The Catapult Group International Ltd (ASX: CAT) share price has been amongst the best performers on the All Ordinaries index on Thursday following the release of its full year results.
At the time of writing the sports analytics and wearables company's shares are up 12.5% to $1.36.
What did Catapult report?
For the 12 months ended June 30, Catapult recorded a 24% increase in both revenue to $95.4 million and annual recurring revenue (ARR) to $66.1 million. This was driven by growth across all regions and products thanks to a record number of new team wins and a strong performance by its subscription business.
In light of its positive sales performance and a slowdown in operating expenditure growth to 9%, the company reported its first positive EBITDA result of $4.1 million. This was an improvement of $6 million compared to FY 2018.
On the bottom line Catapult recorded a net loss after tax of $12.3 million, which was an improvement of 29%. This left the company with cash at bank of $21.5 million and no debt.
What were the drivers of its growth?
The Elite wearables segment was the standout performer during the 12 months. It grew revenue by 33% to $45.3 million after an all-time record volume of units sold. Subscription unit ARPU was stable at $108 per month and subscription churn fell to 5.2% in FY 2019 from 8.4% in FY 2018.
Catapult's Elite video revenue grew 14% to $44.8 million, with 544 teams now using Catapult's video products. Management advised that coaching and recruiting video solutions remain the largest product category within elite video, growing 14.2% to $24.4 million.
The Prosumer segment grew revenue by 54% to $5.3 million, driven by the PLAYR consumer product. Total prosumer units sold increased 47% to 20.5k units.
How does this compare to expectations?
Catapult has been no stranger to disappointing shareholders over the last couple of years, but this time around they will no doubt be pleased with its performance.
Elite Core revenue of $86.9 million was at the mid-point of its guidance range of $86 million to $88 million, whereas Elite Core underlying EBITDA of $12.7 million came in at the high end of its $11 million to $13 million guidance range.
One metric that the company did fall a touch short of was its ARR growth. It delivered 18% growth compared to guidance of >20% growth.
Outlook.
While no firm guidance has been provided at this stage, the release advises that the board "expects continued strong revenue growth, and the emerging scalability will further reduce operating expense growth."
Executive Chairman Dr. Adir Shiffman concluded: "The Company is at an exciting time in its history. To maximise this opportunity the Board remains focused on successfully completing the global search to appoint a new CEO, and appointing a CFO, whilst maintaining Catapult's consistently strong financial growth to deliver long-term value to shareholders."
Also rising strongly on Thursday are the Flight Centre Travel Group Ltd (ASX: FLT) share price and the Pro Medicus Limited (ASX: PME) share price in response to their FY 2019 results releases.
