Follow its rebrand from USA Technologies Inc. to Cantaloupe Inc., (Nasdaq: CTLP), the digital payments and software services company that provides end-to-end technology solutions for the unattended retail market reported results for the fiscal year 2021 third quarter.
“We are pleased with our financial results for the third fiscal quarter, which improved sequentially as schools and other organizations across the country continue to re-open, said Cantaloupe chief executive Sean Feeney “One year into leading this incredible company, I am proud of the progress we’ve made at the company. The successful rebrand to Cantaloupe has re-energized us as we emerge from the pandemic and set forth on a path to growth and future successes, as we help the world buy it and go.”
Financial highlights:
- Revenue of $42.8 million, an increase of 11.7% versus second quarter 2021, and a decrease of 0.8% year over year. (License and transaction fee revenue of $34.7 million, an increase of 4.4% versus second quarter 2021 and a decrease of 0.8% year-over-year and equipment revenue of $8.1 million, an increase of 59.2% over second quarter 2021 and a decrease of 0.8% year over year).
- Active devices, defined as devices that have communicated or transacted with the company in the last 12 months, totaled 1.08 million at the end of the third quarter of 2021, compared with 1.05 million at the end of the third quarter of 2020, an increase of approximately 30,000 active devices, or 3%.
- Active customers, defined as customers that have at least one active device, totaled 18,763 at the end of the third quarter of 2021, compared with 16,808 at the end of the third quarter of 2020, an increase of 1,955 active customers, or 12%.
- Gross margin of 29.7%, compared with 25.5% in the prior year period.
- Operating loss of $2 million for the quarter ended March 31, 2021 compared to operating loss of $10.2 million in the prior year period, driven primarily by a $6.5 million reduction in operating expenses.
- GAAP net loss applicable to common shares of $2.2 million, or $0.03 per basic share compared to net loss applicable to common shares of $9.6 million, or $0.15 per basic share in the prior year period.
- Adjusted EBITDA1 of $2.2 million compared to $(3.9) million in the prior year period.
- Raised $55 million of aggregate gross proceeds from institutional accredited investors through a private placement transaction.
- Ended the quarter with $88.6 million in cash and cash equivalents compared to $31.7 million as of June 30, 2020.
Operational highlights:
- Renewed Small Ticket Incentive Agreement with Visa U.S.A. Inc.
- Experienced increased momentum in customers converting from 2G/3G to 4G LTE devices.
- Upgraded and expanded the ePort product family to accept EMV contact and contactless payments.
- Launched next generation of Seed Cashless+ tailored to small and medium businesses (SMBs) in the channel.
- Announced eCommerce integration for office coffee service (OCS) and delivery services.
- In April, USA Technologies Inc. officially launched as Cantaloupe Inc. (Nasdaq: CTLP), celebrating its rebranding under a new name and ticker.
Fiscal year 2021 outlook:
For full fiscal year 2021, the Company is reiterating the following:
- Revenue to be between $163 million and $171 million.
- GAAP Net loss applicable to common shares to be between $17 million and $21 million.
- Adjusted EBITDA2 to be between $1 million and $4 million.
