Malverne, Pa.-based USA Technologies Inc. (Nasdaq: USAT), a cashless payments and software services company, reported second quarter revenue of $38.3 million, a 13.1% decrease, compared with same period of 2020, but 3.8% increase, compared with the first quarter 2021.
USAT reported an operating loss of $2.6 million, which the company termed “significant improvement compared with andoperating loss of $7.8 million in the second quarter of 2020.” The company had a net loss applicable to common shares of $2.9 million, or $0.04 per basic share, compared with a net loss to common shares of $8.4 million, or $0.13 per basic share in the second quarter of 2020.
“We continue to make great progress on the operating initiatives we laid out for this fiscal year, which include – driving sustainable organic growth, right sizing the company's cost structure, and investing in people and culture, in order to achieve excellence,” said USAT chief executive Sean Feeney. “Many existing and potential new customers are seeing the value of being on our platform as a service, from our cashless devices to logistics software. We are also making strides in right sizing the company's cost structure, reporting a 28% decrease in operating expenses for the quarter when compared to FY Q2 20 and a 24% decrease in the first six months of this fiscal year. We have begun to allocate a portion of the savings to the products, systems and services that the company needs to scale.”
Other USAT Q2 financial highlights
» License and transaction fee revenue of $33.2 million increased 0.3%, compared with the first quarter 2021; and decreased 7.1%, compared with the second 2020 quarter.
» Equipment revenue of $5.1 million increased 34.5%, compared with the first quarter; and decreased 38.9%, compared with 2020’s second quarter.
» Active devices, defined as devices that have communicated or transacted with the company in the last 12 months, totaled 1,154,932 connections at the end of the second quarter of 2021, compared with 1,133,754 at the end of the first quarter of 2021 and 1,089,406 at the end of the second quarter of 2020
» Active customers, defined as customers that have at least one device that has communicated with the company in the past 12 months, totaled 18,304 at the end of the second quarter of 2021, compared with 16,489 at the end of the second quarter of 2020.
» Total connections, the performance metric for devices USAT has previously reported, totaled 1,358,000 at the end of the second quarter of 2021, compared with 1,335,000 at the end of the first quarter of 2021 and 1,255,000 at the end of the second quarter of 2020.
» Gross margin was 32.1%, compared with 29.0% in the second quarter of 2020
» Adjusted EBITDA was $1 million, compared with $900,000 in the second quarter of 2020
» USAT ended the quarter with $28.2 million in cash and cash equivalents.
“While the rebound in our industry from the impact of the pandemic, and in turn our business, has been slower than we expected when we laid out our FY 21 financial goals, we are incredibly proud of all the company has accomplished in this short amount of time,” Feeny said. "We believe we have the right team in place, with tailwinds that we expect will help drive our business. The increasing shift to contactless payments and unattended retail have created demand for cashless products, and we are making the right investments to position us well for success.”
Last November, USA Technologies was relisted on the Nasdaq Global Select Market under the ticker symbol “USAT.” It also announced that it will transition its corporate identity to exclusively operate under the name Cantaloupe Inc. and hired Ravi Venkatesan for the newly created position of chief technology officer.
Click here to open USAT’s full Q2 report and condensed consolidated balance sheets.