Catapult surges 11.5% on higher full-year revenue, narrowed loss
Make us a preferred source
Make us a preferred source on Google
The news: Shares in sports tech company Catapult soared on Wednesday on the back of higher full-year revenue and a reduced net loss.
The numbers: Catapult, which makes wearables that enable data analytics for professional sports teams, announced on Wednesday that revenue for the full year to March 2025 rose 19% to USD116 million ($180 million). The company's net loss after tax narrowed from USD19.1 million to USD8.56 million.
Catapult shares were 10.2% higher at $4.74 at 12.25pm AEST, lifting its market capitalisation to $1.3 billion. Before this year, its peak was in 2016, when the share price hit $4.06.
The company is earning more money from its agreements with 3,600 professional sports teams around the world, and those contracts are lasting longer. The annualised contract value (ACV) rose 16% to USD101 million over the year, while lifetime duration was up 11.4% to 7.8 years.
Catapult expects its fixed costs to stay where they are now, at around USD42 million annually, and for variable costs to grow slower than revenue earned from this point. The incremental profit margin for new revenue generated during the year was 65%, it said.
USD66 million of the company's revenue came from Catapult's "Performance & Health" segment, which are the wearables it sells to teams that allow them to track player performance and biometrics. Its secondary segment, a video solution used for coaching, brought in USD32.6 million ($50 million), an increase of 42% from the previous year.
What they said: "Catapult delivered a strong and purposeful performance in FY25, meeting the ambitious objectives we set at the start of the year," CEO Will Lopes said.
"Our Annualised Contract Value – the clearest signal of our long-term growth – rose 18% year-on-year, propelled by both of our core verticals... we retained 65 cents on every new dollar of revenue. This is what sustainable operating leverage looks like."
The source: ASX announcement
