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Edited Transcript of CAT.AX earnings conference call or presentation 25-Feb-20 11:30pm GMT

Half Year 2020 Catapult Group International Ltd Earnings Call

Mar 24, 2020 (Thomson StreetEvents) -- Edited Transcript of Catapult Group International Ltd earnings conference call or presentation Tuesday, February 25, 2020 at 11:30:00pm GMT

TEXT version of Transcript

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Corporate Participants

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* Hayden Stockdale

Catapult Group International Limited - CFO

* James Ventura Orlando

Catapult Group International Limited - Independent Non-Executive Director

* Will Lopes

Catapult Group International Limited - CEO

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Conference Call Participants

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* Chris Savage

Bell Potter Securities Limited, Research Division - Senior Industries Analyst

* Ivor Ries

Morgans Financial Limited, Research Division - Senior Analyst

* Owen Humphries

Canaccord Genuity Corp., Research Division - Senior Industrials Analyst

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Presentation

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Operator [1]

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(technical difficulty)

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Will Lopes, Catapult Group International Limited - CEO [2]

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Thank you, Christian. Thank you, everyone, for joining our call for Catapult's First Half of Fiscal Year '20 results. I am joined today by Jim Orlando, our Board Director and our former Interim CFO and COO; I am also joined by Hayden Stockdale, our recently appointed CFO. Since Jim was our CFO until the end of H1, I have asked him to cover our financial slides and answer questions, while Hayden is still coming up to speed. I have also invited Adir Shiffman, our Executive Chairman to this call, in case any of the questions are related to prior announcements and decisions, which he may have a better context, as I've only been here a few months.

If we now move into Slide 2. As I complete my third month at Catapult, I am more excited than ever about its future. What I've learned and continue to learn each day is that our company continues to be at the forefront, as a leader, in an exciting industry that is far from maturity, especially when viewed through the customers' eyes. As such, I think, it is important to remind everyone that the purpose of our company has not changed. We exist to improve the performance of athletes and teams.

Moving on to the next slide. Before I share with you an evolved vision and strategy that answers the questions to how we will accomplish this purpose, I want to start by discussing some of the highlights of our first half results.

Catapult in the first half will have delivered a second consecutive half of positive EBITDA, up 512% year-on-year. Our success came from the continued increase in our top line with ARR up 20% year-over-year, and subscription revenue now representing 76% of our total revenue. But what is a hallmark of a successful SaaS business is that we've achieved this result by improving our operating expense from 74% of revenue at this time last year now to 65% in this period. The combination of rising top line and improving costs will give us seasonal free cash flow increase of nearly 1,000% year-on-year.

Moving on to the next slide. During H1, we welcome some incredible new customers to Catapult family. We signed a new league-wide deal involving 36 teams across the top 2 tiers of Colombian football, DIMAYOR. We signed new relationships with major league rugby in the U.S. and the NRL and the ARU here in Australia. While we also welcome high-profile subscription partners, including the Cleveland Indians and the Toronto Blue Jays from America's Major League Baseball League as well as signing U.S. colleges, Texas Tech University, Stanford University and the University of Iowa, we also welcomed the LAFC and the New York Red Bulls in the MLS.

While we were welcoming these great new customers to our platform, we also received the best-in-class certification for FIFA for our newest wearable product Vector and maintained the relationships with thousands of customers as our subscription continues to show low churn. It is thrilling that I have this type of springboard to begin the next phase of Catapult. This type of foundation with high-grade customers and growth makes Catapult very well poised to scale to the next level.

If we now move to Slide 5. Before discussing our strategy further, I want to make a note on what it takes to build a successful subscription business at scale. Having spent most of my career at Audible and Amazon, I know that building multibillion-dollar businesses requires focus on long-term results. During my career at these very successful companies, I discovered 3 ingredients or comments to build long-term value, and I intend to optimize them inside Catapult: the first to constantly generate solutions focused on the customer. This is a true mark of a leader in any industry; second, to invest our capital with a long-term lens, prioritizing multiyear views rather than short-term results; the third to be prudent and deeply analytical about our investment by focusing on early indicators that provide confidence in our long-term plan.

When this philosophy is applied correctly, the -- with the primary financial goal of maximizing long-term free cash flow, company scale a level that yield the greatest results and returns to shareholders, employees and customers. As such, I see the need for an evolution to our vision and strategy in order to build an even greater company.

If you move now to Slide 6. Today, I would like to present you a new vision. This vision is not a revolution of what we do, but rather an evolution to scale our company to the next level. Catapult will create the most comprehensive platform of solutions for teams and athletes.

In the last 3 months, I have learned that our customers are constantly seeking a technology -- technological solutions across a variety of problems they face each day in their pursuit of excellence in sports. While Catapult is a leader in providing a number of services and products to this market, I see many opportunities ahead of us in building a platform that constantly introduces new technology, services and features to the thousands of teams we support across the globe. I joined Catapult to help build one of the greatest technology company. And as I embark on building a new strategic direction, I want to reaffirm that my focus is to ultimately build long-term value for our shareholders by solidifying our leadership positions with customers for many years to come.

With this in mind, I want to share with you a new strategy for Catapult that will apply this philosophy of growth. And although the actions we take in the years to come may alter, I anticipate that these strategic fundamentals will guide us through our decisions.

Moving on to Slide 7. We will move away from a product-based strategy, formerly communicated as a stack, towards a solution-based strategy, focused on creating a comprehensive platform for sports that addresses the multiple needs of our customers. Our platform will offer solutions to customers across team management, performance and health of athletes, tactical management, professional services and monetization of their assets. Catapult already operates in all of these verticals, with products that support some of the needs, but we intend to create deeper solutions with the ultimate goal of creating technology that is invisible, meaningful and valuable. Within this platform, we will continue to focus on 2 customer segments. The Pro segment, formally described as our core segment, consisting of leagues, elite and professional teams. And the Prosumer segment, consisting of amateur and small professional teams as well as consumers.

If you move now to Slide 8. The evolution of our strategy will translate into 3 key areas that will position Catapult for continued growth: first, by expanding our platform into a more expansive view, we will generate solutions that drive greater value to our customers. The more value we create for our customers, will translate into a greater share of wallet from them. We will measure success of our platform expansion by our ARR growth as a proxy that our customers continue to find the value and the solutions we offer; second, this strategy will accelerate moving our core business model towards SaaS, focusing on building long-term relationships with our customers. This shift will further scale the creation of sustainable revenue while ensuring that we're always innovating on behalf of our customers. Having built one of the largest subscription business on the planet with Audible, I know that service-oriented companies are successful by deepening their relationship with customers through value creation. We will measure success of this shift by the percent of revenue that is recurring as a proxy that our customers continue to value our long-term relationship; lastly, this strategy will only be successful if we can do so in a sustainable manner that is enhanced by the efficiencies of scale. I expect, as Catapult scales, we will continually seek to improve our variable and fixed costs as it relates to revenue by making our company more efficient in serving our customers.

Subscription businesses are successful by designing multiyear road map that obsesses over input metrics that drive unit economics in a two-pronged approach, growing top line revenue, while simultaneously improving cost of growth. This is the type of focus that creates long-term free cash flow. We will measure this part of our strategy by reviewing our operating expense as a percent of revenue, as a proxy for efficiency.

Given the above, I would like to share further results of our first half fiscal year '20. It is important to remember that these results are not yet a reflection of our emerging strategy. However, if you apply the new lens of what I just shared, you will see that Catapult is very well poised for growth within this new framework.

Moving on to Slide 9. Before going a bit further into results of our Pro segment, I want to share a bit of our overall company results. As mentioned, our total ARR is up 20% year-on-year. EBITDA had a positive swing of $7.1 million, a 512% year-over-year improvement. And our cash balance decreased only $2.4 million in the last 12 months. Meanwhile, our free cash flow for this period was $13.6 million versus a loss of $1.6 million last year. It is important to know that our business is seasonal, and our current free cash flow is impacted by the timing of receipts from customers.

Moving on to the next slide. Let's discuss our Pro segment, made up of leagues, elite and professional team. Our ARR continued to grow and showed strength delivering at 21.4% CAGR in the last 12 months.

If you go on to the next slide, what you notice is that our operating expense to revenue ratio has fallen over 2,000 basis points in the last 24 months.

Moving on to Slide 12. What's interesting is that despite our focus on increasing subscription deals in first half, we had a strong recognized revenue of $47.7 million in this customer segment, a 19% growth in the period. But more importantly, is that the growth of our new solutions are outpacing the overall growth rate with Vector growing 26% and Vision growing 508% in this period.

If you now move on to Slide 13. This Pro segment really saw growth from one of the most important regions in our business, the Americas, where revenue now is represented 30% -- sorry, 70% of total. We know being successful in North America is strategically important, as history has shown that winning in the largest market will typically give companies an edge over the global market. So we're very pleased with this.

Moving on to Slide 14. The percentage of the teams that now have multiple solutions from Catapult grew 66% year-over-year. This gave us confidence and continues to give us confidence that our platform is offering multiple value streams to our customers and that our sales teams can deliver multiple solutions at a minimal cost of scale.

If we now move on to Slide 15. I want to share a bit of our newest segment, which is the Prosumer. I know historically, the segment has not delivered on expectation initially envisioned. However, we saw positive trends in the first half that we will use to refine our strategy of growth going forward. While we've increased spend in this segment significantly, we still saw positive growth of 9% in revenue. However, what is encouraging is that the Prosumer today has 2 sales channels, a B2B sales channel that target smaller, amateur professional teams and a direct-to-consumer channel. Within our B2B channel, we saw positive growth of 21%, while our direct-to-consumer channel grew only 1%, which was expected given the pullback in marketing expenses.

If you move on to Slide 16. Before I hand it off to Jim to cover a few more of our numbers, I want to say that what I see in these results are great opportunities to scale. Our Pro segment shows upside, welcoming new customers, cross-selling and upselling solutions to our existing customers, and that we're doing so efficiently. Our Prosumer segment, albeit very small, tell us that when we do find the right sales channel, we see efficient growth. And all of this helps us feel confident that our strategic plan focused on expanding our platform with a long-term focus of free cash flow is poised to deliver on expectation.

Jim will now cover the rest of our earnings. Jim?

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James Ventura Orlando, Catapult Group International Limited - Independent Non-Executive Director [3]

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Thanks, Will. Before I begin my discussion of the financials in more detail, I'd like to let everyone know that this will obviously be my last results session as Will and Hayden have well and truly taken over. Following this, I'll go back to my non-executive role on the Board. For those of you who have not yet met Hayden, I encourage you to do so as soon as possible. My part and on behalf of the full Board, I'd like to say that we are all extremely excited with the prospects for Catapult under such a talented management team. In my time here in Melbourne, I have always been impressed with the capabilities of the whole Catapult team and now with these excellent leaders, I'm confident the company will achieve its full potential.

Now getting to the numbers. On Slide 18, we provide a summary P&L. As already stated by Will, we achieved strong ARR and revenue growth in the period, in line with our strategy of focusing on recurring revenue and executing to our commitment. I'll talk a bit more -- in a bit more detail on revenue later. But as you can see, we delivered revenue growth of 18% with performance in health or wearables, the major driver. Gross margin was down from the prior period by 1 percentage point to 72%, mainly driven by cost from the Vector new product introduction, including Vector upgrades included in customers' subscriptions and capital contracts and continued costs driven by legacy OptimEye returns, offset by improvements in video and Prosumer margin. Most of the transitional cost of the Vector introduction in H1 will not continue and as such, we expect the gross margin will be closer to prior period trend in H2.

Moving on to P&L's operating expenses. Catapult continued to execute on its plans to deliver scale economies in the period, normalized for AASB 16 and the impact of one-off employee share plan expense credits. Operating expenses grew 3% versus a decline of 4% reported. Management continued to target slower operating expense growth versus revenue growth for the fiscal year. The key drivers of the normalized operating expense growth otherwise are the full -- in the full -- are the full 6-month impact of the investment in prior period, labor to support Pro segment revenue growth and Vector certification costs, offset partially by the impact of significant restructuring of the consumer unit last year, driving down travel and marketing costs.

I'll discuss EBITDA in more detail later, but as already presented, EBITDA adjusted for AASB 16 brings the reported number of $5.7 million to $4.7 million, a very strong result and net loss after tax of $4.8 million includes $3.5 million of amortization of acquired intangibles. We'll provide further detail on amortization in the future.

Over the page, on Slide 19, we present the impact of strong EBITDA growth momentum that Catapult has delivered over the period. As you may recall, Catapult delivered its first positive full year EBITDA in FY '19 and through continued diligent management of our growth, that trend has continued in H1 FY '20. What's most encouraging about this chart is the continued improvement in EBITDA increment or yield relative to revenue in the period, which is characteristic of SaaS businesses. In H1 FY '20, Catapult normalized EBITDA -- incremental EBITDA represented 73% of incremental revenue, up from 36% in the prior period and 32% for FY '19 that we reported last August.

Over the page, on Slide 20, we present EBITDA -- the EBITDA bridge providing more detail on the growth drivers and showing you how the company is delivering on high-quality earnings growth. As you can see, growth in sales-driven gross profit delivered $5.2 million in the period. The company invested in the prior period an additional $2.8 million in labor to support this continued Pro, also known as quarterly segment growth. Management decisions regarding the restructuring of the consumer units in H2 FY '19 delivered $2.4 million and continuing savings for a result of $3.5 million in EBITDA in the period. Now I don't want to add complexity to the Catapult performance story, but I would see this number as the business-as-usual EBITDA for H1 before the impact of normalizing, which are employee share plan expenses being lower by $1.3 million on a year-on-year basis and the impact of AASB 16 of $1 million.

Over the page, on Slide 20 -- sorry 21. I'll provide more -- some more additional detail on the Pro segment, previously known as core. Pro segment total revenue growth was significantly underpinned by recurring revenue, increasing a total of $7.5 million during the prior period. Of this amount, $6.3 million or 85% came from recurring revenue, again, in line with Catapult's strategy. The Americas continued to represent our biggest growth opportunity overall, delivering $6.1 million revenue growth or over 80% of total. Rest of the world nonrecurring sales declined versus the prior period, partially due to large one-off sales in the prior period, in particular, the CAF deal, which occurred last year. We continue to be very confident that Vision and Catapult coaching solutions in addition to athlete management and Vector will drive revenue growth outside of the U.S.

Moving on, some additional detail on tactics and coaching solutions on Slide 22. I've provided this presentation at the full year, last August, predominantly to explain the various products that make up tactics and coaching solutions and the margins of each. Growth in this segment was strong overall. Subscription revenue growth was up 22%, reflecting, again, our focus on long-term value. Content licensing growth was underpinned by strong demand from long-term media customers in the U.S. in the half. Sales of Vision, while growing strongly, do not yet make up a significant portion of SaaS revenue growth in H1. As we delivered Vision product enhancements ahead of the Northern hemisphere buying season, we expect that it will represent a greater portion of future subscription growth. As stated earlier, the revenue mix has produced the higher gross margin outcome in this part of the business.

Slide 23 presents a summary of performance in health, formally known as wearables. Overall, revenue grew 21%, driven by a 28% growth in subscriptions revenue. The Vector product has been and continued to be very well received by our customers as the premier technology in the market. Vector will be a key part of Catapult's focus going forward and the platform solution for customers. Vector subscription growth represented over 30% of the Pro segment revenue growth in the period.

And then finally, on Slide 24, we provide some high-level information on our capital investment program. As we said at the full year presentation, Catapult continues to invest to maintain and extend our position as the leader, providing platform solutions for teams and athletes in performance and health, tactics and coaching athlete management. In the period, we invested just under $5 million in development and we're committed to continuing to invest going forward. We've pulled back investment in consumer in line with our strategy. Capitalized COGS represents subscription devices included in upgrades for Vector. Thank you. And now I'll hand the mic back over to Will.

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Will Lopes, Catapult Group International Limited - CEO [4]

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Thanks, Jim. If we move down to Page 25, we provided a recap of what Catapult has delivered in the first half. Catapult's delivering economic scale and operating leverage. This is profitable growth and free cash growth. Capital -- Catapult reported some phenomenally strong number this half: EBITDA at $5.7 million, up 512%; ARR $6.8 million, up 28% -- 20%. The strong recurring revenue growth overwhelmingly from the Pro segment is driving total revenue growth. Revenue of $50.7 million, up 18%; and very important, free cash flow of $13.6 million, up 937%. And Catapult's continued global leadership has seen where we've had 66% growth in customers with more than one Catapult's solutions and we've had high-profile league-wide deals and customer signing. In summary, these results are the hallmark of a scaling successful SaaS business. The ability to grow the top line while becoming efficient at scale, it was these fundamentals, along with Catapult's continued leadership in an exciting and high-growth industry that excited me to join.

Finally, some comments about our outlook on Page 26. We are committed to continued and growing ARR as our platform expands, improving operating cost efficiencies as it grows and generating free cash flow. Our focus on growing recurring revenue, improving our operating cost efficiencies and generating free cash, aligned with my long-term focus, which is to build value for our customers, employees and shareholders. The company reiterates its commitment to positive free cash flow by fiscal year '21 and Catapult is focused on bringing forward this positive free cash flow target to the extent possible. These expectations remain consistent with Catapult's original fiscal year '20 outlook provided in August 2019.

In conclusion, we have a strong springboard to initiate the next phase of growth. Our H1 results reaffirm that we are on a positive path.

Now I'll hand over for Q&A. Jim, Hayden, Adir and myself will be pleased to take any questions.

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Questions and Answers

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Operator [1]

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(Operator Instructions) Your first question today comes from the line of Owen Humphries from Canaccord.

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Owen Humphries, Canaccord Genuity Corp., Research Division - Senior Industrials Analyst [2]

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Just a quick question on the currency. What was the currency tailwind during the first half and versus the PCP?

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Hayden Stockdale, Catapult Group International Limited - CFO [3]

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What was the question?

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Will Lopes, Catapult Group International Limited - CEO [4]

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What was the currency tailwind for the first half versus PCP?

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Hayden Stockdale, Catapult Group International Limited - CFO [5]

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Currency tailwind. So constant currency growth in revenue, Owen?

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Owen Humphries, Canaccord Genuity Corp., Research Division - Senior Industrials Analyst [6]

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Yes.

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Hayden Stockdale, Catapult Group International Limited - CFO [7]

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So top line revenue growth was 18%. On a constant currency basis, it was 13%.

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Owen Humphries, Canaccord Genuity Corp., Research Division - Senior Industrials Analyst [8]

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Good one. Okay. And Will, it just looks like you're, obviously, increasing focus on being a platform player here. Just go to that slide there talking about where the opportunities lie for yourself to expand business. Do you think the majority of the lifting will be done through a buy or build methodology here, or a bit of both?

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Will Lopes, Catapult Group International Limited - CEO [9]

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Owen, thanks for that. I think at this stage, what we look as the strategic framework is to really start to make better decisions on our ROI from a -- build, partner and buy. I would say that given the current position we stand in, I think, we're going to focus on build and partner with a focus maybe down the line of buy. But I think the framework allowed us to really get a sense of where do we need to add value for our customers. And what are the things that they're using today that we don't support over time.

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Owen Humphries, Canaccord Genuity Corp., Research Division - Senior Industrials Analyst [10]

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Good one. Okay. And if I look forward, maybe go, maybe, a bit further out into FY '21, it looks like the -- most of your growth will be driven by ARR. I can't imagine you'll be increasing the focus on capital sales. Am I hearing that correctly? So the most of the growth driven by the business will be driven by an ARR uplift? Is that correct in terms of FY '21 and '22, excluding the pressure in the segment?

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Will Lopes, Catapult Group International Limited - CEO [11]

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Yes. I think what I would say is that I'm going to reiterate that. Our focus is to build long, sustainable, SaaS business, right? And when you do that, your focus is increasing your subscription revenue, which, in this case, translates to ARR. Our focus is to actually now come back and build a view of the next, I would say, 3 fiscal years. So that we could give all of you a view of how we're going to continue to scale Catapult to the next level. And subscription and ARR is the primary focus in terms of revenue growth.

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Owen Humphries, Canaccord Genuity Corp., Research Division - Senior Industrials Analyst [12]

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Got you. Good one. Okay, we like that. And obviously, a bit more focus this time on the Prosumer and the outlook there? And it's good to see that B2B side is up 21%. So obviously, you've had a history in the past of scaling B2C businesses. Just flag or maybe you can give us some commentary on where you see that business going forward? I know we've kind of seen an unwinding cost and an unwinded marketing spend, but is there an increasing focus to scale that business in calendar year '20 and '21?

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Will Lopes, Catapult Group International Limited - CEO [13]

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What I will show you is that, I continue to see the potential of the Prosumer business and Prosumer, in my mind, is the finest what we do in B2B, plus what we do with consumer. I think this opportunity there continues to exist. Our focus right now is to make sure that we're in a good footpath in growing the Pro segment, which is 95% of our revenue. But you could anticipate that we're probably going to have a view going into fiscal year '21, '22 and '23 and how do we take the consumer business, possibly rewire it for its efficient and scalable growth.

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Owen Humphries, Canaccord Genuity Corp., Research Division - Senior Industrials Analyst [14]

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Okay. Good one. And maybe -- I can't see it in the results, but I see that there may be the disclosure on capital sales and subscription sales and unit sales, as I can't see that in the presentation. Maybe you can drive into the growth of the elite business in terms of -- for the ARR, what's the driven price versus volume?

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Will Lopes, Catapult Group International Limited - CEO [15]

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Yes. As we are transitioning from what I would consider a hardware business into a SaaS business, I don't think providing one, the historic ARPUs that I think we have and the units, truly makes sense in terms of a reflect of how we manage the business today and how we're going to manage the business going forward. I would also point out that we're probably the only public company in this space and so providing ARPU and units, I think, only gives our competitors an edge of how to go into the market and undercut it, right? Having said that, I think, I want to sympathize with everybody who's potentially creating a model around those things. What we're providing at this point is that the Vector unit is now representative of 12% of our base. Our growth in subscription in that model -- with that model has been around 28% year-over-year. And it's being highly and well accepted by our customers as the best solution in the market. So what I would offer is that, if you need some support and understanding how we're going to measure the business going forward, as soon as Hayden, I think, is settled in, he'd be more than happy to talk to you and give you some guidance on that front.

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Operator [16]

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Your next question comes from the line of Chris Savage from Bell Potter.

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Chris Savage, Bell Potter Securities Limited, Research Division - Senior Industries Analyst [17]

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Just on your free cash flow target. Given you didn't bring it forward by year and you did $13.6 million positive in the first half. I know traditionally, you do negative free cash flow in the second half. But does that mean you're potentially expecting negative $13.6 million or even greater in the second half of this year?

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Will Lopes, Catapult Group International Limited - CEO [18]

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Yes, Chris. What I would say is we are very focused on growing our top line and doing so efficiently. As you mentioned, this business is quite seasonal, right? And so the second half is typically where we get lots of expenses as well as where some of our revenue growth for the future is going to come from. So I think at this stage, we're very comfortable with consensus. And I think what we're showing you is that our path to creating a sustainable free cash flow company is well on its way.

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Chris Savage, Bell Potter Securities Limited, Research Division - Senior Industries Analyst [19]

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Just picking up on your comment there, you're very comfortable with consensus. Is that a reason why you didn't provide any EBITDA guidance for FY '20?

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Will Lopes, Catapult Group International Limited - CEO [20]

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That's part of the reason. I think the second part of the reason is that I've been in the role for 3 months, Hayden has been here for 3 weeks, and I think as we start to transition into a SaaS model focus, particularly, as I presented in the strategy, what I prefer to do is present a view that is multiyear, particularly at the end of the fiscal year. And that's what I'm really focused on at this stage. And so looking at guidance for the next 6 months feeds into my optic for me as a CEO who's looking at multiyear returns.

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Chris Savage, Bell Potter Securities Limited, Research Division - Senior Industries Analyst [21]

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Okay. And just second question. Vector, the late release last year, I mean, you missed the key Q4 selling period. Can you talk about what the pipeline is looking like for this Q4 selling period for at least Vector?

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Will Lopes, Catapult Group International Limited - CEO [22]

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I think we're beyond saying we're comfortable with where we are in plan. What I would say is that the early indicators of 12% adoption of our customer base to Vector, the 28% growth in subscription, means that we're feeling very comfortable about H2 as it relates to Vector.

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Operator [23]

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Your next question comes from the line of Ivor Ries from Morgans Financial.

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Ivor Ries, Morgans Financial Limited, Research Division - Senior Analyst [24]

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And I might pop 2 questions. The first one is just around the move to a subscriptions business. Can we infer from that, that you'll be phasing out capital sales of the wearables devices over the next 12 months? That's the first question. And the second question is just in terms of -- over the past 12 months in terms of contested work, can you give us a feel for what percentage of contested tenders you won?

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Will Lopes, Catapult Group International Limited - CEO [25]

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So first, I think, in terms of phasing out capital, I think you could infer that we will face capital deals. I think it's hard at this stage to infer the timing of that. So whether it's 12 months or 24 months, I think, there's a lot of dynamics that we're working out at this stage. And particularly where we are in emerging markets, and I think convincing some of our customers to move from a deal they had in the past to a subscription deal, I think, that we're working to at this stage. So I hope that by the end of this fiscal year, we'll come back with a multiyear view that I think we'll give more guidance to ARR and particularly the relation of shifting capital to subs.

In terms of the tenders, what I -- I'm not going to share specifics in tenders that we win. What I would say is that we continue to see that Catapult is the leader in this space. We have, by far, the most teams using our technology. What's really exciting is that we continue to see growth in multiple-solution customer base. And all of that is making us feel pretty confident that we have, what I would say, is a very highly competitive product set that when we go out into the market, we typically hear, we're by far the best.

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Ivor Ries, Morgans Financial Limited, Research Division - Senior Analyst [26]

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Well, maybe, I can catch that question in another way. We do account of the publicly announced tender wins and over the last 6 months, it looks like you guys have won somewhere around about 70%, 75% of public tenders. Would that sort of jell with your worldview?

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Will Lopes, Catapult Group International Limited - CEO [27]

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I'm going to commend you on having a model that I think is as sophisticated in doing that. As I said, I'm not going to go specifics on it. And I'm assuming your model leads to probably a consensus point of view, and I'm pretty comfortable with consensus.

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Operator [28]

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(Operator Instructions) There are no further questions from the phones at this time. I would now like to turn the conference back to today's presenters. Please continue.

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Will Lopes, Catapult Group International Limited - CEO [29]

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I'd just like to thank everybody for joining our call, asking your questions and continue to support Catapult, which, I think, is on a tremendous ride to scale for the next couple of years. Thank you, everyone, and enjoy the rest of your day.