Cantaloupe, Inc. Posts Strong Third Quarter Results Amid Global Expansion

Cantaloupe

MALVERN, PACantaloupe, Inc. (Nasdaq: CTLP), a leading firm in digital payment solutions, announced noteworthy growth in its third quarter results for the fiscal year ending March 31, 2024. The company’s achievements reflect its successful expansion and operational optimization efforts, with a particular emphasis on driving revenue growth and controlling costs.

Ravi Venkatesan, Cantaloupe’s Chief Executive Officer, highlighted the company’s performance, indicating strong transaction revenue growth and expanding global presence. “We continue to expand our footprint domestically and internationally, and are pleased to now have sold thousands of devices across Latin America and Europe,” Venkatesan said. He also noted the increasing adoption of cashless and touchless payment methods as a vital trend bolstering the company’s long-term prospects.

Key financial results from the third quarter include:

  • A 12.5% year-over-year increase in revenue, reaching $67.9 million.
  • Transaction fees surged by 19.9% to $40.0 million, while subscription fees grew by 7.4% to $19.2 million.
  • Equipment sales experienced a slight decline of 4.6%, totaling $8.7 million.
  • The total dollar volume of transactions rose by 17.4% to $767.4 million, with transactions reaching 283.3 million by quarter-end.
  • An improvement in gross margin to 39.6% from 37.9% in the previous year, with notable increases in margins for subscription and transaction fees.

Despite these robust gains, net income applicable to common shares slightly decreased to $4.4 million, or $0.06 per share, down from the previous year’s $6.7 million, or $0.09 per share. Adjusted EBITDA remained stable at $10.2 million.

The third quarter also saw strategic expansions and partnerships, including the acquisition of CHEQ, focused on enhancing the sports and entertainment fan experience, and collaborations to introduce Cantaloupe’s payment technologies in the Mexico market at Expo Antad in Guadalajara.

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Looking ahead, Cantaloupe revised its fiscal year 2024 outlook, anticipating total revenue between $270 million and $275 million, and adjusted EBITDA between $33 million and $36 million. These projections underscore Cantaloupe’s confidence in its growth trajectory and operational strategy.

Cantaloupe’s continued focus on digital payment innovation, coupled with its strategic expansion into new markets, positions the company well to capitalize on the growing trend toward cashless transactions. This not only enhances Cantaloupe’s business prospects but also reflects broader shifts in consumer behavior and payment technologies globally.

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