Cantaloupe, Inc. Reports First Quarter Fiscal Year 2022 Results
Cantaloupe, Inc. (Nasdaq: CTLP) reported a strong first quarter for fiscal year 2022, with revenues reaching $45.8 million, up 24% year over year. Transaction fees surged 34.3% to $26.4 million, while equipment sales rose 36.8% to $5.2 million. Although gross margins decreased to 32.5% from 38.6%, the company narrowed its operating loss to $1.1 million compared to $3.6 million in the prior year. Cantaloupe maintains its fiscal year guidance of revenues between $200 million and $210 million and a net loss of $(7) million to $(5) million.
- Revenue increased by 24.1% year over year to $45.8 million.
- Transaction fees rose 34.3% year over year, reaching $26.4 million.
- Equipment sales grew 36.8% to $5.2 million.
- Narrowed operating loss to $1.1 million from $3.6 million in the prior year.
- Adjusted EBITDA improved to $1.9 million compared to $(0.5) million in the prior year.
- Gross margin decreased to 32.5% from 38.6% year over year.
- Subscription and transaction fee margins declined to 35.9% from 41.6%.
First Quarter Revenue Increased
Reaffirms Fiscal Year 2022 Outlook
“We had a strong start to fiscal year 2022, with first quarter revenues increasing
First Quarter Financial Highlights:
-
The Company delivered revenues1 in the first quarter of
, an increase of$45.8 million 24.1% year over year-
Transaction fees of
, an increase of$26.4 million 34.3% year-over-year -
Subscription fees of
, an increase of$14.2 million 5.8% year-over-year -
Equipment sales of
, an increase of$5.2 million 36.8% year over year
-
Transaction fees of
-
Gross margin of
32.5% compared with38.6% in the prior year period, the prior year period benefited from a one-time out of period adjustment-
Subscription and Transaction fees margins totaled
35.9% versus41.6% in the prior year quarter -
Equipment sales margins were
5.3% compared to12.4% in the prior year quarter
-
Subscription and Transaction fees margins totaled
-
Operating loss of
for the quarter ended$1.1 million September 30, 2021 , compared to operating loss of in the prior year period$3.6 million -
U.S. GAAP Net loss applicable to common shares of , or$1.6 million per share compared to net loss applicable to common shares of$0.02 , or$6.9 million per share, in the prior year period$0.11 -
Adjusted EBITDA2 of
compared to$1.9 million in the prior year period$(0.5) million -
Active Devices totaled 1.11 million at the end of the first quarter of 2022 compared to 1.08 million at the end of the first quarter of 2020, an increase of
3% -
Active Customers totaled 20,738 at the end of the first quarter of 2021 compared to 17,760 at the end of the first quarter of 2020, an increase of
17%
Business Highlights:
-
In
August 2021 , the Company completed the acquisition of certain assets and liabilities ofDelicious Nutritious LLC , doing business as Yoke Payments ("Yoke"), a micro market payments company -
In
August 2021 , the Company hosted its inaugural Cantaloupe Innovation Summit at The NAMA Show 2021, showcasing new products and services - Completed testing and certification of ePort Engage devices, which began shipping at the end of September
- Continued promotional upgrade program to 4G LTE
-
Acquired new customers while expanding amongst existing customers. The Company recently onboarded
Refreshments, Inc , who purchased a full suite of Seed software services.The Florida Department of Education’sDivision of Blind Services was another notable win. During the quarter, the Company also saw Seed expansion at Legends Commerce in theirMaryland locations, and conversions to Seed from competitors’ products at Jelcap and Vending Plus.
__________________________
1 See “Disaggregation of Revenues and Operating Expenses” section below for further details on presentation changes implemented in Q1 2022.
2 Adjusted earnings before income taxes, depreciation, and amortization (“Adjusted EBITDA”) is a non-GAAP financial measure which is not required by or defined under GAAP. We use this non-GAAP financial measure for financial and operational decision-making purposes and as a means to evaluate period-to-period comparisons. See Reconciliations of Non-GAAP Measures for a reconciliation
Disaggregation of Revenues and Operating Expenses:
Beginning in the first quarter of fiscal year 2022, the Company will disaggregate the Subscription and Transaction fees revenue in the notes to the consolidated financial statements. In addition, the Company has revised the Operating expenses presentation included on the Condensed Consolidated Statements of Operations by disaggregating the previously disclosed Selling, general, and administrative costs into Sales and marketing, Technology and product development, and General and administrative costs. The updated presentation is intended to provide additional transparency to the readers of the financial statements and better align the Company’s financial performance with how management views and monitors business operations and makes strategic decisions.
The additional disclosures do not impact total revenues, total costs of sales, gross profit, total operating expenses, operating loss, net loss or net loss applicable to common shares.
Disaggregation of revenues for the previously reported quarters for fiscal year-ended
|
|
Three months ended |
||||||||||||||
($ in thousands) |
|
|
|
|
|
|
|
|
|
|
||||||
Transaction fees |
$ |
19,677 |
|
|
20,454 |
|
|
21,002 |
|
|
24,365 |
|
|
26,421 |
|
|
Subscription fees |
|
13,431 |
|
|
12,760 |
|
|
13,684 |
|
|
13,869 |
|
|
14,204 |
|
|
Subscription and transaction fees |
|
33,108 |
|
|
33,214 |
|
|
34,686 |
|
|
38,234 |
|
|
40,625 |
|
|
Equipment sales |
|
3,769 |
|
|
5,071 |
|
|
8,074 |
|
|
10,783 |
|
|
5,155 |
|
|
Total revenues |
$ |
36,877 |
|
|
38,285 |
|
|
42,760 |
|
|
49,017 |
|
|
45,780 |
|
|
Disaggregation of operating expenses for the previously reported quarters for fiscal year-ended
|
|
Three months ended |
||||||||||||||||||
($ in thousands) |
|
|
|
|
|
|
|
|
|
September 30, 2021 |
||||||||||
Sales and marketing |
|
$ |
1,599 |
|
|
|
1,520 |
|
|
|
1,754 |
|
|
|
2,062 |
|
|
|
2,339 |
|
Technology and product development |
|
3,214 |
|
|
3,783 |
|
|
4,425 |
|
|
4,513 |
|
|
5,389 |
|
|||||
General and administrative |
|
11,997 |
|
|
8,528 |
|
|
7,552 |
|
|
7,677 |
|
|
7,264 |
|
|||||
Depreciation and amortization |
|
1,068 |
|
|
1,052 |
|
|
991 |
|
|
996 |
|
|
1,022 |
|
|||||
Total operating expenses |
|
$ |
17,878 |
|
|
|
14,883 |
|
|
|
14,722 |
|
|
|
15,248 |
|
|
|
16,014 |
|
Fiscal Year 2022 Outlook:
For full fiscal year 2022, the Company remains confident in its previously issued guidance, and continues to expect the following:
-
Revenue to be between
and$200 million $210 million -
U.S. GAAP Net loss applicable to common shares to be between and$(7) million $ (5) million -
Adjusted EBITDA3 to be between
and$8.5 million $10.5 million
Webcast and Conference Call:
Cantaloupe will host a conference call and webcast at
A telephone replay of the conference call will be available from
An archived replay of the conference call will also be available in the investor relations section of the Company's website.
About
Discussion of Non-GAAP Financial Measures:
This press release contains discussion of Adjusted EBITDA, a non-GAAP financial measure which is not required or defined under
We use this non-GAAP financial measure for financial and operational decision-making purposes and as a means to evaluate period-to-period comparisons. We believe that this non-GAAP financial measure provides useful information about our operating results, enhances the overall understanding of past financial performance and future prospects and allows for greater transparency with respect to metrics used by our management in its financial and operational decision making. The presentation of this financial measure is not intended to be considered in isolation or as a substitute for the financial measures prepared and presented in accordance with GAAP, including our net income or net loss or net cash used in operating activities. Management recognizes that non-GAAP financial measures have limitations in that they do not reflect all of the items associated with our net income or net loss as determined in accordance with GAAP, and are not a substitute for or a measure of our profitability or net earnings. Adjusted EBITDA is presented because we believe it is useful to investors as a measure of comparative operating performance. Additionally, we utilize Adjusted EBITDA as a metric in our executive officer and management incentive compensation plans.
We define Adjusted EBITDA as
See reconciliation below for a description of itemized EBITDA adjustments.
____________________________
3 Adjusted earnings before income taxes, depreciation, and amortization (“Adjusted EBITDA”) is a non-GAAP financial measure which is not required by or defined under GAAP. We use this non-GAAP financial measure for financial and operational decision-making purposes and as a means to evaluate period-to-period comparisons. See Reconciliations of Non-GAAP Measures for a reconciliation
Forward-looking Statements:
All statements other than statements of historical fact included in this release, including without limitation Cantaloupe’s future prospects and performance, the business strategy and the plans and objectives of Cantaloupe's management for future operations, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this release, words such as “may,” “could,” “expect,” “intend,” “plan,” “seek,” “anticipate,” “believe,” “estimate,” “guidance,” “predict,” “potential,” “continue,” “likely,” “will,” “would” and variations of these terms and similar expressions, or the negative of these terms or similar expressions, as they relate to Cantaloupe or its management, may identify forward-looking statements. Such forward-looking statements are based on the reasonable beliefs of Cantaloupe's management, as well as assumptions made by and information currently available to Cantaloupe's management. Actual results could differ materially from those contemplated by the forward-looking statements as a result of certain factors, including but not limited to the incurrence by Cantaloupe of any unanticipated or unusual non-operational expenses which would require us to divert our cash resources from achieving our business plan; the uncertainties associated with COVID-19, including its possible effects on Cantaloupe’s operations, financial condition and the demand for Cantaloupe’s products and services; the ability of Cantaloupe to predict or estimate its future quarterly or annual revenue and expenses given the developing and unpredictable market for its products; the ability of Cantaloupe to retain key customers from whom a significant portion of its revenues is derived; the ability of Cantaloupe to compete with its competitors to obtain market share; the ability of Cantaloupe to make available and successfully upgrade current customers to new standards and protocols; whether Cantaloupe's existing or anticipated customers purchase, rent or utilize ePort or Seed devices or our other products or services in the future at levels currently anticipated by Cantaloupe; the ability of Cantaloupe to execute on mergers, acquisitions and/or strategic alliances, including the timing and closing of acquisitions and our ability to integrate and operate such acquisitions consistent with our forecasts; disruptions to our systems, breaches in the security of transactions involving our products or services, or failure of our processing systems; or other risks discussed in Cantaloupe’s filings with the
-F--CTLP
Consolidated Balance Sheets |
||||||||||
($ in thousands, except share data) |
|
|
|
|
||||||
|
|
|
|
|
||||||
Assets |
|
|
|
|
||||||
Current assets: |
|
|
|
|
||||||
Cash and cash equivalents |
|
$ |
82,511 |
|
|
|
$ |
88,136 |
|
|
Accounts receivable, net |
|
24,184 |
|
|
|
27,470 |
|
|
||
Finance receivables, net |
|
8,031 |
|
|
|
7,967 |
|
|
||
Inventory, net |
|
9,537 |
|
|
|
5,292 |
|
|
||
Prepaid expenses and other current assets |
|
2,293 |
|
|
|
2,414 |
|
|
||
Total current assets |
|
126,556 |
|
|
|
131,279 |
|
|
||
|
|
|
|
|
||||||
Non-current assets: |
|
|
|
|
||||||
Finance receivables due after one year, net |
|
10,832 |
|
|
|
11,632 |
|
|
||
Property and equipment, net |
|
6,722 |
|
|
|
5,570 |
|
|
||
Operating lease right-of-use assets |
|
3,240 |
|
|
|
3,049 |
|
|
||
Intangibles, net |
|
20,923 |
|
|
|
19,992 |
|
|
||
|
|
66,194 |
|
|
|
63,945 |
|
|
||
Other assets |
|
2,474 |
|
|
|
2,205 |
|
|
||
Total non-current assets |
|
110,385 |
|
|
|
106,393 |
|
|
||
|
|
|
|
|
||||||
Total assets |
|
$ |
236,941 |
|
|
|
$ |
237,672 |
|
|
|
|
|
|
|
||||||
Liabilities, convertible preferred stock and shareholders’ equity |
|
|
|
|
||||||
Current liabilities: |
|
|
|
|
||||||
Accounts payable |
|
$ |
36,153 |
|
|
|
$ |
36,775 |
|
|
Accrued expenses |
|
26,207 |
|
|
|
26,460 |
|
|
||
Current obligations under long-term debt |
|
662 |
|
|
|
675 |
|
|
||
Deferred revenue |
|
1,720 |
|
|
|
1,763 |
|
|
||
Total current liabilities |
|
64,742 |
|
|
|
65,673 |
|
|
||
|
|
|
|
|
||||||
Long-term liabilities: |
|
|
|
|
||||||
Deferred income taxes |
|
185 |
|
|
|
179 |
|
|
||
Long-term debt, less current portion |
|
13,477 |
|
|
|
13,644 |
|
|
||
Operating lease liabilities, non-current |
|
3,535 |
|
|
|
3,645 |
|
|
||
Total long-term liabilities |
|
17,197 |
|
|
|
17,468 |
|
|
||
|
|
|
|
|
||||||
Total liabilities |
|
81,939 |
|
|
|
83,141 |
|
|
||
Commitments and contingencies (Note 13) |
|
|
|
|
||||||
Convertible preferred stock: |
|
|
|
|
||||||
Series A convertible preferred stock, 900,000 shares authorized, 445,063 issued and outstanding, with liquidation preferences of |
|
3,138 |
|
|
|
3,138 |
|
|
||
Shareholders’ equity: |
|
|
|
|
||||||
Preferred stock, no par value, 1,800,000 shares authorized |
|
— |
|
|
|
— |
|
|
||
Common stock, no par value, 640,000,000 shares authorized, 70,959,182 and 71,258,047 shares issued and outstanding at |
|
464,537 |
|
|
|
462,775 |
|
|
||
Accumulated deficit |
|
(312,673 |
) |
|
|
(311,382 |
) |
|
||
Total shareholders’ equity |
|
151,864 |
|
|
|
151,393 |
|
|
||
Total liabilities, convertible preferred stock and shareholders’ equity |
$ |
236,941 |
|
|
$ |
237,672 |
|
|
Consolidated Statements of Operations (Unaudited) |
||||||||||
|
|
Three months ended |
||||||||
|
|
|
||||||||
($ in thousands, except per share data) |
|
2021 |
|
|
2020 |
|
||||
Revenues: |
|
|
|
|
||||||
Subscription and transaction fees |
|
$ |
40,625 |
|
|
|
$ |
33,108 |
|
|
Equipment sales |
|
5,155 |
|
|
|
3,769 |
|
|
||
Total revenues |
|
45,780 |
|
|
|
36,877 |
|
|
||
|
|
|
|
|
||||||
Costs of sales: |
|
|
|
|
||||||
Cost of subscription and transaction fees |
|
26,024 |
|
|
|
19,336 |
|
|
||
Cost of equipment sales |
|
4,880 |
|
|
|
3,301 |
|
|
||
Total costs of sales |
|
30,904 |
|
|
|
22,637 |
|
|
||
|
|
|
|
|
||||||
Gross profit |
|
14,876 |
|
|
|
14,240 |
|
|
||
|
|
|
|
|
||||||
Operating expenses: |
|
|
|
|
||||||
Sales and marketing |
|
2,339 |
|
|
|
1,599 |
|
|
||
Technology and product development |
|
5,389 |
|
|
|
3,214 |
|
|
||
General and administrative |
|
7,264 |
|
|
|
11,997 |
|
|
||
Depreciation and amortization |
|
1,022 |
|
|
|
1,068 |
|
|
||
Total operating expenses |
|
16,014 |
|
|
|
17,878 |
|
|
||
|
|
|
|
|
||||||
Operating loss |
|
(1,138 |
) |
|
|
(3,638 |
) |
|
||
|
|
|
|
|
||||||
Other income (expense): |
|
|
|
|
||||||
Interest income |
|
473 |
|
|
|
350 |
|
|
||
Interest expense |
|
(478 |
) |
|
|
(3,285 |
) |
|
||
Other income (expense) |
|
(59 |
) |
|
|
— |
|
|
||
Total other income (expense), net |
|
(64 |
) |
|
|
(2,935 |
) |
|
||
|
|
|
|
|
||||||
Loss before income taxes |
|
(1,202 |
) |
|
|
(6,573 |
) |
|
||
Provision for income taxes |
|
(89 |
) |
|
|
(40 |
) |
|
||
|
|
|
|
|
||||||
Net loss |
|
(1,291 |
) |
|
|
(6,613 |
) |
|
||
Preferred dividends |
|
(334 |
) |
|
|
(334 |
) |
|
||
Net loss applicable to common shares |
|
$ |
(1,625 |
) |
|
|
$ |
(6,947 |
) |
|
|
|
|
|
|
||||||
Net loss per common share |
|
|
|
|
||||||
Basic and diluted |
|
$ |
(0.02 |
) |
|
|
$ |
(0.11 |
) |
|
|
|
|
|
|
||||||
Weighted average number of common shares outstanding used to compute net loss per share applicable to common shares |
|
|
|
|
||||||
Basic and diluted |
|
71,175,927 |
|
|
|
64,859,002 |
|
|
||
Consolidated Statements of Cash Flows (Unaudited) |
||||||||||
|
|
Three months ended |
||||||||
|
|
|
||||||||
($ in thousands) |
|
2021 |
|
|
2020 |
|
||||
Cash flows from operating activities: |
|
|
|
|
||||||
Net loss |
|
$ |
(1,291 |
) |
|
|
$ |
(6,613 |
) |
|
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: |
|
|
|
|
||||||
Stock based compensation |
|
1,762 |
|
|
|
1,509 |
|
|
||
Amortization of debt issuance costs and discounts |
|
39 |
|
|
|
3,125 |
|
|
||
Provision for expected losses |
|
412 |
|
|
|
394 |
|
|
||
Provision for inventory reserve |
|
(370 |
) |
|
|
802 |
|
|
||
Depreciation and amortization included in operating expenses |
|
1,022 |
|
|
|
1,068 |
|
|
||
Depreciation included in costs of sales for rental equipment |
|
264 |
|
|
|
539 |
|
|
||
Other |
|
(186 |
) |
|
|
271 |
|
|
||
Changes in operating assets and liabilities: |
|
|
|
|
||||||
Accounts receivable |
|
2,991 |
|
|
|
(1,540 |
) |
|
||
Finance receivables |
|
635 |
|
|
|
531 |
|
|
||
Inventory |
|
(3,875 |
) |
|
|
1,324 |
|
|
||
Prepaid expenses and other assets |
|
(148 |
) |
|
|
100 |
|
|
||
Accounts payable and accrued expenses |
|
(2,239 |
) |
|
|
3,985 |
|
|
||
Operating lease liabilities |
|
153 |
|
|
|
(259 |
) |
|
||
Deferred revenue |
|
(43 |
) |
|
|
(58 |
) |
|
||
Net cash (used in) provided by operating activities |
|
(874 |
) |
|
|
5,178 |
|
|
||
|
|
|
|
|
||||||
Cash flows from investing activities: |
|
|
|
|
||||||
Cash paid for acquisition |
|
(2,900 |
) |
|
|
— |
|
|
||
Purchase of property and equipment |
|
(1,641 |
) |
|
|
(483 |
) |
|
||
Proceeds from sale of property and equipment |
|
— |
|
|
|
8 |
|
|
||
Net cash used in investing activities |
|
(4,541 |
) |
|
|
(475 |
) |
|
||
|
|
|
|
|
||||||
Cash flows from financing activities: |
|
|
|
|
||||||
Proceeds from long-term debt issuance by |
|
— |
|
|
|
14,550 |
|
|
||
Repayment of long-term debt |
|
(210 |
) |
|
|
(15,101 |
) |
|
||
Proceeds from exercise of common stock options |
|
— |
|
|
|
25 |
|
|
||
Payment of Antara prepayment penalty and commitment termination fee |
|
— |
|
|
|
(1,200 |
) |
|
||
Net cash used in financing activities |
|
(210 |
) |
|
|
(1,726 |
) |
|
||
|
|
|
|
|
||||||
Net (decrease) increase in cash and cash equivalents |
|
(5,625 |
) |
|
|
2,977 |
|
|
||
Cash and cash equivalents at beginning of year |
|
88,136 |
|
|
|
31,713 |
|
|
||
Cash and cash equivalents at end of period |
|
$ |
82,511 |
|
|
|
$ |
34,690 |
|
|
|
|
|
|
|
||||||
Supplemental disclosures of cash flow information: |
|
|
|
|
||||||
Interest paid in cash |
|
$ |
187 |
|
|
|
$ |
191 |
|
|
Reconciliation of (Unaudited) |
||||||||||
|
|
Three months ended |
||||||||
($ in thousands) |
|
2021 |
|
2020 |
||||||
|
|
$ |
(1,291 |
) |
|
|
$ |
(6,613 |
) |
|
Less: interest income |
|
(473 |
) |
|
|
(350 |
) |
|
||
Plus: interest expense |
|
478 |
|
|
|
3,285 |
|
|
||
Plus: income tax provision |
|
89 |
|
|
|
40 |
|
|
||
Plus: depreciation expense included in costs of sales for rentals |
|
264 |
|
|
|
539 |
|
|
||
Plus: depreciation and amortization expense in operating expenses |
|
1,022 |
|
|
|
1,068 |
|
|
||
EBITDA |
|
89 |
|
|
|
(2,031 |
) |
|
||
Plus: stock-based compensation (a) |
|
1,762 |
|
|
|
1,509 |
|
|
||
Adjustments to EBITDA |
|
1,762 |
|
|
|
1,509 |
|
|
||
Adjusted EBITDA |
|
$ |
1,851 |
|
|
|
$ |
(522 |
) |
|
|
|
|
|
|
||||||
(a) As an adjustment to EBITDA, we have excluded stock-based compensation, as it does not reflect our cash-based operations. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20211104006106/en/
Media and Investor Relations Contact:
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Investor Relations:
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