Catapult (ASX:CAT) share price slides on report – what you missed

Yesterday after the ASX closed for trading, small-cap sports technology company Catapult Group International (ASX: CAT) released its half-year results, along with an accompanying 20-min recorded presentation (see below) via YouTube. 

Yesterday after the ASX closed for trading, small-cap sports technology company Catapult Group International (ASX: CAT) released its half-year results, along with an accompanying 20-min recorded presentation (see below) via YouTube.

Catapult’s headline figures

During the half year, revenue fell by 4.1% to US$33.3 million – primarily due to lower capital sales and a fall in content licensing due to COVID. Looking at the various product lines:

  • Wearables revenue grew by 7.4% to US$17.5 million
  • Video analytics revenue dropped by 15.2% to US$13.9 million
  • Performance & Health subscription revenue increased by 14%

Catapult’s net loss expanded by 39.2% to -US$4.5 million, driven by a step-up in fixed costs as the company invested more heavily in the infrastructure and resources necessary to scale. However, the business remains free cash flow positive, generating around US$8 million of free cash during the half and pushing the balance sheet to US$24.6 million in cash and no debt.

R&D investment remained around ~10% of revenue as Catapult rolled out 24 new customer-facing solutions during the period.

Operating metrics

Annualised contract value or ACV grew by 8.3% to US$44.5 million, this reflects the value of all recurring revenue on a yearly basis. As management transition to more subscriptions, this is a focus metric for investors.

ACV churn, which gives us an indication of future revenue lost when customers leave, reduced to a historical low of 4.5% – an impressive feat given the COVID environment.

Customers with two or more solutions grew by 19% to 241 customers – demonstrating the cross-sell opportunities in Catapult’s business model. Contribution margin increased from 46% to 50% as efficiency rose.

Finally, Catapult reported having 3,158 teams/customers. The company lost around 240 customers between June and Sep 2020, but said it then recaptured two-thirds of them in the fourth quarter as conditions improved.

Catapult is a interesting ASX growth share and business worth keeping tabs on. Competitors include STATsports out of Europe. On the ASX, other ASX globally-focused technology companies include Altium Ltd (ASX: ALU), WiseTech Ltd (ASX: WTC) and Appen Ltd (ASX: APX).

At the time of publishing, the author of this article owns shares of Altium.

Better investing starts here.

Want to level-up your analytical skills and investing insights but don’t know where to start? Join 50,000 Australian investors on our mailing list and we’ll send you our favourite podcasts, courses, resources and investment articles every Sunday morning. Grab a coffee and let Owen and the team bring you the best  insights.

5%+ in passive income

Owen Rask’s investing report available

With bond ETFs like ASX:IAF and the S&P 500 riding high, now could be one of the best times to start earning passive income from a portfolio of shares and ETFs.

In this free analyst report, our Chief Investment Officer, Owen Rask, names 10 ASX stocks and ETFs to watch.

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Skip to content