Catapult Reports Strong Subscription Growth for 2020 Financial Year

Catapult Group, a portfolio company of Aura Ventures, achieved consistent growth across the during the 2020 financial year, according to a recently released report.

Financial Highlights

• EBITDA of $13.3 million, up 225%

• Positive free cash flow of $9.0 million, up $26.1 million

• $27.5 million cash balance at June 30 2020 ($39.8 million at 14 August 2020)

• Subscription revenue of $77.6 million, up 21%

• Revenue $100.7 million, up 6%

• 39% growth in customers with more than one Catapult solution.

The sports technology company reported a 225 per cent increase in earnings before interest, taxes, depreciation and amortisation (EBITDA) for the period, representing a $9.2 million improvement over last year's $13.3 million result. The substantial increase was driven largely by continued growth in subscription revenue in conjunction with a decline in operating expenses.

The company is committed to delivering positive free cash flow into FY21 and is pleased to achieve this goal a year earlier than planned, in spite of COVID-19. This marks five consecutive half-year periods of consistent EBITDA growth, which comes from a steady focus on the implementation of its software-as-a-service business model.

Will Lopes, CEO of Catapult Group, said the company's ability to execute in such a challenging environment is a great sign of its product strength and executive experience. "It demonstrates that the fundamentals of a strong recurring subscription business coupled with a low-churn customer base create amazing operating leverage," he added. "This operating leverage allowed us to achieve positive cash flow a year ahead of the plan under the extremely challenging and stressful circumstances presented by COVID-19.”

Will also noted a drop-off in the fourth quarter due to the temporary shutdowns of many sporting organisations but said that the long-term impacts to Catapult's underlying revenue growth are likely to be minimal. “Despite our Q4 slowdown, our staff was able to grow subscription revenue 21% from last year and deliver 26 new features to our customers. This positive cash inflection point means we are a great SaaS business that is well positioned to scale while delivering great service to our customers and value to our shareholders.”