Cantaloupe(CTLP)

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Cantaloupe(CTLP) - 2023 Q1 - Earnings Call Transcript
2022-11-08 02:23
Cantaloupe, Inc. (NASDAQ:CTLP) Q1 2023 Earnings Conference Call November 7, 2022 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 George Sutton - Craig-Hallum Operator Good day and thank you for standing by. And welcome to the Cantaloupe First Quarter 2023 Earnings Conference Call. Please be advised that today’s conference is being recorded. With u ...
Cantaloupe(CTLP) - 2022 Q4 - Annual Report
2022-10-19 13:27
Part I [Business](index=5&type=section&id=Item%201.%20Business) The company provides an end-to-end technology platform for the unattended retail market, driven by subscription and transaction fees - Cantaloupe provides an end-to-end technology platform for the unattended retail market, integrating digital payments, software services for inventory management, logistics, and back-office operations[13](index=13&type=chunk) - The majority of revenue comes from **subscription and transaction fees** generated by its ePort® devices and Seed™ software platform, with transaction fees being the most significant revenue driver[14](index=14&type=chunk) - As of June 30, 2022, the company had **225 full-time employees**, a 24% increase from the prior year, with growth concentrated in Sales, Customer Support, and Technology[68](index=68&type=chunk) Key Operating Metrics (as of June 30) | Metric | 2022 | 2021 | | :--- | :--- | :--- | | **Active Customers** | 23,991 | 19,834 | | **Active Devices** | 1.14 million | 1.09 million | [Products and Services](index=6&type=section&id=Item%201.%20Business%20-%20Products%20and%20Services) Offerings include ePort payment hardware, Yoke POS terminals, and the cloud-based Seed software platform for asset management - **Hardware:** Includes the ePort integrated payment device series (e.g., ePort Engage) and Yoke POS terminals for self-checkout in micro-markets[21](index=21&type=chunk)[27](index=27&type=chunk) - **Software:** The Seed platform is a cloud-based solution for asset management, route optimization, and back-office functions, while the Yoke Portal manages micro-market kiosks and add-on services enhance merchandising[28](index=28&type=chunk)[29](index=29&type=chunk)[30](index=30&type=chunk) [Markets and Growth Strategy](index=9&type=section&id=Item%201.%20Business%20-%20Markets%20and%20Growth) The company serves vending and micro-market sectors with a growth strategy focused on customer value, contactless trends, and market expansion - Key markets served include Vending, Micro Markets, Vehicle Services, Amusement & Entertainment, and Laundry[42](index=42&type=chunk)[43](index=43&type=chunk)[44](index=44&type=chunk)[45](index=45&type=chunk)[46](index=46&type=chunk) - Growth strategies include expanding services to existing customers, capitalizing on contactless payment trends, penetrating the micro-market vertical, and expanding into adjacent and international markets[48](index=48&type=chunk)[49](index=49&type=chunk)[50](index=50&type=chunk)[51](index=51&type=chunk)[52](index=52&type=chunk) [Risk Factors](index=15&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks from economic conditions, operational dependencies, regulatory compliance, and internal control weaknesses [Business and Industry Risks](index=18&type=section&id=Item%201A.%20Risk%20Factors%20-%20Business%20and%20Industry%20Risks) Risks include a history of net losses, potential impacts from economic downturns and pandemics, and reliance on a single large customer - The company has a history of losses, incurring **net losses of $1.7 million, $8.7 million, and $40.6 million** in fiscal years 2022, 2021, and 2020, respectively[105](index=105&type=chunk) - The COVID-19 pandemic has adversely impacted the business through reduced foot traffic and supply chain delays, and its future impact remains uncertain[106](index=106&type=chunk)[108](index=108&type=chunk)[109](index=109&type=chunk) - A single large customer accounted for **14% of total revenue** in fiscal year 2022, and most service contracts are terminable on 30-60 days' notice[116](index=116&type=chunk)[124](index=124&type=chunk) [Operational and Liquidity Risks](index=21&type=section&id=Item%201A.%20Risk%20Factors%20-%20Operational%20and%20Liquidity%20Risks) Operational success depends on retaining key personnel, securing IT systems, and maintaining relationships with third-party processors - The company relies on key personnel and has experienced **high turnover in several key functions**, which could disrupt operations and delay business goals[131](index=131&type=chunk) - Disruptions to IT systems or security breaches could harm the company's reputation, and the company relies on third-party suppliers for critical services like wireless telecommunications and payment processing[133](index=133&type=chunk)[137](index=137&type=chunk)[139](index=139&type=chunk) - The company may need additional financing and must comply with financial covenants in its credit facility to avoid default[150](index=150&type=chunk)[153](index=153&type=chunk)[155](index=155&type=chunk) [Legal, Regulatory, and Compliance Risks](index=24&type=section&id=Item%201A.%20Risk%20Factors%20-%20Legal%2C%20Regulatory%2C%20and%20Compliance%20Risks) Risks stem from a 2019 internal investigation, ongoing SEC inquiries, and multiple material weaknesses in internal controls - A 2019 internal investigation into financial reporting has resulted in significant expenses and could lead to future claims or enforcement proceedings[161](index=161&type=chunk)[163](index=163&type=chunk)[164](index=164&type=chunk) - The **DOJ has concluded its investigation** related to the 2019 matter without enforcement action, but inquiries from the SEC are ongoing[170](index=170&type=chunk) - As of June 30, 2022, management concluded that **internal controls over financial reporting were not effective** due to multiple material weaknesses[177](index=177&type=chunk) [Unresolved Staff Comments](index=28&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved comments from SEC staff - The company reports no unresolved staff comments[189](index=189&type=chunk) [Properties](index=28&type=section&id=Item%202.%20Properties) The company leases all its facilities, including its headquarters in Pennsylvania, and believes they are sufficient for current needs Leased Properties | Location | Approximate Monthly Base Rent | Lease Expiration | Approximate Size | | :--- | :--- | :--- | :--- | | Atlanta, Georgia | $21,000 - $22,000 | June 2023 | 11,900 sq. ft. | | Malvern, Pennsylvania | $57,000 - $61,000 | November 2023 | 27,000 sq. ft. | | Metairie, Louisiana* | $15,000 - $16,000 | July 2024 | 7,800 sq. ft. | | Denver, Colorado* | $45,000 - $53,000 | December 2026 | 16,700 sq. ft. | *These office spaces are sub-leased. [Legal Proceedings](index=28&type=section&id=Item%203.%20Legal%20Proceedings) The company is not party to any material pending legal proceedings outside the ordinary course of business - The company is involved in ordinary course litigation and establishes accruals when a loss is probable and reasonably estimable[192](index=192&type=chunk) - Except as noted in the financial statements (Note 18), there are no material pending legal proceedings other than routine litigation[193](index=193&type=chunk) [Mine Safety Disclosures](index=28&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section is not applicable to the company's operations - This item is not applicable to the company[194](index=194&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=29&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's common stock trades on NASDAQ as "CTLP," with no cash dividends declared due to preferred stock obligations - The company's common stock is traded on The NASDAQ Global Market under the symbol "CTLP"[197](index=197&type=chunk) - No cash dividends have been declared on common stock; as of June 30, 2022, accumulated unpaid dividends on preferred stock were approximately **$17.7 million**[198](index=198&type=chunk) 5-Year Cumulative Total Return Comparison | Period Ending | Cantaloupe, Inc. | US Small-Cap Russell 2000® Index | S&P 500 Information Technology Index | | :--- | :--- | :--- | :--- | | Jun-17 | $100 | $100 | $100 | | Jun-18 | $269 | $116 | $130 | | Jun-19 | $143 | $111 | $146 | | Jun-20 | $135 | $102 | $196 | | Jun-21 | $228 | $163 | $276 | | Jun-22 | $108 | $121 | $236 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=32&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Fiscal year 2022 revenue grew 22.9% to $205.2 million, with a reduced net loss of $1.7 million and Adjusted EBITDA of $9.9 million [Results of Operations](index=37&type=section&id=Item%207.%20MD%26A%20-%20Results%20of%20Operations) Revenue growth in FY2022 was driven by increased transaction volumes and equipment sales, improving gross profit and operating loss Key Financial Highlights (FY2022 vs FY2021) | Metric (in thousands) | FY 2022 | FY 2021 | % Change | | :--- | :--- | :--- | :--- | | **Total Revenue** | $205,202 | $166,939 | 22.9% | | Subscription & transaction fees | $168,850 | $139,242 | 21.3% | | Equipment sales | $36,352 | $27,697 | 31.2% | | **Gross Profit** | $64,195 | $54,026 | 18.8% | | **Operating Loss** | $(2,657) | $(8,705) | (69.5%) | | **Net Loss** | $(1,703) | $(8,705) | (80.4%) | Operating Metrics (FY2022 vs FY2021) | Metric | FY 2022 | FY 2021 | % Change | | :--- | :--- | :--- | :--- | | **Active Devices (millions)** | 1.14 | 1.09 | 4.0% | | **Active Customers** | 23,991 | 19,834 | 21.0% | | **Total Dollar Volume (billions)** | $2.3 | $1.8 | 30.0% | - The increase in subscription and transaction revenue was primarily driven by a **30% increase in total dollar volumes processed**, exceeding pre-pandemic levels[249](index=249&type=chunk) - Operating expenses increased by **$4.1 million**, mainly due to higher investments in technology and sales, partially offset by lower G&A expenses[255](index=255&type=chunk) [Non-GAAP Financial Measures - Adjusted EBITDA](index=42&type=section&id=Item%207.%20MD%26A%20-%20Non-GAAP%20Financial%20Measures) Adjusted EBITDA, a key non-GAAP metric, improved to $9.9 million in fiscal year 2022 from $7.6 million in the prior year Reconciliation of Net Loss to Adjusted EBITDA (in thousands) | | FY 2022 | FY 2021 | FY 2020 | | :--- | :--- | :--- | :--- | | **Net loss** | $(1,703) | $(8,705) | $(40,595) | | Adjustments | $11,595 | $16,323 | $29,860 | | **Adjusted EBITDA** | $9,892 | $7,618 | $(9,735) | [Liquidity and Capital Resources](index=43&type=section&id=Item%207.%20MD%26A%20-%20Liquidity%20and%20Capital%20Resources) The company held $68.1 million in cash and secured a new credit facility, though operating activities used $8.7 million in cash - As of June 30, 2022, the company had cash and cash equivalents of **$68.1 million**[276](index=276&type=chunk) - In March 2022, the company entered into an amended credit facility with JPMorgan Chase Bank, N.A., providing a **$15 million revolving facility** and a **$25 million term facility**[277](index=277&type=chunk) Cash Flow Summary (in millions) | Cash Flow | FY 2022 | FY 2021 | FY 2020 | | :--- | :--- | :--- | :--- | | **Operating Activities** | $(8.7) | $8.2 | $(14.1) | | **Investing Activities** | $(12.2) | $(1.8) | $(2.5) | | **Financing Activities** | $0.9 | $50.1 | $20.9 | Contractual Obligations as of June 30, 2022 (in thousands) | Obligation Type | Total | Less than 1 year | 1-3 years | 3-5 years | | :--- | :--- | :--- | :--- | :--- | | Debt and financing obligations | $17,789 | $809 | $2,436 | $14,544 | | Operating lease obligations | $4,387 | $1,758 | $1,736 | $893 | | Purchase obligations | $21,450 | $12,200 | $9,250 | $0 | | **Total** | **$43,626** | **$14,767** | **$13,422** | **$15,437** | [Quantitative and Qualitative Disclosures About Market Risk](index=45&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate changes on its variable-rate debt, which is not considered material - The company is exposed to market risk from interest rate changes on its variable-rate debt under the Amended JPMorgan Credit Facility, which is tied to the SOFR rate[291](index=291&type=chunk) - A hypothetical **100 basis point increase** in the SOFR rate is not expected to have a material impact on interest expense or the consolidated financial statements[291](index=291&type=chunk) [Financial Statements and Supplementary Data](index=46&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section contains audited financial statements, on which the auditor issued an unqualified opinion but an adverse opinion on internal controls [Report of Independent Registered Public Accounting Firm](index=47&type=section&id=Item%208.%20-%20Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm) The auditor issued an unqualified opinion on financial statements but an adverse opinion on internal controls due to material weaknesses - The auditor issued an **unqualified opinion** on the consolidated financial statements[298](index=298&type=chunk) - The auditor issued an **adverse opinion** on the company's internal control over financial reporting as of June 30, 2022, due to material weaknesses[309](index=309&type=chunk) - The identified material weaknesses relate to entity-level controls, information technology controls, and controls over revenue recognition[314](index=314&type=chunk) - The critical audit matter identified was **Revenue Recognition**, specifically the judgment involved in identifying performance obligations within customer contracts[304](index=304&type=chunk)[305](index=305&type=chunk) [Consolidated Financial Statements](index=51&type=section&id=Item%208.%20-%20Consolidated%20Financial%20Statements) Financial statements show total assets of $255.6 million and a net loss of $1.7 million for the fiscal year ended June 30, 2022 Consolidated Balance Sheet Data (in thousands) | | June 30, 2022 | June 30, 2021 | | :--- | :--- | :--- | | **Total Current Assets** | $136,580 | $131,279 | | **Total Assets** | $255,632 | $237,672 | | **Total Current Liabilities** | $79,179 | $65,673 | | **Total Liabilities** | $95,661 | $83,141 | | **Total Shareholders' Equity** | $156,833 | $151,393 | Consolidated Statement of Operations Data (in thousands) | | FY 2022 | FY 2021 | FY 2020 | | :--- | :--- | :--- | :--- | | **Total Revenues** | $205,202 | $166,939 | $163,153 | | **Gross Profit** | $64,195 | $54,026 | $46,273 | | **Operating Loss** | $(2,657) | $(8,705) | $(39,592) | | **Net Loss** | $(1,703) | $(8,705) | $(40,595) | | **Net Loss per Share (Basic & Diluted)** | $(0.03) | $(0.14) | $(0.66) | [Notes to Consolidated Financial Statements](index=55&type=section&id=Item%208.%20-%20Notes%20to%20Consolidated%20Financial%20Statements) Notes detail the Yoke Payments acquisition, debt facilities, a full valuation allowance against deferred tax assets, and ongoing SEC inquiries - In August 2021, the company acquired Yoke Payments for **$3 million in cash** at closing, resulting in $2.7 million of goodwill[445](index=445&type=chunk)[447](index=447&type=chunk)[450](index=450&type=chunk) - The company's debt as of June 30, 2022, primarily consists of the Amended JPMorgan Credit Facility, which includes a **$15M revolving facility** and a **$25M term facility**[476](index=476&type=chunk) - A **full valuation allowance of $55.3 million** has been recorded against net deferred tax assets as of June 30, 2022, due to the company's history of losses[496](index=496&type=chunk)[499](index=499&type=chunk) - The **DOJ concluded its investigation** related to prior period restatements and will not proceed with enforcement, though inquiries from the SEC remain ongoing[526](index=526&type=chunk)[527](index=527&type=chunk) [Controls and Procedures](index=86&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that disclosure controls and internal control over financial reporting were not effective as of June 30, 2022 - Management concluded that **disclosure controls and procedures were not effective** as of June 30, 2022, due to material weaknesses in internal control over financial reporting[535](index=535&type=chunk) - **Three material weaknesses** were identified in entity-level controls, IT general controls, and controls over the revenue recognition process[539](index=539&type=chunk)[542](index=542&type=chunk) - Management has begun implementing a remediation plan, with completion expected by the end of fiscal year 2023[544](index=544&type=chunk)[545](index=545&type=chunk) [Other Information](index=89&type=section&id=Item%209B.%20Other%20Information) This section is not applicable - This item is not applicable[550](index=550&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=90&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information is incorporated by reference from the company's 2023 Proxy Statement - Information is incorporated by reference from the definitive Proxy Statement for the 2023 Annual Meeting of Stockholders[554](index=554&type=chunk) [Executive Compensation](index=90&type=section&id=Item%2011.%20Executive%20Compensation) Information is incorporated by reference from the company's 2023 Proxy Statement - Information is incorporated by reference from the definitive Proxy Statement for the 2023 Annual Meeting of Stockholders[555](index=555&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters](index=90&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Shareholder%20Matters) Information is incorporated by reference from the company's 2023 Proxy Statement - Information is incorporated by reference from the definitive Proxy Statement for the 2023 Annual Meeting of Stockholders[556](index=556&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=90&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information is incorporated by reference from the company's 2023 Proxy Statement - Information is incorporated by reference from the definitive Proxy Statement for the 2023 Annual Meeting of Stockholders[557](index=557&type=chunk) [Principal Accounting Fees and Services](index=90&type=section&id=Item%2014.%20Principal%20Accounting%20Fees%20and%20Services) Information is incorporated by reference from the company's 2023 Proxy Statement - Information is incorporated by reference from the definitive Proxy Statement for the 2023 Annual Meeting of Stockholders[558](index=558&type=chunk) Part IV [Exhibits, Financial Statement Schedules](index=91&type=section&id=Item%2015.%20Exhibits%2C%20Financial%20Statement%20Schedules) This section lists all exhibits filed with the Form 10-K, including material contracts and required CEO/CFO certifications - Lists all exhibits filed with the Form 10-K, including governance documents, material contracts, and executive employment agreements[560](index=560&type=chunk)[561](index=561&type=chunk) - Includes required certifications from the Chief Executive Officer and Chief Financial Officer pursuant to the Sarbanes-Oxley Act[561](index=561&type=chunk) [Form 10-K Summary](index=93&type=section&id=Item%2016.%20Form%2010-K%20Summary) This section is not applicable - This item is not applicable[565](index=565&type=chunk)
Cantaloupe(CTLP) - 2022 Q4 - Earnings Call Transcript
2022-09-09 01:13
Financial Data and Key Metrics Changes - Q4 2022 revenue reached $58 million, an 18% increase year-over-year, marking an all-time high for quarterly revenue and the fifth consecutive quarter of double-digit growth [8][28] - Full fiscal year revenue increased by 23% to $205 million, also a new company record, with adjusted EBITDA rising 30% to $9.9 million [10][31] - Adjusted EBITDA for Q4 was $2 million, down from $5 million in the prior year due to a one-time sales tax reserve adjustment in the previous year [9][31] - Total gross margin for Q4 was 29.5%, slightly down from 30.2% in the prior year, with subscription and transaction revenue margin at 39.5% [29] Business Line Data and Key Metrics Changes - Combined transaction and subscription revenue grew by 17%, while equipment revenue increased by 22% in Q4 [8][28] - Active customers grew by 21%, while active devices increased by only 4% [9][31] - Equipment revenue is expected to remain flat year-over-year, skewed towards the first half of the fiscal year due to the conclusion of the 3G and EMV upgrade cycles [33] Market Data and Key Metrics Changes - The company is focusing on expanding its leadership position in the U.S. market, with significant enterprise-level relationships established with major clients [21] - The self-service economy is still in its early stages, presenting opportunities for growth [15] Company Strategy and Development Direction - The company is undergoing a fundamental transformation, with a focus on innovation and launching new products [7][16] - A multi-year strategic plan is in place, with an emphasis on executing disciplined growth strategies [15][38] - The Cantaloupe ONE platform is designed to deepen market penetration by offering a bundled subscription model [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, with expectations for revenue growth of 10% to 15% in 2023 [33] - The transition to new leadership is seen as a positive step for future growth, with a focus on international expansion and adjacent markets [12][15] Other Important Information - The company has migrated its payment and IoT platforms to Amazon Web Services, enhancing stability and reliability [25] - A new Chief Technology Officer has been appointed to drive innovation and technology scaling [26] Q&A Session Summary Question: Long-term growth and operating margins - Management sees transaction and recurring software growth in the mid-teens, with potential upside from new geographic traction [35][36] Question: Key priorities for the new CEO - The new CEO emphasized executing a robust strategic plan to unlock value [38] Question: Drivers of subscription growth - Subscription growth is driven by increased connections and revenue per connection through add-ons [41][42] Question: Gross margin expectations - Transaction revenue gross margin is expected to remain in the mid-teens, while subscription margins are anticipated to stay between 80% to 85% [44] Question: Equipment sales margins - Management expects equipment sales margins to improve post-upgrade cycles, with strategic opportunities for subsidized deals [48] Question: Customer growth and active devices - The increase in active customers without a corresponding rise in active devices is attributed to equipment upgrades rather than new installations [51]
Cantaloupe (CTLP) Investor Presentation - Slideshow
2022-06-09 17:49
NASDAQ: CTLP Investor Presentation June 2022 8 9 Disclaimer This presentation contains certain information about Cantaloupe, Inc. (the "Company" or "Cantaloupe"). Information contained in this presentation concerning the Company's industry and the markets in which it operates, including the Company's general expectations and market position, market opportunity and market size, is based on information from the Company's management's estimates and research, as well as from industry and general publications an ...
Cantaloupe (CTLP) Investor Presentation - Slideshow
2022-06-04 14:55
NASDAQ: CTLP Investor Presentation May 2022 Disclaimer This presentation contains certain information about Cantaloupe, Inc. (the "Company" or "Cantaloupe"). Information contained in this presentation concerning the Company's industry and the markets in which it operates, including the Company's general expectations and market position, market opportunity and market size, is based on information from the Company's management's estimates and research, as well as from industry and general publications and res ...
Cantaloupe(CTLP) - 2022 Q3 - Earnings Call Transcript
2022-05-09 02:00
Cantaloupe, Inc. (NASDAQ:CTLP) Q3 2022 Earnings Conference Call May 5, 2022 5:00 PM ET Company Participants Sean Feeney - Chief Executive Officer Ravi Venkatesan - Chief Operating Officer Scott Stewart - Chief Financial Conference Call Participants Mike Lattimore - Northland Capital Markets George Sutton - Craig-Hallum Cristopher Kennedy - William Blair Operator Welcome to the Cantaloupe Third Quarter Fiscal Year 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. After ...
Cantaloupe(CTLP) - 2022 Q3 - Quarterly Report
2022-05-06 16:45
Financial Performance - Total revenues increased by $7.5 million (17.6%) for the three months ended March 31, 2022, compared to the same period in 2021, primarily driven by a $7.5 million increase in subscription and transaction fees[160]. - Total revenues for the nine months ended March 31, 2022, increased by $29.3 million (24.8%) compared to the same period in 2021, driven by a $22.9 million increase in subscription and transaction fees[174]. - Subscription and transaction fees reached $42,143 thousand for the three months ended March 31, 2022, reflecting a 21.5% increase from $34,686 thousand in the same period last year[160]. - Total gross profit for the three months ended March 31, 2022, was $16,200 thousand, a 27.5% increase from $12,704 thousand in the same period last year[160]. - Total gross profit for the nine months ended March 31, 2022, was $47,066 thousand, a 19.9% increase from $39,244 thousand in the same period last year[174]. Expenses and Costs - Operating expenses increased by $0.6 million (4.1%) for the three months ended March 31, 2022, primarily due to a $1.1 million increase in technology and product development expenses[166]. - Total operating expenses for the nine months ended March 31, 2022, were $47.643 million, a slight increase of 0.3% compared to $47.482 million in the same period in 2021[180]. - Cost of sales increased by $21.4 million (27.2%) for the nine months ended March 31, 2022, attributed to a $15.8 million increase in subscription and transaction costs[177]. - Sales and marketing expenses rose by approximately $1.1 million, or 23.6%, to $6.021 million for the nine months ended March 31, 2022, driven by increased advertising and trade show costs[181]. - Technology and product development expenses increased by approximately $5.3 million, or 46.2%, totaling $16.701 million for the nine months ended March 31, 2022, reflecting the company's investment in innovative technologies[182]. - General and administrative expenses decreased by approximately $6.4 million, or 22.6%, to $21.724 million for the nine months ended March 31, 2022, primarily due to reduced reliance on external consultants[183]. Cash Flow and Liquidity - Cash and cash equivalents on hand were $75.1 million as of March 31, 2022, providing a solid liquidity position for the company[190]. - Net cash used in operating activities was $3.9 million for the nine months ended March 31, 2022, reflecting a net income of $0.4 million and $16.2 million utilized by working capital accounts[194]. - Net cash used in investing activities increased to $10.2 million for the nine months ended March 31, 2022, primarily due to the Yoke acquisition and increased property and equipment investments[196]. - Net cash provided by financing activities was $1.0 million for the nine months ended March 31, 2022, mainly from proceeds related to the Amended JPMorgan Credit Facility and stock exercises[198]. Operational Metrics - For the three months ended March 31, 2022, Cantaloupe reported 1.12 million Active Devices, an increase of approximately 40,000 Active Devices, or 4%, compared to the same quarter last year[154]. - The company had 22,818 Active Customers, representing an increase of 4,055 Active Customers, or 22%, from 18,763 in the same quarter last year[154]. - Total Dollar Volume of Transactions for the quarter was $562 million, which is 36% higher compared to the average processing volumes for the quarter ended March 31, 2021[154]. - Active Devices count increased by 3% compared to the same period last year, contributing to revenue growth[161]. Corporate Developments - The Company entered into a $30 million senior secured term loan facility with Antara on October 9, 2019, and repaid all amounts outstanding under this facility by August 14, 2020[109][110]. - The Company completed a private placement on March 4, 2021, raising approximately $55 million from the sale of 5,730,000 shares at $9.60 per share[124]. - The ePort Engage Combo was released in March 2022, enhancing the company's product offerings in the unattended retail market[145]. - Cantaloupe launched the Cantaloupe ONE Platform, a bundled subscription model providing operators with a fixed monthly subscription covering hardware and service fees[145]. - The company entered into an amended credit agreement with JP Morgan Chase Bank, providing a $15 million secured revolving credit facility and a $25 million secured term facility[145]. - On March 17, 2022, the Company entered into an amended credit agreement with JPMorgan Chase Bank, N.A.[205]. Risk and Control - The Company's exposure to market risk has not changed materially since June 30, 2021[205]. - The management, including the CEO and CFO, concluded that the disclosure controls and procedures are effective as of March 31, 2022[207]. - There have been no changes in the Company's internal control over financial reporting during the fiscal quarter ended March 31, 2022, that have materially affected the internal controls[208]. Tax and Compensation - For the nine months ended March 31, 2022, the Company recorded an income tax provision of $226 thousand, compared to $133 thousand for the same period in 2021[113][114]. - The Company recognized stock-based compensation related to stock options of $2.3 million for the nine months ended March 31, 2022, down from $3.8 million for the same period in 2021[117]. - The total expense recognized for consulting agreements related to common stock awards was $0.2 million for the nine months ended March 31, 2022[121][123]. - The Company had no outstanding or exercised warrants during the nine months ended March 31, 2022, compared to 23,978 warrants exercised in March 2021[126][127]. - The expected volatility for stock options granted in the nine months ended March 31, 2022, was between 73.2% and 73.6%[117].
Cantaloupe(CTLP) - 2022 Q2 - Quarterly Report
2022-02-04 13:22
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 December 31, 2021 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 specified ...
Cantaloupe(CTLP) - 2022 Q2 - Earnings Call Transcript
2022-02-04 03:06
Cantaloupe, Inc. (NASDAQ:CTLP) Q2 2022 Earnings Conference Call February 3, 2022 4:30 PM ET Company Participants Sean Feeney - Chief Executive Officer Ravi Venkatesan - Chief Operating Officer Wayne Jackson - Chief Financial Officer Conference Call Participants Mike Latimore - Northland Capital Markets Cristopher Kennedy - William Blair & Company Operator Good day and thank you for standing by. Welcome to the Cantaloupe Second Quarter Fiscal Year 2022 Earnings Conference Call. At this time, all participants ...
Cantaloupe(CTLP) - 2022 Q1 - Earnings Call Transcript
2021-11-07 10:43
Cantaloupe, Inc. (NASDAQ:CTLP) Q1 2022 Earnings Conference Call November 4, 2021 4:30 PM ET Company Participants Alicia Nieva-Woodgate – Vice President of Corporate Communications and Investor Relations Sean Feeney – Chief Executive Officer Wayne Jackson – Chief Financial Officer Ravi Venkatesan – Chief Technology Officer Conference Call Participants Chris Kennedy – William Blair Mike Latimore – Northland Capital Gary Prestopino – Barrington Research George Sutton – Craig-Hallum Operator Ladies and gentleme ...