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Cantaloupe Reports Strong Third Quarter 2022 Financial Results and Record Transaction Fee Revenue

Cantaloupe Inc., a leading digital payments and software services company that provides end-to-end technology solutions for the convenience retail market, reported its results for the third quarter of fiscal 2022 ending March 31, 2022.

“We are pleased to report another strong quarter, with revenue growth of 18%, primarily driven by a 31% increase in transaction fees, another record,” said Sean Feeney, CEO of Cantaloupe Inc., in the ad. “We showcased several of our products at the recent National Automatic Merchandising Association (NAMA) show and saw tremendous interest and engagement from customers and prospects. The industry is poised to continue to grow due to strong secular tailwinds and innovation at the forefront of operators’ minds, Cantaloupe is well positioned with our portfolio of innovative products and customer support services to help operators, engage their customers, optimize their business and increase same-store sales now and in the future.

Third Quarter Financial Highlights:

  • Total dollar transaction volume in the third quarter was $562 million, a 36% year-over-year increase.
  • Third-quarter revenue of $50.3 million, an 18% year-over-year increase.
    • Transaction fees of $27.5 million, a 31% year-over-year increase.
    • Subscription fee of $14.6 million, a 7% year-over-year increase.
    • Equipment sales of $8.2 million, a 1% year-over-year increase.
  • Improvement in gross margin to 32.2% compared to 29.7% in the same period of the previous year.
    • Subscription and transaction fee margins of 40.0% versus 41.0% in the prior year quarter.
    • Margins on equipment sales of (8.0)% compared to (18.8)% in the prior year quarter.
  • Improved operating profit to $0.9 million for the quarter ended March 31, 2022, from an operating loss of $2 million in the prior year period.
  • US GAAP net income applicable to common stock improved to $1.8 million, or $0.03 per share, compared to a net loss applicable to common stock of $2.2 million, or a loss of $0.03 per share, at the prior year period.
  • Adjusted EBITDA improved to $3.7 million compared to $2.2 million in the prior year period, an increase of 68%.
  • Active customers totaled 22,818 at the end of Q3 2022 compared to 18,763 at the end of Q3 2021, an increase of 22%.
  • Active devices totaled 1.12 million at the end of Q3 2022 compared to 1.08 million at the end of Q3 2021, an increase of 4%.

Third quarter business highlights:

  • Launch of an innovative bundled subscription model, the Cantaloupe ONE platform, which offers operators the flexibility and predictability of a fixed monthly subscription amount covering hardware and service costs.
  • Continued successful rollout of the ePort Engage Series, with the ePort Engage Combo released to market in March 2022.
  • Announcing the general availability of the new and improved Yoke Micro Market platform upgrade which includes new features and functionality for Yoke Pay, Yoke POS and Yoke Portal.
  • Expanded and restructured JPMorgan credit facility.
  • Successfully completed the integration of the merchandising product powered by HIVERY Enhance AI and expanded machine type compatibility for Remote Price Change (RPC).

Outlook for fiscal year 2022:

The company expects revenue to be between $200 million and $210 million, representing a 20-26% year-over-year increase.

Find the full report here.