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- Sports technology company Catapult Group (CAT) has released its results for the 2020 financial year, outlining consistent growth across the board
- The company reported a 225 per cent increase in earnings before interest, taxes, depreciation and amortisation (EBITDA) for the year, representing a $9.2 million improvement compared to last years $13.3 million result
- Revenue also increased six per cent to $100.7 million compared to $95.4 million in 2019
- Underlying revenue growth for the long-term is not expected to be impacted but COVID-19, but the short-term effects are difficult to predict
- Catapult Group closed 3.8 per cent in the green for $2.05 per share
Sports technology company Catapult Group (CAT) has released its results for the 2020 financial year, outlining consistent growth across the board.
Catapult reported a 225 per cent increase in earnings before interest, taxes, depreciation and amortisation (EBITDA) for the period, representing a $9.2 million improvement over last year’s $13.3 million result.
The substantial increase was driven largely by continued growth in subscription revenue in conjunction with a decline in operating expenses.
This marks five consecutive half-year periods of consistent EBITDA growth, which comes from a steady focus on the implementation of its software-as-a-service business model.
Total revenue for the year also increased by six per cent to $100.7 million compared to $95.4 million in 2019.
Despite the consistent performance, however, Catapult failed to turn a profit. The company reported a net loss of $7.67 million, which is a marginal improvement over a $12.58 million loss reported in 2019.
Will Lopes, CEO of Catapult Group, said the company’s ability to execute in such a challenging environment is a great sign of its product strength and executive experience.
“It demonstrates that the fundamentals of a strong recurring subscription business coupled with a low- churn customer base creates amazing operating leverage,” he said.
“This operating leverage allowed us to achieve positive cash flow a year ahead of plan under the extremely challenging and stressful circumstances presented by COVID-19,” he added.
Will also noted a drop-off in the fourth quarter due to the temporary shutdowns of many sporting organisations, but said that the long-term impacts to Catapult’s underlying revenue growth are likely to minimal. However, the short-term impacts are difficult to predict.
Catapult Group closed 3.8 per cent in the green for $2.05 per share.
