Cantaloupe Inc. reports 50% fourth-quarter revenue increase

Unattended retail tech leader Cantaloupe Inc. (Nasdaq: CTLP) reported on Sep. 2 results for its record fourth quarter and fiscal year, ended Jul. 30

"We delivered record revenue in the fourth quarter, capping off a transformational year for the company. During the last year, the company demonstrated an ability to serve our customers, develop innovative new products and solutions, and deliver robust financial performance in any macro environment,” said Cantaloupe chief executive Sean Feeney.

FOURTH-QUARTER KEY POINTS

Cantaloupe delivered record revenue of $49 million, an increase of 14.6% versus third quarter of 2021, and an increase of 50.2% year over year. License and transaction-fee revenue was $38.2 million, an increase of 10.2% versus third of quarter 2021 and an increase of 37.3% year over year. Equipment revenue was $10.8 million, an increase of 33.6% versus third quarter of 2021 and an increase of 124.5% year over year.
Active devices, defined as devices that have communicated or transacted with the company in the past 12 months, totaled 1.09 million at the end of the fourth quarter of 2021, compared with 1.08 million at the end of the fourth quarter of 2020, an increase of 1.4%.
Active customers, defined as customers that have at least one active device, totaled 19,800 at the end of the fourth quarter of 2021, compared with 17,200 at the end of the fourth quarter of 2020, an increase of about 15%.
Gross margin was 30.2%, compared with 34% in the prior year period. Transactions revenues were significantly higher in the current quarter than the prior year, resulting in L&T margins of 39.3%, compared with 42.3% in the prior year quarter. And equipment margin improved to negative 2.3%, compared with 14.1% in the prior year quarter.
Cantaloupe had an operating loss of $0.5 million for the quarter ended Jun. 30, compared with operating loss of $10.4 million in the prior year period, driven primarily by a $3.7 million increase in gross profit and a $6.2 million reduction in operating expenses.
GAAP net income applicable to common shares of $2.7 million, or $0.04 per share, compared with net loss applicable to common shares of $11.4 million, or $0.18 per share in the prior year period.
Adjusted EBITDA was $5 million, compared with $2.) million in the prior year period.

BUSINESS HIGHLIGHTS

Cantaloupe reported record hardware shipments in the fourth quarter of fiscal year 2021.
Exceeded pre-COVID peaks in transaction dollar volumes in June.
Continued to acquire new customers while expanding amongst existing customers. The company signed two enterprise customers to the Seed platform: Elite Refreshment Services and Vend Buffet/Lufkin Coke. And there is steady adoption of Seed Cashless+ among SMB customers, including V-Enders, which is managing most of its machines using the software.
In August, the fintech company hosted its inaugural Cantaloupe Innovation Summit at The NAMA Show, showcasing almost a dozen new products and services.
Introduced ePort Engage Series, giving retailers the ability to captivate consumers in new ways and enabling truly frictionless purchasing.
Announced a strategic partnership with Bakkt Holdings to bring a new, cashless experience for consumers to spend digital assets at unattended retail devices.
Formed a commercial arrangement with Castles Technology to introduce a next-generation cashless readers.
Implemented Seed software to first U.S. Global Connect franchisee customer.
Added to U.S. Small-Cap Russell 2000 Index.
In August 2021, the company announced the acquisition of Yoke Payments, a Los Angeles-based award-winning micro market payments company.

2022 OUTLOOK

Cantaloupe expects revenue to be between $200 million and $210 million.
GAAP net loss applicable to common shares is expected to be between $(7) million and $(5) million.
Adjusted EBITDA is expected to be between $8.5 million and $10.5 million.

See Cantaloupe Inc.'s full news release and consolidated balance sheets on Business Wire.