CTLP - Earnings call transcript Q4 2021

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Operator

Ladies and gentlemen, thank for standing by, and welcome to the Cantaloupe Inc. Fourth Quarter and Fiscal Year 2021 Earnings Conference Call. At this time all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. I would now like to hand the conference over to your first speaker today, Alicia Nieva-Woodgate, Vice President of Corporate Communications and Investor Relations of Cantaloupe Inc. ahead. go Please

Alicia Nieva-Woodgate

Chief good Ravi Quarter and With Welcome the Chief Sean to on Financial Jackson, Thank Anant Chief Officer; Fiscal afternoon, Technology Year Fourth Agrawal, Feeney, are afternoon and call Officer; Call. Officer; XXXX Cantaloupe Wayne the Chief and you, Revenue this everyone. Executive Venkatesan, Earnings me Conference Officer.

press forward-looking materially I that, Listeners well this in you results forward-looking not measures, comparable reflects the forward-looking GAAP otherwise. our that historical included SEC net actual call in call Before forward-looking evaluating differ reconciliation than and from financial remind measures fact such of substitute included be which such measures our Feeney. also statements, Actual release materially Sean? with we all measures nature. the measures to will and to a place Cantaloupe those are GAAP financial differ any detailed begin for of results things, forward-looking financial, statements like limited can press are result obligation financial update undue risks these a today. could markets a turn This including, or our results. and include which these would like the to events the as a are that I income our to issued Sean found Relations supplemental of they the today's of most of to as business, other of discussion And loss. factors, but call, website to been statements contemplated by uncertainties to, A between the filings the events from among undertakes of in and future as issued call to directly certain reliance has a or conditions. with at release the and this only financial statements comparable believe we that Sean? such www.cantaloupe.com. cause non-GAAP the earlier no section economic financial made. whether Investor presentation Officer, on statements, information, cautioned Details and with is of are certain are financial most date as statements management's could any as in not as non-GAAP financial These over measures, GAAP would operating not afternoon, discussion posted non-GAAP new non-GAAP of useful result on now Cantaloupe's other measures a Executive Chief for, view

Sean Feeney

Yes.

Alicia Nieva-Woodgate

is call yours. The

Sean Feeney

Thank you, Alicia, quarter on for call. and fourth everyone, you, our us joining thank

Company. with results, quarter's pleased capped year transformational off are the for a We which the

quarter, QX to customers dollar we dollar strong volume sequentially throughout by we driven quarter; sunset. revenue increased revenue of reported XG the and exited purchasing growth million, we increased the the During XXXX; as XX.X% highs; which QX XX.X% an of the over devices above XG and $XX acceleration year get volumes closer pre-COVID transaction equipment

sunset, we SMB the two Services Cashless+ our customers our In software Refreshment platform, addition Seed signed quarter, Coke Seed Elite deployed many including Buffet/Lufkin to during upgrading Vend devices customers and to the enterprise products and due V-Enders. to cross-selling to and

progress significant QX to made also quarter our during XXXX. We by compared on the reducing operating expenses costs, XX%

invest and a to technology needs. meet people, strong balance financial in us our support has they solid Our performance, to to changing our work customers as our sheet, consumer empowered in addition

at our Bakkt our accept loyalty program developed a strategic consumer Technology delivering partnership use with Holdings a our the a partnership locations. and launched customers. engagement cryptocurrency interactive which earn to During Castles we customer to the device, with can introduce consumer next-generation in will for where be created quarter, key points capabilities payments to We

We ePort the development the also devices. next-generation platforms announced and premium Engage touchscreen of

to the it the mission we to dedicated to our we look next buy ahead year, and world fiscal go. remain help As

Our growth initiatives are focused on sales, technology. service and

On in expect adjacent our the our to market to service expand addressable year opportunity. further XXXX. traction I we this sales growing during large side, markets are gain customer on investing and more fiscal initiative

cross-sell continue marketing in invest and to our customer We further enabling to engagement customers and increase sign sales us team, new with opportunities.

automation service We of capabilities more and will leverage. customer are increasing which self-service improve and operating provide portal, our for customer the

in an unattended with us the Payments, industry. position Seed company, our retail Our product, expand segment award-winning micro-market recent to in acquisition will of Markets combination of fast-growing Yoke payments this

business on progress international make our expansion in to efforts. continue also development and partnerships We

initiatives to leverage. continuing operating future Regarding solutions for drive and best-in-class in service are our tech invest growth FY and XXXX, to we

already briefly I as years, Markets. at integrated acquisition Yoke announced of a best-in-class of NAMA for worked ago. Payments four is and we natural touched weeks two Yoke Seed as the the last on this technology relationship was progression with First, Having with before, acquisition our the

we Cantaloupe's micro our payment in to micro business segment. and offering offering believe micro while our continue We inventory platforms. and Seed market further management offering integrating of Our self-checkout pre-picking enables to for Yoke's by location warehouse is invest any extends size, attractive to combined and integrating processing any will operators Markets this include platform scheduling, and financially point-of-sale with our market customers route their leading market optimize reporting. seamlessly

We continue will where our and strategic Summit, in also new held certain Yoke Cantaloupe two first new solution, we grow products to us vending to increase of modes our unattended leverage efficient as enabling on solution These operation. At which include: consumer optimize a unveiled your your engagement we markets. Innovation help campus new any our pillars: and tools partnership their mobile well as more engage that NAMA, able with new paying believe then all innovations at micro run outside business, through business multiple platform card revenue students products enable all select an with to nutritional by ePort through payment to of consumer focused to will and customers view a pay from powered goods any Bakkt, vending device. and for or be to pay via card their cryptocurrency at ePort to services pay QR consumers acceptance campus device; scan via and when cryptocurrency code, the will or smartphone facts machine's their one reader; allow point-of-sale on our consumers mobile touchless capabilities and unique Cantaloupe our GXX machine's wallets to browse items directly

chip shipping will series, month. this color a types. innovation. future and We our platform also full other new device touchscreen is Engage ePort consumer next-gen payment is our ePort EMV It most engagement accepts offers that for edge-to-edge introduced a drive touchscreen to and start These devices which

is The will This including functionalities eliminating payment engagement and multiple engagement consumer ultimately, and experience, have platform Our an app-less platform a vending of customers. same-store our getting sales app enrollment like increasing crypto. for download we requirements, loyalty, MORE touchless refresh. full the friction methods is MORE new mobile rewards, or and enable tested market consumer

ease calendar and control app, By Over with out the our on machines and change we numerous greater of select tools optimization versions new will greater efficiencies months, processes. with all increasing and few last inventory Seed capability. compatible a which will These in have over of that drive new the we their features beta customers, include focusing Warehouse tested enables roll remote number operations. business the our year end warehouse, day-to-day of XXXX, transfer application of mobile-based price

upgraded modernized Apple-friendly and of Android the new interface Finally, versions Seed in Mobile look XXXX. a coming will user be spring with with and

to of study younger found In usage All demographics. seen micro customer payments a surveyed increased the as unattended markets a of during in we were people and also unattended consumers of challenge. continue and these sales, we increase their that period, the technology. they and that this We of many XX% digital retail to alternative look aided view in efforts The by that businesses more as should touchless to with markets during dynamic industries pandemic. saw businesses but technology to The for Research, partnership adapt shopped likely much drive U.S. growing. are conducted age or as beneficiary and to service Site tight usage open keep all industry this the that in merchants stated retail tailwinds solutions found study at of an labor in most

consumers As unattended combined in engagement opens growing and revenue increase and clear for that payments with ahead, better find we acceptance, our platform retail value opportunities and operators. its software it's our the customer look door to

turning to year over Wayne our work. to I a of Before for like would it to financials, team thank go hard their all and through great our

detail. by you we are and in year to changes over company the and from excited beyond. go it financials greater the innovation seeing to of making look over forward supportive Cantaloupe. they very XXXX turn in fiscal I to growing leading are the this I'll are Wayne, customers Our

Wayne Jackson

to $XX.X million in active for least fourth June communicated and increase quarter, a reported 'XX. as afternoon, current the XX.X% Active increase that of revenues the increase XX.X% XX,XXX million of on as the XX XX, customers Active devices, sales Good totaled with that third defined continued XXX.X% License a and an year-over-year perspective, as quarter. totaled as and customer a very increase good Sean. have sequentially increase at or and a XX, a year-over-year. XX% X% XX.X%. the X.X defined Thanks, a fourth as XX,XXX one our increase $XX.X XXXX, count. increase our momentum everyone. an quarter as and of had totaled XX.X% million, were a well to we over XX, for XXXX, the of XXXX, fourth of for June have From we year-over-year revenue XXXX sequentially. as FY growth sequential customers, Equipment financial of We year-over-year Company as devices year-over-year of device months, customers quarter the a last compared transaction converting XG of transacted X.X% increase of $XX million, gain record XX.X% June of quarter FY

open. as exited dollar across volumes to levels FY and the were organizations we 'XX, above pre-pandemic country continue businesses, processing As schools other

did levels above compared the not the higher for was XX.X% XX.X% for While of quarter the number prior with year than in year year we exceed Transaction margin the margin revenues currently current before fourth pre-COVID quarter QX to in last Total seeing levels. of quarter in FY in total of year-end, of prior XX.X% pre-COVID are significantly the in were compared quarter year. number gross resulting the of quarter XX% margins L&T the of transactions XX.X% transactions this and third of fourth XXXX.

the by last EBITDA in $X.X expenses expenses, This $XX.X the in quarter. in lower prior of change over year. in compared of from fourth in to quarter in QX for quarter $XX.X driven million fourth to compared X.X million FY quarter the increase per the during period. common well equivalents to quarter operating tax was year. favorable was related in prior expenses by and for of due $XX.X shareholders share current a a no quarter as we XX% $XX.X quarter, to gross quarter which and sheet driven the XX.X% While expenses balance one-time FY prior of liquidity, prior compared to our investigations, to Relating in $XX.X share negative million for $XX of year compared as over year. $X.X year, in tax million a SG&A Net Equipment totaled with well in and million, quarter $XX.X proxy negative ended decrease a per prior QX from million and for quarter QX the quarter the the to points $X in in fiscal of law million 'XX the and cash year. to Adjusted $X.XX sales state profit year a third totaled margin SG&A year-over-year Operating million XXXX charges in the $XX.X accrued was million a quarter quarter million current XX.X cash increased XX.X% year loss the fourth improved quarter. down million. the the as year the restatement the by QX benefit million performance L&T margin resulting compared in $X.X $X.X was was a applicable Operating gross current prior the the million for for totaled to million $XXX,XXX to solicitations 'XX, for prior negative or $X as or fourth period. income loss the loss fourth the $X.XX the reduction

Turning to 'XX. FY

We our for introducing guidance are the year.

we and FY FY we previously, FY 'XX core mentioned will exited with introduce to beyond. between revenue million. momentum and we'll Net growth $X.X in positive 'XX solutions between products in million. help million $XXX and common loss business drive range As and shares for our EBITDA and Therefore, Adjusted million between 'XX, and that $XX.X be expected $X expect be applicable million to $X to is $XXX new to million.

to I call will We will over expect in lastly, from range to remarks. generate for $XX million $XX operations. cash from $XX $X million. million And capital flow now Sean million to to turn closing the expenditures

Sean Feeney

results, and strong Thanks, the Wayne. To XX%. excited line very going wrap are XXXX, momentum incredibly pleased and Cantaloupe, revenue of up, about QX future of growth with we including expecting our we are where between XX% top I'm into FY the

We to to growth leverage modernize business. I'd it scale leadership, to and defining to questions. and how like turn on path can operator technology are a that, industry firmly over continued for their the With retailers

Operator

Northland Latimore Mike from comes question first Our Instructions] of [Operator Capital.

open. is line Your

Mike Latimore

Yes, awesome outlook quarter there.

up. regions could back of are not yet to and improvement some really those see revenue still But guess, they're would And back percent clearly then categories? maybe picking verticals volume So where any I be? in certain you or what there normal is

Sean Feeney

recovery. thanks saw and what impact, the Mike, offices, the for on kind Yes, and getting area. probably is optimistic we variant in be they week, But rather operators something later. very NAMA dragging the delayed of happen coming they're back in every area into pushing back and one are are we that's lot of offices, I've back, Delta one and our this seem year. where And operators seeing at to the as session. the talk I hoping seen say kind you thought are an much and a And But road people to question. September, in could having will that back would be for in back. coming that's operators. optimistic that's been that, The are the fiscal to each of other got is college than we're children of school, is that We've kind pretty of back We sooner in and though,

Mike Latimore

Yes.

the what 'XX, you And then say. customers of of kind of great. them a of parts deactivated Okay, of could be I now? guess base relight I of And machines. sort are your seeing machines kind during I relit, know, believe let's percent lot more of calendar the don't

Sean Feeney

convert other aren't pick up is see Seed, offices. larger the in should kind that they back segment, for of as activity Mike, seeing forward. our yet in relighting. M&A would what and the as be and interesting I we say The or operators good phenomenon are we're us to over ones to the that we'll are is a we believe, number customers, people move people ones of coming beginning And the

Mike Latimore

quarter? Did And Got that volumes. transaction it. number then you have last the for just a for on

Sean Feeney

Wayne?

Wayne Jackson

the I file full do. Transacting to you'll we're volumes see K year the and in that going tomorrow.

million. So, of million. dollar the was was for XXX quarter for the number transactions $XXX the quarter volume The

Operator

Craig-Hallum. George with next Sutton Our from comes Instructions] [Operator question

open. is line Your

George Sutton

you. Thank

your if expected and also on platform. summary new question, crypto mobile focused real just engagement impact those a view? you Summit, of Innovation us First give three I opportunity: impact of campus quick areas in each of potential wondered, card, from opportunities at your timing of you of could and kind

Sean Feeney

Yes, to ask give to idea those. question. And you George, of your when I'll of -- we'll answer Ravi with see an kind

Ravi Venkatesan

George. Yes,

fall, this and of year. start quarter longer features, and Ravi this and other launch towards tail our the crypto third fiscal. is And impact we engagement of card when quarter have Venkatesan. we launching from also the The seeing is the loyalty those would winter. they're fiscal fall fourth impacts in a this and our that and third see So on campus should And

Sean Feeney

built on we've will given kind come think in guidance George, when you. of the we we've those that And

George Sutton

bigger the as Got And support and through you're in really now picture also customers, labor through you're from ROI costs. your the just you. terms that of offering opportunities? then right them price flexibility offering as and better one day better revenues lower you offering some walk deal through of Can dynamics, the other merchandising winning via perspective think question we savings, what's you're potential think them I to

Sean Feeney

Yes.

in ability CEO because and levels Presidents one, think routes, you to down ultimately telling Seed of to up customers reference is opportunities, is And continues operators I and routes driving critical. two level very as what two, look at couldn't our Seed you're of have is that us George, the impacts: be routes they platform. what when us tight they're and operators the the COVID scheduling without right labor; the to that navigated And telling and incredibly they're inventory labor COVID. adjust new prospects seeing our of telling actually tight

the So it's reducing number any that works got you'll that of cost see a using of reason the a we're engagement revenue in customers. and address on on device, very reference efficiency -- we savings ROI point-of-sale some customer costs raising got large Seed things of win proven that's number platform operators, clear the device. one, we and that say revenue is, we've increased I us why would We've event: winning and on point-of-sale both the and the bringing technology

Operator

from Blair. [Operator William Kennedy next comes question Instructions] Chris Our of

Your open. line is

Chris Kennedy

it'd give the any margin financial And revenue price, Yoke? be profile can of details, annual or purchase you whether more

Sean Feeney

in upfront small targets partnering million It's a ability anniversary a very aggressive retention additional solution and the then the $X if a earn And We're We're of as about with years. and of K some next they acquisition X-year three payment them. the $X It's they the hit Yoke. tool. about the sales in to have see there's excited we've a very, that getting amount million, point tomorrow at small thanks. the a Chris We paid you'll proven excited been company. that very expertise. cash

Chris Kennedy

you. Thank Okay.

Sean Feeney

a that part answer company. XXX didn't but quite They segment. small in this second an fast-growing I It's pretty area going of and bit They'll a in, installs. question. we're sorry. to contribute some, invest your have XXX the between it's I'm

So a would we're lot investing, not generating call, with I them. of operating what leverage

Chris Kennedy

you. your you strategy. Can you details thank Sean, give in that? talk international opening did Great, And update, remarks, Okay. the about then, more an on

Sean Feeney

to little Chris, in going I than America we've some part making I It's things, but some And that we good good especially more bit and made had partnerships. is in talked of about. of progress wish there just those progress, that. are done of get as Latin definitive Japan, if a Yes, and in this slower Japan, some with it in give are I But thought, pandemic, we've be we both Asia with able a the specifics to to half year fiscal progress. being first is get around the thing, type making face-to-face. it but hope especially are here And I you've business you of able slow-moving

happy the I'm further there. doing So progress we which with are but were we along, well

Operator

of Prestopino question Research. next from Gary Our Barrington comes

Your line is open.

Gary Prestopino

about markets you point-of-sale know idea I much, can't nationwide? some Yoke give micro you of talk but market how on us could is the too this big

Sean Feeney

at X markets today is NAMA to XX,XXX, and numbers look Gary, you micro from as says there's vary the if X.X at fast-growing coming up million. it, look There's it, vending you it there. only high But if million a XX,XXX out So there, machines as out segment. believe, NAMA, X.X they from million

elsewhere. things they talked they'll every operations they in markets XXXX operators and as place, year of looking COVID. when accelerate and But that of that pretty XX% think over I calendar number expect them, the most the the before, somewhere. out growth of when really those far to redeploy machines in be next and So markets somewhere at the talk put XX% is those vending between grow to of feel operator we've I I've most micro micro And they in putting is many their seen

So solution full very guys this growth with and our successful about there we're Yoke. should now segment, with excited from very markets be good product in having a Seed the

Gary Prestopino

of by advantage product on product? in a -- or Is full the you point offerings of crowded sale -- integrated competitive Does get a it having field and terms then a

Sean Feeney

are there high-growth pretty you area, large kind in the would are integration have that growth good puts there and expect number We So and a already, that position -- as segment. we spot think in XXX along. markets of Seed some with people get some here a to markets Avanti, a very other with us good pretty the players, of operators coming

Operator

this like to for over for no turn the time. any call back showing to remarks. I'd I'm at further questions Sean closing the

Sean Feeney

operator, and of all your you Thanks, thanks Great. the the in support listening call Company. to interest of your for and

and EBITDA. great with said, I and adjusted had positioned quarter, growth line XXXX top are we great increased good As fiscal a for year a we

the look over in forward questions you talking many to will you greater we your Thank the next and So of That end operator. weeks of to couple detail. answering call.

Operator

Okay. participating, today's and have and conclude Thank this day. great you. all a Thank gentlemen, Ladies does conference. you

disconnect. You may all

Cantaloupe (CTLP) 3 Sep 212021 Q4 Earnings call transcript