CTLP - Earnings call transcript Q1 2025

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Operator

Hello, and thank you for standing by. Welcome to the Cantaloupe First Quarter Fiscal Year 2025 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to turn the conference over to [ Megna Mayva ].

You may begin.

Unknown Attendee

you. Thank everyone. afternoon, Good Cantaloupe earnings the call. first to conference quarter Welcome Ravi call Executive Financial With the is Officer. Venkatesan, Chief me on Stewart, today Chief Scott Officer; and

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

Ravi Venkatesan

you it Thank you. to and start highlights. I'll Good our dive first numbers strategic QX of us then Scott for deeper about talk a outlook. QX XXXX level afternoon, and XXXX over high everyone, our to joining our thank FY fiscal today for QX year before into turning with the performance, I'll priorities financial our call. and

XX.X% to in During was QX compared total was revenue $X million, to increase quarter, quarter year-over-year XX% gross revenue prior XX% our XX% year. margin last and a EBITDA adjusted the for the million, to year-over-year $XX.X the year-over-year same quarter subscription by increased transaction growth. Total revenue XX% first driven XX.X% year. Adjusted growth compared for

all QX acceleration on micro in a the choice footprint with Markets. with was competitor in us, business highlights. more by with markets go customers growth Pepi our Cantaloupe Micro Revenue their to in continued to driven Now expanded Cantaloupe. kiosks Foods and making replacing growth

growing on customers new including program in Vending, won are going blind Seed of part all community. services, who Unicorn also operator our We enterprise

that Software the price Cantaloupe's cross-sell successfully with Vendmanager addition, SB of SB analytics completed growing strategy subscribe platform. We change the integration add-ons and remote devices to the In rates software for attach acquisition. customers following Seed are realize to our payment among our Software's

include and VMS Vendmanager Other Vending. Vending, wins combined solution. software include SB New JJ wins our Sense Vending Cantaloupe Micro in leveraging as customer, Market a and JW with all now their offerings, Fox

and micro U.K./EMEA to payment customers for the in services. cashless region, multiple We new grow adding continue market

tool Carbon was continued Vending, Dorsey. enterprise QX nearest with allows has "Adding this In Neutral that in a our small in region, momentum addition, beverage markets are Cantaloupe seek micro LAC stores and bring retaining market smart over both as readers. food win XXX amazing segments replacing Director our on in solution we becoming site complexes the our business to seeing the go-to great In our unquote, residential convenience to offering devices competitor The Dorsey including Lifestyle doorstep. as be amenity is are Rafael well to notable the right of X-minute card in offer property, their proven the so The renewal walk as at-home an a and and Denver, residents they a essential from quote, across to process to in and resident The for deployments are the strategy said us bring for our grocery property of differentiation store and perk," us region. Micro scaling convenience at our to offerings, residents in their with for products is Ramirez, and residents an

Wisconsin, the Moving sports Cheq vertical in Michigan. Crosse recent entertainment, and House the Detroit platform. notable on Opera Center our to premier La concert Two a in include events and with wins entertainment Cantaloupe's destination, and

to "This platform. to which this use increased devices, Seed Kudos software to It James much to streamline to mobile innovations we suite experience and is industry-leading for vending According premium and Director fantastic. management stadiums new venues. efficiency enhance we announced with system suite is launch Cantaloupe In Senior product September, management continue our Suites, update designed teams. and significant across look Seed translates for We on easier upgrade. QX, of Brown, our our at the a Technology, launched field feel lines. to Canteen a In to hospitality

incredibly and success market than Healthy one The and and is Vending, a who to faster stores, smart straightforward, latest was breakout It's Cantaloupe were to and the early changer prove gyms. virtually Stores, setup up early self-service schools, theft rooms, customers an of for seen We've serves new anticipated. with disruptor nonexistent. like innovations commerce With is be come our hospitals we Lastly, game Yakima industry. running to to Smart locations. expanding completely

about Younger They customers our said and are it's to not their stores. smart are the additional nature already expanding "It's Davick. snacks, just about Stores. tech-savvy Stacy experience," drawn have footprint the of co-founder ordered Smart

Now our XXXX priorities. year to fiscal turning strategic

As quarter. With are our XXXX, and year focused in on covered FY continued fiscal in the our excited powers quarter, now results review FY for on footprint a our focus for in we outlook detail their of global as Scott as our the that to for Cantaloupe be Cantaloupe in team pleased on well self-service the I'm scaling execution, the last that, we this more across entire our will commerce. Scott? organization. QX want and international continued start I'm vision led technology to call, efficiencies the execute improvement strong future with solid thank leader to operational XXXX. to I as which

Scott Stewart

Thanks, Ravi.

revenue $XX.X Ravi a to XX% the As QX QX compared year. is we to up start strong XXXX. to million had mentioned,

Our a the XX.X% Subscription XX% an micro and growth revenue includes increase combined was to This was subscription increase and higher driven year-over-year of $XX.X increase million to the of transaction $XX.X of devices XXXX. our XX%, revenue by subscription growth in ticket markets. in in grew devices active by of strength increase revenue transaction active revenue, and QX in during revenue, million The average compared largely sizes. driven $XX.X million quarter. transaction overall

prior had active X.XX $XXX, period. we an As X% XX,XXX per to year XX, and compared increase devices, unit, over respectively, the year. The and September XXXX, active million QX XX% the average from of or up ARPU, was customers prior for of revenue X.X%, XXXX

months reminder, divided a our active As subscription this fees defined devices the trailing by average total transaction is same for and the the as XX period. total for

expansion first quarter year increase million, The million Our gross $X.XX and adjusted compared prior and we compared processing. XX.X% Software next $X.X of XX.X% was million share, margin or our is margin year, for XXXX and the activities paid driven Soft XXXX quarter $XX last equipment made average the to or period, non-recurring to was our the FY acquisition equipment largely continued The compared gross payments million the to the in quarter $XX ended million, $X costs compared ticket throughout an slightly and in an compared prior period. Adjusted normalize FY related in declined Subscription from in provided. equivalents and operating XXXX, cash balance to per QX XX.X% transaction to rate the cash SB the was is in XX.X% was diluted share expenses X.X% for for XX.X% cash growth decrease FY compared This change grow $X.XX gross from auditor with quarter in the of in quarter was anticipate same of margin will to million. the to Adjusted in take operating transaction QX of decrease FY timing in used income QX in processing cash by for FY in revenue $X.X the million expenses year. ending quarter, our cash and the XXXX for activities net due customers increased was prior of a to cash largely prior rest first $X guidance $X.X transaction the continued we $XX.X adjusted size. on diluted revenue acquisition. Net earnings to in XX% This XXXX. Total revenue increase into and EBITDA year. Total income XX%. We for line down the SB to million, per earnings year. in with million, applicable increase of of driven driven the $XX.X first gross international used year for markets cash to our to to from for the transaction our activities. in operating operating by shares common the QX the by

between XX%. XX% revenue year what XXXX Now million, the on reiterating of Based Total revenue guidance. see $XXX the Transaction year. subscription in to for fiscal fiscal XX%. and are our to of to growth be our $XXX and turning XX% we representing to guidance to also range today, growth million we be

over expected to We back income the that, million million $XX between GAAP call net and $XX between flow to $XX $XX like operator $XX expect between and our million. With is million million, the million. be and to for be session. Q&A to to now EBITDA be total operating turn we'd Total Operator? adjusted cash $XX U.S.

Operator

take first of the the We B. question comes [Operator from Josh Riley. Instructions] Nichols question, and from line will our

Josh Nichols

or increase strong see take to rates a the the to in going for going and curious, Good expected. do the in profile transaction likely think came for average business you see the higher had to the better next achieved and company fee little the just is forward, quarters. The sustain we the Good than or first a what I'm the you up. quarter. off ticket quarter start margin X for the size subscription that that profile bit, to first about thinking level gross

Scott Stewart

we Josh, for anticipate sure. trend the do We Yes, in take Thanks job did do overall to increasing our question. great a rate. that continue.

kind the do ticket this fixed. continue transaction to that a I processing the increase processing But quarters. the we of maybe expect and throughout improve size, margin the fact quarter. overall X over that the to due seen our are next You've year, will on out quarter cap fees average past of probably to portion the because largely of feel

bigger, improve margins. gets size ticket that will help our As it

year. as do we it see the go we throughout increasing So slightly

Josh Nichols

know one in other before. there's X talked key I about customer. if I at markets, any potentially that Latin that mentioned with curious had that context also, going customer. on you you deployment on some international still touched stages large had just early how expectation And appreciate the And I'm the tier updates secured overall? you you awards how Is there. kind there. In about looking America, securing of is the the

Ravi Venkatesan

that thanks Latin and be about we as the are to to those. Europe continue question No, expansion both Yes, America the continuing and well. for work initiatives scale Josh, bullish to

are America, correct. Latin you in Specifically

not those in cetera, and a in it operational and results customer. We from sales, rock Almost deployments. have very deploying And taken some sand et we we have metrics of a markets. thoughtful scale on building a improved same-store terms those and deployments approach efficiencies, to actually so new cautious little bit as generate large throttling those measure with that we are on been

Josh Nichols

And then last for question me.

that low would to go we and end range a versus year. just relatively the wide end the that the income looking puts thinking move over as and stand EBITDA and how of you the I But guidance. you a of some high narrows would at of guidance, today. as takes, net if of range we assume you're about Looking bit for could are kind little how kind the what get things through

Scott Stewart

Sure.

a of you're is also also to that, So growth income, big be of as margins is portion that increased well. When expense revenue as a is well. and overall, that driver the tax a going specifically to driver net speaking of

we've two, or have. improved which start including our as now profitability to So the we our thinking about and forecast, good problem to in a that year have over past taxes is

through also tax be So other you that quarter, even stay OpEx, go a slightly What the next of slightly expect first X then will it. little component to the bit we'll the or decrease fairly quarters. you be at we big when that look see holding we And for steady. as steady

those the So probably will drivers. be big

Operator

Marc line the from Feldman Your from next William Blair. comes question of

Marc Feldman

past could at wanted the few thoughts could where go. go to in Day updated that a Investor lot ARPU, your $XXX, but over any since and about on with Appreciate a talked $XXX quarters, products if the the then. of but added provide see disclosure could XXXX, you you've Back you opportunity to that ARPU over

thoughts that. updated So around just

Scott Stewart

was during new we like? for our continued the years would products. that that service someone X to buy at that was -- What provided if was look ARPU Marc. every every Day offered We've what on if Sure, we Investor device, $XXX. to add And one ago

this quarter, in a And the seen so ARPU. growth XX% we've

rest continue to of growth that continue throughout that expect rate We year. this throughout, the to

revenue, selling going price of to the that then ARPU. getting and average Analytics start of up And the as becomes That's of higher. pushing larger a help also ticket is our we overall that drivers drive the that's the One more of Cantaloupe Seed as ARPU also Some portion up.

Marc Feldman

very the of then that's international I No, if part just And ask business could here. Great. helpful. the on

I year fiscal talked there So the revenues just little where X% there. target the region. But thoughts the bit some for America at a about in updated ago, is year? coming revenues XXXX know exit been from delays to and about get And there's a could international, was around of obviously throttling about international Ravi Latin any

Ravi Venkatesan

Yes, tracking to the we long-term outlined. that still trajectory we're

short revenue, a on a footing. to are the the the While scaling. I -- more sort cetera, that in of we long-term contribution in revenue, kind throttling of percentage of is short-term on pace the -- of et But strong mentioned still terms fairly

In customer adds was exciting new connection adds, first cetera. new of fact, in quarter the et and terms

Operator

Your the next question Gary of comes from line Prestopino from Barrington.

Gary Prestopino

great earnings It's been season. a

space, that I where couple a handle the space that. of guess? what smart of in to winning just ask, Just store are be terms trying how I'm the utilized, these I a would to guess applications trying on you're questions are products, -- here. get that In I'm in they

Ravi Venkatesan

Yes.

as for word known also one shrink. layman's retail in got I've So you, It's terms more theft.

simultaneously it, out happened of a theft right, that what's going experience. prevent retail solutions while of can the buying of because control, for friction demand taking tremendous seen So is we've out

fitness charged stealing go a locations a actually a they go go for by the how are universities, smart of the corporate these into there's credit there detects before by it in possible. but consumer and it where variety into hospitals, it's stores are into of requires products of So And what into of default, unlocks. breakrooms, is card taken because we've no exactly AI seen and go locked, And technology centers, smart tap that then it. nature

it deployed. digits, rate to sometimes down a where they a almost it theft and nothing locations after rate of, gosh, had So in it's even we've deployed if double shrink multiple or goes

the right that's now. use case major So

Gary Prestopino

the producing as processing connectivity equipment transactions? the well as and doing you And that are

Ravi Venkatesan

it's sell. solution we that an end-to-end Yes,

obviously Now and do the that work for like solutions. like partners components our of different we we things with for rest

Gary Prestopino

across Okay. you the just at I -- are to all this higher then And point, and ticket drive trying look you as mean, that. company, driving prices

skewed the it volume, that mix go I by divided guess the But of we right you forward, about your your number transactions. like still we lower it's the If as transactions really is, like towards get take is transaction dollar now, $X.XX. question looks

adding go markets you as micro do applications? that you forward, of think some As number the start and smart you goes these where

Ravi Venkatesan

Yes.

continue our potato salads would grow of to right. likes say, And going Cobb are more there it. been, the a going One, from beverage how large business, salads. needless think chips and we expensive. up reasons if couple I a to to That's and say, -- portion, very it's Cobb you food has and up portion take to go for disproportionately which phrase of large to it. are I the are And sector, our Chairman to

And towards that's of more fresh food kind smart or commissaries stores, healthier markets comes and of of instead right? one that out and food custom more manufacturing, micro trend it's a food so you're whether regular seeing So gourmet vector. and

selling markets, vector And higher we're expensive our of gear of those are then are pharmaceuticals, of vending like through that There's that all how whether a prices. Scott, just ticket by forgot items, water that? now kind non-food driving prices. atypical of kinds cosmetics, other micro what's from smart historical driving there it's electronics. deployed, course also being things even and is higher all And are of lot of they The are beverage in bottles, or perspective. drive a of machines stores terms they anything and items, sold nature I are ticket more

Scott Stewart

No, Ravi.

of rest Gary, been year-over-year, price through you do average past XX% Overall, expect we covered over look the continue year. that we've growing I that that the to ticket the think and about seen when at you it. year, you've

Gary Prestopino

going of ticket items? Just in assumptions this what quarter, of higher some so more idea is of maybe the of these then maybe be of can Can where total go. can idea it transactions, the give just we number some them would get of an percentage like to you and where make company like us

Scott Stewart

That's not we yes. that anything disclosed And before. --

Ravi Venkatesan

to line, and think apples like it's some I oranges just draw that apples, and oranges. bananas thought and give things to because not we'd to how It's now.

we have and not things, X So be are categories new a because than There there. more it's here create here to are simple. used what the between is all logical as line to

to So data some -- share. We'll do back with but around it's good it feedback. points and I come think thinking some

Gary Prestopino

another the getting that's Yes. Yes, price higher being is enterprise, revenue it transaction fees really right? and across a ticket driving appreciate item and because the with thing key here bought the

Ravi Venkatesan

sure. For

Scott Stewart

something Gary, go that's we think X, next And I to that's as over even change the going X years. constantly X,

I going to higher the think with continue is hopefully priced that product shifting items. continue mix and

Operator

[Operator Capital. comes the Northland of question Mike line Instructions] And from the from Latimore

Aditya Dagaonkar

expect This Latimore. the such Mike residential on can of verticals is percentage give we new the what new the color apartments? some verticals? bookings behalf of And of on from Aditya as bookings, kind you Could

Ravi Venkatesan

So some ago, pass a is residential at couple very I percentages maybe can I'll has nonexistent of that tell Scott add really which more of years about you to segment, to take relevant. and a What revenue. It's the can become was it, color. talk then early started

are also stores. newer So and markets verticals dealerships, for them new which smart also micro We're car markets a vertical we stores deployed seeing now the get and of are, in for again, residential complexes, and lobby and high-end centers us. that's areas seeing fitness get especially, in smart micro deployed whole

we start say how color they're a about can shoots, et and go contributing at there. would revenue level cetera. add a talking as Scott, ahead but I much to exciting So where other percentage, any green But not

Scott Stewart

right. exactly and that's for very we still for stages is stores scenario us mean and it's well. I smart limitless, -- as the use I think case very the new Ravi, No, early

around it can a metrics before So will that. I while little provide think we be any

Aditya Dagaonkar

could And active growth growth? the give mid-single the can to we color devices? you it. to Should that on continue a Got we low- some on expect expect digit

Scott Stewart

in anticipating year, in what low- of Throughout Yes, the the that's to single right. the -- rest this mid-range digits. we're single that's

Ravi Venkatesan

the metric, that easy Because that just think as one-dimensional we've investors measure was And our emphasis readers it to of based much remember Yes. was this very a when of on metric everything lay it I growth machines, honestly, have as sort continued telemeters business. to card not we while connections. of on or predictor on advised vending

maybe of, micro let's case, and stores market even XXx Now business that. use does twice say, the active the legacy a device the more smart are

homogenous active how all our terms they're it's not in devices again, So -- of are.

as continue continue been we'll investors, to well report while can do provide we deemphasizing have continuity, so. that it we with internally So so we to as it and

Operator

call. question-and-answer This This you participating. concludes conference the for today's session. Thank concludes

now may You disconnect.

Cantaloupe (CTLP) 7 Nov 242025 Q1 Earnings call transcript