The Catapult Group International Ltd (ASX: CAT) share price is up by 5.47% today after the company released its FY21 results. Investors appear to be reacting positively to the numbers, sending the Catapult share price to $2.12 at the time of writing.
Catapult develops and sells wearable tracking solutions and analytics. The business supplies 3,000 of the world's elite sporting teams with GPS-based performance tracking technology and data analytics software.
How did Catapult perform in FY21?
Catapult's FY 21 results bore the brunt of COVID-19 as competition sports globally were cancelled and athletes were sent home to train. The company then transitioned beyond its wearable tech hardware origins to become a software-as-a-service (SaaS) company.
As a result, Catapult reported revenue of $67.3 million, a decline of 7.4%. As mentioned in the report, "revenue was lower due to the planned switch from capital sales to SaaS deals and the severe impact from COVID delaying new business."
However, the company grew globally at a 35% annualised rate during the second half of FY21 against a full-year growth rate of 16.5%.
Momentum building in SaaS metrics
There was growth momentum in Catapult's SaaS metrics. Subscription revenue growth accelerated to 12.5% in the fourth quarter versus 3.3% for FY21. Subscription revenue made up 79% of total revenue in FY21, up from 71% a year ago.
Notably, subscription revenue in the performance and health business, the company's largest vertical by revenue, grew by 15.8% with modest gains in the tactics and coaching business of 1.6%.
Catapult also reported its multi-solution customers business grew at 41% annualised for the second half of FY21.
Improved retention rates
Catapult's report focused on what it calls "world class retention rates". During the pandemic, its annual actual cash value churn rate of 5.5% improved 14.1% on the FY20 rate of 6.4%.
The company highlighted this demonstrates how its solutions are embedded in its customers' daily workflows.
Free cash flow remained positive
Despite the pandemic headwinds in new sales, Catapult delivered 69% growth in free cash flow to $4.9 million. This represents a second consecutive year of positive free cash flow.
According to the report, the company is well-positioned financially with US$22.2 million cash at bank as of 31 March 2021.
Management commentary
Catapult CEO Will Lopes said:
I am proud of the results and progress Catapult made in our key SaaS metrics. We finished the year with an annualized ACV growth rate of 35% and world-class customer retention, demonstrating the value our SaaS solutions provide our customers daily. We stayed focused on customers during the pandemic and the business is benefitting as the pandemic impact lessens.
Catapult share price snapshot
The Catapult share price is up by 7% in 2021 so far, and more than 42% in the past 12 months.
On current prices, Catapult has a market capitalisation of $424 million.
