Cantaloupe(CTLP) - 2024 Q3 - Quarterly Results

Third Quarter Fiscal Year 2024 Financial Results Cantaloupe reported strong third-quarter fiscal year 2024 results with $67.9 million total revenue, a 12.5% year-over-year increase, driven by transaction fee growth and improved gross margin Third Quarter 2024 Key Financial Results Cantaloupe achieved $67.9 million in total revenue, a 12.5% year-over-year increase, driven by strong transaction fee growth and improved gross margin Third Quarter Financial Performance | Financial Metric | Q3 FY2024 | Q3 FY2023 | % Change YoY | | :--- | :--- | :--- | :--- | | Total Revenue | $67.9M | $60.4M | +12.5% | | Subscription Fees | $19.2M | $17.9M (est.) | +7.4% | | Transaction Fees | $40.0M | $33.4M (est.) | +19.9% | | Equipment Sales | $8.7M | $9.1M | -4.6% | | Gross Margin | 39.6% | 37.9% | +1.7 p.p. | | Net Income (to common shares) | $4.4M | $6.7M | -34.3% | | Diluted EPS | $0.06 | $0.09 | -33.3% | | Adjusted EBITDA | $10.2M | $10.1M | +1.0% | - CEO Ravi Venkatesan highlighted that while subscription revenue growth was slower than anticipated, transaction revenue growth exceeded expectations and achieved higher profitability sooner[10] - The company continues to expand its footprint domestically and internationally, with thousands of devices sold across Latin America and Europe[10] Third Quarter 2024 Business Highlights Cantaloupe expanded its market presence and technological offerings through strategic acquisitions, international partnerships, and increased customer and device adoption - Acquired CHEQ, a company specializing in self-service solutions and payment technology for the sports & entertainment industry[31] Operational Metrics | Operational Metric | Q3 FY2024 | Q3 FY2023 | % Change YoY | | :--- | :--- | :--- | :--- | | Active Customers | 30,670 | 27,598 | +11.1% | | Active Devices | 1.22 million | 1.15 million | +5.9% | - Expanded into the Mexico market by partnering with Turbo Air and Imbera to showcase solutions including the P30 cashless device, Seed platform, and smart coolers[5] - Hosted the annual Cantaloupe University user conference in Las Vegas, with over 240 attendees for training and education on the company's product suite[13] Fiscal Year 2024 Outlook Cantaloupe provides its updated financial projections for fiscal year 2024, including revenue, net income, and Adjusted EBITDA guidance Updated Full Year Guidance The company updated its full fiscal year 2024 guidance, projecting total revenue between $270 million and $275 million and Adjusted EBITDA between $33 million and $36 million FY2024 Financial Guidance | FY2024 Guidance | Range | | :--- | :--- | | Total Revenue | $270M - $275M | | Subscription & Transaction Revenue | $232M - $236M | | Total US GAAP Net Income | $12M - $15M | | Adjusted EBITDA | $33M - $36M | | Total Operating Cash Flow | $24M - $28M | Financial Statements This section presents Cantaloupe's condensed consolidated financial statements, including statements of operations, balance sheets, and cash flows Condensed Consolidated Statements of Operations Total revenues increased to $67.9 million, while higher operating expenses led to a decrease in operating income and net income for the quarter Condensed Consolidated Statements of Operations (In thousands) | (In thousands) | Three Months Ended Mar 31, 2024 | Three Months Ended Mar 31, 2023 | | :--- | :--- | :--- | | Total Revenues | $67,897 | $60,356 | | Gross Profit | $26,907 | $22,893 | | Total Operating Expenses | $22,615 | $16,153 | | Operating Income | $4,292 | $6,740 | | Net Income (to common shares) | $4,367 | $6,659 | | Diluted EPS | $0.06 | $0.09 | Condensed Consolidated Balance Sheets Total assets increased to $319.9 million, driven by higher receivables and inventory, while total liabilities and shareholders' equity also grew Condensed Consolidated Balance Sheets (In thousands) | (In thousands) | March 31, 2024 | June 30, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $50,197 | $50,927 | | Total current assets | $144,993 | $123,383 | | Total Assets | $319,901 | $289,612 | | Total current liabilities | $92,295 | $81,693 | | Total Liabilities | $138,386 | $122,020 | | Total Shareholders' Equity | $178,795 | $164,872 | Condensed Consolidated Statements of Cash Flows Net cash provided by operating activities significantly improved to $13.5 million, while investing activities used $13.9 million, resulting in a slight cash decrease Condensed Consolidated Statements of Cash Flows (In thousands) | (In thousands) | Nine Months Ended Mar 31, 2024 | Nine Months Ended Mar 31, 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $13,481 | $5,773 | | Net cash used in investing activities | ($13,925) | ($48,489) | | Net cash (used in) provided by financing activities | ($293) | $21,267 | | Net decrease in cash | ($730) | ($21,449) | | Cash and cash equivalents at end of period | $50,197 | $46,676 | Reconciliation of U.S. GAAP Net Income (Loss) to Adjusted EBITDA This section reconciles U.S. GAAP Net Income of $4.7 million to Adjusted EBITDA of $10.2 million for the third quarter of 2024 Reconciliation of U.S. GAAP Net Income (Loss) to Adjusted EBITDA (In thousands) | (In thousands) | Three Months Ended Mar 31, 2024 | Three Months Ended Mar 31, 2023 | | :--- | :--- | :--- | | U.S. GAAP net income | $4,656 | $6,948 | | Adjustments (Depreciation, Amortization, etc.) | $2,335 | $2,440 | | EBITDA | $6,991 | $9,388 | | Other Adjustments (Stock Comp, Acquisition Exp, etc.) | $3,195 | $683 | | Adjusted EBITDA (non-GAAP) | $10,186 | $10,071 | Disclosures This section provides important disclosures regarding non-GAAP financial measures and forward-looking statements Discussion of Non-GAAP Financial Measure The company utilizes Adjusted EBITDA as a non-GAAP measure for internal decision-making and external reporting, excluding specific non-cash and infrequent items - Adjusted EBITDA is defined as U.S. GAAP net income before interest, taxes, depreciation, amortization, stock-based compensation, and other significant infrequent or unusual losses and gains not indicative of core operations[17][3] - The company utilizes Adjusted EBITDA as a metric in its executive officer and management incentive compensation plans[8] Forward-looking Statements This section outlines forward-looking statements, emphasizing their inherent risks and uncertainties based on management's current beliefs and assumptions - Forward-looking statements are identified by words such as "may," "could," "expect," "intend," "plan," "believe," "estimate," and "guidance"[38][18] - Readers are cautioned not to place undue reliance on these statements, as they speak only as of the date of the release and the company does not undertake to update them unless required by law[19]