CTLP - Earnings call 1 2024 | Cantaloupe, Inc.

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to Cantaloupe First Quarter Fiscal Year 2024 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded.I would like now to turn the conference over to Dara Dierks, Investor Relations. Please go ahead.

Dara Dierks

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

Ravi Venkatesan

quarter today for everyone, Good Dara. our call. XXXX first year and afternoon, Thanks, joining fiscal you us thank for

$XX.X our this X% increased million. year-over-year to During quarter, revenue

grew $X.X year's QX revenue increase year-over-year. XX% first quarter. EBITDA a grew XX% million, revenue last and was Adjusted transaction subscription XXX% Importantly, for over

focused operational and on the we expanding in driving subscription call, optimizing sold through a driving three-pronged year are strategy: revenue, operating our in subscription controlling covered using expenses.We fiscal initiatives. goods As leverage are following 'XX, revenue last of cost

growth markets. accelerating by in First, micro

see full-line Dee demand market for notable based micro Missouri. South segment market coffee and Two a Florence, micro Pee Foods, Foods, wins and based office We in operator and the strong Rogersville, vending market include Cantaloupe's Carolina; full-line in a continue to micro Pyramid in vending offerings. provider

markets.In including and about Our took traction small interest new in segment full with QX, out saw of fixtures. small the cabinetry continues the small operators micro several kiosks, upgrade with Vending, accelerate for new micro market types coolers, momentum purchased adoption ABC from program. an business our Illinois also us, continued to from setups business with purchase also operator We're business seeing markets of we market Cantaloupe our growing excited the micro location portfolios. of We're our and opportunities base advantage customers. of and

seen members.Secondly, driver continued revenue We've Fitness our Long as subscription penetration Anytime market Seed software, for platform combined adoption new within California industry of is micro Seed adding of are Markets amenity is example, For driving Seed of of the warehouse for in gym its management ease through the Beach, Markets routing, micro in we a coffee software. one and particular edition. management becoming the office markets standard vending and for efficiencies.

went VVS in helping revenue. Palace us software with Vending, Treasure who in QX.Thirdly, Canteen, is Vending include all New Valley drive adding also products new Cantaloupe's Seed subscription deployments and

and walk such in Cafe cooler, to allow smart newest payment, which well product, items Smart as our showcased a consumers store Cafe innovative Mexico the and this NACS the Cooler We Coolers, traction away. we are year's solutions unlock recently as at as Show Show make in with seeing Atlanta grab ABASTUR Smart their City.Our

provides advanced consumer. owner for security store greater a Our frictionless experience faster technology the for and the buying

kits cooler experiencing integrating progress Smart new and and manufacturers we innovate also are equipment partners original with We Lock our Cantaloupe to technology.Finally, with cafe One. continue

the with most Portugal, grow as who every maintaining same to is of QX from integration platform discipline on which of want priority QX, fees, for OpEx mid-market pricing the launch And cost in line In declined a prior innovative technology, who of G&A, in 'XX reliable year. saw subscription the alike for to Fiscal a decreased over partners continued CAM.I readers which financial cost notable digital golf period will price is example in to optimization report and enterprise verification infrastructure coolers, Our QX, network Three standardization Transaction to services industry our costs.We Square Smart we year recent continued we from on Coolers We've hosted to environment.Our also margin. and of full solutions in year, margins and great continues event doors in year and which on partners professional equipment out benefit benefit to for improved place. also compared or customers, payment the degree penetration Vending interest vending updates next-generation more put in driven new and fiscal event the We to and and start across integrating Lockers.This improvement allowed our our to customers to implemented benefit to Larsen our We operators We Vending progress devices. an migrating been expenses. operational execute and solutions another our more reduced we XX% the third in 'XX entire 'XX of serving business market this some year-on-year into XXth for I for international from revenue also future systems. sold. team Europe Market product and want in with age services. high benefit to the In expansion. in best, and outlook excitement by European the is products cashless vertical.Our that, highlighted Seed the to X% this to second the completed by infrastructure, retrofit to on compared that declined a which our prior Cantaloupe goods from the to our fiscal dispensers, great margins bringing ordered the we on a for year adding Cantaloupe's initiatives, to led with review now well focus ball enabled be of quarter.With optimize organization.I'm want In on were U.K., Decorum XXX and their the will with the fiscal other 'XX cloud adjacent year, continued technology the as Smart purchase our share a IT the us QX NetSuite commitment including as fit Cantaloupe including to and and commerce. wins showcased leader excited pleased professionals, priority improved also successful thank software. infrastructure new market. Clubmaster's the showcase as including are market technology AWS detail in is I'm our Cantaloupe Scott global on strong for exciting and XXX Two One international powers fiscal card we platform vision results bundle about to year U.K. pleased the review prospects, September Salesforce, Cantaloupe of execution, improvements stable fiscal 'XX. of and the self-service solid Scott? screen

Scott Stewart

Ravi. Thanks,

we quarter revenue mentioned, profitability. growth and of another delivered strong Ravi As

up million, year-over-year. $XX.X was X% revenue 'XX QX Our

a average behind ticket sizes decrease higher Our of revenue is overall and again FY combined transaction and the volumes, cycle increase to subscription XX% $XX.X compared was increase processing $XX.X ONE.Our was of revenue revenue, million subscription a year-over-year The revenue, prior due XG revenue an now QX benefiting the in $XX micro to XX%, us. $X.X revenue and 'XX. of by during and subscription to million of increase This growth year-over-year. includes that primarily XX% Cantaloupe driven XX% grew million equipment upgrade from transaction This of quarter. was increased from year market transaction million,

QX While revenue operating positive down, FY 'XX increasingly last share XX.X% an margins XX.X% in all in we prior driven the larger year, quarter expansion lines. did subscription year.As XX.X% margin across and revenue year-over-year.Total negative the compared was a becomes to margin XX.X% million FY revenue for XX.X% gross increase overall growth both quarter our compared operations. overall shares loss profit $X.X an margin of first and revenue, of Net versus expect see $X.X cash year in active cash terms X% higher we to X equipment in $X.XX $X.XX share in of expense the in $XX.X increase 'XX XXX%. $X.X first first in million in EBITDA million $X.X to quarter applicable compared $XX.X prior in was operating net quarter to ended was Total cash in for were We period, negative $X.X $XX.X or with QX million year. from the period.Adjusted the share generated million transaction was revenue XX.X% same QX margin. prior Equipment million improved per an in Subscription per income FY the million equivalents prior of to compared device to million revenue by quarter to was or the gross realize of from common of and in for and margin 'XX.

capital to 'XX priorities market guidance. OpEx, to target our domestic growth international driving allocation and micro control in investing product Our and strategy expanding improvements our continue profitable are on specifically and go-to-market to FY development.Now our operational focused turning offerings and

be expected and between million in subscription to the XX% be transaction EBITDA of towards and services The invest million marketing, million million, to EBITDA between $XX half growth are million, be XX between and million Total will million.Adjusted be representing -- $XX and $XXX million, and in of installation to we and XX% We XX%.Total $X to total the to This million. between between and and to $XX U.S. for $XX cash million lead representing revenue operating flow SG&A sales as reiterating Adjusted of year of million $XXX revenue international second combination QX. and will to guidance GAAP weighted income the expansion. $XX XX%. $XX continue higher be to $XXX is our year. net $XXX and fiscal growth

would session. drive call revenue will investments that, Operator? the subscription operator the to for these the anticipate back over we throughout like to we XXXX.With now However, turn Q&A

Operator

[Operator from B. first Nichols with comes Josh Our Instructions] Riley. question

Josh Nichols

margin good the EBITDA. the healthy segments see to Great with across and operating all expenses improvement the control of

into were the acceleration sales How much year. closer or so to is company full of but the to how X.X% first really pretty half some good And micro for the the been international looking a you've you Just targeting in based is know have up on quarter, markets? back here, wins the early-stage that announcing? attributable growth I meaningful the guys these is visibility XX% of and

Ravi Venkatesan

very we're and the margin been is yes, operating pleased in which expansion expansion continued leverage, on. And with journey the we've

In significant backlog visibility a terms ramp but we growth acceptance equation, is actually the payment of as both where as side of there the to an well because we've installation cashless have that pretty markets services is sold, good there of micro backlog.

visibility. lines pretty get But that So device closer shrink first being normal. that to that we into quarter. the time around longer good activation we've our to the much continued And what window of that because in problem is and alluded labor had shortages, seen last gives quarter -- now us

been our sales will up, velocity, as means which that up. velocity, So already revenue starts being ramp seeing that installation we matched has that start by just

Josh Nichols

change kind to like That's subs. ONE. some had the in Is new been inventory type you continuing commentary remote good see? you're guys of that and of terms X,XXX to trajectory Cantaloupe would of helpful. with you've for you what And management adding like things hear. price X,XXX And it be I seeing know so any upsells or to sounded are great on traction like

Scott Stewart

Sure.

traction increase. overall, to we continue cost of to great So continued the Canon The with see capital One program.

but we at same that and mid-market, now. actual grow our equipment the rates and continues the We're attractive out same the small not has there, be. it's providing to what grown continued it number the overall of So or to percentage have of especially licenses sales it in have

Operator

Gary from with Research. comes question next The Barrington Prestopino

Gary Prestopino

the were you wanted into event what and basically sell it really are just individual of the in the And But little if to a dwell U.K. launch of narrative. it products? I vending there? markets? you know I had to micro you Or starting machine in you bit focus what was with this don't more mentioned -- Was trying

Ravi Venkatesan

product payment variety unattended, dispensation dispensing our service it's products, products that's or of acceptance, It's a a our full as a golf a dispenser, or machine cashless I telematics ball mentioned, including of Seed different that of as vending lets happen portfolio as well equipment from software. whether or services

complement we've technology. margins full particular, bleeding terms coolers, using more and store Europe services. in terms of of on In concepts, So of lot being smart which it's smart innovative cetera, with et and very in edge of our of seen in exciting a is the interest attractive

Gary Prestopino

there of same especially coolers that kind offering Is is the smart anyone there over now the and... right products,

Ravi Venkatesan

There are full other breadth products, that of that competitor offers one offer types not competitors but the products. of these these single

Operator

comes question from stand comes with Mike Latimore next question Blair.Please our Securities. by William Marc with next next question. from Feldman The Northland for The

Unknown Analyst

pipeline talk the a new building of about service? refining This about pricing? is on One considering for adding And earlier, view guys of can kind from that your Mike. that of question for you you're little or in capabilities Cantaloupe Logan on Kind

Ravi Venkatesan

the -- suite is done over those One time, are the that of as our our It's more seeing The available of are and broadened part transparent pricing. more bundles. base. Cantaloupe is small along time segment what happened is pricing. particularly over we actually on of we products from customer offered we've website But the we business have Yes, very what's information demand with

to cost purchase of mentioned, driving options look going is them lease the business. expand Catalog their Scott instead of One As more to up capital traditional or at

micro software being as seeing devices just we're acceptance to it So now to from go well. payment bundling markets

Unknown Analyst

versus of micro and in markets around you could logos coming that of provide growth kind guys is how new much some color up-sells? And from Perfect.

Ravi Venkatesan

Yes.

of we have we I'm share Square after to we've So Three that pleased and -- sales acquisition Market. doubled done the very velocity actually the had

logos, mix of I lagging a logos new time now new of the for I took logos has more to velocity, there's behind. started Till installation just And as then a in little current versus last of would the we say but Now product, in then sales matching new lot and say, velocity necessarily significantly it that months. for of a been couple terms get the us that would going, logos company. a bit was also not

of and cross-sell if we've lot So a done sense. upsell, that makes

Unknown Analyst

quarter. the on Congrats

Operator

comes question with George Craig-Hallum. next Our Sutton from

Adam Kelsey

Adam George. was talk on for experiencing on equipment wondering if mentioned some you that could manufacturers. I in little your good you're a you remarks Ravi, more that. progress with

Ravi Venkatesan

America we And work there faster of with the addition and Europe, that we going found and and more in market our manufacturers that international are particularly in It's Yes. of model. when distribution channels. to markets, in our in sort equipment Latin finding more in embedded way we traction much solutions, is traditional kind efficient to a

Adam Kelsey

did America would you Latin a know That's well? as to I great. we wins but Europe, LatAm had And I progress in mention about know curious notable be in the few there.

Ravi Venkatesan

don't have a why or mention The or mention and competitive progress sometimes not. we be few are gone There implementations. continues through in Latin positive, reasons America we to name a particular

implementation sharing customers such So good, are that Latin is specific of for very the names but the actually we not America. of is trajectory nature the the yet

Operator

comes The question Research. with Gary next from Prestopino Barrington

Gary Prestopino

have total you do transactions handy? for the quarter, increase the gave year-over-year you you this on increase, -- but the have do transactions percentage absolute of Scott,

Scott Stewart

Overall, the dollar not of value transactions, the transactions? number those of

Gary Prestopino

the looking total -- you $XXX just for had million, I'm right? Yes. number of the transactions,

Scott Stewart

up we're sequentially. year-over-year, X% X%

Gary Prestopino

major the and to assume of the some in U.K., showcases sold France one Germany but -- Europe did you know countries that like you've year? the continent, plans I already what of terms and these on in there on then do And Okay. I Continental are this would product

Ravi Venkatesan

Not this year.

in similar the Xth that event Latin nature next major Our on a America, and December. is of is of

well events. types of sequenced a America of kind a on And these is next got of the plan game focus the we've Latin really So event.

Gary Prestopino

seed And terms mean, correct? and in and square software that software. doing cross-sell had try correct? product So they X there of business was seed -- to were had -- were Is you markets I they going in some Europe, their there,

Ravi Venkatesan

That's and place. sold actually couple in happened and of implemented cross it ago, software correct. already. a That seed And is we quarters have

Operator

phone Blair. Feldman try if time. log at log now on back like to remarks. you in.I to I call William [Operator comes to mute, and the please? closing for questions Instructions] Mark, may your to Mark, with next you back can want unmute am showing no this Mark question from turn Our further is would out Ravi

Ravi Venkatesan

Well, thank leverage our operating terms of you summarize, To about be all we on an aggressive are growing the and very in earnings for call. continue joining trajectory in this we to expanding manner. excited

drivers expansion as adding like targeting We and market smart international on subverticals centers, Including like and micro newer the gyms are business, fitness also well newer the the pleased business. coolers traction cetera. as growth both growing with products for et

the few of to year forward as to you. our to through lot goals. getting a from the drive long-term the quarters continuing off kicked momentum business first look So positive forward and quarter we've Thank next and the

Operator

concludes Thank conference This you today's for participating. call.

You may disconnect. now

Cantaloupe (CTLP) 9 Nov 232024 Q1 Earnings call transcript