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CAT - Catapult Group International

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VSntchr said:
Has anyone looked into dorsaVI (DVL). Looks like a potential competitor to CAT.
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Pretty convinced that DVL is more complementary to CAT than a competitor. CAT is definitely an "in-game" product whereas DVL looks like it is more used for rehab and "back-to-play" decisions.

The market took a liking to the 4C released today. At the half year report it seemed that the target of 8k unit sales for the full year was quite ambitious. Now with the just one quarter remaining it looks more obtainable. The company states that historically the 4Q result comprises 36% of annual sales. With 69% of the target already accounted for, this bodes well.
Looks like CAT has customers that like to get their orders in before EOFY and ensure that they spend their allocated budgets, similar to the IT services sector.

Chart looks good for a BO play...
CAT - BO-NH 280416.png
 
Q2 and Q3 have now both exceeded last year's Q4, a first. Q3 has also exceeded Q2, again a first. I was looking for explosive growth and it appears to be starting. The target of 8,000, set in March, has a pretty good chance of being beaten on the current momentum, imo.
 
Strong day with a gain of 7% with no news.

anyone still following CAT?

maybe a positive announcement is along the grapevine.

Sitting on a nice 118% gain so far, so will sit tight and stay on the uptrend.
 
CAT announcement out today delivering upgrade to 8354 units (prev 8000). Subscription units now 57% up from 51% PCP. This means most of revenue uplift is booked as recurring revenue base and felt from FY17 onwards rather than a one-off hit to FY16.
Quarterly unit sales look fantastic:
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Also, company talking about "enhancing the offering within the ecosystem".
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McLovin said:
Q2 and Q3 have now both exceeded last year's Q4, a first. Q3 has also exceeded Q2, again a first. I was looking for explosive growth and it appears to be starting. The target of 8,000, set in March, has a pretty good chance of being beaten on the current momentum, imo.
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And now Q416 will beat the entire 2H15.

VSntchr said:
Subscription units now 57% up from 51% PCP
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Subscriptions keep ticking up, even as unit sales grow strongly. Nice. The ability to benchmark across a group of players in a league or even wider is a pretty core strength to the CAT product, imo.
 
I am surprised that there has been no news here.

CAT just announced a HUGE acquisition of XOS Technologies and PLAYERTEK $84M deal.

Just finished reading all the details about the deal and i am very excited! This acquisition makes perfect sense as they currently supply elites the wearable and XOS provides the video and analytical data and has huge market share in USA. The PLAYERTEK acquisition will focus on a low cost (COGS) for the amateur pro market (not elite).

The directors hold 61% of CAT so they have some stake in the business!


Summary of the deal:

The XOS Acquisition is expected to be substantially accretive to Catapult’s total revenues, recurring revenue base, and earnings before interest, taxes, depreciation and amortisation (“EBITDA”) pre-synergies, and will accelerate Catapult’s transition to positive EBITDA and free cash flow in FY17. XOS is expected to deliver US$25.0 million (A$34.3 million) in revenue, US$19.6 million (A$27.0 million) in annualised recurring revenue (“ARR”), and US$6.0 million (A$8.3 million) in EBITDA5 in the 12 months to 30 June 2016 (“FY16”).6 The acquisition price implies a transaction multiple of 2.4x FY16 revenue and 10.0x FY16 EBITDA.


Further financial guidance announced today:

As released to the market on 5 July, Catapult upgrades its full year FY16 guidance for units ordered to 8,354 and total contract value (“TCV”) to $29.4 million. Today Catapult also advises that it expects to achieve revenue of A$18.0 to 19.0 million, annual recurring revenue (“ARR”) of A$13.0 to 14.0 million and EBITDA of A$(3.8) to (4.8) million4 for FY16.


Discloser, happy long-term holder. Will be topping up on the cap raising and will be sending more money with the hope they accept it :)
 
leyy said:
Summary of the deal:

The XOS Acquisition is expected to be substantially accretive to Catapult’s total revenues, recurring revenue base, and earnings before interest, taxes, depreciation and amortisation (“EBITDA”) pre-synergies, and will accelerate Catapult’s transition to positive EBITDA and free cash flow in FY17. XOS is expected to deliver US$25.0 million (A$34.3 million) in revenue, US$19.6 million (A$27.0 million) in annualised recurring revenue (“ARR”), and US$6.0 million (A$8.3 million) in EBITDA5 in the 12 months to 30 June 2016 (“FY16”).6 The acquisition price implies a transaction multiple of 2.4x FY16 revenue and 10.0x FY16 EBITDA.


Further financial guidance announced today:

As released to the market on 5 July, Catapult upgrades its full year FY16 guidance for units ordered to 8,354 and total contract value (“TCV”) to $29.4 million. Today Catapult also advises that it expects to achieve revenue of A$18.0 to 19.0 million, annual recurring revenue (“ARR”) of A$13.0 to 14.0 million and EBITDA of A$(3.8) to (4.8) million4 for FY16.
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I am surprised how cheap the acquisition is... looking at some of the metrics based on the transaction price and CAT's last market cap of $194m.

Market cap / revenue XOS = 2.4x, CAT = 10.5x
Market cap / ARR XOS = 3.0x, CAT = 14.4x
Market cap / EBITDA XOS = 10.0x, CAT = N/A

Perhaps XOS is just a big data IT firm (where there are many alternatives) while CAT's products have more unique IP?

I can definitely see the potential synergies there with sales and also products development... but I would have thought XOS wouldn't sell itself that cheaply.

leyy said:
Discloser, happy long-term holder. Will be topping up on the cap raising and will be sending more money with the hope they accept it :)
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I only bought CAT about 2 months ago and it's already up 40%. Let's see how the into placement go.
 
skc said:
I am surprised how cheap the acquisition is... looking at some of the metrics based on the transaction price and CAT's last market cap of $194m.

Market cap / revenue XOS = 2.4x, CAT = 10.5x
Market cap / ARR XOS = 3.0x, CAT = 14.4x
Market cap / EBITDA XOS = 10.0x, CAT = N/A
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It's even cheaper. CAT's MC is ~$450m.

skc said:
Perhaps XOS is just a big data IT firm (where there are many alternatives) while CAT's products have more unique IP?
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XOS is a much more mature business than CAT, from what I gather. I wouldn't expect the enlarged CAT to trade on the same revenue multiple as CAT currently does. That being said, I think it's a very shrewd investment. They've already been working with XOS since early last year (with the Jacksonville Jaguars combing the two techs) so they probably already have some idea of where they can cross sell either product.XOS also has licensing agreements with media outlets in the US which CAT has been talking up as the way forward. Video with wearable puts them well ahead of anyone else, especially given how good CAT's existing wearables stuff is.
 
McLovin said:
It's even cheaper. CAT's MC is ~$450m.
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Oops... what a rookie mistake. :bonk::bonk::bonk:

McLovin said:
XOS is a much more mature business than CAT, from what I gather. I wouldn't expect the enlarged CAT to trade on the same revenue multiple as CAT currently does. That being said, I think it's a very shrewd investment. They've already been working with XOS since early last year (with the Jacksonville Jaguars combing the two techs) so they probably already have some idea of where they can cross sell either product.XOS also has licensing agreements with media outlets in the US which CAT has been talking up as the way forward. Video with wearable puts them well ahead of anyone else, especially given how good CAT's existing wearables stuff is.
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Yes. I read the presentation in detail last night and the fit is a pretty good story.

Also had a quick look at PlayerTek's website. Prosumer is going to be a great market. Although it is probably going have a lot more competition given the alternatives out there. I think most fitness bands have GPS and are good enough for sports like running and cycling. But sports like football and soccer requiring more accurate tracking will still need the better hardware.

Perhaps the analytics and pro-comparison would be unique selling points available to CAT.

It feels like they should charge less upfront and more for the subscription... but I am guessing that it's early days yet in their revenue model.

P.S. Bell Potter's been pushing this cat hard recently and now we know why...
 
Unbelievable strength today.
Coming online with a theoretical ex price of $3.61 and it opens at $4.00.
Gets sold down with vigour and looks it might be heading to the $3.00 raising price...but then the true lack of supply becomes evident and someone wants more shares and its back at the daily high of $4.09.

Wonder if more supply will come on over the next few days, there will be alot of CR stock to wash through...
 
skc said:
Also had a quick look at PlayerTek's website. Prosumer is going to be a great market. Although it is probably going have a lot more competition given the alternatives out there. I think most fitness bands have GPS and are good enough for sports like running and cycling. But sports like football and soccer requiring more accurate tracking will still need the better hardware.

Perhaps the analytics and pro-comparison would be unique selling points available to CAT.
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I had a look at the PlayerTek stuff, it's pretty good product. I do wonder how much of it is gimmick v something players can actually use. I mean does a weekend warrior really need to know how they compare to a pro? Still it's an interesting concept and a good starting point to move down the line from the pro offerings.



skc said:
P.S. Bell Potter's been pushing this cat hard recently and now we know why...
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I thought it was interesting Goldman's had any interest in doing this cap raise. Seems way too small for them. Maybe a NASDAQ listing is being lined up in the next couple of years. I wonder if CAT decided they wanted exposure to overseas instos and the BP Roladex doesn't measure up as well as GS.
 
Considering the the new shares through the institutional holders were trading on the market today. There was obvious profit takers as it opened circa 10% down.

CAT introduced 21,912,014 additional shares to the market.

CAT regained all the losses in late trading and this is very bullish as it shows there is lots of accumulation and demand for CAT.

:)
 
The hiding to nothing still hasn't stopped! At a 52 week low of $1.415 as of the close. I can't put my finger on it [emoji53]
 
Well I have bought in today.
They are saying in their report today that their cashflow is into positive territory!
They are also making headway into Football (soccer) market, which they say is huge. Don't see why you want to measure blokes running around on one spot kicking a ball backwards & sideways, but who knows what the detail and analytics are being provided.
A promise of more delivery of information to those of us who have (ahem) 'retired from the game', ie off the bench and now on the lounge. Actually the dear wife wants me to wear one, she thinks I can improve my workrate with chores in the yard and cutting the lawn. I am gonna put one on my broker and hopefully can zap him from my remote when a stock takes a hit.
Have a good weekend folks.
 
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