Catapult Reports 20% Surge in ACV, Strong Revenue Growth & Improved Cash Flow
Catapult, a leading provider of performance technology for elite sport, has announced a 20% increase in its Annualised Contract Value (ACV) for the half-year ending 30 September 2024, accompanied by significant growth in revenue and free cash flow.
The company reported an ACV of USD $96.8 million for the first half of its 2025 fiscal year, marking a 20% year-on-year increase on a constant currency basis. Revenue climbed to USD $57.8 million, representing a 19% rise. Notably, Catapult achieved a profit margin of 75% on incremental revenue, 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 on the same strong footing we ended FY24, delivering another impressive performance and growing our ACV, our key metric, by 20% year-on-year. Our Performance & Health vertical continued to deliver predictable and reliable results, while we witnessed increased adoption of our New Video Solutions in the Tactics & Coaching vertical. This combined SaaS growth engine fuelled substantial growth in our profit margin, propelling us towards improved Rule of 40 metrics. We retained 75% of every new dollar generated in revenue, demonstrating our focus on profitability. Our robust growth also accelerated free cash flow, reaching USD $4.8 million in the first half, exceeding the full-year free cash flow achieved in FY24."
Lopes added, "Catapult continues to generate top-line growth and bottom-line expansion, capitalising on the global opportunities before us."
The company highlighted strong performance across its core SaaS verticals, with substantial ACV growth. The Performance & Health sector, which includes wearables, saw a 22% increase, driven partly by penetration into new geographical markets and sports segments, including league-wide deals in football across Europe, the Middle East, Africa, and Asia.
The Tactics & Coaching vertical experienced an 18% rise in ACV, with its New Video Solutions ACV growing by 42%. The expansion continued in North America, supported by growth in football and motorsport customer bases.
Chief Financial Officer, Bob Cruickshank, commented on the financial results, saying, "Catapult continues to deliver financial performance aligned with some of the best SaaS businesses we benchmark ourselves against. From our top-line growth and disciplined cost management to our incremental profitability, I am extremely pleased with the progress we continue to make. Surpassing USD $50 million in recurring revenue for the first time in a half-year highlights the strength of our product, technology, and market leadership position."
The company has significantly reduced its debt, with net repayments totalling USD $6 million, leaving an outstanding debt balance of USD $5 million, down from a peak of USD $15.7 million at the end of FY23.
Several new product solutions were introduced in the first half of FY25, reflecting Catapult's ongoing investment in research and development. Notable launches include sideline video analysis for American football, next-generation presentation tools, and new algorithms for performance metrics across various sports.
Catapult's outlook for the remaining fiscal year focuses on continuing strong ACV growth with low churn, improving cost margins, and scaling its business in alignment with its "Rule of 40" strategy.
Mr Lopes reaffirmed the strategic priorities, stating, "Our objective remains to deliver on our strategic priorities, emphasising profitable growth. For the entirety of FY25, we anticipate continued strong ACV growth with low churn, further 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 this visionary thinking that continues to drive us to innovate on behalf of our customers. We will continue investing in our next generation of products, aiming to surprise and delight our customers with exceptional solutions. With our unique and comprehensive, all-in-one technology SaaS platform, I am confident in our outlook and the critical role we play in helping unlock the potential of every athlete and team worldwide."
