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 ...

Financial Data and Key Metrics Changes - The company reported a record revenue of $57.8 million for Q1 2023, representing a 26% increase year-over-year [6][28] - Transaction revenue grew by 18% year-over-year, while subscription revenue increased by 11% year-over-year [7] - Adjusted EBITDA was negative $5.4 million, compared to positive $1.9 million in the same quarter of the prior year [11][35] - Gross margin for the quarter was 24.5%, down from 32.5% in the previous year, primarily due to negative gross margins on equipment revenue [29] Business Line Data and Key Metrics Changes - Equipment revenue saw a significant increase of 108% year-over-year, totaling $10.7 million [9][28] - Active customers increased by 21% year-over-year, totaling over 25,000 [9] - Active devices grew by 3% year-over-year, with expectations for acceleration in the next calendar year [10] Market Data and Key Metrics Changes - The company noted a strong demand for cashless payments, with cashless transactions increasing from 51% in January 2020 to 62% by October 2021 [23] - The company is experiencing a steady increase in contactless payments as consumer comfort with mobile and card payments grows [24] Company Strategy and Development Direction - The company is focused on expanding service offerings and software add-ons, particularly in core verticals like food and beverage and smart vending [12] - The Cantaloupe ONE platform is positioned as a bundled subscription model to reduce upfront capital expenditures for customers [14] - The company aims to leverage macroeconomic trends such as labor shortages and rising costs to fuel digital transformation and growth in software offerings [26] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth trajectory of subscription revenue, expecting it to ramp up throughout the year [8][43] - The company is navigating supply chain constraints and inflationary pressures, positioning itself as a key partner for customers seeking to integrate technology [13] - Management reiterated guidance for total revenue between $225 million and $235 million for the fiscal year, representing growth of 10% to 15% [36] Other Important Information - The company completed its migration to the AWS cloud platform, enhancing its ability to scale and replicate offerings across markets [21][57] - The company is maintaining higher than normal inventory levels to meet customer demand amid supply chain challenges [29] Q&A Session Summary Question: Can you talk about the acceleration of subscription revenue? - Management is excited about the acceleration of subscription revenue, driven by the Cantaloupe ONE offering and additional products like RPC [41][42] Question: What were the costs associated with the migration to AWS? - The overall cost was $1.4 million, with less than $1 million in cost of goods sold and about $400,000 to $500,000 in operating expenses [44] Question: Are you getting any traction in the Yoke Payments space? - Management reported exciting traction in the Yoke Payments space, which is expected to positively impact subscription revenue in the coming months [45][46] Question: Should we expect any negative surprises in equipment margins? - Management confirmed that equipment margins are expected to normalize after the upgrade cycle, with no anticipated negative surprises [47][49] Question: Is the business generating revenues at or above pre-pandemic levels? - Management confirmed that revenues are operating well above pre-pandemic levels, with potential for further increases as offices reopen [51][53] Question: Can you discuss the benefits of the AWS move? - The AWS move enhances the ability to replicate software in different geographies and provides a more scalable environment for growth [56][57] Question: How aggressively are you using Remote Price Change for customer acquisition? - Management is using Remote Price Change aggressively for both customer retention and acquisition, noting its value in the marketplace [58][59] Question: How does the hardware component relate to customer growth? - Management indicated that aggressive hardware strategies have helped retain customers, while Cantaloupe ONE is attracting new customers, particularly in the SMB segment [60][62]

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)

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]

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 ...

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, 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 ...