Vending industry payments leader Cantaloupe Inc. (Nasdaq: CTLP) this week reported record revenues of $51.1 million for its second quarter in fiscal 2022, ended Dec. 31, which was also the third consecutive quarter of record transaction fees.
"We reported record revenues, growing 33% year over year, driven by a 24% increase in subscription and transaction fees and a 95% increase in equipment revenue over the prior year second quarter,” said Cantaloupe chief executive Sean Feeney.
"We believe Cantaloupe will continue to benefit from strong industry tailwinds, such as the digitization and innovation of payments and the sustained adoption and growth of unattended retail," Feeney added.
Second quarter financial highlights
- Total dollar volumes of transactions in the second quarter were $555.3 million, an increase of 31% year-over-year.
- Revenue in the second quarter was $51.1 million, an increase of 33% year over year. Subscription and transaction fees of $41.2 million, an increase of 24% year-over-year. Equipment sales of $9.9 million, an increase of 95% year over year
- Gross margin of 31%, compared with 32% in the prior year period. Subscription and transaction fees margins totaled 39% versus 38% in the prior year quarter. Equipment sales margins of 3%, compared with 6% in the prior year quarter
- Operating loss of $0.3 million for the quarter ended Dec. 31, compared with operating loss of $2.6 million in the prior year period
- U.S. GAAP Net loss applicable to common shares of $0.5 million, or a loss of $0.01 per share compared to net loss applicable to common shares of $2.9 million, or a loss of $0.04 per share, in the prior year period.
- Adjusted EBITDA of $2.4 million, compared with $1.0 million in the prior year period
- Active Customers totaled 21,315 at the end of the second quarter of 2022. compared to 18,304 at the end of the second quarter of 2021, an increase of 16%
- Active Devices totaled 1.12 million at the end of the second quarter of 2022 compared to 1.08 million at the end of the second quarter of 2021, an increase of approximately 4%.
Second Quarter Business Highlights
- Shipped over 14,000 ePort Engage devices during the quarter. ePort Engage series is the company’s next generation of digital touchscreen devices for the market which provides retailers the ability to captivate consumers in new ways and enables truly frictionless purchasing.
- Announced a partnership with HIVERY, a data-science company that specializes in AI technology to streamline category management for retailers in the consumer packaged goods industry. The partnership will provide the Company's Seed customers an enhanced merchandising technology leveraging AI and Machine Learning to improve vending machine performance.
- Appointed Jeff Dumbrell as Chief Revenue Officer. Dumbrell has over 20 years of experience building and scaling high-performing payments and technology organizations globally.
- Continued promotional upgrade program for 2G and 3G devices to 4G LTE.
Cantaloupe executive updates
• Wayne Jackson will retire from Cantaloupe and Scott Stewart, the company’s chief accounting officer, was promoted to chief financial officer, effective Feb. 4.
• Ravi Venkatesan, the company’s chief technology officer, was promoted to chief operating officer, effective Feb. 4.
• Ian Harris was appointed to the board of directors, replacing Doug Braunstein, effective Feb. 2. Harris is a senior analyst at Hudson Executive Capital.
Fiscal Year 2022 Outlook:
For full fiscal year, Cantaloupe said it remains confident in its previously issued guidance, and continues to expect the following:
- Revenue to be between $200 million and $210 million, representing a 20% to 26% increase year over year.
- U.S. GAAP net loss applicable to common shares to be between $(7) million and $(5) million.
- Adjusted EBITDA to be between $8.5 million and $10.5 million, a 12% to 38% increase year over year.