Cantaloupe Inc. reports third quarter fiscal year 2024 financial results

May 10, 2024
Third quarter 2024 revenue of $67.9 million, driven by 15.5% year-over-year growth in subscription and transaction fees.

Cantaloupe Inc., a leading provider of end-to-end technology solutions for self-service commerce, reported results for the third quarter ending March 31, 2024.

Ravi Venkatesan, chief executive officer, Cantaloupe, said in the announcement: “In the third quarter, we reported strong results, reflecting our continued expansion of operating leverage by driving revenue growth while also optimizing COGS and controlling operational expenses. While subscription revenue has grown slower than anticipated, transaction revenue growth is exceeding expectations and achieving higher profitability rates sooner. We continue to expand our footprint domestically and internationally, and are pleased to now have sold thousands of devices across Latin America and Europe. The significant rise in cashless and touchless payments, along with the growth of micro markets, in the convenience industry are strong secular tailwinds that validate the long-term opportunity of Cantaloupe and will continue to drive our business for years to come.”

Third-quarter 2024 key financial results

Revenue of $67.9 million, an increase of 12.5% year over year

  • Transaction fees of $40.0 million, an increase of 19.9% year over year.
  • Subscription fees of $19.2 million, an increase of 7.4% year over year.
  • Equipment sales of $8.7 million, a decrease of 4.6% year over year.

Total dollar volumes of transactions were $767.4 million, an increase of 17.4% year over year.

Transactions totaled 283.3 million at the end of the third quarter of 2024.

Gross margin of 39.6% compared with 37.9% in the prior year quarter.

  •      Subscription and transaction fees margins grew to 44.4% compared to 42.3% in the prior year quarter.
  • Equipment sales margins declined to 7.2% compared to 13.4% in the prior year quarter.

Average revenue per unit totaled $186.00 for the third quarter of 2024, compared to $167.52 in the prior year quarter.

Net income applicable to common shares of $4.4 million, or $0.06 per share, compared to net income applicable to common shares of $6.7 million, or $0.09 per share, in the prior year quarter.

Adjusted EBITDA of $10.2 million compared to $10.1 million in the prior year quarter.

Third-quarter 2024 business highlights

Active customers totaled 30,670 at the end of the third quarter of 2024 compared to 27,598 at the end of the third quarter of 2023, an increase of 11.1%.

Active devices totaled 1.22 million at the end of the third quarter of 2024 compared to 1.15 million at the end of the third quarter of 2023, an increase of 5.9%.

Acquired CHEQ, a company focused on the sports amd entertainment fan experience, by providing a comprehensive suite of self-service solutions and payment technology.

Held Cantaloupe’s annual user conference, Cantaloupe University, in Las Vegas, Nevada, with 240+ attendees viewing some of the company’s latest technologies as well as getting access to two days of training and education around Cantaloupe’s entire platform and suite of products.

Partnered with Turbo Air and Imbera at Expo Antad, in Guadalajara, Mexico, to showcase solutions for the Mexico market, which include Cantaloupe’s cashless device, the P30, the Seed platform, micro market technology and smart coolers with age verification.

Fiscal year 2024 outlook

For the full fiscal year 2024, the company updates the following:

Total revenue to be between $270 million and $275 million.

The combination of subscription and transaction revenue to be between $232 million and $236 million.

Total U.S. GAAP net income to be between $12 million and $15 million.

Adjusted EBITDA to be between $33 million and $36 million.

Total operating cash flow to be between $24 million and $28 million.