Cantaloupe(US:CTLP)2022-05-06 16:45Financial 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].