Financial Data and Key Metrics Changes - Total revenue for Q3 '24 was $67.9 million, reflecting a 13% year-over-year increase [20][30] - Combined transaction and subscription revenue grew 16% to $59.2 million during the quarter, with subscription revenue at $19.2 million (up 7.4%) and transaction revenue at $40 million (up 20%) [20][30] - Adjusted EBITDA for Q3 was $10.2 million, a slight increase from $10.1 million in the prior year [15][39] - Net income applicable to common shares was $4.4 million or $0.06 per share, down from $6.7 million or $0.09 per share in the prior period [39] Business Line Data and Key Metrics Changes - Average revenue per unit (ARPU) increased from $167.52 in Q3 '23 to $186 in Q3 '24, marking an 11% year-over-year growth [3][37] - Equipment revenue decreased by 5% to $8.7 million, primarily due to the conclusion of the 3G upgrade cycle [37] - Total gross margin improved to 39.6% from 37.9% year-over-year, driven by higher margins in both subscription and transaction revenue lines [38][81] Market Data and Key Metrics Changes - The company is expanding its international footprint, with significant growth in Latin America and Europe, including a strategic partnership in Mexico deploying close to 4,000 devices [4][17] - In Europe, over 1,500 devices have been sold across more than 30 customers, with deployments in the UK, Ireland, and Portugal [4][33] - The company has seen a 36% increase in the number of installed Micro Market locations in 2023, indicating strong secular tailwinds in the convenience services industry [35] Company Strategy and Development Direction - The company is focusing on innovation with new products and enhancements, including the Check Point of Sale platform and Smart Coolers leveraging AI technology [5] - A recalibrated growth target for subscription revenue is set at over 15% for fiscal year '25, down from the previously discussed 20% [4] - The company aims for a 70% compound annual growth rate (CAGR) for adjusted EBITDA from fiscal year '23 to fiscal year '26 [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth trajectory despite slower-than-expected subscription revenue growth, with transaction revenue exceeding expectations [40][50] - The activation timeline has stabilized due to initiatives like adding more installers and training customers, which is expected to enhance efficiency [7] - Management noted that while subscription revenue growth has underperformed, transaction revenue growth and margins have outperformed expectations [40][77] Other Important Information - The company is tightening its fiscal year '24 guidance, expecting total revenue between $270 million and $275 million, with adjusted EBITDA guidance raised to a range of $33 million to $36 million [22][39] - The company is focused on optimizing cost of goods sold, achieving improved gross margins through transaction processing and equipment [18][38] Q&A Session Summary Question: What are the key drivers behind the transaction revenue growth? - Management indicated that transaction revenue growth is driven by a mix shift from lower ticket items to higher ticket items, with Micro Markets becoming a larger part of the business [7][73] Question: How does subscription revenue growth align with long-term margin improvement goals? - Management acknowledged that subscription revenue growth has been recalibrated, but they remain confident in achieving long-term margin improvement goals [8][77] Question: What insights were gained from the Innovation Day in Mexico? - The Innovation Day facilitated discussions on innovations with key partners and operators, enhancing operational efficiencies and sales [74] Question: What is the current status of installation timelines? - Management stated that installation timelines have stabilized at around 12 weeks, with no immediate plans to reduce them further due to labor shortages [68] Question: How is the company managing operational expenses? - The company is focused on controlling operational expenses, with a noted increase due to one-time items but overall expenses as a percentage of revenue remaining flat [34]

For the quarter ended March 2024, Cantaloupe (CTLP) reported revenue of $67.9 million, up 12.5% over the same period last year. EPS came in at $0.06, compared to $0.09 in the year-ago quarter.The reported revenue represents a surprise of -2.41% over the Zacks Consensus Estimate of $69.57 million. With the consensus EPS estimate being $0.05, the EPS surprise was +20.00%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their ...

Cantaloupe (CTLP) came out with quarterly earnings of $0.06 per share, beating the Zacks Consensus Estimate of $0.05 per share. This compares to earnings of $0.09 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 20%. A quarter ago, it was expected that this electronic payment and wireless networking company would post earnings of $0.02 per share when it actually produced earnings of $0.04, delivering a surprise of 100%.Over the ...

Revenue Composition and Trends - Subscription and transaction fees accounted for 87% of revenue in Q1 2024, up from 85% in Q1 2023, while equipment sales decreased to 13% from 15%[133] Deferred Revenue and Performance Obligations - Deferred revenue at the end of Q1 2024 was $1.893 million, slightly down from $1.894 million in Q1 2023[139] - Revenue recognized from deferred revenue in Q1 2024 was $268,000, a significant increase from $94,000 in Q1 2023[139] - Future performance obligations for the remainder of fiscal year 2024 are $1.520 million, with $5.941 million for 2025 and $3.793 million for 2026[142] Amortization and Capitalized Costs - Amortization of capitalized contract costs was $0.2 million for Q1 2024, consistent with Q1 2023[143] Stock Options and Restricted Stock Awards - The company granted 175,000 stock options in the nine months ended March 31, 2024, with a weighted average exercise price of $6.92[145] - Total expense recognized for restricted stock awards was $0.5 million for Q1 2024, up from $0.3 million in Q1 2023[149] Net Income and Earnings Per Share - Net income applicable to common shareholders was $9.209 million for Q1 2024, a significant improvement from a net loss of $2.822 million in Q1 2023[153] - Basic earnings per share for Q1 2024 were $0.13, compared to a loss of $0.04 per share in Q1 2023[153] Insurance Settlement - The company agreed to a net settlement of approximately $1.5 million with a third-party insurance carrier, to be recognized as a gain in Q4 2024[159]

[Third Quarter Fiscal Year 2024 Financial Results](index=1&type=section&id=Third%20Quarter%20Fiscal%20Year%202024%20Financial%20Results) Cantaloupe reported strong third-quarter fiscal year 2024 results with **$67.9 million** total revenue, a **12.5% year-over-year increase**, driven by transaction fee growth and improved gross margin [Third Quarter 2024 Key Financial Results](index=1&type=section&id=Third%20Quarter%202024%20Key%20Financial%20Results) Cantaloupe achieved **$67.9 million** in total revenue, a **12.5% year-over-year increase**, driven by strong transaction fee growth and improved gross margin Third Quarter Financial Performance | Financial Metric | Q3 FY2024 | Q3 FY2023 | % Change YoY | | :--- | :--- | :--- | :--- | | **Total Revenue** | **$67.9M** | $60.4M | **+12.5%** | | Subscription Fees | $19.2M | $17.9M (est.) | +7.4% | | Transaction Fees | $40.0M | $33.4M (est.) | +19.9% | | Equipment Sales | $8.7M | $9.1M | -4.6% | | **Gross Margin** | **39.6%** | 37.9% | **+1.7 p.p.** | | **Net Income (to common shares)** | **$4.4M** | $6.7M | **-34.3%** | | Diluted EPS | $0.06 | $0.09 | -33.3% | | **Adjusted EBITDA** | **$10.2M** | $10.1M | **+1.0%** | - CEO Ravi Venkatesan highlighted that while subscription revenue growth was slower than anticipated, transaction revenue growth exceeded expectations and achieved higher profitability sooner[10](index=10&type=chunk) - The company continues to expand its footprint domestically and internationally, with thousands of devices sold across Latin America and Europe[10](index=10&type=chunk) [Third Quarter 2024 Business Highlights](index=2&type=section&id=Third%20Quarter%202024%20Business%20Highlights) Cantaloupe expanded its market presence and technological offerings through strategic acquisitions, international partnerships, and increased customer and device adoption - Acquired CHEQ, a company specializing in self-service solutions and payment technology for the sports & entertainment industry[31](index=31&type=chunk) Operational Metrics | Operational Metric | Q3 FY2024 | Q3 FY2023 | % Change YoY | | :--- | :--- | :--- | :--- | | Active Customers | 30,670 | 27,598 | +11.1% | | Active Devices | 1.22 million | 1.15 million | +5.9% | - Expanded into the Mexico market by partnering with Turbo Air and Imbera to showcase solutions including the P30 cashless device, Seed platform, and smart coolers[5](index=5&type=chunk) - Hosted the annual Cantaloupe University user conference in Las Vegas, with over 240 attendees for training and education on the company's product suite[13](index=13&type=chunk) [Fiscal Year 2024 Outlook](index=2&type=section&id=Fiscal%20Year%202024%20Outlook) Cantaloupe provides its updated financial projections for fiscal year 2024, including revenue, net income, and Adjusted EBITDA guidance [Updated Full Year Guidance](index=2&type=section&id=Updated%20Full%20Year%20Guidance) The company updated its full fiscal year 2024 guidance, projecting total revenue between **$270 million** and **$275 million** and Adjusted EBITDA between **$33 million** and **$36 million** FY2024 Financial Guidance | FY2024 Guidance | Range | | :--- | :--- | | Total Revenue | $270M - $275M | | Subscription & Transaction Revenue | $232M - $236M | | Total US GAAP Net Income | $12M - $15M | | Adjusted EBITDA | $33M - $36M | | Total Operating Cash Flow | $24M - $28M | [Financial Statements](index=6&type=section&id=Financial%20Statements) This section presents Cantaloupe's condensed consolidated financial statements, including statements of operations, balance sheets, and cash flows [Condensed Consolidated Statements of Operations](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Total revenues increased to **$67.9 million**, while higher operating expenses led to a decrease in operating income and net income for the quarter Condensed Consolidated Statements of Operations (In thousands) | (In thousands) | Three Months Ended Mar 31, 2024 | Three Months Ended Mar 31, 2023 | | :--- | :--- | :--- | | **Total Revenues** | **$67,897** | **$60,356** | | Gross Profit | $26,907 | $22,893 | | Total Operating Expenses | $22,615 | $16,153 | | **Operating Income** | **$4,292** | **$6,740** | | **Net Income (to common shares)** | **$4,367** | **$6,659** | | **Diluted EPS** | **$0.06** | **$0.09** | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to **$319.9 million**, driven by higher receivables and inventory, while total liabilities and shareholders' equity also grew Condensed Consolidated Balance Sheets (In thousands) | (In thousands) | March 31, 2024 | June 30, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $50,197 | $50,927 | | Total current assets | $144,993 | $123,383 | | **Total Assets** | **$319,901** | **$289,612** | | Total current liabilities | $92,295 | $81,693 | | **Total Liabilities** | **$138,386** | **$122,020** | | **Total Shareholders' Equity** | **$178,795** | **$164,872** | [Condensed Consolidated Statements of Cash Flows](index=16&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities significantly improved to **$13.5 million**, while investing activities used **$13.9 million**, resulting in a slight cash decrease Condensed Consolidated Statements of Cash Flows (In thousands) | (In thousands) | Nine Months Ended Mar 31, 2024 | Nine Months Ended Mar 31, 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $13,481 | $5,773 | | Net cash used in investing activities | ($13,925) | ($48,489) | | Net cash (used in) provided by financing activities | ($293) | $21,267 | | **Net decrease in cash** | **($730)** | **($21,449)** | | Cash and cash equivalents at end of period | $50,197 | $46,676 | [Reconciliation of U.S. GAAP Net Income (Loss) to Adjusted EBITDA](index=18&type=section&id=Reconciliation%20of%20U.S.%20GAAP%20Net%20Income%20%28Loss%29%20to%20Adjusted%20EBITDA) This section reconciles U.S. GAAP Net Income of **$4.7 million** to Adjusted EBITDA of **$10.2 million** for the third quarter of 2024 Reconciliation of U.S. GAAP Net Income (Loss) to Adjusted EBITDA (In thousands) | (In thousands) | Three Months Ended Mar 31, 2024 | Three Months Ended Mar 31, 2023 | | :--- | :--- | :--- | | **U.S. GAAP net income** | **$4,656** | **$6,948** | | Adjustments (Depreciation, Amortization, etc.) | $2,335 | $2,440 | | **EBITDA** | **$6,991** | **$9,388** | | Other Adjustments (Stock Comp, Acquisition Exp, etc.) | $3,195 | $683 | | **Adjusted EBITDA (non-GAAP)** | **$10,186** | **$10,071** | [Disclosures](index=3&type=section&id=Disclosures) This section provides important disclosures regarding non-GAAP financial measures and forward-looking statements [Discussion of Non-GAAP Financial Measure](index=3&type=section&id=Discussion%20of%20Non-GAAP%20Financial%20Measure) The company utilizes Adjusted EBITDA as a non-GAAP measure for internal decision-making and external reporting, excluding specific non-cash and infrequent items - Adjusted EBITDA is defined as U.S. GAAP net income before interest, taxes, depreciation, amortization, stock-based compensation, and other significant infrequent or unusual losses and gains not indicative of core operations[17](index=17&type=chunk)[3](index=3&type=chunk) - The company utilizes Adjusted EBITDA as a metric in its executive officer and management incentive compensation plans[8](index=8&type=chunk) [Forward-looking Statements](index=3&type=section&id=Forward-looking%20Statements) This section outlines forward-looking statements, emphasizing their inherent risks and uncertainties based on management's current beliefs and assumptions - Forward-looking statements are identified by words such as "may," "could," "expect," "intend," "plan," "believe," "estimate," and "guidance"[38](index=38&type=chunk)[18](index=18&type=chunk) - Readers are cautioned not to place undue reliance on these statements, as they speak only as of the date of the release and the company does not undertake to update them unless required by law[19](index=19&type=chunk)

With innovations such as artificial intelligence taking the limelight, publicly traded technology enterprises have naturally accrued investor dollars. Still, a better approach may be to consider underappreciated tech stocks. Believe it or not, they do exist.Fundamentally, the biggest advantage that these less-heralded companies enjoy is lowered expectations. The challenge with the usual suspects is that it’s possible the market has grown jaded with their brilliant performances. Therefore, they need somethin ...

In its upcoming report, Cantaloupe (CTLP) is predicted by Wall Street analysts to post quarterly earnings of $0.05 per share, reflecting a decline of 44.4% compared to the same period last year. Revenues are forecasted to be $69.57 million, representing a year-over-year increase of 15.3%.Over the last 30 days, there has been no revision in the consensus EPS estimate for the quarter. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe. ...

Cantaloupe (CTLP) closed the last trading session at $6.40, gaining 1.9% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $9.90 indicates a 54.7% upside potential.The average comprises five short-term price targets ranging from a low of $9 to a high of $10.50, with a standard deviation of $0.55. While the lowest estimate indicates an increase of 40.6% from the current price level, t ...

We live in an age dominated by technology. Over the past two decades, tech stocks have massively outperformed the overall market, driving major indexes to new heights. Big tech has delivered exponential returns thanks to transformative trends including mobile computing, cloud services, and e-commerce.I believe we’re on the cusp of another wave of outsized growth led by tech stocks. This time, this growth wave will be fueled by artificial intelligence (AI) and its more advanced sibling, artificial general in ...

Cantaloupe, Inc. (NASDAQ:CTLP) Q2 2024 Earnings Conference Call February 8, 2024 5:00 PM ET Company Participants Dara Dierks - Investor Relations Ravi Venkatesan - Chief Executive Officer Scott Stewart - Chief Financial Officer Conference Call Participants Cris Kennedy - William Blair George Sutton - Craig Hallum Griffin Boss - B. Riley Operator Thank you for standing by and welcome to Cantaloupe's Second Quarter Fiscal Year 2024 Earnings Conference Call. [Operator Instructions] I would now like to hand the ...