First Quarter 2025 Revenue increased 13.0%
Year-Over-Year, to $70.8 Million, driven by 15.7% YoY growth in
Subscription and Transaction revenue growth
First Quarter 2025 U.S. GAAP Net Income
Applicable to Common Shares of $3.3 million and Adjusted EBITDA[1]
of $9.0 million
Reiterates Fiscal Year 2025 Guidance
Cantaloupe, Inc. (Nasdaq: CTLP) (“Cantaloupe” or the “Company”),
a global leading provider of end-to-end technology solutions for
self-service commerce, today reported results for the first quarter
ended September 30, 2024.
“It’s been a strong start to the year marked by reacceleration
in revenue growth, continued profitability and exciting new product
launches,” said Ravi Venkatesan, chief executive officer,
Cantaloupe.
First Quarter 2025 Key Financial Results:
- Revenue of $70.8 million, an increase of 13.0% compared to
first quarter of fiscal year 2024.
- Transaction fees of $43.6 million, an increase of 17.8%.
- Subscription fees of $20.2 million, an increase of 11.5%.
- Equipment sales of $7.0 million, a decrease of 6.7%.
- Net income applicable to common shares of $3.3 million, or 0.04
diluted earnings per share, compared to net income applicable to
common shares of $1.7 million, or 0.02 diluted earnings per share,
in the prior year quarter.
- Total dollar volumes of transactions were $826.7 million, an
increase of 14.1% compared to first quarter of fiscal year
2024.
- Transaction volume totaled 293.7 million, an increase of 3.6%,
compared to 283.6 million for first quarter fiscal year 2024.
- Adjusted Gross Margin[1] of 40.7% compared with 38.8% in first
quarter fiscal 2024.
- Subscription and transaction fees Adjusted Gross Margin[1]
increased to 44.0% compared to 42.5%.
- Equipment sales gross margins declined to 11.4% compared to
12.2%.
- Adjusted EBITDA[1] of $9.0 million compared to $7.8 million in
first quarter of fiscal year 2024, an increase of 14.5%.
- Average revenue per unit[2] increased 10.9% to $198.31,
compared to $178.78 for first quarter 2024.
First Quarter 2025 Business Highlights:
- We announced the acquisition of SB Software, a leading provider
of vending and coffee management software located in the United
Kingdom. The acquisition enhances Cantaloupe’s operational
capabilities and market reach in Europe.
- We launched Suites, a premium suite management system designed
to streamline and enhance the hospitality suite experience at
stadiums and venues. This new offering within Cantaloupe's Cheq
platform, improves how venues manage premium suite pre-orders by
providing a seamless, user-friendly solution for both suite owners
and venue operators
- Active Customers totaled 32,338 at the end of the first quarter
of 2025 compared to 29,670 at the end of the first quarter of 2024,
an increase of 9.0%.
- Active Devices totaled 1.23 million at the end of the first
quarter of 2025 compared to 1.19 million at the end of the fourth
quarter of 2023, an increase of 3.2%.
Fiscal Year 2025 Outlook:
For the full fiscal year 2025, the Company reiterates the
following:
- Total Revenue to be between $308 million and $322 million.
- The combination of Subscription and Transaction revenue growth
to be in the range of 15% - 20%.
- Total US GAAP net income applicable to common shares to be
between $22 million and $32 million.
- Adjusted EBITDA[1] to be between $44 million and $52
million.
- Total Operating Cash Flow to be between $24 million and $32
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. (Nasdaq: CTLP), is a global technology
leader powering self-service commerce. Cantaloupe offers a
comprehensive suite of solutions including micro-payment
processing, self-checkout kiosks, mobile ordering, connected point
of sale systems, and enterprise cloud software. Handling more than
a billion transactions annually, Cantaloupe’s solutions enhance
operational efficiency and consumer engagement across sectors like
food & beverage markets, smart automated retail, hospitality,
entertainment venues and more. Committed to innovation, Cantaloupe
drives advancements in digital payments and business optimization,
serving over 30,000 customers in the U.S., U.K., EU countries,
Australia, and Mexico. For more information, visit cantaloupe.com
or follow on LinkedIn, Twitter (X), Facebook, Instagram or
YouTube.
______________
1 Adjusted Gross Margin and Adjusted
EBITDA represent non-GAAP financial measures. See Discussion of
Non-GAAP Financial Measures and the Reconciliations of Adjusted
Gross Profit, Adjusted Gross Margin and Adjusted EBITDA to the most
comparable GAAP measures.
2 We define average revenue per unit
("ARPU") as our total subscription and transaction fees for the
trailing 12 months divided by average total active devices for the
trailing 12 months.
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 “estimate,” “could,” “should,” “would,”
“likely,” “may,” “will,” “plan,” “intend,” “believes,” “expects,”
“anticipates,” “projected,” and variations of these terms and
similar expressions. Although we believe that the expectations
reflected in the forward-looking statements are reasonable, we
cannot guarantee future results, levels of activity, performance,
or achievements. Actual results or business conditions may differ
materially from those projected or suggested in forward-looking
statements as a result of various factors including, but not
limited to, those described below and in Part I, Item 1A, “Risk
Factors” of our most recent Annual Report.
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, elevated interests rates, supply chain disruptions,
financial institution disruptions, geopolitical conflicts, 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 our debt facilities; our ability to maintain
compliance with rules and regulations applicable to our business
operations and industry; disruptions in other card payment
processors, software and manufacturing partners upon whom we rely;
whether our customers continue to utilize our transaction
processing and related services, as our customer agreements are
generally cancellable by the customer with thirty 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 Europe, Mexico and other foreign markets, including general
economic conditions, policy changes affecting international trade,
political instability, inflation rates, recessions, sanctions,
foreign currency exchange rates and controls, foreign investment
and repatriation restrictions, legal and regulatory constraints,
civil unrest, armed conflict, war and other economic and political
factors; our ability to satisfy our trade obligations included in
accounts payable and accrued expenses; our ability to attract,
develop and retain key personnel, or our loss of the services of
our key executives; the incurrence by us of any unanticipated or
unusual non-operating expenses, which may require us to divert our
cash resources from achieving our business plan; our ability to
predict or estimate our future quarterly or annual revenue and
expenses given the developing and unpredictable market for our
products; our ability to successfully integrate acquired companies
into our current products and services structure; our ability to
add new customers and retain key existing customers from whom a
significant portion of our revenue is derived; the ability of a key
customer to reduce or delay purchasing products from us; our
ability to obtain widespread commercial acceptance of our products
and service offerings; whether any patents issued to us will
provide any competitive advantages or adequate protection for our
products, or would be challenged, invalidated or circumvented by
others; the ability of our products and services to avoid
disruptions to our systems or unauthorized hacking or credit card
fraud; risks associated with cyber-attacks and data breaches; and
our ability to maintain effective internal controls and to timely
file periodic and current reports with the Securities and Exchange
Commission ("SEC").
Readers are cautioned not to place undue reliance on these
forward-looking statements. Any forward-looking statement made by
us in this release speaks only as of the date of this release.
Unless required by law, Cantaloupe does not undertake to release
publicly any revisions to these forward-looking statements to
reflect future events or circumstances or to reflect the occurrence
of unanticipated events. If Cantaloupe updates one or more
forward-looking statements, no inference should be drawn that
Cantaloupe will make additional updates with respect to those or
other forward-looking statements.
Discussion of Non-GAAP Financial Measures:
This press release contains discussion of Adjusted Gross Profit,
Adjusted Gross Margin and Adjusted EBITDA, which are non-GAAP
financial measures that are not required or defined under U.S. GAAP
(Generally Accepted Accounting Principles). Generally, a non-GAAP
financial measure is a numerical measure of a company's
performance, financial position or cash flows that either excludes
or includes amounts that are not normally excluded or included in
the most directly comparable measure calculated and presented in
accordance with GAAP. Reconciliations between non-GAAP financial
measures and the most comparable GAAP financial measures are set
forth below. However, we do not provide forward-looking guidance
for certain financial measures on a GAAP basis because we are
unable to predict certain items contained in the U.S. measures
without unreasonable efforts. These items may include acquisition
and integration related costs, severance expenses, litigation
charges or settlements, and certain other unusual adjustments.
We use Adjusted Gross Profit, Adjusted Gross Margin and Adjusted
EBITDA for financial and operational decision-making purposes and
as a means to evaluate period-to-period comparisons. We believe
that these non-GAAP financial measure provide useful information
about our operating results, enhance 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 these 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 cash provided 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 as
determined in accordance with GAAP, and are not a substitute for or
a measure of our profitability or net earnings. Adjusted Gross
Profit, Adjusted Gross Margin and Adjusted EBITDA are presented
because we believe they are useful to investors as measures of
comparative operating performance. Additionally, we utilize
Adjusted EBITDA as a metric in our executive officer and management
incentive compensation plans.
We define Adjusted Gross Profit as revenue less cost of sales,
exclusive of depreciation of internally-developed software and
amortization of intangible assets related to technologies obtained
through acquisitions. We believe this non-GAAP measure is useful to
view the resulting figures excluding the aforementioned non-cash
charges because the amount of such expenses in any specific period
may not directly correlate to the underlying performance of our
business operations and such amounts vary substantially from
company to company depending on their financing and capital
structures and the method by which their assets were acquired. We
define Adjusted Gross Margin as Adjusted Gross Profit divided by
revenue.
We define Adjusted EBITDA as U.S. GAAP net income (loss) before
(i) interest income from cash and leases, (ii) interest (income)
expense from debt and tax liabilities, (iii) income tax provision,
(iv) depreciation, (v) amortization, (vi) stock-based compensation
expense, and (vii) certain other significant infrequent or unusual
losses and gains that are not indicative of our core operations
such as integration and acquisition expenses and costs as a result
of auditor transitions.
Cantaloupe, Inc.
Consolidated Balance Sheets
(unaudited)
September 30, 2024
(Unaudited)
June 30, 2024
($ in thousands, except share
data)
Assets
Current assets:
Cash and cash equivalents
$
33,124
$
58,920
Accounts receivable, net
32,490
43,848
Finance receivables, net
6,104
6,391
Inventory
44,571
40,791
Prepaid expenses and other current
assets
7,456
7,844
Total current assets
123,745
157,794
Non-current assets:
Finance receivables, net
8,873
10,036
Property and equipment, net
35,888
34,029
Operating lease right-of-use assets
8,276
7,986
Intangibles, net
26,762
24,626
Goodwill
102,708
94,903
Other assets
5,883
6,194
Total non-current assets
188,390
177,774
Total assets
$
312,135
$
335,568
Liabilities, convertible preferred
stock, and shareholders’ equity
Current liabilities:
Accounts payable
$
52,612
$
78,895
Accrued expenses
21,743
24,008
Current obligations under long-term
debt
1,362
1,266
Deferred revenue
1,471
1,726
Total current liabilities
77,188
105,895
Long-term liabilities:
Deferred income taxes
505
466
Long-term debt, less current portion
35,919
36,284
Other noncurrent liabilities
9,573
8,457
Total long-term liabilities
45,997
45,207
Total liabilities
123,185
151,102
Commitments and contingencies
Convertible preferred stock:
Series A convertible preferred stock,
900,000 shares authorized, 385,782 and 385,782 issued and
outstanding, with liquidation preferences of $23,011 and $22,722 at
September 30, 2024 and June 30, 2024, respectively
2,720
2,720
Shareholders’ equity:
Common stock, no par value, 640,000,000
shares authorized, 72,986,172 and 72,935,497 shares issued and
outstanding at September 30, 2024 and June 30, 2024,
respectively
—
—
Additional paid-in capital
483,052
482,329
Accumulated deficit
(296,887)
(300,459)
Accumulated other comprehensive income
(loss)
65
(124)
Total shareholders’ equity
186,230
181,746
Total liabilities, convertible preferred
stock, and shareholders’ equity
$
312,135
$
335,568
Cantaloupe, Inc.
Consolidated Statements of
Operations (unaudited)
Three months ended
September 30,
($ in thousands, except per share
data)
2024
2023
Revenues:
Subscription and transaction fees
$
63,792
$
55,135
Equipment sales
7,044
7,548
Total revenues
70,836
62,683
Costs of sales (exclusive of certain
depreciation and amortization):
Cost of subscription and transaction
fees
35,744
31,728
Cost of equipment sales
6,241
6,627
Total costs of sales
41,985
38,355
Operating expenses:
Sales and marketing
5,448
4,142
Technology and product development
4,499
4,168
General and administrative
11,928
10,438
Integration and acquisition expenses
197
78
Depreciation and amortization
2,672
2,747
Total operating expenses
24,744
21,573
Operating income
4,107
2,755
Other income (expense):
Interest income
447
517
Interest expense
(991)
(1,107)
Other income (expense), net
186
(77)
Total other expense, net
(358)
(667)
Income before income taxes
3,749
2,088
Provision for income taxes
(177)
(81)
Net income
3,572
2,007
Preferred dividends
(289)
(289)
Net income applicable to common shares
$
3,283
$
1,718
Net earnings per common share
Basic
0.04
0.02
Diluted
0.04
0.02
Weighted average number of common shares
outstanding used to compute net earnings per share applicable to
common shares
Basic
73,068,856
72,717,965
Diluted
73,921,186
74,305,512
Cantaloupe, Inc.
Consolidated Statements of
Cash Flows (unaudited)
Three months ended
September 30,
($ in thousands)
2024
2023
Cash flows from operating
activities:
Net income
$
3,572
$
2,007
Adjustments to reconcile net income to net
cash (used in) provided from operating activities:
Stock-based compensation
887
1,932
Amortization of debt issuance costs and
discounts
30
32
Provision for expected losses
949
1,000
Provision for inventory reserve
83
—
Depreciation and amortization
3,192
3,089
Gain on foreign currency exchange
rates
(211)
—
Non-cash lease expense
321
400
Deferred income taxes
24
43
Changes in operating assets and
liabilities:
Accounts receivable
11,047
(7,784)
Finance receivables
1,081
1,122
Inventory
(3,863)
(344)
Prepaid expenses and other assets
219
171
Accounts payable and accrued expenses
(28,897)
5,152
Operating lease liabilities
(197)
(391)
Deferred revenue
(255)
274
Net cash (used in) provided by operating
activities
(12,018)
6,703
Cash flows from investing
activities:
Capital expenditures
(3,791)
(2,916)
Acquisition of business, net of cash
acquired
(9,761)
—
Net cash used in investing activities
(13,552)
(2,916)
Cash flows from financing
activities:
Repayment of long-term debt
(286)
(193)
Proceeds from exercise of common stock
options
—
76
Payment of employee taxes related to
stock-based compensation
(164)
—
Net cash used in financing activities
(450)
(117)
Effect of currency exchange rate changes
on cash and cash equivalents
224
—
Net (decrease) increase in cash and cash
equivalents
(25,796)
3,670
Cash and cash equivalents at beginning of
year
58,920
50,927
Cash and cash equivalents at end of
period
$
33,124
$
54,597
Supplemental disclosures of cash flow
information:
Interest paid in cash
$
883
$
889
Income taxes paid in cash
$
251
$
13
Cantaloupe, Inc.
U.S. GAAP Gross Profit
(unaudited)
3 Months Ended September
30,
Change
Percent Change
($ in thousands)
2024
2023
2024 v. 2023
Subscription and transaction fee
revenue
$
63,792
$
55,135
$
8,657
15.7 %
Cost of subscription and transaction
fees(1)
35,744
31,728
4,016
12.7 %
Amortization(2)
1,747
1,943
(196)
(10.1) %
Gross profit, subscription and transaction
fees
$
26,301
$
21,464
$
4,837
22.5 %
Equipment sales
7,044
7,548
(504)
(6.7) %
Cost of equipment sales
6,241
6,627
(386)
(5.8) %
Gross profit, equipment(3)
$
803
$
921
$
(118)
(12.8) %
Total gross profit
$
27,104
$
22,385
$
4,719
21.1 %
Gross margin
Subscription and transaction fees
41.2 %
38.9 %
2.3 %
Equipment sales
11.4 %
12.2 %
(0.8) %
Total gross margin
38.3 %
35.7 %
2.6 %
(1)
Cost of subscription and transaction fees
excludes amortization of certain technology assets, see (2)
below.
(2)
Amortization of internal-use software
assets and developed technology assets.
(3)
The Company's internal-use software assets
and developed technology assets are not associated with equipment
sales.
Cantaloupe, Inc.
Reconciliation of U.S. GAAP
Gross Profit to Adjusted Gross Profit (non-GAAP)
(unaudited)
3 Months Ended September
30,
Change
Percent Change
($ in thousands)
2024
2023
2024 v. 2023
Gross profit, subscription and transaction
fees (GAAP)
$
26,301
$
21,464
$
4,837
22.5 %
Amortization(1)
1,747
1,943
(196)
(10.1) %
Adjusted Gross Profit, subscription and
transaction fees (non-GAAP)
$
28,048
$
23,407
$
4,641
19.8 %
Gross profit, equipment (GAAP)
$
803
$
921
$
(118)
(12.8) %
Total Adjusted Gross Profit (non-GAAP)
$
28,851
$
24,328
$
4,523
18.6 %
Adjusted Gross Margin (non-GAAP):
Subscription and transaction fees
(non-GAAP)
44.0 %
42.5 %
1.5 %
Equipment sales (GAAP)
11.4 %
12.2 %
(0.8) %
Total Adjusted Gross Margin (non-GAAP)
40.7 %
38.8 %
1.9 %
(1)
Amortization of internal-use software
assets and developed technology assets.
Cantaloupe, Inc.
Reconciliation of U.S. GAAP
Net Income to Adjusted EBITDA (unaudited)
Three months ended September
30,
($ in thousands)
2024
2023
U.S. GAAP net income
$
3,572
$
2,007
Less: interest income
(447)
(517)
Plus: interest expense
991
1,107
Plus: income tax provision
177
81
Plus: depreciation expense included in
costs of sales for rentals
534
342
Plus: depreciation and amortization
expense in operating expenses
2,672
2,747
EBITDA
7,499
5,767
Plus: stock-based compensation (a)
887
1,932
Plus: integration and acquisition expenses
(b)
197
78
Plus: auditor transition costs (c)
369
—
Plus: remediation expense (d)
—
44
Adjustments to EBITDA
1,453
2,054
Adjusted EBITDA
$
8,952
$
7,821
(a)
We have excluded stock-based compensation,
as it does not reflect our cash-based operations.
(b)
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)
Costs incurred as a result of former
auditor consent procedures. See Item 9. Changes in and
Disagreements with Accountants on Accounting and Financial
Disclosure of the Company's Annual Report.
(d)
Consists of expenses incurred in connection with remediation of
previously identified material weaknesses in our internal control
over financial reporting which were remediated during fiscal year
ended June 30, 2024. See Item 9A Section e - Remediation of Prior
Material Weaknesses of the Company's Annual Report.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241106775583/en/
Investor Relations: ICR, Inc. CantaloupeIR@icrinc.com
Media: Jenifer Howard | 202-273-4246
jhoward@jhowardpr.com media@cantaloupe.com
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