LA Private

SaaS success launches Catapult’s profits skyward

Catapult Group International (ASX:CAT) has announced a robust financial performance for the first half of FY25, ending 30 September 2024. The company’s Annualised Contract Value (ACV), a key measure of recurring revenue, surged by 20% year-on-year to reach US$96.8m, driven by expansion in Catapult’s Performance & Health and Tactics & Coaching verticals. Revenue climbed 19% to US$57.8m, with free cash flow improving to US$4.8m, already surpassing Catapult’s FY24 full-year free cash flow.

Catapult provides performance analytics tools for elite athletes and teams across the globe, delivering insights to optimise training, prevent injuries and enhance return-to-play protocols. The company’s offerings span three main segments: Performance & Health, which includes wearable technology and athlete monitoring software; Tactics & Coaching, providing video analysis tools for game strategies; and Media & Other, covering media licensing and athlete management services. The company has clients in over 40 sports worldwide.

Catapult’s CEO Will Lopes highlighted the success of the company’s software-as-a-service (SaaS) growth strategy. “Our Performance & Health vertical delivered another predictable and reliable performance, and we’re continuing to see increased adoption of our New Video Solutions,” Lopes noted. ACV retention remained high at 96.2%, while customer lifetime duration increased to 7.6 years. The company also achieved an incremental profit margin of 75%, reflecting improved efficiencies.

Notable product developments included the launch of sideline video analysis for NCAA football, live insights for UEFA’s Euro 2024, and new algorithms tailored to sports like basketball and rugby. Looking ahead, Catapult expects strong ACV growth and higher free cash flow, with continued innovation in athlete and team performance solutions to drive further growth.

Shares are trading 8.75% higher at $2.86.