Catapult Limited (ASX:CAT) CEO, Will Lopes discusses 1H20 results and outlook.
Ortenzia Borre: Hello, I'm Ortenzia Borrefor the Finance News Network and joining me today is Catapult (ASX:CAT) CEO Will Lopes. Will, welcome to FNN.
Will Lopes: Thank you.
Ortenzia Borre: Will, can you tell us a little bit about the company?
Will Lopes: Catapult is really focused on helping teams do their best performance on and to the field and we support multiple products across multiple elite teams - anywhere from the Oakland Raiders, the Denver Broncos to Chelsea FC and the English Premier League to the ARU here in Australia.
Ortenzia Borre: Now you've been with Catapult for three months. What attracted you to the role?
Will Lopes: I was looking for a company that had all the hallmarks of a strong SaaS business.So something that had top line growth on the revenue side, that was accelerating, operating expenses that were declining, particularly as it led to growth in revenue, and a strong customer base that would lead to strong EBIDTA. And I saw that here at Catapult.
Ortenzia Borre: Now, can you tell me about your recent first half results?
Will Lopes: We just announced. I think we had really positive results. We delivered 5.7 million on positive EBIDTA, which was a 512 per cent increase from last year. Most importantly was that our ARR (annual recurring revenue) was 68.8 million dollars, which was a 20 per cent increase and we had positive free cashflow, which was a $15 million swing from last year where we were losing 1.6 million dollars.
Ortenzia Borre: Will, can you talk to me about Catapult's business strategy? How is that evolving?
Will Lopes: Absolutely. So we just announced the evolution of the strategy that we're going from a product based strategy design to a solution based strategy design that is really focused on delivering what needs the customers have. Two, we're going to be really hyper focused on subscription because we know that subscription allows for us to have along-term relationship with our customers. And those two components should really drive an efficiency of scale. As Catapult has grown over the past few years, we're really starting to now see efficiencies related to our sales, our operations and our technology.
Ortenzia Borre: And which markets is Catapult currently enjoying success in?
Will Lopes: Our most successful market has really been in the North American region. North America now represents about 70 per cent of our revenue, and that's grown 21 per cent over the last year. We are also seeing real strengths in Western Europe, as well as Latin America and a few other emerging areas such as APAC.
Ortenzia Borre: And what's Catapult's outlook moving forward?
Will Lopes: We have a really positive outlook going into next year. We're very focused right now on annual recurring revenue and continue to grow that level of the business. We want to make sure that we're doing so efficiently, so operating expense should be coming down and all of it means that we are very focused in being free cashflow positive in fiscal year 21.
Ortenzia Borre: Will, thank you so much for joining us on FNN today and updating us on Catapult.
Will Lopes: Thank you.