Shares of Catapult Group International Ltd (ASX: CAT) are trading 1.2% higher today after the company released its quarterly cash flow statement for the period ended 31 March 2015.
Catapult, which boasts a market capitalisation of just under $34 million according to Google Finance, is a global sports analytics company. If you've ever seen an AFL, rugby union or rugby league player running around in what looks to be a bra, it's actually a device provided by Catapult which monitors and tracks the players' performance on the field.
Source: Daily Telegraph
Catapult's third quarter (Q3) was surprisingly strong. While the company said that Q3 is normally slow due to the seasonality of elite sports around the world, it managed to record solid growth in total units ordered, subscription users and monthly subscription revenue. Here are some of the highlights:
- 3,261 total units ordered year-to-date, which represents 79% of the full-year forecast
- Subscription revenue per month of $436,000, which is a 10% increase quarter-on-quarter (QOQ)
- 3,341 subscription users (up 11% QOQ), toward a full year target of more than 4,500
- 39% of units ordered year-to-date were made under subscription model
The company was cash-flow negative during the period, but is expecting to exceed its prospectus forecasts of revenue and earnings before interest, tax, depreciation and amortisation (EBITDA) for the 2015 financial year.
Given the size of the company, Catapult still presents as a risky proposition for investors – especially considering it is yet to produce a profit. However, given the nature of the business and strong growth potential, this is certainly one to add to your watchlist.
