Cantaloupe has acquired Cheq Lifestyle Technology (CHEQ) to expand into the sports, entertainment and restaurant sectors with a suite of self-service commerce solutions.“There is tremendous synergy between both of our product lines and solutions that will grow our footprint across our combined customer base,” Cantaloupe CEO Ravi Venkatesan said in a Thursday (Feb. 1) press release.CHEQ powers payments for numerous professional sports teams, entertainment venues and festival operators, according to the relea ...

Cantaloupe, Inc. (NASDAQ:CTLP) Q1 2024 Results Conference Call November 9, 2023 5:00 PM ET Company Participants Dara Dierks - IR Ravi Venkatesan - CEO Scott Stewart - CFO Conference Call Participants Josh Nichols - B. Riley Gary Prestopino - Barrington Research Operator Ladies and gentlemen, thank you for standing by. Welcome to the Cantaloupe First Quarter Fiscal Year 2024 Earnings Conference Call. At this time, all participants are in a listen-only-mode. After the speaker's presentation, there will be a q ...

[Part I - Financial Information](index=3&type=section&id=Part%20I%20-%20Financial%20Information) [Condensed Consolidated Financial Statements](index=3&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for Q1 FY2024, showing a significant turnaround to profitability, increased assets, and positive operating cash flow [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of September 30, 2023, total assets were $300.7 million, an increase from $289.6 million at June 30, 2023, driven by increases in cash and cash equivalents and accounts receivable Condensed Consolidated Balance Sheet Highlights ($ in thousands) | Account | Sep 30, 2023 (Unaudited) | Jun 30, 2023 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $54,597 | $50,927 | | Accounts receivable, net | $36,998 | $30,162 | | Total current assets | $133,991 | $123,383 | | Total assets | $300,695 | $289,612 | | **Liabilities & Equity** | | | | Accounts payable | $59,591 | $52,869 | | Total current liabilities | $87,339 | $81,693 | | Total liabilities | $129,088 | $122,020 | | Total shareholders' equity | $168,887 | $164,872 | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The company achieved a net income of $2.0 million for Q1 FY2024, a significant turnaround from a prior-year loss, driven by 8.5% revenue growth and improved gross profit Statement of Operations Summary ($ in thousands, except per share data) | Metric | Q1 FY2024 (ended Sep 30, 2023) | Q1 FY2023 (ended Sep 30, 2022) | | :--- | :--- | :--- | | Total revenues | $62,683 | $57,782 | | Gross profit | $24,328 | $14,162 | | Operating income (loss) | $2,755 | $(8,518) | | Net income (loss) | $2,007 | $(8,574) | | Diluted EPS | $0.02 | $(0.13) | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) The company generated $6.7 million in cash from operating activities for Q1 FY2024, a significant improvement from the prior year, leading to a $3.7 million increase in cash and cash equivalents Cash Flow Summary ($ in thousands) | Cash Flow Activity | Three months ended Sep 30, 2023 | Three months ended Sep 30, 2022 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $6,703 | $(9,032) | | Net cash used in investing activities | $(2,916) | $(4,956) | | Net cash used in financing activities | $(117) | $(3,344) | | **Net increase (decrease) in cash** | **$3,670** | **$(17,332)** | | **Cash and cash equivalents at end of period** | **$54,597** | **$50,793** | [Notes to Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements%20(unaudited)) These notes detail accounting policies, financial statement items, and business operations, including the 32M acquisition and revenue disaggregation, confirming the company operates as a single segment - The company is a digital payments and software services company providing end-to-end technology solutions for self-service commerce, operating as one operating segment[19](index=19&type=chunk)[23](index=23&type=chunk) - The acquisition of Three Square Market (32M) in December 2022 for **$41.1 million** expanded the company's presence in the micro market industry and global markets, resulting in **$25.7 million** of goodwill and **$14.9 million** of intangible assets[57](index=57&type=chunk)[61](index=61&type=chunk)[63](index=63&type=chunk) Disaggregated Revenue for Three Months Ended Sep 30 ($ in thousands) | Revenue Source | 2023 | 2022 | | :--- | :--- | :--- | | Transaction fees | $37,030 | $31,295 | | Subscription fees | $18,105 | $15,780 | | **Total Subscription & transaction fees** | **$55,135** | **$47,075** | | Equipment sales | $7,548 | $10,707 | | **Total revenues** | **$62,683** | **$57,782** | [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=21&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 FY2024 financial results, highlighting 8.5% revenue growth, improved profitability, strong operational metrics, and a positive Adjusted EBITDA of $7.8 million [Quarterly Results of Operations](index=24&type=section&id=QUARTERLY%20RESULTS%20OF%20OPERATIONS) The company's key performance indicators showed positive trends as of September 30, 2023, with growth in Active Devices, Active Customers, and Total Dollar Volume of Transactions Key Operating Metrics (as of Sep 30, 2023) | Metric | Sep 30, 2023 | Sep 30, 2022 | % Change | | :--- | :--- | :--- | :--- | | Active Devices (thousands) | 1,192 | 1,151 | +3.6% | | Active Customers | 29,670 | 25,019 | +18.6% | | Total Dollar Volume of Transactions (millions) | $724.8 | $639.5 | +13.3% | [Revenues and Gross Profit Analysis](index=29&type=section&id=Revenues%20and%20Gross%20Profit) Total revenues increased by **8.5%** to **$62.7 million**, driven by subscription and transaction fees, while gross profit surged by **71.8%** to **$24.3 million**, significantly improving gross margin Revenue and Gross Profit Breakdown ($ in thousands) | Category | Q1 FY2024 | Q1 FY2023 | % Change | | :--- | :--- | :--- | :--- | | **Revenues** | | | | | Subscription and transaction fees | $55,135 | $47,075 | +17.1% | | Equipment sales | $7,548 | $10,707 | -29.5% | | **Total Revenues** | **$62,683** | **$57,782** | **+8.5%** | | **Gross Profit** | | | | | Subscription and transaction fees | $23,407 | $16,705 | +40.1% | | Equipment sales | $921 | $(2,543) | +136.2% | | **Total Gross Profit** | **$24,328** | **$14,162** | **+71.8%** | - The increase in subscription and transaction fees was driven by a **13.3%** increase in transaction dollar volumes and an **18.6%** increase in Active Customers, with the 32M acquisition contributing **$3.4 million**[120](index=120&type=chunk) - Equipment sales decreased as the 3G to 4G network upgrade cycle has been completed, but equipment margin improved as strategic discounts for this transition ended[121](index=121&type=chunk) [Operating Expenses Analysis](index=30&type=section&id=Operating%20Expenses) Total operating expenses decreased by **4.9%** to **$21.6 million**, primarily due to reductions in technology and product development and general and administrative expenses Operating Expenses Breakdown ($ in thousands) | Category | Q1 FY2024 | Q1 FY2023 | % Change | | :--- | :--- | :--- | :--- | | Sales and marketing | $4,142 | $2,525 | +64.0% | | Technology and product development | $4,168 | $6,865 | -39.3% | | General and administrative expenses | $10,438 | $11,578 | -9.8% | | Depreciation and amortization | $2,747 | $1,315 | +108.9% | | **Total operating expenses** | **$21,573** | **$22,680** | **-4.9%** | [Non-GAAP Financial Measures - Adjusted EBITDA](index=32&type=section&id=Non-GAAP%20Financial%20Measures%20-%20Adjusted%20EBITDA) The company reported a positive Adjusted EBITDA of **$7.8 million** for the quarter, a significant turnaround from a **$5.4 million** loss in the prior year Reconciliation of Net Income (Loss) to Adjusted EBITDA ($ in thousands) | Line Item | Three months ended Sep 30, 2023 | Three months ended Sep 30, 2022 | | :--- | :--- | :--- | | U.S. GAAP net income (loss) | $2,007 | $(8,574) | | EBITDA | $5,767 | $(7,081) | | Adjustments to EBITDA | $2,054 | $1,715 | | **Adjusted EBITDA** | **$7,821** | **$(5,366)** | [Liquidity and Capital Resources](index=33&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) As of September 30, 2023, the company had **$54.6 million** in cash and cash equivalents, with operations providing **$6.7 million** in cash during the quarter - Primary sources of capital are cash on hand of **$54.6 million** and expected cash from operating activities[138](index=138&type=chunk) - Net cash provided by operating activities was **$6.7 million** for the quarter, compared to **$9.0 million** used in the prior-year quarter, driven by net income and non-cash charges[143](index=143&type=chunk)[144](index=144&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=32&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate exposure on **$38.4 million** in variable-rate debt, where a 100 basis point SOFR increase would raise annual interest expense by **$0.4 million** - The company has **$38.4 million** in outstanding borrowings with variable interest rates based on SOFR[150](index=150&type=chunk) - A hypothetical **100 basis point (1%)** increase in the SOFR Rate would change annual interest expense by approximately **$0.4 million**[150](index=150&type=chunk) [Controls and Procedures](index=32&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were not effective as of September 30, 2023, due to previously identified material weaknesses, with remediation efforts ongoing - Management concluded that disclosure controls and procedures were not effective as of September 30, 2023[153](index=153&type=chunk) - The ineffectiveness is a result of material weaknesses previously identified in the 2023 Form 10-K, and remediation efforts are in progress[153](index=153&type=chunk)[155](index=155&type=chunk) [Part II - Other Information](index=33&type=section&id=Part%20II%20-%20Other%20Information) [Legal Proceedings](index=33&type=section&id=Item%201.%20Legal%20Proceedings) Information regarding legal proceedings is incorporated by reference from Note 15 – Commitments and Contingencies - Information regarding legal proceedings is incorporated by reference from Note 15 – Commitments and Contingencies[156](index=156&type=chunk) [Risk Factors](index=33&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the Company's Annual Report on Form 10-K for the fiscal year ended June 30, 2023 - The report refers to the 'Risk Factors' section of the Annual Report on Form 10-K for the fiscal year ended June 30, 2023 for a discussion of the company's risk factors[157](index=157&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=33&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered sales of equity securities or use of proceeds were reported for the quarter, as this item is marked as not applicable - No unregistered sales of equity securities or use of proceeds were reported for the quarter[158](index=158&type=chunk) [Defaults Upon Senior Securities](index=33&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults on any senior securities, with the total liquidation preference on its Series A Convertible Preferred Stock at **$22.4 million** - There were no defaults on any senior securities during the period[158](index=158&type=chunk) - The total liquidation preference on the Series A Convertible Preferred Stock was **$22.4 million** as of September 30, 2023[158](index=158&type=chunk) [Other Information](index=33&type=section&id=Item%205.%20Other%20Information) No director or executive officer adopted, modified, or terminated any Rule 10b5-1 trading plan or other non-Rule 10b5-1 trading arrangements during the quarter - No director or executive officer adopted, modified, or terminated a Rule 10b5-1 trading plan during the fiscal quarter[159](index=159&type=chunk) [Exhibits](index=33&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including CEO and CFO certifications and financial data formatted in iXBRL - The report includes required CEO and CFO certifications and financial statements formatted in iXBRL as exhibits[160](index=160&type=chunk)

Business Operations and Growth - Cantaloupe, Inc. processes over 1 billion transactions annually across more than 1 million active locations globally[16]. - The majority of revenue is derived from subscription and transaction fees, with transaction fees being the most significant driver of revenue[17]. - The Seed platform offers advanced analytics, route scheduling, and inventory management, enhancing operational efficiency for customers[31]. - Cantaloupe's G11 Cashless Kit supports faster processing and enhanced functionality for digital payments, operating on major networks with built-in NFC support[29]. - The Cantaloupe Go product line includes various self-checkout kiosks, integrating seamlessly with the Seed platform for comprehensive business management[26]. - Cantaloupe's services handle over $2 billion in annual transactions in the micro-payments space, utilizing Amazon Web Services for infrastructure[34]. - Key verticals served include food service, vending, and self-service kiosks, representing significant market potential for Cantaloupe[39]. - The vending and micro market industry grew by 12% in total revenue in 2022, reaching almost 89% of the 2019 benchmark revenue high[40]. - Global sales of interactive kiosks reached an estimated $14.5 billion in 2022, a 20% increase from $12.1 billion in 2021[41]. - The smart vending market is expected to reach a value of $15 billion by 2028, growing at a rate of 12% from 2022 to 2028[45]. - The company plans to expand into micro markets and self-checkout solutions, leveraging its Cantaloupe Go platform[49]. - The company aims to capitalize on cashless payment trends, with a focus on expanding cashless acceptance in international markets[48]. - The company experienced a headcount increase of approximately 20%, growing from 225 full-time employees in 2022 to 269 in 2023[68]. Financial Performance - The company recognized a net income of $0.6 million for fiscal year 2023, compared to net losses of $1.7 million and $8.7 million for fiscal years 2022 and 2021, respectively[87]. - Customer concentrations for the years ended June 30, 2023, 2022, and 2021 were 12%, 14%, and 16% of total revenue from a single customer, indicating a significant reliance on key customers[93]. - The company has a history of losses since inception, and continuous profitability in the foreseeable future is not assured, which may lead to a decline in stock price if future losses occur[87]. - The company experienced net cash provided by operating activities of $14.2 million, $(8.7) million, and $8.2 million for the fiscal years ended 2023, 2022, and 2021, respectively[119]. - Total revenues increased by $38.4 million to $243.6 million for the year ended June 30, 2023, driven by a $31.4 million increase in subscription and transaction fees and a $7.1 million increase in equipment sales[196]. - Subscription and transaction fees increased by $21.9 million or 20%, attributed to increased processing volumes and a 16% rise in total dollar volumes[197]. - The company’s gross profit for the year ended June 30, 2023 was $81.2 million, a 26.5% increase from $64.2 million in the previous year[195]. - Total gross margin improved from 31.3% in 2022 to 33.3% in 2023, primarily due to higher margin revenue from subscription fees[200]. - Operating expenses increased by $13.6 million to $80.5 million for the year ended June 30, 2023, driven by higher general and administrative expenses and sales and marketing costs[201]. - The company incurred $3.1 million in integration and acquisition expenses, reflecting ongoing efforts to expand its business[201]. - Adjusted EBITDA for the fiscal year ended June 30, 2023, was $17.8 million, compared to $9.9 million in 2022, reflecting a significant increase[213]. Legal and Compliance Risks - The company is subject to various legal, regulatory, and compliance risks that could adversely affect its business and financial condition[124]. - The company has significant ongoing litigation and investigations that may require substantial management time and incur additional legal expenses[136]. - The company has incurred significant expenses related to the 2019 Investigation, including audit, legal, and consulting fees, which could adversely affect its financial condition[130]. - The company has identified multiple material weaknesses in its internal control over financial reporting as of June 30, 2023, and is in the process of remediation[141]. - The company has settled the 2019 Investigation with the SEC but may still face future claims or inquiries that could impact its resources and reputation[132]. Market and Economic Conditions - 73% of small businesses believe new forms of digital payments are essential for growth, and 41% of consumers plan to shift to cashless payments within two years[20]. - 66% of consumers prefer self-service options due to speed and reduced stress, indicating a strong shift towards self-service models[21]. - The company is exposed to general economic conditions that could negatively impact consumer confidence and spending, affecting the number of active devices and transactions[81]. - Geopolitical conflicts, such as the Russia-Ukraine conflict, may adversely affect the company's operations and international expansion efforts[96]. Technology and Innovation - The company has established long-term agreements with payment processors and technology vendors to support its operations[58]. - The company is focused on enhancing its position as a leading provider of technology in the self-service industry through innovative solutions[47]. - The company has been granted 140 patents, with 49 still in force, and has pending patent applications[115]. - The newly launched Cantaloupe ONE Platform has seen significant customer interest and growth, providing a bundled subscription model for operators[171]. - The Seed Driver mobile app was updated and is now available on both Apple and Android platforms, enhancing efficiency for route drivers[171]. - The company migrated its cloud hosting services to Amazon Web Services (AWS) in July 2022, supporting a scalable infrastructure[166]. Financial Position and Capital Structure - As of June 30, 2023, the company reported a net working capital surplus of $41.7 million and cash and cash equivalents of $50.9 million[119]. - The company entered into an amended and restated credit agreement with JPMorgan Chase Bank, providing for a $15 million secured revolving credit facility and a $25 million secured term facility[120]. - The Amended JPMorgan Credit Facility has a four-year maturity and includes two financial covenants, one requiring a total leverage ratio of not more than 3.00 to 1.00[121]. - The company was in compliance with its financial covenants as of June 30, 2023[122]. - The company may require additional financing to sustain operations, particularly in response to unexpected non-operational events[119]. - The company’s preferred stock holders are entitled to a liquidation preference of approximately $22.1 million as of June 30, 2023, which could impact distributions to common stockholders in the event of a merger or asset sale[147]. - As of June 30, 2023, accumulated unpaid dividends on preferred stock amounted to approximately $18.3 million, with a liquidation preference of about $22.1 million[156]. Customer and Market Dynamics - As of June 30, 2023, the company had 28,584 Active Customers and 1.17 million Active Devices, compared to 23,991 Active Customers and 1.14 million Active Devices as of June 30, 2022[67]. - The number of Active Customers rose to 28,584, representing an increase of 4,593 customers or 19% compared to 23,991 in the prior year[193]. - The company successfully closed the acquisition of Three Square Market in December 2022, accelerating its micro market business[166]. - The 32M acquisition contributed $7.3 million in subscription and transaction fees and $5.9 million in equipment sales for the year ended June 30, 2023[197][198]. - The company continues to monitor the impact of COVID-19, noting elevated component and supply chain costs during fiscal year 2023[167].

Cantaloupe, Inc. (NASDAQ:CTLP) Q4 2023 Earnings Conference Call August 6, 2023 5:00 PM ET Company Participants Marissa Neuman - Investor Relations Ravi Venkatesan - Chief Executive Officer Scott Stewart - Chief Financial Officer Conference Call Participants Josh Nichols - B. Riley Gary Prestopino - Barrington Research Chris Kennedy - William Blair George Sutton - Craig-Hallum Operator Thank you for standing by, and welcome to the Cantaloupe Fourth Quarter Fiscal Year 2023 Earnings Conference Call. At this t ...

Accounts receivable primarily include amounts due to the Company for sales of equipment and subscription fees, settlement receivables for amounts due from third-party payment processors and receivables from contract manufacturers, net of the allowance for credit losses. Accounts receivable, net of the allowance for uncollectible accounts were $29.2 million as of March 31, 2023 and $37.7 million as of June 30, 2022. Accounts receivable from one contract manufacturer represented 16% of accounts receivable as ...

Cantaloupe, Inc. (NASDAQ:CTLP) Q3 2023 Earnings Conference Call May 4, 2023 5:00 PM ET Company Participants Dara Dierks – Investor Relations Ravi Venkatesan – Chief Executive Officer Scott Stewart – Chief Financial Officer Conference Call Participants Mike Latimore – Northland Capital Markets George Sutton – Craig-Hallum Gary Prestopino – Barrington Research Chris Kennedy – William Blair Operator Good day, ladies and gentlemen. Thank you for standing by. Welcome to the Cantaloupe's Third Quarter Fiscal Year ...

☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE EXCHANGE ACT OF 1934 Cantaloupe, Inc. _______________________________________________________________ (Exact name of registrant as specified in its charter) Title of Each Class Trading Symbol Name Of Each Exchange On Which Registered Common Stock, no par value CTLP The NASDAQ Stock Market LLC Large accelerated filer ☐ Accelerated filer ☑ Non-accelerated filer ...

Cantaloupe, Inc. (NASDAQ:CTLP) Q2 2023 Earnings Conference Call February 7, 2023 5:00 PM ET Company Participants Ravi Venkatesan - Chief Executive Officer Scott Stewart - Chief Financial Officer Conference Call Participants Chris Kennedy - William Blair Gary Prestopino - Barrington Research James Rush - Craig-Hallum Mike Lattimore - Northland Capital Markets Operator Good day and thank you for standing by. And welcome to the Cantaloupe Second Quarter 2023 Earnings Conference Call. Please be advised that tod ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE EXCHANGE ACT OF 1934 For the transition period from _________ to _________ Commission file number 001-33365 Cantaloupe, Inc. _______________________________________________________________ (Exact name of registrant as specifie ...