The Catapult Group International Ltd (ASX: CAT) share price hit a 52-week low of 76 cents today and is now down 55% over the course of 2018 and down around 80% since hitting highs above $4 a share in August 2016.
Australian sports fans may be familiar with Catapult's wearable sports analytics devices used by professional sports teams in Australia and globally to monitor the fitness and performance of their players.
For FY 2019 Catapult is forecasting adjusted underlying EBITDA between $11 million and $13 million, however this forecast backs out costs around employee share-based compensation, the prosumer business investments and investments in analytics software.
As such there's a decent amount of uncertainty for investors as to how exactly the business is tracking in managing costs in FY 2019, as it continues to make a forecast for cashflow breakeven by FY 2021.
It's also forecasting revenue between $86 million and $88 million in FY 2019, which puts it on a valuation of less than 2x forecast revenues, but it's the drawn out forecast for cashflow breakeven that is probably hurting investor confidence. While its move and heavy investment into what it describes as the "prosumer" space may also worry some investors.
The group also recently announced the resignation of its CFO, which may also hurt confidence in the business.
