Shares of Catapult Group International Ltd (ASX: CAT) have risen almost 2% today after the sports analytics group released its quarterly results this morning.
So What: Athletes and sports teams around the world are taking an increasingly scientific approach to game day and require certain hardware and software to fulfil that need. For example, to track the athlete's performance during training and assess whether there is risk of injury.
Catapult Group is one of the companies that provide those tools with its products being used in various sporting codes around the world, including (but not limited to) the NRL, English Premier League, NFL and cricket.
The company has experienced strong growth since it first debuted on the ASX in December 2014, and today's results were no exception. In fact, it achieved a new record for first-quarter sales – a period that is typically a quieter period for sales.
It said 1,407 new units were ordered during the period with sales exceeding the previous record by 28%. A large portion of those orders came from emerging markets which did lead to a lower mix of subscription units (38% compared to 49% in the prior corresponding period).
Total units under subscription are now sitting just below 5,000 with Catapult Group generating $696,000 in subscription revenue per month. The strong growth can be seen in the charts below.
Now What: Although Catapult Group has already generated huge returns for investors over the last 10 months or so, I believe there are still gains to be made. In fact, the company believes that more than 90% of the addressable market still does not have a solution in this space.
Of course, that figure needs to be taken with a grain of salt, and investors need to be cautious of competition risk from global brands like Nike and Adidas, but Catapult Group could still make for a good investment today.
