CAT +8.16%: the sports tech company released their FY results last night, showing a strong turnaround from its disappointing HY result 6 months ago. The company, which develops tracking and analytic solutions for professional sports teams, saw its Annualized Contract Value (AC) grow slightly above its 20% target while the market enjoyed the focus on costs with benefits from the restructuring announced at the HY result being realized faster than originally thought.
Fixed costs fell to 47% of revenue vs 57% in the first half, while variable costs fell a similar amount to 46%, supported by cuts to General & Admin, Research & Development, Cost of Good Sold (COGS) & Sales & Marketing – saving money across the board with delivery the only cost centre that saw a mild decline. Software grew to over 90% of revenue, supporting long-term margin improvement as the business scales. The company expect to be cash flow positive in this financial year, confirming that the balance sheet is likely to support the company into profitability.
- The strong result puts CAT on the radar for the Emerging Companies portfolio
MM is bullish CAT
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