While ASX 200 and All Ordinaries closing in the negative, a few stocks from ASX listed companies stole the limelight. Bucking the trend, these top growth stocks not only defied the broader sentiment but also reached new highs. The potential growth companies are
Catapult Group International Ltd (ASX: CAT)
Catapult Group International Ltd (ASX: CAT) has posted a robust 1H FY25, driving its stock price up 8.39% to A$3.49. The company’s key performance indicator, Annualized Contract Value (ACV), grew 20% year-on-year (YoY) on a constant currency (CC) basis, reaching US$96.8M (A$143M). Revenue increased 19% YoY (CC) to US$57.8M (A$85M), with a notable profit margin of 75% on incremental revenue. Free Cash Flow (FCF) also improved, delivering US$4.8M (A$7M), surpassing the entire FY24 FCF of US$4.6M. Catapult’s SaaS-driven business model remains strong, underpinned by the Performance & Health vertical's reliability and increased adoption of New Video Solutions within the Tactics & Coaching vertical. This dual growth engine has enabled the company to improve margins and strengthen its position on the "Rule of 40," a key SaaS valuation metric, thus becoming one of the growing companies to invest in. Catapult retained 75% of each new dollar of revenue, underscoring its operational efficiency.
Key highlights of the period include the largest ever half-on-half (HoH) ACV increase of US$10M, a testament to the strong product-market fit and high customer engagement. ACV retention remains robust at 96.2%, customer lifetime duration rose 7% YoY to 7.6 years, and Pro Team Customers increased 7.9% YoY to 3,470 teams. These metrics underscore the stickiness of Catapult's offerings within professional team workflows. Operational discipline has also been a key driver, with the contribution margin improving to 48% from 44% YoY. Management EBITDA reached US$6.2M, reflecting the company’s focus on profitability. Notably, Catapult exceeded its incremental profit margin target of 30%, achieving an impressive 75% margin in 1H FY25. Debt reduction was another milestone, with net repayments of US$6M reducing debt to US$5M, significantly strengthening the balance sheet from a peak of US$15.7M in FY23.
Looking ahead, Catapult projects sustained ACV growth, low churn, and improving cost margins, with a continued focus on scaling profitably. The company remains aligned with its Rule of 40 targets and anticipates higher free cash flow for FY25. Its commitment to innovation, particularly in developing next-generation solutions, positions it well to maintain leadership in sports technology. With a comprehensive SaaS platform and disciplined financial management, Catapult is effectively balancing growth and profitability. Its ability to drive top-line expansion, improve margins, and reduce debt positions it favourably among leading SaaS benchmarks, making it a compelling investment opportunity as it capitalizes on a significant global market.
Imricor Medical Systems (ASX: IMR)
Imricor Medical Systems (ASX: IMR) has achieved a significant milestone with its NorthStar 3D mapping system, as part of the Sensing and Image-Guided Neurological therapies (SIGNET) consortium. In collaboration with Philips and other partners, Imricor is one of the best growth stocks to buy now, having successfully developed software that allows NorthStar to integrate with the Philips MRI platform. After completing extensive testing in October 2024 at the Amsterdam University Medical Centre, all technical goals were met, paving the way for commercialization. NorthStar is also expected to launch next year for the Siemens MRI platform, and Imricor is in talks with GE Healthcare to bring the system to their MRI platform soon. The collaboration aims to improve patient safety and treatment outcomes through MRI-guided procedures, with a focus on electrophysiology, oncology, and neurology.
Imricor’s Q3 CY24 report highlighted several key achievements, including the first MRI-guided ablation performed at Johns Hopkins University Hospital in the U.S., and the hospital joining an ongoing clinical trial for U.S. FDA approval. The company raised $35 million through a successful placement to strengthen its balance sheet and continued its expansion into Nordic markets, where reimbursement levels are favorable. While total revenue for Q3 was slightly lower than expected due to the timing of consumable shipments, cash receipts showed a significant increase. Operating costs were well-managed, with a cash balance of $19.6 million at the end of the quarter.
Imricor’s technology is poised to make a major impact on the growing field of electrophysiology, particularly in complex ablation procedures for conditions like VT and Afib. The company believes that MRI-guided procedures, such as their upcoming MRI-guided VT ablation, will offer numerous benefits, including faster procedures, higher success rates, and lower costs. While there has been a delay in the first VT patient trial due to necessary reviews and enhancements to the defibrillator and mapping system, Imricor remains optimistic about the potential of their technology to address the increasing demand for ablation treatments in hospitals worldwide.
Source: Company’s Report
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