Cantaloupe reports record revenue for the fourth quarter and fiscal year 2022

Cantaloupe Inc., a digital payments and software services company that provides end-to-end technology solutions for the unattended retail market, reported results for the fourth quarter and fiscal year ended June 30, 2022.

The company reported an all-time high for total quarterly revenue of $58 million, up 18% over fourth quarter 2021. This is also the fifth successive quarter with double-digit year-over-year revenue growth. For the full fiscal year, the company reported a 23% increase in revenue to $205 million, also a new record.

Fourth-quarter 2022 financial highlights

Record revenue of $58.0 million, an increase of 18% year over year. The increase was led by a fifth consecutive quarter of record transaction revenue.

Transaction fees of $30.0 million, an increase of 23% year over year.
Subscription fees of $14.9 million, an increase of 7% year over year.
Equipment sales of $13.1 million, an increase of 22% year over year.

Total dollar volumes of transactions in the fourth quarter were $616.1 million, an increase of 20% year over year.

Gross margin of 29.5% compared with 30.2% in the prior year quarter.

Subscription and transaction fees margins of 39.5% compared to 39.3% in the prior year quarter.
Equipment sales margins of (4.6)% compared to (2.3)% in the prior year quarter.

GAAP net loss applicable to common shares of $2.1 million, or $(0.03) per share, compared to net income applicable to common shares of $2.7 million, or $0.04 per share, in the prior year period.

Adjusted EBITDA of $2.0 million compared to $5.0 million in the prior year period. Prior year benefited from a $2.9 million adjustment to a sales tax reserve due to a state law change.

Fiscal year 2022 financial highlights

Record revenue of $205.2 million, an increase of 23% year over year.

Transaction fees of $110.7 million, an increase of 29% year over year.
Subscription fees of $58.1 million, an increase of 8% year over year.
Equipment sales of $36.4 million, an increase of 31% year over year.

Total dollar volumes of transactions in the fiscal year were $2.3 billion, an increase of 30.2% year over year.

Gross margin of 31.3% compared with 32.4% in the prior year.

Subscription and transaction fees margins of 38.8% compared to 39.9% in the prior year.
Equipment sales margins of (3.5)% compared to (5.8)% in the prior year.

GAAP net loss applicable to common shares of $2.4 million, or $0.03 per share, compared to net loss applicable to common shares of $9.4 million, or $0.14 per share, in the prior year.

Adjusted EBITDA of $9.9 million compared to $7.6 million in the prior year.

“We are pleased to report a record fourth quarter and year,” Sean Feeney, chief executive officer, Cantaloupe, said in the announcement. “The self-service economy is still at an early stage, and we are very excited about Cantaloupe’s leadership position, allowing us to capitalize on the secular tailwinds benefitting our industry.”

Recent business highlights

Active customers totaled 23,991 at the end of the fourth quarter of 2022 compared to 19,834 at the end of the fourth quarter of 2021, an increase of 21%.
Active devices totaled 1.14 million at the end of the fourth quarter of 2022 compared to 1.09 million at the end of the fourth quarter of 2021, an increase of 4%.
Successfully launched a bundled subscription model, the Cantaloupe ONE Platform.
Shipped 43,000 of newly launched Engage interactive devices in fiscal year 2022.

Management changes

Ravi Venkatesan appointed chief executive officer, effective October 1, 2022. Venkatesan, who currently serves as Cantaloupe’s COO, will succeed Sean Feeney, who will retire from Cantaloupe as of September 30, 2022.

Gaurav Singal appointed chief technology officer, effective September 12, 2022.