Cantaloupe Inc., a digital payments and software services company that provides end-to-end technology solutions for self-service commerce, reported results for the second quarter ending December 31, 2022.
“We saw strong financial results in Q2, with all-time high record revenue in transaction fees, subscription fees and total revenue, which demonstrates we are making progress on our strategic initiatives and working towards our vision to become the global market leader in providing technology that powers self-service commerce,” Ravi Venkatesan, chief executive officer, Cantaloupe, said in the announcement. “The acquisition of Three Square Market (“32M”) was also completed in the quarter. Integration is well underway and early customer interaction is validating our revenue synergy expectations.”
Second-quarter 2023 key financial results
Revenue of $61.3 million, an increase of 20% year over year.
- Transaction fees of $32.4 million, an increase of 21% year over year.
- Subscription fees of $16.5 million, an increase of 15% year over year.
- Equipment sales of $12.4 million, an increase of 25% year over year.
Total dollar volumes of transactions were $649.4 million, an increase of 17% year over year.
Gross margin of 30.1% compared with 31.3% in the prior year quarter.
- Subscription and transaction fees margins of 38.3% compared to 39.5% in the prior year quarter.
- Equipment sales margins of (2.3)% compared to (2.8)% in the prior year quarter.
U.S. GAAP net loss applicable to common shares of $573,000, or $(0.01) per share, compared to net loss applicable to common shares of $468,000, or $(0.01) per share, in the prior year quarter.
Adjusted EBITDA of $3.9 million compared to $2.4 million in the prior year quarter.
Second-quarter 2023 business highlights
- Completed the acquisition of Three Square Market Inc., accelerating the company’s micro market presence and international expansion.
- Active customers totaled 26,335 at the end of the second quarter of 2023 compared to 21,315 at the end of the second quarter of 2022, an increase of 24%.
- Active devices totaled 1.15 million at the end of the second quarter of 2023 compared to 1.12 million at the end of the second quarter of 2022, an increase of 3%.
- Completed the upgrade of the vast majority of non 4G/EMV devices, including most large enterprise clients, as the company reached the 12/31/22 upgrade deadline.
- Held first investor day at Nasdaq where the company articulated its renewed vision, strategy, and long-term financial outlook.
Fiscal year 2023 outlook
For the full fiscal year 2023, the company reiterates the following:
- Revenue to be between $240 million and $250 million.
- U.S. GAAP net income to be between $(2) million and $3 million.
- Adjusted EBITDA to be between $12 million and $17 million.
- Total operating cash flow to be between $10 million and $15 million.