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, 2023.
“In the second quarter, we continued to execute on our strategy of expanding operating leverage and driving strong profitability,” Ravi Venkatesan, chief executive officer, Cantaloupe, said in the announcement. “Our domestic and international pipeline is robust, driven by our go-to-market strategy and extensive product offering. We increased gross margins during the quarter, driving expansion across all revenue lines. I remain excited about long-term opportunity given the favorable secular tailwinds including the acceleration of micro markets and consumer payment preferences.”
Second quarter 2024 key financial results:
Revenue of $65.4 million, an increase of 7% year over year.
- Transaction fees of $37.9 million, an increase of 17% year over year.
- Subscription fees of $18.1 million, an increase of 10% year over year.
- Equipment sales of $9.3 million, a decrease of 25% year over year.
Total dollar volumes of transactions were $730.1 million, an increase of 12% year over year.
Transactions totaled 286.7 million at the end of the second quarter of 2024.
Gross margin of 37.2% compared with 30.1% in the prior year quarter.
- Subscription and transaction fees margins grew to 43.1% compared to 38.3% in the prior year quarter.
- Equipment sales margins grew to 1.8% compared to negative 2.3% in the prior year quarter.
Average revenue per device totaled $181.91 for the second quarter of 2024, compared to $160.46 in the prior year quarter.
Net income applicable to common shares of $3.1 million, or $0.04 per share, compared to net loss applicable to common shares of $0.6 million, or $(0.01) per share, in the prior year quarter.
Adjusted EBITDA of $8.5 million compared to $3.9 million in the prior year quarter.
Recent business highlights
Active customers totaled 30,027 at the end of the second quarter of 2024 compared to 26,335 at the end of the second quarter of 2023, an increase of 14%.
Active devices totaled 1.23 million at the end of the second quarter of 2024 compared to 1.15 million at the end of the second quarter of 2023, an increase of 7%.
The company showcased its full suite of solutions and products for the Mexico market at Cantaloupe LIVE Mexico. Conference attendees including partners, cooler manufacturers, vending distributors and operators, interacted with Cantaloupe’s technology and case studies on how it can support business growth in cashless payments, micro markets and vending management software.
The company launched Seed Analytics and Seed Intelligence, two business analytics tools integrated in the Seed Pro platform, designed to transform the way vending operators leverage data for business growth.
Acquired CHEQ, a company focused on the sports and entertainment fan experience, by providing a comprehensive suite of self-service solutions and payment technology.
Fiscal year 2024 outlook
For the full fiscal year 2024, the company reiterates the following:
Total revenue to be between $275 million and $285 million.
The combination of subscription and transaction fees to be between $234 million and $242 million.
Total net income to be between $9 million and $15 million.
Adjusted EBITDA to be between $28 million and $34 million.
