) YoY, underwritten by accelerating SaaS (ACV) revenue which increased to
US$82M, up 24% (CC) YoY. Revenue growth, together with a disciplined approach to costs,
generated a Contribution Margin of 46%, a strong increase from 34% in FY23. This enabled the
Company to generate a Management EBITDA (Catapult’s measure of profitability) of
US$4.2M. Catapult also exceeded its 30% target of incremental profit margin for FY24,
delivering an incremental profit margin of 43%.
Catapult delivered on its guidance to generate positive Free Cash Flow (FCF) in FY24,
generating FCF of US$4.6M, a US$26.2M improvement YoY. Importantly, FCF of US$3.2M in
the second half of FY24 significantly exceeded FCF of US$1.4M generated in the first half of
FY24. This was a significant achievement given FCF has historically been lower in the second
half of the financial year. This performance reflects a diligent approach to cash management,
and Catapult is in a strengthened financial position at a time when the Company exits a multi-
year period of investment.
UNLEASH POTENTIAL 3
CATAPULT.COM
During FY24, Catapult made a net repayment of US$4.7M of funds drawn down from its
existing debt facility with Western Alliance Bank. This leaves the Company with an existing
debt balance of US$11M. Catapult has extended this facility, which was due to mature in
December 2024, with a new maturity date of May 2027.
Commenting on the results, Mr. Bob Cruickshank, Chief Financial Officer, said “By every
measure our business has performed extremely well this financial year. The growth of our
revenue to $100 million US dollars, underwritten by ACV growth of 20%, highlights the strong
performance we are generating in our core verticals. This growth, combined with disciplined
cost management and a focus on returns, has enabled us to significantly improve our
profitability and incremental profit margin, and demonstrates the operating leverage that we
have in our business. Delivering $4.6 million US dollars of Free Cash Flow is an outstanding
achievement and a milestone the Catapult team can all be proud of. The extension of our debt
facility to 2027 is also a great vote of confidence in Catapult, ensuring we retain the flexibility
to manage our ongoing business needs.”
I N N O V A T I N G A N D E X P A N D I N G I T S P R O D U C T S O L U T I O N S
Catapult continued to develop new product solutions in FY24, delivering on the investments
made into Research & Development (R&D) initiatives. These included:
• Vector Core: An expansion of its Athlete Monitoring system solution that is designed to
extend usage beyond the First Team down to the academy level of Pro Teams with
portability of data
• AI for Formula 1: Introduction of a new AI solution to help F1 manage track limit violations,
with race reviews now completed in seconds versus several hours previously
• Next Gen Vest: A new best in class integrated heart rate data vest with improved comfort
and wearability that eliminates the need to use a 3rd party HR monitor
• Race Control for US Motorsports: An expansion of its world class race control solution into
American motorsports including exclusive support in NASCAR, INDY, and IMSA
• Remote Athlete 2.0: The newest generation of its remote athlete solution designed to
enable athletes to collect data away from their team’s training facility with key features to
support its growth within Baseball and European Soccer
• Sideline Video for NCAA: As the market for live video analysis to be used in real-time for
the first time in American football opened, Catapult launched its new sideline solution with
a new exclusive deal with the largest collegiate conference, the SEC. Catapult’s new
solution provides real-time access to video and data to empower coaches to make
informed decisions instantaneously along with expediting post-game review by providing
immediate access to game footage with coaches’ notes, evaluation of plays, and data for
each clip from the game.
F Y 2 5 O U T L O O K 1
Commenting on the outlook for the Company, Mr. Lopes said “In FY25 our objective is to deliver
on our strategic priorities with a focus on profitable growth. We continue to expect ACV
Growth to remain strong with high retention rates. We will remain focused on our go-to-
market strategy, through a measured approach in balancing our growth and profitability as a
1 This section contains forward-looking statements. 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 and are subject to uncertainties and risks, such as those described in Catapult’s FY2024 financial report. Subject
to law, Catapult assumes no obligation to update, review or revise any information in this section. See the important notices on page 5.
UNLEASH POTENTIAL 4
CATAPULT.COM
reflection of our focus on the Rule of 40, ensuring cost margins continue to move towards our
long-term targets. Profitable growth is also anticipated to deliver higher Free Cash Flow in
FY25 as our business scales.
Despite a razor-sharp focus on profitable growth, innovation remains at the heart of
everything we do at Catapult. And we will continue to innovate on behalf of our customers in
FY25, helping them make even better decisions with our technology. We will continue to invest
in our platform and develop the next generation of devices.
With our unique and comprehensive all-in-one technology SaaS solution, I am confident in our
outlook and the critical role we provide in helping unleash the potential of every athlete and
team on earth.”
F Y 2 4 R E S U L T S W E B C A S T B R I E F I N G
The FY24 results webcast briefing will be hosted by Mr. Lopes and Mr. Cruickshank at 9:30am
(Melbourne time) today. To access the briefing, participants will need to pre-register at the
webcast link below. The briefing will be accessible using the same link from 9:15am (Melbourne
time) today.
Webcast briefing link: webcast.openbriefing.com/cat-fyr-2024/
Authorized for release to ASX by the Board
For further information, please contact:
Investors: investors@catapult.com Media: media@catapult.com
A B O U T C A T A P U L T
Catapult exists to unleash the potential of every athlete and team on earth. Operating at the
intersection of sports science and analytics, Catapult products are designed to optimize
performance, avoid injury, and improve return to play. Catapult works with more than 4,200
teams in over 40 sports across more than 100 countries globally. To learn more about Catapult
and to inquire about accessing performance analytics for a team or athlete, visit us at
catapult.com. Follow us at @CatapultSports on social media for daily updates.
UNLEASH POTENTIAL 5
CATAPULT.COM
FORWARD-LOOKING STATEMENTS
This document contains 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 and are subject to uncertainties and risks, such as those described in Catapult’s most recent financial report. Subject
to law, Catapult assumes no obligation to update, review or revise any information in this document.
DEFINED TERMS AND CALCULATION METHODOLOGIES
In this document, unless otherwise indicated:
“1H” for April 1, 2021 onwards, is each period starting April 1 and ending September 30, with the first such period being 1H FY22;
“2H” for October 1, 2021 onwards, is each period starting October 1 and ending March 31, with the first such period being 2H FY22;
“FY” for April 1, 2021 onwards, is each period starting April 1 and ending March 31, with the first such period being FY22;
“ACV” or “Annualized Contract Value” is the annualized value of all active subscription contracts in effect using an average
exchange rate to US$ over a 1-month period ending on the ACV Effective Calculation Date;
“ACV (CC)” or “ACV constant currency” is ACV calculated on a “constant currency” basis, which is calculated using an average
exchange rate to US$ over a 1-month period ending on March 31, 2023;
“ACV CAGR” is the cumulative annual growth rate in ACV (including on a “constant currency”) over a period A to B, which is
calculated as the annualized growth rate (expressed as a percentage) of (x) the ACV as at the Effective Calculation Date for B;
divided by (y) the ACV as at the effective calculation date for A. Therefore, for example, the ACV CAGR for 1H FY22 to 1H FY24 is
calculated as the annualized growth rate (expressed as a percentage) of (x) the ACV calculated as at September 30, 2023; divided
by (y) the ACV calculated as at September 30, 2021;
“ACV Churn” is the reduction in ACV from the loss of customers over a period, which is calculated as the quotient (expressed as a
percentage) of (x) the reduction in ACV from the loss of customers over the 12-month period prior to the Effective Calculation
Date; divided by (y) the total ACV calculated as at the date that is 12 months prior to that Effective Calculation Date;
“ACV Effective Calculation Date” for ACV is, unless otherwise stated March 31, 2024. The ACV Effective Calculation Date for ACV
denoted as “Opening ACV” or “Closing ACV” is ACV calculated as at, respectively, the start or end of the relevant period. Therefore,
for example, the Opening ACV FY24 Effective Calculation Date is April 1, 2023 and the Closing ACV FY24 Effective Calculation Date
is March 31, 2024. ACV denoted as “1H” is calculated as at the end of the relevant period. Therefore, for example, the ACV 1H23
Effective Calculation Date is September 30, 2022, and the ACV 1H24 Effective Calculation Date is September 30, 2023;
“ACV Growth” or “ACV YoY” is the growth in ACV (including on a “constant currency” basis), which is calculated as the quotient
(expressed as a percentage) of (x) the ACV calculated as at the Effective Calculation Date; divided by (y) the ACV calculated as at
the date which is 12 months prior to that Effective Calculation Date;
“ACV Retention” is the retained ACV from continuing customers over a period, which is calculated as (1 - ACV Churn), expressed as
a percentage;
“Fixed Costs” is the total of General & Administrative (G&A), and capitalized and non-capitalized Research & Development (R&D)
costs;
“Free Cash Flow” or “FCF” is cash flows from operating activities less cash flows used for investing activities, excluding cash used
for acquisitions of, and investments into, businesses and strategic assets. FCF excludes AASB16 lease payments;
"Incremental profit” over a period is calculated as the incremental Management EBITDA over that period;
"Incremental profit margin” over a period is calculated as the quotient (expressed as a percentage) of (x) the incremental
Management EBITDA over that period; divided by (y) the incremental revenue over that period;
“Lifetime Duration” or “LTD” is the average length of time that customers have continuously subscribed for Catapult’s products or
services as at the effective calculation date, weighted by each customer’s ACV as at that date;
“Management EBITDA” is EBITDA excluding share-based payments, severance, and purchase consideration; and including
capitalized development expense;
“Multi-vertical customers” is the number of customers that, as at the effective calculation date, use a product from more than one
of Catapult’s verticals;
“pp” means percentage point, which is the arithmetic difference between two percentages;
“Recurring Revenue” is SaaS Revenue, plus Media, and plus other recurring revenue that is not attributable to ACV;
“SaaS Revenue” or “SaaS (ACV) Revenue” is revenue attributable to ACV; and
“Variable Costs” is Total non-capitalized COGS, Sales & Marketing (S&M), and Delivery Costs.
This document should be read in conjunction with the above definitions and calculation methodologies as they are integral to
understanding the content.
NON-IFRS INFORMATION
While Catapult’s results are reported under IFRS, this document also includes non-IFRS information (such as Management EBITDA,
EBITDA, Gross Margin, Contribution Margin, Free Cash Flow, Annual Recurring Revenue (ARR), Annualized Contract Value (ACV),
Lifetime Duration (LTD), ACV Retention, and ACV Churn. These measures are provided to assist in understanding Catapult’s
financial performance given that it is a SaaS business. They have not been independently audited or reviewed, and should not be
considered an indication of, or an alternative to, IFRS measures.
GENERAL
The information in this document is for general information purposes only and does not purport to be complete. It should be read in
conjunction with Catapult’s other market announcements. Readers should make their own assessment and take professional
independent advice prior to taking any action based on the information.
Due to rounding, numbers presented throughout this document may not add up precisely to the totals provided and percentages
may not precisely reflect the presented figures.
I'm looking forward to reading other SM reports on $CAT today, as I am focused on other things today and won't make the call, but I've just noticed their headlines:
My quick calculation of FCF is $2.767m (OpCF $31.703 + InvCF -$27.055 + Leases Repaid -$1.972m), however, I've not checked the change in working capital on this.
And of course, this overlooks the hefty non-cash share based compensation element of $9.7m. Which I think means we are being diluted about 4% each year - correct me if I'm wrong.
All that said, the 6-month view below indicates that $CAT has made the transition to a sustainable business. If they can keep on this track. (Note: H2 receipts is seasonally weaker, but look at the cost control. Can they sustain this?)
I recently dipped my toe back in the water with $CAT in RL and SM. I'm still not convinced, so will have to have a harder look at this when I get the time. The slope of my FCF line is promising, however.
Post a valuation or endorse another member's valuation.