Cantaloupe Inc., a digital payments and software services company that provides end-to-end technology solutions for self-service commerce, reported results for the fourth quarter and fiscal year ending June 30, 2023.
“Our fourth quarter results, including a fourfold increase in adjusted EBITDA, capped off a strong year for Cantaloupe. Continued growth in all customer segments, the acquisition and integration of Three Square Market (32M), expansion of our presence in micro markets and the continued adoption of Seed software and subscription products drove exceptional fiscal year results,” Ravi Venkatesan, chief executive officer, Cantaloupe, said in the announcement. “At our December analyst day, we set a goal of driving sustained operating leverage. We believe that our 2023 results, as well as our fiscal year 2024 guidance, show that we are well on our way to achieving that goal.”
Fourth quarter 2023 key financial results
Revenue of $64.2 million, an increase of 11% year over year.
· Transaction fees of $35.5 million, an increase of 18% year over year
· Subscription fees of $17.5 million, an increase of 17% year over year
· Equipment sales of $11.2 million, a decrease of 15% year over year
Total dollar volumes of transactions were $703.5 million, an increase of 14% year over year.
Transactions totaled 278.6 million at the end of the fourth quarter of 2023, a slight increase compared to 274.6 million at the end of the fourth quarter of 2022.
Gross margin of 40.1% compared with 29.5% in the prior year quarter.
· Subscription and transaction fees margins of 44.2% compared to 39.5% in the prior year quarter.
· Equipment sales margins of 20.8% compared to negative 4.6% in the prior year quarter.
U.S. GAAP net income applicable to common shares of $2.8 million, or $0.04 per share, compared to net loss applicable to common shares of $2.1 million, or $(0.03) per share, in the prior year quarter.
Adjusted EBITDA of $9.2 million compared to $2.0 million in the prior year quarter.
Fiscal year 2023 key financial results
Revenue of $243.6 million, an increase of 19% year over year.
· Transaction fees of $132.6 million, an increase of 20% year over year.
· Subscription fees of $67.6 million, an increase of 16% year over year.
· Equipment sales of $43.4 million, an increase of 19% year over year.
Total dollar volumes of transactions were $2.6 billion, an increase of 16% year over year.
Transactions totaled 1.1 billion at the end of 2023 compared to 1.0 billion at the end of 2022, an increase of 4%.
Gross margin of 33.3% compared with 31.3% in the prior year.
· Subscription and transaction fees margins of 40.2% compared to 38.8% in the prior year.
· Equipment sales margins of 1.7% compared to negative 3.5% in the prior year.
U.S. GAAP net income applicable to common shares of $0.01 million, or $0.00 per share, compared to Net loss applicable to common shares of $2.4 million, or $(0.03) per share, in the prior year.
Adjusted EBITDA of $17.8 million, compared to $9.9 million in the prior year.
Recent business highlights
Active customers totaled 28,584 at the end of the fourth quarter of 2023 compared to 23,991 at the end of the fourth quarter of 2022, an increase of 19%.
Active devices totaled 1.17 million at the end of the fourth quarter of 2023 compared to 1.14 million at the end of the fourth quarter of 2022, an increase of 3%.
Fiscal year 2024 outlook
For the full fiscal year 2024, the company expects:
- Total revenue to be between $275 million and $285 million.
- The combination of transaction and subscription revenue to be between $234 million and $242 million.
- Total U.S. GAAP net income to be between $9 million and $15 million.
- Adjusted EBITDA to be between $28 million and $34 million.
