Cantaloupe, Inc. Reports First Quarter Fiscal Year 2024 Financial Results
- 8% Year-Over-Year revenue increase is a positive sign of growth and profitability. CEO's emphasis on margin expansion and international expansion efforts shows a strategic focus on sustainable growth.
- None.
First Quarter 2024 Revenue Increased
First Quarter 2024 GAAP Net income applicable to common shares of
Reiterates Fiscal Year 2024 Guidance
“Our fiscal year started off with continued expansion of operating leverage and strong profitability,” said Ravi Venkatesan, chief executive officer, Cantaloupe. “We continue to prioritize margin expansion by driving subscription revenue, optimizing COGS and disciplined management of operating expenses. In addition, we’ve made meaningful progress on our international expansion efforts, especially in
First Quarter 2024 Key Financial Results:
-
Revenue of
, an increase of$62.7 million 8% year over year-
Transaction fees of
, an increase of$37.0 million 18% year over year -
Subscription fees of
, an increase of$18.1 million 15% year over year -
Equipment sales of
, a decrease of$7.5 million 30% year over year
-
Transaction fees of
-
Total Dollar Volumes of Transactions were
, an increase of$724.8 million 13% year over year - Transactions totaled 283.6 million at the end of the first quarter of 2024
-
Gross margin of
38.8% compared with24.5% in the prior year quarter-
Subscription and transaction fees margins grew to
42.5% compared to35.5% in the prior year quarter -
Equipment sales margins grew to
12.2% compared to negative23.8% in the prior year quarter
-
Subscription and transaction fees margins grew to
-
U.S. GAAP Net income applicable to common shares of , or$1.7 million per share, compared to Net loss applicable to common shares of$0.02 , or$8.9 million per share, in the prior year quarter$(0.13) -
Adjusted EBITDA[1] of
compared to negative$7.8 million in the prior year quarter$5.4 million
______________
1 Adjusted earnings before income taxes, depreciation, and amortization, stock-based compensation expense, and certain other significant infrequent or unusual losses and gains that are not indicative of our core operations (“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
Recent Business Highlights:
-
Active Customers totaled 29,670 at the end of the first quarter of 2024 compared to 25,019 at the end of the first quarter of 2023, an increase of
19% . -
Active Devices totaled 1.19 million at the end of the first quarter of 2024 compared to 1.15 million at the end of the first quarter of 2023, an increase of
4% . -
The Company showcased its full suite of solutions for the European market at Cantaloupe LIVE in the
U.K. With over 100 people in attendance, customers, partners and industry professionals were able to see the latest technology for self-service retail.
Fiscal Year 2024 Outlook:
For the full fiscal year 2024, the Company reiterates the following:
-
Total Revenue to be between
and$275 million $285 million -
The combination of Transaction and Subscription revenue to be between
and$234 million $242 million -
Total
U.S. GAAP net income to be between and$9 million $15 million -
Adjusted EBITDA[1] to be between
and$28 million $34 million -
Total Operating Cash Flow to be between
and$28 million $38 million
Webcast and Conference Call:
Cantaloupe will host a live webcast at 5:00 p.m. Eastern Time today which may be accessed in the Investor Relations section of the Company’s website at https://cantaloupeinc.gcs-web.com/events-and-presentations.
To join the live call in order to ask questions, please register here. A dial in and unique PIN will be provided to join the conference call.
A replay of the conference call will also be available in the Investor Relations section of the Company’s website.
About Cantaloupe, Inc.
Cantaloupe, Inc. is a software and payments company that provides end-to-end technology solutions for self-service commerce. Cantaloupe is transforming the self-service commerce industry by offering one integrated solution for payments processing, logistics, and back-office management. The Company’s enterprise-wide platform is designed to increase consumer engagement and sales revenue through digital payments, digital advertising and customer loyalty programs, while providing retailers with control and visibility over their operations and inventory. As a result, customers ranging from vending machine companies, to operators of micro-markets, car charging stations, laundromats, metered parking terminals, kiosks, amusements and more, can run their businesses more proactively, predictably, and competitively. For more information, please visit our website at www.cantaloupe.com.
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 Adjusted EBITDA 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
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 general economic, market or business conditions unrelated to our operating performance, including inflation, rising interest rates, financial institution disruptions, public health emergencies and declines in consumer confidence and discretionary spending; our ability to compete with our competitors and increase market share; failure to comply with the financial covenants in the Amended JPMorgan Credit Facility; our ability to raise funds in the future through sales of securities or debt financing in order to sustain operations in the normal course of business or if an unexpected or unusual event were to occur; disruptions in or inefficiencies to our supply chain and/or operations; the risks related to the availability of, and cost inflation in, supply chain inputs, including labor, raw materials, packaging and transportation; weather, climate conditions, natural disasters or other unexpected events, whether our current or future customers purchase, lease, rent or utilize our devices, software solutions or our other products in the future at levels currently anticipated; whether our customers continue to utilize the Company’s transaction processing and related services, as our customer agreements are generally cancellable by the customer on thirty to sixty days’ notice; our ability to acquire and develop relevant technology offerings for current, new and potential customers and partners; risks and uncertainties associated with our expansion into and our operations in
Unaudited Results:
As the audit of the 2024 Form 10-K is yet to be finalized, the Company’s results presented herein are unaudited and represent the most current information available to the Company’s management. The unaudited results included herein have been prepared by, and are the responsibility of, the Company’s management. The Company’s independent registered public accounting firm has not yet expressed an opinion or any other form of assurance with respect to these financial results. The Company’s actual results may differ from the results presented in this release due to the completion of the year-end financial closing procedures, review and audit and final adjustments and other developments that may arise between the date of this press release and the time that the Company files its fiscal year Form 10-K with the SEC.
-F--CTLP
Cantaloupe, Inc. Condensed Consolidated Balance Sheets |
||||||||
($ in thousands, except share data) |
|
September 30, 2023 (Unaudited) |
|
June 30, 2023 |
||||
|
|
|
|
|
||||
Assets |
|
|
|
|
||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
54,597 |
|
|
$ |
50,927 |
|
Accounts receivable, net |
|
|
36,998 |
|
|
|
30,162 |
|
Finance receivables, net |
|
|
6,439 |
|
|
|
6,668 |
|
Inventory, net |
|
|
32,216 |
|
|
|
31,872 |
|
Prepaid expenses and other current assets |
|
|
3,741 |
|
|
|
3,754 |
|
Total current assets |
|
|
133,991 |
|
|
|
123,383 |
|
|
|
|
|
|
||||
Non-current assets: |
|
|
|
|
||||
Finance receivables due after one year, net |
|
|
12,362 |
|
|
|
13,307 |
|
Property and equipment, net |
|
|
26,683 |
|
|
|
25,281 |
|
Operating lease right-of-use assets |
|
|
3,963 |
|
|
|
2,575 |
|
Intangibles, net |
|
|
26,236 |
|
|
|
27,812 |
|
Goodwill |
|
|
92,380 |
|
|
|
92,005 |
|
Other assets |
|
|
5,080 |
|
|
|
5,249 |
|
Total non-current assets |
|
|
166,704 |
|
|
|
166,229 |
|
|
|
|
|
|
||||
Total assets |
|
$ |
300,695 |
|
|
$ |
289,612 |
|
|
|
|
|
|
||||
Liabilities, convertible preferred stock, and shareholders’ equity |
|
|
|
|
||||
Current liabilities: |
|
|
|
|
||||
Accounts payable |
|
$ |
59,591 |
|
|
$ |
52,869 |
|
Accrued expenses |
|
|
24,831 |
|
|
|
26,276 |
|
Current obligations under long-term debt |
|
|
977 |
|
|
|
882 |
|
Deferred revenue |
|
|
1,940 |
|
|
|
1,666 |
|
Total current liabilities |
|
|
87,339 |
|
|
|
81,693 |
|
|
|
|
|
|
||||
Long-term liabilities: |
|
|
|
|
||||
Deferred income taxes |
|
|
318 |
|
|
|
275 |
|
Long-term debt, less current portion |
|
|
37,278 |
|
|
|
37,548 |
|
Operating lease liabilities, non-current |
|
|
4,153 |
|
|
|
2,504 |
|
Total long-term liabilities |
|
|
41,749 |
|
|
|
40,327 |
|
|
|
|
|
|
||||
Total liabilities |
|
|
129,088 |
|
|
|
122,020 |
|
Commitments and contingencies |
|
|
|
|
||||
Convertible preferred stock: |
|
|
|
|
||||
Series A convertible preferred stock, 900,000 shares authorized, 385,782 issued and outstanding, with liquidation preferences of |
|
|
2,720 |
|
|
|
2,720 |
|
Shareholders’ equity: |
|
|
|
|
||||
Common stock, no par value, 640,000,000 shares authorized, 72,695,265 and 72,664,464 shares issued and outstanding at September 30, 2023 and June 30, 2023, respectively |
|
|
479,332 |
|
|
|
477,324 |
|
Accumulated deficit |
|
|
(310,445 |
) |
|
|
(312,452 |
) |
Total shareholders’ equity |
|
|
168,887 |
|
|
|
164,872 |
|
Total liabilities, convertible preferred stock, and shareholders’ equity |
|
$ |
300,695 |
|
|
$ |
289,612 |
|
Cantaloupe, Inc. Condensed Consolidated Statements of Operations (Unaudited) |
||||||||
|
|
Three months ended |
||||||
|
|
September 30, |
||||||
($ in thousands, except share and per share data) |
|
2023 |
|
2022 |
||||
Revenues: |
|
|
|
|
||||
Subscription and transaction fees |
|
$ |
55,135 |
|
|
$ |
47,075 |
|
Equipment sales |
|
|
7,548 |
|
|
|
10,707 |
|
Total revenues |
|
|
62,683 |
|
|
|
57,782 |
|
|
|
|
|
|
||||
Costs of sales: |
|
|
|
|
||||
Cost of subscription and transaction fees |
|
|
31,728 |
|
|
|
30,370 |
|
Cost of equipment sales |
|
|
6,627 |
|
|
|
13,250 |
|
Total costs of sales |
|
|
38,355 |
|
|
|
43,620 |
|
|
|
|
|
|
||||
Gross profit |
|
|
24,328 |
|
|
|
14,162 |
|
|
|
|
|
|
||||
Operating expenses: |
|
|
|
|
||||
Sales and marketing |
|
|
4,142 |
|
|
|
2,525 |
|
Technology and product development |
|
|
4,168 |
|
|
|
6,865 |
|
General and administrative |
|
|
10,438 |
|
|
|
11,578 |
|
Investigation, proxy solicitation and restatement expenses, net of insurance recoveries |
|
|
— |
|
|
|
397 |
|
Integration and acquisition expenses |
|
|
78 |
|
|
|
— |
|
Depreciation and amortization |
|
|
2,747 |
|
|
|
1,315 |
|
Total operating expenses |
|
|
21,573 |
|
|
|
22,680 |
|
|
|
|
|
|
||||
Operating income (loss) |
|
|
2,755 |
|
|
|
(8,518 |
) |
|
|
|
|
|
||||
Other income (expense): |
|
|
|
|
||||
Interest income from leases |
|
|
517 |
|
|
|
567 |
|
Interest expense |
|
|
(1,107 |
) |
|
|
(477 |
) |
Other expense |
|
|
(77 |
) |
|
|
(120 |
) |
Total other expense |
|
|
(667 |
) |
|
|
(30 |
) |
|
|
|
|
|
||||
Income (loss) before income taxes |
|
|
2,088 |
|
|
|
(8,548 |
) |
Provision for income taxes |
|
|
(81 |
) |
|
|
(26 |
) |
|
|
|
|
|
||||
Net income (loss) |
|
|
2,007 |
|
|
|
(8,574 |
) |
Preferred dividends |
|
|
(289 |
) |
|
|
(334 |
) |
Net income (loss) applicable to common shares |
|
$ |
1,718 |
|
|
$ |
(8,908 |
) |
|
|
|
|
|
||||
Net earnings (loss) per common share |
|
|
|
|
||||
Basic |
|
$ |
0.02 |
|
|
$ |
(0.13 |
) |
Diluted |
|
|
0.02 |
|
|
|
(0.13 |
) |
|
|
|
|
|
||||
Weighted average number of common shares outstanding used to compute net earnings (loss) per share applicable to common shares |
|
|
|
|
||||
Basic |
|
|
72,717,965 |
|
|
|
71,207,750 |
|
Diluted |
|
|
74,305,512 |
|
|
|
71,207,750 |
|
Cantaloupe, Inc. Condensed Consolidated Statements of Cash Flows (Unaudited) |
||||||||
|
|
Three months ended |
||||||
|
|
September 30, |
||||||
($ in thousands) |
|
2023 |
|
2022 |
||||
Cash flows from operating activities: |
|
|
|
|
||||
Net income (loss) |
|
$ |
2,007 |
|
|
$ |
(8,574 |
) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: |
|
|
|
|
||||
Stock based compensation |
|
|
1,932 |
|
|
|
1,318 |
|
Amortization of debt issuance costs and discounts |
|
|
32 |
|
|
|
29 |
|
Provision for expected losses |
|
|
1,000 |
|
|
|
1,436 |
|
Provision for inventory reserve |
|
|
— |
|
|
|
200 |
|
Depreciation and amortization included in operating expenses |
|
|
2,747 |
|
|
|
1,315 |
|
Depreciation included in cost of subscription and transaction fees for rental equipment |
|
|
342 |
|
|
|
242 |
|
Other |
|
|
443 |
|
|
|
657 |
|
Changes in operating assets and liabilities: |
|
|
|
|
||||
Accounts receivable |
|
|
(7,784 |
) |
|
|
(4,693 |
) |
Finance receivables |
|
|
1,122 |
|
|
|
(346 |
) |
Inventory |
|
|
(344 |
) |
|
|
(3,948 |
) |
Prepaid expenses and other assets |
|
|
171 |
|
|
|
(70 |
) |
Accounts payable and accrued expenses |
|
|
5,152 |
|
|
|
3,596 |
|
Operating lease liabilities |
|
|
(391 |
) |
|
|
(369 |
) |
Deferred revenue |
|
|
274 |
|
|
|
175 |
|
Net cash provided by (used in) operating activities |
|
|
6,703 |
|
|
|
(9,032 |
) |
|
|
|
|
|
||||
Cash flows from investing activities: |
|
|
|
|
||||
Capital expenditures |
|
|
(2,916 |
) |
|
|
(4,956 |
) |
Net cash used in investing activities |
|
|
(2,916 |
) |
|
|
(4,956 |
) |
|
|
|
|
|
||||
Cash flows from financing activities: |
|
|
|
|
||||
Repayment of long-term debt |
|
|
(193 |
) |
|
|
(193 |
) |
Contingent consideration paid for acquisition |
|
|
— |
|
|
|
(1,000 |
) |
Proceeds from exercise of common stock options |
|
|
76 |
|
|
|
— |
|
Repurchase of Series A Convertible Preferred Stock |
|
|
— |
|
|
|
(2,151 |
) |
Net cash used in financing activities |
|
|
(117 |
) |
|
|
(3,344 |
) |
|
|
|
|
|
||||
Net increase (decrease) in cash and cash equivalents |
|
|
3,670 |
|
|
|
(17,332 |
) |
Cash and cash equivalents at beginning of year |
|
|
50,927 |
|
|
|
68,125 |
|
Cash and cash equivalents at end of period |
|
$ |
54,597 |
|
|
$ |
50,793 |
|
|
|
|
|
|
||||
Supplemental disclosures of cash flow information: |
|
|
|
|
||||
Interest paid in cash |
|
$ |
889 |
|
|
$ |
248 |
|
Income taxes paid in cash |
|
$ |
13 |
|
|
$ |
44 |
|
|
|
|
|
|
Cantaloupe, Inc.
Reconciliation of (Unaudited) |
||||||||
|
|
Three months ended September 30, |
||||||
($ in thousands) |
|
2023 |
|
2022 |
||||
|
|
$ |
2,007 |
|
|
$ |
(8,574 |
) |
Less: interest income from leases |
|
|
(517 |
) |
|
|
(567 |
) |
Plus: interest expense |
|
|
1,107 |
|
|
|
477 |
|
Plus: income tax provision |
|
|
81 |
|
|
|
26 |
|
Plus: depreciation included in cost of subscription and transaction fees for rental equipment |
|
|
342 |
|
|
|
242 |
|
Plus: depreciation and amortization in operating expenses |
|
|
2,747 |
|
|
|
1,315 |
|
EBITDA |
|
|
5,767 |
|
|
|
(7,081 |
) |
Plus: stock-based compensation (a) |
|
|
1,932 |
|
|
|
1,318 |
|
Plus: integration and acquisition expenses (b) |
|
|
78 |
|
|
|
— |
|
Plus: remediation expenses (c) |
|
|
44 |
|
|
|
— |
|
Plus: investigation, proxy solicitation and restatement expenses, net of insurance recoveries (d) |
|
|
— |
|
|
|
397 |
|
Adjustments to EBITDA |
|
|
2,054 |
|
|
|
1,715 |
|
Adjusted EBITDA |
|
$ |
7,821 |
|
|
$ |
(5,366 |
) |
|
|
|
|
|
(a) |
|
As an adjustment to EBITDA, we have excluded stock-based compensation, as it does not reflect our cash-based operations. |
(b) |
|
As an adjustment to EBITDA, we have excluded expenses incurred in connection with business acquisitions as it does not represent recurring costs or charges related to our core operations. |
(c) |
|
As an adjustment to EBITDA, we have excluded expense incurred in connection with a one-time project related to remediating previously identified material weakness in our internal control over financial reporting from the prior year. |
(d) |
|
As an adjustment to EBITDA, we have excluded the costs and corresponding reimbursements related to the 2019 Investigation, because we believe that they represent charges that are not related to our core operations. The 2019 Investigation has been fully resolved as of fiscal year 2023. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20231109359254/en/
Investor Relations:
ICR, Inc.
CantaloupeIR@icrinc.com
Media:
Jenifer Howard | 202-273-4246
jhoward@jhowardpr.com
media@cantaloupe.com
Source: Cantaloupe, Inc.
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