Cantaloupe(US:CTLP)2023-02-08 16:00Financial Performance - For the six months ended December 31, 2022, the net loss was $9.1 million compared to a net loss of $1.8 million for the same period in 2021[49]. - The company reported a net loss of $573,000 for the three months ended December 31, 2022, compared to a net loss of $468,000 for the same period in 2021[135]. - The company’s operating loss for the six months ended December 31, 2022, was $(914,000), compared to $(320,000) in the same period of 2021, indicating a deterioration in operating performance[65]. - The Company reported a basic and diluted loss per share of $(0.01) for the three and six months ended December 31, 2022[161]. Revenue and Growth - Total revenues for the six months ended December 31, 2022, were $61,330,000, an increase from $51,091,000 in the same period of 2021, representing a growth of approximately 20.5%[65]. - Subscription and transaction fees contributed $48,932,000 to total revenues, up from $41,188,000, indicating a year-over-year increase of about 18.5%[65]. - Revenue for the three months ended December 31, 2022, was $64,614,000, representing a 17.5% increase from $54,856,000 in the same period in 2021[94]. - The Company’s subscription and transaction fees for the six months ended December 31, 2022, totaled $96,007,000, up from $81,812,000 in the same period in 2021, reflecting a 17.5% increase[108]. Cash and Liquidity - Cash and cash equivalents at the end of the period were $28.1 million, down from $76.3 million at the end of the previous year[49]. - The company reported net cash used in operating activities of $16.1 million for the six months ended December 31, 2022, compared to $4.2 million for the same period in 2021[49]. - Cash and cash equivalents decreased to $28,143,000 as of December 31, 2022, down from $68,125,000 at June 30, 2022, indicating a decline of approximately 58.7%[63]. Acquisitions - The company acquired a business for $35.9 million during the six months ended December 31, 2022[49]. - The Company acquired Three Square Market, Inc. and Three Square Market Limited on December 1, 2022, enhancing its software and self-service kiosk-based payment solutions[72]. - The Company acquired Three Square Market, Inc. on December 1, 2022, for a total consideration of $40,796,000, which included $25,585,000 in goodwill[87][89]. - The Company acquired 32M for a total consideration of approximately $40.8 million, consisting of $36.9 million in cash and $3.9 million in stock consideration[113]. - The Company recognized $2.7 million in goodwill and $1.2 million in newly acquired intangible assets related to the Yoke acquisition[162]. Assets and Liabilities - Total assets increased to $275,411,000 as of December 31, 2022, compared to $255,632,000 at June 30, 2022, representing a growth of about 7.7%[63]. - The company’s total liabilities rose to $121,318,000 as of December 31, 2022, compared to $95,661,000 at June 30, 2022, marking an increase of approximately 26.8%[63]. - The accumulated deficit as of December 31, 2022, was $(322,232,000), compared to $(313,085,000) at June 30, 2022, reflecting an increase in the deficit of about 2.3%[63]. Operational Metrics - For the quarter ended December 31, 2022, the Company reported 1.15 million Active Devices, an increase of approximately 27 thousand Active Devices, or 2.5%, compared to 1.12 million in the same quarter last year[217]. - The Company had 26,335 Active Customers for the quarter ended December 31, 2022, representing an increase of 5,020 Active Customers, or 23.6%, from 21,315 in the same quarter last year[217]. - Total Dollar Volume of Transactions for the quarter ended December 31, 2022 was $649.4 million, an increase of $94.1 million, or 17%, compared to $555.3 million for the same quarter last year[217]. Financial Obligations and Covenants - As of December 31, 2022, the total debt and other financing arrangements amounted to $39,274,000, a significant increase from $14,622,000 as of June 30, 2022, reflecting a growth of approximately 169%[139]. - The Company repaid all amounts outstanding under the $30.0 million senior secured term loan facility and entered into a new credit agreement with JPMorgan, which includes a financial covenant requiring a total leverage ratio of not greater than 3.00 to 1.00[141][142]. - The Amended JPMorgan Credit Facility has an interest rate of approximately 8% as of December 31, 2022, with a commitment fee of 0.50% per annum on the unused portion[143][144]. - The Company was in compliance with its financial covenants for the Amended JPMorgan Credit Facility as of December 31, 2022[167]. Risks and Market Conditions - The company continues to monitor the impact of COVID-19 on its financial condition and operations, though long-term repercussions remain uncertain[54]. - The Company continues to face risks related to supply chain inputs, including labor and raw materials, which could impact future operations[206]. - The company has not experienced material changes in market risk exposures since June 30, 2022[34]. Stock and Shareholder Information - As of December 31, 2022, the total number of common shares outstanding was 72.5 million[48]. - The weighted average shares outstanding for basic and diluted loss per share were 71,629,939 for the three months ended December 31, 2022[135]. - During the six months ended December 31, 2022, the Company retired 59,281 shares of its Series A convertible preferred stock for approximately $2.5 million[199]. - The average closing price target for the Company's common stock for fiscal year 2023 is set at $16.50[172].