Catapult reports 20% rise in ACV & strong revenue growth

Catapult has announced a 20% growth in its Annualised Contract Value for the half-year ending 30 September 2024, alongside significant increases in revenue and free cash flow.

Over the first half of the 2025 fiscal year, Catapult reported an Annualised Contract Value (ACV) of USD $96.8 million, reflecting a year-on-year increase of 20% on a constant currency basis. Revenue during this period rose to USD $57.8 million, marking a 19% increase, whilst the profit margin on incremental revenue was 75%, resulting in a free cash flow of USD $4.8 million.

Chief Executive Officer and Managing Director, Will Lopes, expressed satisfaction with the company's performance, stating, "Catapult started FY25 exactly how we finished FY24, delivering another strong performance and growing our Annualized Contract Value, our primary metric, by another 20% year-on-year. Our Performance & Health vertical delivered another predictable and reliable performance, and we're continuing to see increased adoption of our New Video Solutions in our Tactics & Coaching vertical. Combined, this SaaS growth engine enabled strong growth in our profit margin, accelerating us to improved levels on the Rule of 40 – an important valuation metric for SaaS companies – as we kept 75% of every new dollar we generated in Revenue. Our strong growth also generated an acceleration in Free Cash Flow, which increased to $4.8 million US dollars in the half, already above the Free Cash Flow we generated in all of FY24."

"Catapult continues to generate top-line growth and bottom-line expansion, as we capitalise on the global opportunity ahead of us."

The company highlighted a strong performance within its core SaaS verticals, with substantial growth in ACV. The Performance & Health sector, which includes wearables, observed a 22% increase, partly due to penetration into new geographical markets and sports segments, including league-wide deals in soccer across Europe, the Middle East, Africa, and Asia.

Meanwhile, the Tactics & Coaching vertical saw an 18% growth in ACV, with its New Video Solutions ACV growing by 42%.

The expansion continued in North America, supported by growth in soccer and motorsport customer bases.

Chief Financial Officer, Bob Cruickshank, commented on the financial results by saying, "Catapult continues to deliver a financial performance consistent with some of the best SaaS businesses we benchmark ourselves against. Whether it be our top-line growth, disciplined cost management, or incremental profitability; I am extremely pleased with the progress we continue to make. Exceeding USD $50 million of recurring revenue in a half year for the very first time highlights the strength of our product, technology, and market leadership position."

The company has managed to reduce its debt significantly, with net repayments totaling USD $6 million, leaving an existing debt balance of USD $5 million, down from a peak of USD $15.7 million at the end of FY23.

Further developments include several new product solutions introduced in the first half of FY25, reflecting Catapult's continued investment in research and development. Notable launches include sideline video analysis for American football, next-gen presentation tools, and new algorithms for performance metrics in various sports.

The company's outlook for the remainder of the fiscal year seeks to continue strong ACV growth with low churn, improve cost margins, and maintain a focus on scaling its business in alignment with its "Rule of 40" strategy.

Mr Lopes reaffirmed the strategic priorities, saying, "Our objective remains to deliver on our strategic priorities, emphasizing profitable growth.

For the entirety of FY25, we continue to expect ACV growth to remain strong with low churn, continued improvement in cost margins towards long-term targets, and higher free cash flow as our business continues to scale in alignment with our Rule of 40 focus. Catapult pioneered the use of technology in sport, and it is that type of visionary thinking that continues to drive us to innovate on behalf of our customers. We will continue investing in our next generation of products, with the goal of surprising and delighting our customers with amazing solutions. With our unique, and comprehensive, all-in-one technology SaaS platform, I am confident in our outlook and the critical role we provide in helping unleash the potential of every athlete and team on earth."