Catapult Group International Ltd (ASX: CAT) released the results for its fourth-quarter operations after the market closed on Thursday, revealing a remarkable lift in revenues for the period.
So What: With a market value of just over $60 million, Catapult Group isn't exactly a household name. The company is a global sports analytics group, which sells devices that are used to monitor and track the performance of athletes. Its products are being widely adopted and are already being used in sports such as AFL, rugby league and rugby union, soccer (football) and cricket.
In the three-month period ended 30 June 2015, Catapult said that the number of units ordered had risen to 1,854 a 33% increase on the prior corresponding period (pcp) taking the total number of units ordered to 5,115 for the financial year. That compares to just 4,123 forecast in the prospectus with 46% of all units ordered under the subscription model (up from 31% in 2014).
Subscription revenues for the fourth quarter rose a whopping 118% on the pcp to $493,000, while $533,000 of subscription revenue per month has been locked in for July 2015, based on new subscription sales achieved in late June.
All in all, the strong subscription performance delivered an annualised run rate of $7.3 million which is significantly above the $6 million forecast in the prospectus. The company attributed its strong success to stonger-than-expected performances in emerging markets (especially Asia and parts of Europe) with a faster-than-expected maturation of the global marketplace.
Now What: Catapult's shares have enjoyed a remarkable run since they listed on the ASX late last year. After debuting at 58.5 cents, the shares have since risen 139% reflecting the market's high hopes for the business. Despite the gains however, there is still good reason to believe the company can continue to deliver for shareholders into the future. At $1.40 per share, Catapult Group is certainly one worth keeping an eye on.
