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· Posted on
May 31, 2024

Catapult Sports scores $100 million USD revenue goal after turning hardware into software subscriptions

Catapult Sports has announced its annual revenue has hit over $100 million USD for the very first time.

What's the key learning?

  • The majority of Catapult’s tech is sold through a SaaS (software as a service) model to elite sporting clubs.
  • In other words, athletes wear these tracking devices and the sporting clubs pay a monthly fee to access the athlete’s data.
  • Rather than adding more and more wearables, they expand out their software offering which helped Catapult grow their annual contract value with clients by 20%.

👉 Background: Catapult Sports is the ASX-listed sports tech business, built for athlete tracking. Catapult uses tracking devices to record and analyse elite athlete performance. And they've got some big partners, like the Australian cricket team, Real Madrid soccer club and the Golden State Warriors.

👉 What happened: Now, Catapult Sports has announced its annual revenue has hit over $100 million USD for the very first time. This milestone was reached off the back of its annual contract values growing by 20%.

👉 What else: Despite its tracking devices being core to its products, the bulk of Catapult's revenue actually comes from software-as-a-service - not from the hardware.

What's the key learning?

💡The future of hardware may actually come via software subscriptions. Companies like Peleton are already charging for their hardware (ie the bike) and then additional software subscriptions (ie the monthly fees)

💡But now we’re starting to see more companies who are just offering their hardware as a delivery mechanism for a subscription service, like Catapult.

💡Catapult aren't the only ones with this idea. Whoop, the wearable fitness device, worth over $3.6 billion USD, wraps the upfront cost of its device into its monthly subscription too. So the future of hardware.. is software?!

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