Melbourne-based Catapult Group International (ASX: CAT) has surpassed US$100 million ($152 million) in annual revenue for the first time, achieving an underlying profit of US$9.37 million in FY24. This success was driven by robust growth in free cash flow and new partnerships with soccer and baseball leagues in South America, Europe, and Asia. CEO Will Lopes described this achievement as a “historic year” for the company.
Lopes highlighted the significant role of their SaaS (software as a service) solutions in driving revenue, with annualized contract value (ACV) contributing US$86.8 million, a 20% increase from the previous year. The company’s strategy led to impressive growth, with substantial profit margin improvements and adherence to the Rule of 40 – a key valuation metric for SaaS companies. Catapult retained 43% of each new dollar earned and increased free cash flow to US$4.6 million, setting a solid foundation for future expansion.
Catapult has been partnering with sports teams since 2006, offering wearable technology and video analysis tools to enhance player performance and prevent injuries. Over 4,000 elite sports teams in more than 100 countries use Catapult’s technology, supported by a global workforce of 400. The company’s Performance & Health division saw a 23% increase in annualized contract revenue as more teams adopted their technology. Additionally, new agreements were secured with soccer teams in Latin America and Europe, and baseball teams in North America and the Asia-Pacific region.
In March, Catapult expanded its partnership with Australia’s National Rugby League, preparing for the first indoor NRL game at Allegiant Stadium in Las Vegas. Beyond team sports, Catapult collaborates with Formula 1, Nascar, and Indycar, providing race control and analysis solutions through its RaceWatch system. Despite revenue and profit margin growth, Catapult ended FY24 with a post-tax loss of US$16.7 million, nearly halving the previous year’s US$31.5 million loss. The company used its free cash flow to repay US$4.7 million of its debt, reducing the remaining debt to US$11 million.
Looking ahead, Lopes emphasized a focus on profitable growth and innovation. He expects continued strong ACV growth with high retention rates and a balanced approach to growth and profitability. Lopes anticipates higher free cash flow in FY25 as the business scales and reaffirms Catapult’s commitment to innovation, investing further in their platform and developing the next generation of devices.
