CTLP Cantaloupe Inc

Fourth Quarter 2024 Revenue of $72.7 Million, Driven by a 15.4% Year Over Year Growth in Subscription and Transaction Fees

Fiscal Year 2024 Revenue of $268.6 Million, a 10.2% Year over Year Increase

Fiscal Year 2024 U.S. GAAP Net Income Applicable to Common Shares of $11.4 million

Fiscal Year 2024 Adjusted EBITDA[1] of $34.0 million, a 90.9% Year over Year increase

Cantaloupe, Inc. (Nasdaq: CTLP) (“Cantaloupe” or the “Company”), a global leading provider of end-to-end technology solutions for self-service commerce, today reported results for the fourth quarter and fiscal year ended June 30, 2024.

“It’s been a strong year for Cantaloupe capped off by a solid fourth quarter,” said Ravi Venkatesan, chief executive officer, Cantaloupe. “During Fiscal Year 2024, we executed on our strategy to expand operating leverage by driving recurring revenue growth while also optimizing cost of sales and controlling operational expenses, as evidenced by our expansion of Adjusted Gross Margin and strong growth in Adjusted EBITDA. Our acquisition of SB Software Limited further enhances our international expansion efforts in Europe as we look to increase our footprint and breadth of solutions. We continue to benefit from the secular trend toward cashless payments and the demand for self-service solutions, which will fuel our growth in FY25 and beyond.”

Fourth Quarter 2024 Key Financial Results:

• Revenue of $72.7 million, an increase of 13.2% compared to fourth quarter of fiscal year 2023.
  • Transaction fees of $41.2 million, an increase of 16.0%.
  • Subscription fees of $19.9 million, an increase of 14.1%.
  • Equipment sales of $11.5 million, an increase of 2.9%.
• Total dollar volumes of transactions were $815.7 million, an increase of 15.9% compared to fourth quarter of fiscal year 2023.
• Transaction volume totaled 290.4 million, an increase of 4.2%, compared to 278.6 million for fourth quarter fiscal year 2023.
• Adjusted Gross Margin[1] of 37.3% compared with 40.1% in fourth quarter fiscal 2023. During fourth quarter fiscal year 2023, we benefited from certain one-time items which increased Adjusted Gross Margin[1] by 2.3%. Without these items, Adjusted Gross Margin[1] would have been relatively consistent between these two quarters.
  • Subscription and transaction fees Adjusted Gross Margin[1] declined to 43.0% compared to 44.2%.
  • Equipment sales gross margins declined to 7.2% compared to 20.8%.
• Net income applicable to common shares of $2.2 million, or $0.03 diluted earnings per share, compared to net income applicable to common shares of $2.8 million, or $0.04 diluted earnings per share, in the prior year quarter. The decrease in net income applicable to common shares is the result the one-time items noted above.
• Adjusted EBITDA[1] of $7.5 million compared to $9.2 million in fourth quarter of fiscal year 2023, a decrease of 19.0%. The decrease in Adjusted EBITDA[1] is the result the one-time items noted above.

Fiscal Year 2024 Key Financial Results:

• Revenue of $268.6 million, an increase of 10.2% year over year.
  • Transaction fees of $156.2 million, an increase of 17.8% year over year.
  • Subscription fees of $75.3 million, an increase of 11.4% year over year.
  • Equipment sales of $37.1 million, a decrease of 14.6% year over year.
• Total dollar volumes of Transactions were $3.0 billion, an increase of 14.8% year over year
• Transactions totaled 1.14 billion at the end of 2024 compared to 1.10 billion at the end of 2023, an increase of 4.4%.
• Average revenue per unit[2] increased 11.5% to $193.64, compared to $173.70 for fiscal year 2023.
• Adjusted Gross Margin[1] of 38.2% compared with 33.3% for fiscal year 2023.
  • Subscription and transaction fees Adjusted Gross Margins[1] of 43.2% compared to 40.2% for fiscal year 2023.
  • Equipment sales gross margins of 6.9% compared to 1.7% for fiscal year 2023.
• Net income applicable to common shares of $11.4 million, or $0.15 diluted earnings per share, compared to $0.01 million, or $0.00 diluted earnings per share, for fiscal year 2023.
• Adjusted EBITDA[1] of $34.0 million, compared to $17.8 million in the prior year, an increase of 90.9% year over year.

Fourth Quarter 2024 Business Highlights:

• Active Customers totaled 31,466 at the end of the fourth quarter of 2024 compared to 28,584 at the end of the fourth quarter of 2023, an increase of 10.1%.
• Active Devices totaled 1.22 million at the end of the fourth quarter of 2024 compared to 1.17 million at the end of the fourth quarter of 2023, an increase of 4.7%.

Fiscal Year 2025 Outlook:

For the full fiscal year 2025, the Company updates the following:

• Total Revenue to be between $308 million and $322 million.
• The combination of Subscription and Transaction revenue growth to be in the range of 15%-20%.
• Total US GAAP net income applicable to common shares to be between $22 million and $32 million.
• Adjusted EBITDA[1] to be between $44 million and $52 million.
• Total Operating Cash Flow to be between $24 million and $32 million.

Webcast and Conference Call:

Cantaloupe will host a live webcast at 5:00 p.m. Eastern Time today which may be accessed in the Investor Relations section of the Company’s website at https://cantaloupeinc.gcs-web.com/events-and-presentations.

To join the live call in order to ask questions, please register here. A dial in and unique PIN will be provided to join the conference call.

A replay of the conference call will also be available in the Investor Relations section of the Company’s website.

About Cantaloupe, Inc.

Cantaloupe, Inc. is a global technology leader powering self-service commerce. With over a million active locations, processing more than a billion transactions every year, Cantaloupe is enabling businesses of all sizes to provide self-service experiences for consumers. The company's vertically integrated solutions fuel growth by offering micro-payments processing, enterprise cloud software, IoT technology, as well as kiosk and POS innovations. Cantaloupe’s end-to-end platform increases consumer engagement and sales revenue through digital payments, consumer promotions and loyalty programs, while providing business owners increased profitability by leveraging software to drive efficiencies across an entire operation. Cantaloupe’s solutions are used by a variety of consumer services in the United States, Mexico, Europe, and Australia including vending machines, micro markets and smart retail, EV charging stations, laundromats, metered parking terminals, amusement and entertainment venues, IoT services and more. To learn more about Cantaloupe, Inc., visit cantaloupe.com or follow the company on LinkedIn, Twitter (X), Facebook, Instagram or YouTube.

______________ 1 Adjusted Gross Margin and Adjusted EBITDA represent Non-GAAP financial measures.  See “Discussion of Non-GAAP Financial Measures” and the Reconciliations of “U.S. GAAP Gross Profit to Adjusted Gross Profit” and “U.S. GAAP Net Income to Adjusted EBITDA” below.

2 We define average revenue per unit ("ARPU") as our total subscription and transaction fees for the trailing 12 months divided by average total active devices for the trailing 12 months.

Forward-looking Statements:

All statements other than statements of historical fact included in this release, including without limitation Cantaloupe’s future prospects and performance, the business strategy and the plans and objectives of Cantaloupe's management for future operations, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this release, words such as “estimate,” “could,” “should,” “would,” “likely,” “may,” “will,” “plan,” “intend,” “believes,” “expects,” “anticipates,” “projected,” and variations of these terms and similar expressions. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, or achievements. Actual results or business conditions may differ materially from those projected or suggested in forward-looking statements as a result of various factors including, but not limited to, those described below and in Part I, Item 1A, “Risk Factors” of our most recent Annual Report.

Actual results could differ materially from those contemplated by the forward-looking statements as a result of certain factors, including but not limited to general economic, market or business conditions unrelated to our operating performance, including inflation, elevated interests rates, supply chain disruptions, financial institution disruptions, geopolitical conflicts, public health emergencies and declines in consumer confidence and discretionary spending; our ability to compete with our competitors and increase market share; failure to comply with the financial covenants in our debt facilities; our ability to maintain compliance with rules and regulations applicable to our business operations and industry; disruptions in other card payment processors, software and manufacturing partners upon whom we rely; whether our customers continue to utilize our transaction processing and related services, as our customer agreements are generally cancellable by the customer with thirty days’ notice; our ability to acquire and develop relevant technology offerings for current, new and potential customers and partners; risks and uncertainties associated with our expansion into and our operations in Europe, Mexico and other foreign markets, including general economic conditions, policy changes affecting international trade, political instability, inflation rates, recessions, sanctions, foreign currency exchange rates and controls, foreign investment and repatriation restrictions, legal and regulatory constraints, civil unrest, armed conflict, war and other economic and political factors; our ability to satisfy our trade obligations included in accounts payable and accrued expenses; our ability to attract, develop and retain key personnel, or our loss of the services of our key executives; the incurrence by us of any unanticipated or unusual non-operating expenses, which may require us to divert our cash resources from achieving our business plan; our ability to predict or estimate our future quarterly or annual revenue and expenses given the developing and unpredictable market for our products; our ability to successfully integrate acquired companies into our current products and services structure; our ability to add new customers and retain key existing customers from whom a significant portion of our revenue is derived; the ability of a key customer to reduce or delay purchasing products from us; our ability to obtain widespread commercial acceptance of our products and service offerings; whether any patents issued to us will provide any competitive advantages or adequate protection for our products, or would be challenged, invalidated or circumvented by others; the ability of our products and services to avoid disruptions to our systems or unauthorized hacking or credit card fraud; risks associated with cyber-attacks and data breaches; and our ability to maintain effective internal controls and to timely file periodic and current reports with the Securities and Exchange Commission ("SEC").

Readers are cautioned not to place undue reliance on these forward-looking statements. Any forward-looking statement made by us in this release speaks only as of the date of this release. Unless required by law, Cantaloupe does not undertake to release publicly any revisions to these forward-looking statements to reflect future events or circumstances or to reflect the occurrence of unanticipated events. If Cantaloupe updates one or more forward-looking statements, no inference should be drawn that Cantaloupe will make additional updates with respect to those or other forward-looking statements.

Discussion of Non-GAAP Financial Measures:

This press release contains discussion of Adjusted Gross Margin and Adjusted EBITDA, two non-GAAP financial measures which are not required or defined under U.S. GAAP (Generally Accepted Accounting Principles). Generally, a non-GAAP financial measure is a numerical measure of a company's performance, financial position or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. Reconciliations between non-GAAP financial measures and the most comparable GAAP financial measures are set forth below. However, we do not provide forward-looking guidance for certain financial measures on a GAAP basis because we are unable to predict certain items contained in the U.S. measures without unreasonable efforts. These items may include acquisition and integration related costs, severance expenses, litigation charges or settlements, and certain other unusual adjustments.

We use Adjusted Gross Profit, Adjusted Gross Margin and Adjusted EBITDA for financial and operational decision-making purposes and as a means to evaluate period-to-period comparisons. We believe that these non-GAAP financial measure provide useful information about our operating results, enhance the overall understanding of past financial performance and future prospects and allows for greater transparency with respect to metrics used by our management in its financial and operational decision making. The presentation of these financial measure is not intended to be considered in isolation or as a substitute for the financial measures prepared and presented in accordance with GAAP, including our net income or net cash provided in operating activities. Management recognizes that non-GAAP financial measures have limitations in that they do not reflect all of the items associated with our net income as determined in accordance with GAAP, and are not a substitute for or a measure of our profitability or net earnings. Adjusted Gross Margin and Adjusted EBITDA are presented because we believe they are useful to investors as measures of comparative operating performance. Additionally, we utilize Adjusted EBITDA as a metric in our executive officer and management incentive compensation plans.

We define Adjusted Gross Profit as revenue less cost of sales, exclusive of depreciation of internally-developed software and amortization of intangible assets related to technologies obtained through acquisitions. We believe this non-GAAP measure is useful to view the resulting figures excluding the aforementioned non-cash charges because the amount of such expenses in any specific period may not directly correlate to the underlying performance of our business operations and such amounts vary substantially from company to company depending on their financing and capital structures and the method by which their assets were acquired. We define Adjusted Gross Margin as Adjusted Gross Profit divided by revenue.

We define Adjusted EBITDA as U.S. GAAP net income before (i) interest income on cash and leases, (ii) interest expense on debt and sales tax reserves, (iii) income tax provision, (iv) depreciation, (v) amortization, (vi) stock-based compensation expense, (vii) fees and charges, net of reimbursement from insurance proceeds, that were incurred in connection with the 2019 Investigation and financial statement restatement activities as well as proxy solicitation costs that are not indicative of our core operations, (viii) one-time project expense, one-time severance expenses, and infrequent integration and acquisition expense, and (ix) certain other significant infrequent or unusual losses and gains that are not indicative of our core operations including asset impairment charges, and gain on extinguishment of debt.

 

Cantaloupe, Inc. Consolidated Balance Sheets (unaudited)

   

 

As of June 30,

($ in thousands, except share data)

 

2024

 

 

 

2023

 

 

 

 

 

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

58,920

 

 

$

50,927

 

Accounts receivable, net

 

43,848

 

 

 

30,162

 

Finance receivables, net

 

6,391

 

 

 

6,668

 

Inventory, net

 

40,791

 

 

 

31,872

 

Prepaid expenses and other current assets

 

7,844

 

 

 

3,754

 

Total current assets

 

157,794

 

 

 

123,383

 

 

 

 

 

Non-current assets:

 

 

 

Finance receivables non-current, net

 

10,036

 

 

 

13,307

 

Property and equipment, net

 

34,029

 

 

 

25,281

 

Operating lease right-of-use assets

 

7,986

 

 

 

2,575

 

Intangibles, net

 

24,626

 

 

 

27,812

 

Goodwill

 

94,903

 

 

 

92,005

 

Other assets

 

6,194

 

 

 

5,249

 

Total non-current assets

 

177,774

 

 

 

166,229

 

 

 

 

 

Total assets

$

335,568

 

 

$

289,612

 

 

 

 

 

Liabilities, convertible preferred stock, and shareholders’ equity

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

78,895

 

 

$

52,869

 

Accrued expenses

 

24,008

 

 

 

26,276

 

Current obligations under long-term debt

 

1,266

 

 

 

882

 

Deferred revenue

 

1,726

 

 

 

1,666

 

Total current liabilities

 

105,895

 

 

 

81,693

 

 

 

 

 

Long-term liabilities:

 

 

 

Deferred income taxes

 

466

 

 

 

275

 

Long-term debt, less current portion

 

36,284

 

 

 

37,548

 

Operating lease liabilities, non-current

 

8,457

 

 

 

2,504

 

Total long-term liabilities

 

45,207

 

 

 

40,327

 

 

 

 

 

Total liabilities

$

151,102

 

 

$

122,020

 

Commitments and contingencies

 

 

 

Convertible preferred stock:

 

 

 

Series A convertible preferred stock, 900,000 shares authorized, 385,782 and 385,782 issued and outstanding, with liquidation preferences of $22,722 and $22,144 at June 30, 2024 and 2023, respectively

 

2,720

 

 

 

2,720

 

Shareholders’ equity:

 

 

 

Common stock, no par value, 640,000,000 shares authorized, 72,935,497 and 72,664,464 shares issued and outstanding at June 30, 2024 and 2023, respectively

 

—

 

 

 

—

 

Additional paid-in capital

 

482,329

 

 

 

477,324

 

Accumulated deficit

 

(300,459

)

 

 

(312,452

)

Accumulated other comprehensive loss

 

(124

)

 

 

—

 

Total shareholders’ equity

 

181,746

 

 

 

164,872

 

Total liabilities, convertible preferred stock, and shareholders’ equity

$

335,568

 

 

$

289,612

 

 

Cantaloupe, Inc. Consolidated Statements of Operations (unaudited)

   

 

 

Three months ended

 

Year ended

 

 

June 30,

 

June 30,

($ in thousands, except per share data)

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Revenues:

 

 

 

 

 

 

 

 

Subscription and transaction fees

 

$

61,126

 

 

$

52,971

 

 

$

231,497

 

 

$

200,223

 

Equipment sales

 

 

11,531

 

 

 

11,202

 

 

 

37,099

 

 

 

43,418

 

Total revenues

 

 

72,657

 

 

 

64,173

 

 

 

268,596

 

 

 

243,641

 

 

 

 

 

 

 

 

 

 

Costs of sales (exclusive of certain depreciation and amortization):

 

 

 

 

 

 

 

 

Cost of subscription and transaction fees

 

 

34,861

 

 

 

29,566

 

 

 

131,400

 

 

 

119,715

 

Cost of equipment sales

 

 

10,696

 

 

 

8,867

 

 

 

34,545

 

 

 

42,690

 

Total costs of sales

 

 

45,557

 

 

 

38,433

 

 

 

165,945

 

 

 

162,405

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

Sales and marketing

 

 

6,054

 

 

 

3,539

 

 

 

20,310

 

 

 

12,427

 

Technology and product development

 

 

4,417

 

 

 

3,969

 

 

 

16,532

 

 

 

20,726

 

General and administrative

 

 

11,902

 

 

 

11,747

 

 

 

41,395

 

 

 

36,926

 

Investigation, proxy solicitation and restatement expenses, net of insurance recoveries

 

 

(1,522

)

 

 

91

 

 

 

(1,522

)

 

 

(362

)

Integration and acquisition expenses

 

 

119

 

 

 

354

 

 

 

1,197

 

 

 

3,141

 

Depreciation and amortization

 

 

2,594

 

 

 

2,589

 

 

 

10,570

 

 

 

7,618

 

Total operating expenses

 

 

23,564

 

 

 

22,289

 

 

 

88,482

 

 

 

80,476

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

 

3,536

 

 

 

3,451

 

 

 

14,169

 

 

 

760

 

 

 

 

 

 

 

 

 

 

Other (expense) income:

 

 

 

 

 

 

 

 

Interest income

 

 

464

 

 

 

530

 

 

 

1,969

 

 

 

2,515

 

Interest expense

 

 

(987

)

 

 

(1,068

)

 

 

(2,934

)

 

 

(2,326

)

Other expense

 

 

(68

)

 

 

(23

)

 

 

(226

)

 

 

(135

)

Total other (expense) income, net

 

 

(591

)

 

 

(561

)

 

 

(1,191

)

 

 

54

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

 

2,945

 

 

 

2,890

 

 

 

12,978

 

 

 

814

 

Provision for income taxes

 

 

(739

)

 

 

(58

)

 

 

(985

)

 

 

(181

)

 

 

 

 

 

 

 

 

 

Net income

 

 

2,206

 

 

 

2,832

 

 

 

11,993

 

 

 

633

 

Preferred dividends

 

 

—

 

 

 

—

 

 

 

(578

)

 

 

(623

)

Net income applicable to common shares

 

$

2,206

 

 

$

2,832

 

 

$

11,415

 

 

$

10

 

 

 

 

 

 

 

 

 

 

Net earnings per common share

 

 

 

 

 

 

 

 

Basic

 

$

0.03

 

 

$

0.04

 

 

$

0.16

 

 

$

—

 

Diluted

 

$

0.03

 

 

$

0.04

 

 

$

0.15

 

 

$

—

 

 

 

 

 

 

 

 

 

 

Weighted average number of common shares outstanding used to compute net earnings per share applicable to common shares

 

 

 

 

 

 

 

 

Basic

 

 

72,819,220

 

 

 

72,604,484

 

 

 

72,819,220

 

 

 

71,978,901

 

Diluted

 

 

74,172,098

 

 

 

72,765,369

 

 

 

74,172,098

 

 

 

72,514,634

 

 

Cantaloupe, Inc. Consolidated Statements of Cash Flows (unaudited)

   

 

Year ended June 30,

($ in thousands)

 

2024

 

 

 

2023

 

 

 

 

 

Cash flows from operating activities:

 

 

 

Net income

$

11,993

 

 

$

633

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

Stock-based compensation

 

5,109

 

 

 

4,737

 

Amortization of debt issuance costs and discounts

 

124

 

 

 

128

 

Provision for expected losses

 

3,861

 

 

 

5,815

 

Provision for inventory reserve

 

240

 

 

 

280

 

Depreciation and amortization

 

12,204

 

 

 

8,807

 

Property and equipment write-off

 

601

 

 

 

364

 

Noncash lease expense

 

1,246

 

 

 

—

 

Deferred income taxes and other

 

192

 

 

 

(116

)

Changes in operating assets and liabilities:

 

 

 

Accounts receivable

 

(18,542

)

 

 

4,960

 

Finance receivables

 

3,712

 

 

 

(32

)

Inventory

 

(9,447

)

 

 

(10,387

)

Prepaid expenses and other assets

 

(4,035

)

 

 

(180

)

Accounts payable and accrued expenses

 

21,131

 

 

 

(458

)

Operating lease liabilities

 

(651

)

 

 

(133

)

Deferred revenue

 

7

 

 

 

(226

)

Net cash provided by operating activities

 

27,745

 

 

 

14,192

 

 

 

 

 

Cash flows from investing activities:

 

 

 

Capital expenditures

 

(14,935

)

 

 

(16,151

)

Acquisition of business, net of cash acquired

 

(3,701

)

 

 

(35,714

)

Net cash used in investing activities

 

(18,636

)

 

 

(51,865

)

 

 

 

 

Cash flows from financing activities:

 

 

 

Proceeds from long-term debt

 

—

 

 

 

25,000

 

Repayment of long-term debt

 

(954

)

 

 

(1,270

)

Contingent consideration paid for acquisition

 

—

 

 

 

(1,000

)

Repurchase of Series A Convertible Preferred Stock

 

—

 

 

 

(2,151

)

Payment of employee taxes related to stock-based compensation

 

(219

)

 

 

(104

)

Proceeds from exercise of common stock options

 

115

 

 

 

—

 

Net cash (used in) provided by financing activities

 

(1,058

)

 

 

20,475

 

 

 

 

 

Effect of currency exchange rate changes on cash and cash equivalents

 

(58

)

 

 

—

 

 

 

 

 

Net increase (decrease) in cash and cash equivalents

 

7,993

 

 

 

(17,198

)

Cash and cash equivalents at beginning of year

 

50,927

 

 

 

68,125

 

Cash and cash equivalents at end of year

$

58,920

 

 

$

50,927

 

 

 

 

 

Supplemental disclosures of cash flow information:

 

 

 

Interest paid in cash

$

3,656

 

 

$

2,641

 

Income taxes paid in cash

$

223

 

 

$

61

 

Common stock issued in business combination (non-cash financing activity)

$

—

 

 

$

4,506

 

 

 

 

 

Cantaloupe, Inc. U.S. GAAP Gross Profit (unaudited)

   

 

Three Months Ended June 30,

 

Year Ended June 30,

($ in thousands)

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Subscription and transaction fee revenue

$

61,126

 

 

$

52,971

 

 

$

231,497

 

 

$

200,223

 

 

 

 

 

 

 

 

 

Cost of subscription and transaction fees(1)

 

34,861

 

 

 

29,566

 

 

 

131,400

 

 

 

119,715

 

Amortization(2)

 

1,723

 

 

 

1,675

 

 

 

6,767

 

 

 

5,020

 

 

 

 

 

 

 

 

 

Gross profit, subscription and transaction fees

$

24,542

 

 

$

21,730

 

 

$

93,330

 

 

$

75,488

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equipment sales

$

11,531

 

 

 

11,202

 

 

$

37,099

 

 

 

43,418

 

 

 

 

 

 

 

 

 

Cost of equipment sales

 

10,696

 

 

 

8,867

 

 

 

34,545

 

 

 

42,690

 

 

 

 

 

 

 

 

 

Gross profit, equipment(3)

$

835

 

 

$

2,335

 

 

$

2,554

 

 

$

728

 

 

 

 

 

 

 

 

 

Total Gross Profit

$

25,377

 

 

$

24,065

 

 

$

95,884

 

 

$

76,216

 

 

 

 

 

 

 

 

 

Gross margin

 

 

 

 

 

 

 

Subscription and transaction fees

 

40.1

%

 

 

41.0

%

 

 

40.3

%

 

 

37.7

%

Equipment sales

 

7.2

%

 

 

20.8

%

 

 

6.9

%

 

 

1.7

%

Total gross margin

 

34.9

%

 

 

37.5

%

 

 

35.7

%

 

 

31.3

%

(1)

Cost of subscription and transaction fees excludes amortization of certain technology assets, see (2) below.

(2)

Amortization of internal-use software assets and developed technology assets.

(3)

The Company's internal-use software assets and developed technology assets are not associated with equipment sales.

 

Cantaloupe, Inc. Reconciliation of U.S. GAAP Gross Profit to Adjusted Gross Profit (non-GAAP) (unaudited)

   

 

Three Months Ended June 30,

 

Year Ended June 30,

($ in thousands)

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Gross profit, subscription and transaction fees (GAAP)

$

24,542

 

 

$

21,730

 

 

$

93,330

 

 

$

75,488

 

 

 

 

 

 

 

 

 

Amortization(1)

 

1,723

 

 

 

1,675

 

 

 

6,767

 

 

 

5,020

 

 

 

 

 

 

 

 

 

Adjusted gross profit, subscription and transaction fees (non-GAAP)

$

26,265

 

 

$

23,405

 

 

$

100,097

 

 

$

80,508

 

 

 

 

 

 

 

 

 

Gross profit, equipment (GAAP)

$

835

 

 

$

2,335

 

 

$

2,554

 

 

$

728

 

 

 

 

 

 

 

 

 

Total adjusted gross profit (non-GAAP)

$

27,100

 

 

$

25,740

 

 

$

102,651

 

 

$

81,236

 

 

 

 

 

 

 

 

 

Adjusted gross margin (non-GAAP):

 

 

 

 

 

 

 

Subscription and transaction fees (non-GAAP)

 

43.0

%

 

 

44.2

%

 

 

43.2

%

 

 

40.2

%

Equipment sales (GAAP)

 

7.2

%

 

 

20.8

%

 

 

6.9

%

 

 

1.7

%

Total adjusted gross margin (non-GAAP)

 

37.3

%

 

 

40.1

%

 

 

38.2

%

 

 

33.3

%

(1)

Amortization of internal-use software assets and developed technology assets.

 

Cantaloupe, Inc. Reconciliation of U.S. GAAP Net Income to Adjusted EBITDA (unaudited)

   

 

Three months ended June 30,

($ in thousands)

 

2024

 

 

 

2023

 

U.S. GAAP net income

$

2,206

 

 

$

2,832

 

Less: interest income

 

(464

)

 

 

(530

)

Plus: interest expense

 

987

 

 

 

1,068

 

Plus: income tax provision

 

739

 

 

 

58

 

Plus: depreciation expense included in costs of sales for rentals

 

497

 

 

 

337

 

Plus: depreciation and amortization expense in operating expenses

 

2,594

 

 

 

2,589

 

EBITDA

 

6,559

 

 

 

6,354

 

Plus: stock-based compensation (a)

 

1,062

 

 

 

1,848

 

Plus: investigation, proxy solicitation and restatement expenses, net of insurance recoveries (b)

 

(1,522

)

 

 

91

 

Plus: integration and acquisition expenses (c)

 

119

 

 

 

354

 

Plus: severance expenses (d)

 

27

 

 

 

—

 

Plus: remediation expense (e)

 

1,221

 

 

 

573

 

Adjustments to EBITDA

 

907

 

 

 

2,866

 

Adjusted EBITDA

$

7,466

 

 

$

9,220

 

(a)

We have excluded stock-based compensation, as it does not reflect our cash-based operations.

(b)

We have excluded the costs and corresponding reimbursements related to the 2019 Investigation, because we believe that they represent charges that are not related to our core operations. During the year ended June 30, 2024, we received $1.5 million in insurance reimbursement for legal fees and expenses incurred in connection with the 2019 Investigation. Accordingly, Adjusted EBITDA contains a negative adjustment.

(c)

We have excluded expenses incurred in connection with business acquisitions as it does not represent recurring costs or charges related to our core operations.

(d)

Consists of expenses incurred in connection with non-recurring severance charges related to work force reduction.

(e)

Consists of expenses incurred in connection with fully remediating previously identified material weaknesses in our internal control over financial reporting.

 

Cantaloupe, Inc. Reconciliation of U.S. GAAP Net Income to Adjusted EBITDA

   

 

Year ended June 30,

($ in thousands)

 

2024

 

 

 

2023

 

 

 

 

 

Net income

$

11,993

 

 

$

633

 

Less: interest income

 

(1,969

)

 

 

(2,515

)

Plus: interest expense

 

2,934

 

 

 

2,326

 

Plus: income tax provision

 

985

 

 

 

181

 

Plus: depreciation expense included in cost of sales for rentals

 

1,634

 

 

 

1,189

 

Plus: depreciation and amortization expense in operating expenses

 

10,570

 

 

 

7,618

 

EBITDA

 

26,147

 

 

 

9,432

 

Plus: stock-based compensation (a)

 

5,109

 

 

 

4,737

 

Plus: investigation, proxy solicitation and restatement expenses, net of insurance recoveries (b)

 

(1,522

)

 

 

(362

)

Plus: integration and acquisition expenses (c)

 

1,197

 

 

 

3,141

 

Plus: severance expenses (d)

 

53

 

 

 

273

 

Plus: remediation expenses (e)

 

2,976

 

 

 

573

 

Adjustments to EBITDA

 

7,813

 

 

 

8,362

 

Adjusted EBITDA

$

33,960

 

 

$

17,794

(a)

We have excluded stock-based compensation, as it does not reflect our cash-based operations.

(b)

We have excluded the costs and corresponding reimbursements related to the 2019 Investigation, because we believe that they represent charges that are not related to our core operations. During the year ended June 30, 2024, we received $1.5 million in insurance reimbursement for legal fees and expenses incurred in connection with the 2019 Investigation. Accordingly, Adjusted EBITDA contains a negative adjustment.

(c)

We have excluded expenses incurred in connection with business acquisitions as it does not represent recurring costs or charges related to our core operations.

(d)

Consists of expenses incurred in connection with non-recurring severance charges related to work force reduction.

(e)

Consists of expenses incurred in connection with fully remediating previously identified material weaknesses in our internal control over financial reporting.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240909620787/en/

Investor Relations: ICR, Inc. CantaloupeIR@icrinc.com Media: Jenifer Howard | 202-273-4246 jhoward@jhowardpr.com media@cantaloupe.com