Catapult fires for FY21 results

Catapult Group International jumped 13% on Thursday after it reported its financial results for FY21. The sports analytics company which saw solid growth in major subscription metrics, coupled with a positive outlook, gave investors plenty to be happy about.

Catapult experienced strong and accelerated growth momentum in its key SaaS metrics for FY21, as the negative impact of the COVID-19 showed signs of abating in the sports industry. Annualised Contract Revenue (ACV) accelerated, along with low churn and improved free cash flow.

Overall, Catapult hit revenue of $67.3 million, a decline of 7.4%. Revenue was lower due to the company’s planned switch from capital sales to SaaS deals and the severe impact from COVID delaying new business. EBITDA remained positive at $6.5 million but declined $3.9 million also due to the switch from capital sales to ultimately higher-quality margin SaaS deals, and the impact of COVID.

FY21 Highlights

  • Growth in Annualised ACV, of 16.5%

  • ACV growth in EMEA and APAC was 57% and 34%, respectively

  • FY21 ACV Churn of 5.5%, a 14.1% improvement from FY20, despite COVID challenges

  • Customers with two or more solutions grew 17%, highlighting the value of Catapult’s platform

  • Increased Contribution Margin from 47.1% to 48.2%, as efficiency improved

  • Subscription revenue was 79% of total revenue, up from 71% in FY20, reflecting the strategic focus on high-quality SaaS revenue over one-time capital sales

  • Second consecutive year of positive and growing Free Cash Flow ($2.9m to $4.9m)

The growth highlighted the company’s global footprint, delivering impressive numbers in the EMEA and APAC. While the Americas region, the largest market for the company, was severely disrupted by COVID with approximately 90% of NCAA competition cancelled, it still delivered FY21 ACV growth of 4%.

Operating Highlights

In FY21, the signing the of Atlanta Falcons helped achieved 100% penetration of teams in the NFL; growing multi-solution customer base with marquee teams such as the Seattle Seahawks, Stanford University American Football, Stade Français Paris Rugby, Arizona Coyotes and Swindon Town; signing a Performance & Health contract with US Army Special Forces to help with soldier training; and a Video Exchange contract with 130 Football Bowl Subdivision teams in the US.

Catapult expanded its technology platform through FY21 with COVID solutions, including a Remote Athlete Solution and Athlete Proximity Reporting, both heavily utilised by customers; new solutions for the American Football season including cloud-based full resolution video analysis; and a seamless indoor/outdoor athlete monitoring function for training sessions. Catapult also launched the player Movement Profile analytics package for soccer. With a continued commitment to R&D, Catapult invested $6.8 million in R&D in FY21 and expanded its solutions with the acquisition of Science for Sport and the signing of several strategic partnerships.

Commenting on the results Catapult’s CEO Will Lopes said: “I am very excited to announce that Catapult delivered accelerated growth as the impact of the pandemic lessened. We stayed focused through this very challenging year, prioritizing high-margin subscription sales, increasing multi-solution adoption among our customers, keeping churn low, and generating cash. From the day I joined, I believed Catapult was in a strong position for growth, and once COVID hit, if we stayed the course this position would only improve when the pandemic was behind us. What we saw in Q3 and Q4 is an early glimpse of Catapult’s potential.”