MALVERN, PA — Cantaloupe, Inc. (Nasdaq: CTLP) recently reported results for the third quarter ended March 31, 2023.
“We experienced strong financial results in Q3, with record revenue in transaction fees and subscription fees, which demonstrates progress on our strategic initiatives and the adoption of our new products,” said Ravi Venkatesan, chief executive officer, Cantaloupe. “We also reported a record quarter of Adjusted EBITDA, illustrating our ability to unleash operating leverage. The integration of Three Square Market (“32M”) is going very well and we are seeing an acceleration of our micro markets business as both existing and new customers are migrating their kiosks to the 32M platform.”
Third Quarter 2023 Key Financial Results:
- Revenue of $60.4 million, an increase of 20% year over year.
- Transaction fees of $33.4 million, an increase of 21% year over year
- Subscription fees of $17.9 million, an increase of 22% year over year
- Equipment sales of $9.1 million, an increase of 12% year over year
- Total Dollar Volumes of Transactions were $653.6 million, an increase of 16% year over year
- Transactions totaled 268 million at the end of the third quarter of 2023 compared to 259 million at the end of the third quarter of 2022, an increase of 4%
- Gross margin of 37.9% compared with 32.2% in the prior year quarter
- Subscription and transaction fees margins of 42.3% compared to 40.0% in the prior year quarter
- Equipment sales margins of 13.4% compared to negative 8.0% in the prior year quarter
- U.S. GAAP Net income applicable to common shares of $6.7 million, or $0.09 per share, compared to Net income applicable to common shares of $1.8 million, or $0.03 per share, in in the prior year quarter
- Adjusted EBITDA[1] of $10.1 million, an increase of 176%, compared to $3.7 million in in the prior year quarter
Third Quarter 2023 Business Highlights:
- Active Customers totaled 27,598 at the end of the third quarter of 2023 compared to 22,818 at the end of the third quarter of 2022, an increase of 21%.
- Active Devices totaled 1.15 million at the end of the third quarter of 2023 compared to 1.13 million at the end of the third quarter of 2022, an increase of 2%.
- Following the acquisition of 32M in December of 2022, the Company has seen a successful acceleration in the micro market business as both existing and new customers are migrating their kiosks to the 32M platform.
- Continued to see significant customer interest and growth in the newly launched Cantaloupe ONE Platform, a bundled subscription model, which provides operators the flexibility and predictability of a monthly, fixed subscription amount covering the hardware and service fees.
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 EBITDA1 to be between $12 million and $17 million
- Total Operating Cash Flow to be between $10 million and $15 million
For more information, visit www.cantaloupe.com.
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