Thanks to expansions and new product launches adopted by the likes of F1 and NASCAR, sports tech company Catapult (ASX: CAT) reached a revenue milestone in FY24, with its SaaS divisions boosting sales.

In FY24, the Company’s annualised contract value (ACV) grew 20%, with Catapult hitting a revenue mark of $152 million. Its profit margin improved by 125%, resulting in $7 million of Free Cash Flow.

CEO and Managing Director, Will Lopes, said, “FY24 was a historic year for Catapult. Our growth momentum continued, underpinned by our SaaS solutions, lifting Revenue…over $150 million Australian dollars, a major milestone for any ASX listed business. Our SaaS strategy delivered great ACV growth, driven by new customers but also buoyed by increases in ACV per team as cross selling accelerated with our New Video Solutions.” 

Catapult is an Australian company providing sports technology solutions for professional teams. Its products are designed to improve performance, avoid injury, and improve return to play. 

In Performance & Health, its SaaS vertical that includes wearables, ACV grew 23% on FY23, generated by market segment expansion and geographic success. The Company signed new teams and leagues in soccer across LATAM and EMEA regions, and baseball across North America and APAC.

In Tactics & Coaching, its vertical that includes Catapult’s video solutions, ACV grew 15%, driven by an acceleration of its New Video Solutions ACV, which grew 44%. It expanded in EMEA and North America, with new customers in soccer and motorsports.

Catapult continued to develop new product solutions in FY24—including Vector Core (an upgrade of its athlete monitoring system), AI for F1 (to manage track violations and race reviews), Next Gen Vest (an integrated heart rate data vest), Race Control for US Motorsports (including exclusive support in NASCAR, INDY, and IMSA), and Remote Athlete 2.0 (with extra support for baseball and European soccer). 

It also includes Sideline Video for NCAA as the market for live video analysis to be used in real-time for the first time in American football opened. This new solution provides real-time access to video and data to empower coaches to make informed decisions instantaneously along with expediting post-game review by providing immediate access to game footage with coaches’ notes, evaluation of plays, and data for each clip from the game. 

Lopes added, “FY24 was a major inflection point in our journey towards profitability and building a world class SaaS business. We saw strong growth in our profit margin, accelerating us to improved levels on the Rule of 40 – an important valuation metric for SaaS companies – as we kept 43% of every new dollar we generated in Revenue, and increased our Free Cash Flow to $4.6 million US dollars. The foundation is now in place for top-line growth and bottom-line expansion as we capitalize on the global opportunity ahead of us.”

For FY25, Catapult’s objective is to deliver profitable growth. It forecasts ACV growth to remain strong with low churn, continued improvement in cost margins towards long-term targets and Higher Free Cash Flow as the business scales.