Catapult Group International Ltd (ASX: CAT) continued its impressive run in the three-months ended 31 December 2015, reporting record unit sales which were 66% higher than the prior corresponding period.

So What: Most sports fans are likely familiar with what Catapult does. The company provides the software and hardware used to track the performance of athletes on and off the field. For many teams and individuals, it has become a critical component in the lead-up to game day and shows where the athletes can improve, and whether they are at risk of injury.

Indeed, Catapult has agreements with NFL and NBA teams, field and ice hockey teams, as well as teams in the English Premier League. It also signed new league-wide agreements with the Australian Rugby Union and Australian Football League (AFL) during the period.

The company said it had sold 2,000 new units during the quarter, surpassing the previous record of 1,854 units in the fourth quarter of financial year 2015 (Q4 FY15).

It now has a total of 5,753 units under subscription (representing 15% growth on the prior quarter) with annualised run rate (ARR) from subscription revenue of $9.1 million. Catapult’s management said this sales result was consistent with the FY16 outlook which it provided at the annual general meeting (AGM) in November 2015. At the time, it lifted its guidance to a minimum of 8,000 units, delivering $24.5 million in total contract value (TCV).

Now What: Catapult Group is recording some very impressive growth, but sometimes the best indications of the future of the product can come from the customers themselves. In the presentation for the group’s AGM, Catapult provided some reviews from teams around the world which I believe highlight the company’s potential.

Firstly though, I’ll note that I do not own shares in Catapult Group, and cannot buy for at least two days after I’ve written about it based on The Motley Fool’s strict trading rules. However, it is certainly on my watchlist. Here’s one review from Roger Marandino, Strength and Conditioning coach at Indianapolis Colts:

It’s the biggest breakthrough I have experienced in my life. Football is an extreme sport and our goal is to have players working at a very high level without damaging them. We want to balance work and injury prevention.”

And this from The Golden State Warriors:

The Golden State Warriors (NBA) finished with the fewest minutes lost due to injury in the NBA. And in the postseason, they finished as champions. Technology and data analysis are pillars of the Warriors’ front office.

Of course, investors should always keep in mind that reviews provided by the company itself will almost always give them a good wrap, and others may feel differently about the products. But those reviews are certainly encouraging.

Investors should also be aware of the potential for competition risk, especially from bigger players such as Adidas or Nike, which could hinder Catapult’s growth potential. Catapult’s shares are currently trading for $2.08 and have risen 285% over the last 12 months. That compares to a 9% fall for the benchmark ALL ORDINARIES (Index: ^AXAO) (ASX: XAO).

 

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The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Nike. Motley Fool contributor Ryan Newman has no position in any stocks mentioned. Unless otherwise noted, the author does not have a position in any stocks mentioned by the author in the comments below. You can follow Ryan on Twitter @ASXvalueinvest. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.