On September 10, 2024, Cantaloupe Inc (CTLP, Financial) released its 8-K filing reporting the financial results for the fourth quarter and fiscal year ended June 30, 2024. Cantaloupe Inc operates in the small ticket electronic payments industry, providing wireless, cashless, micro-transactions, and networking services within the unattended Point of Sale (POS) market. The company's product portfolio includes ePort Cashless devices, eSuds, EnergyMisers, and various value-added services.
Fourth Quarter 2024 Financial Highlights
For the fourth quarter of fiscal year 2024, Cantaloupe Inc reported:
- Revenue of $72.7 million, a 13.2% increase compared to Q4 FY 2023, but below the analyst estimate of $75.93 million.
- Transaction fees of $41.2 million, up 16.0% year-over-year.
- Subscription fees of $19.9 million, up 14.1% year-over-year.
- Equipment sales of $11.5 million, up 2.9% year-over-year.
- Net income applicable to common shares of $2.2 million, or $0.03 diluted earnings per share, below the analyst estimate of $0.04.
- Adjusted EBITDA of $7.5 million, a 19.0% decrease from Q4 FY 2023.
Fiscal Year 2024 Financial Highlights
For the full fiscal year 2024, Cantaloupe Inc reported:
- Revenue of $268.6 million, a 10.2% increase year-over-year, but below the annual estimate of $271.86 million.
- Transaction fees of $156.2 million, up 17.8% year-over-year.
- Subscription fees of $75.3 million, up 11.4% year-over-year.
- Equipment sales of $37.1 million, a 14.6% decrease year-over-year.
- Net income applicable to common shares of $11.4 million, or $0.15 diluted earnings per share, compared to $0.01 million in FY 2023.
- Adjusted EBITDA of $34.0 million, a 90.9% increase year-over-year.
Performance Analysis
Cantaloupe Inc's performance in Q4 and FY 2024 highlights the company's strong growth in subscription and transaction fees, which are critical for recurring revenue. However, the decline in equipment sales margins and the overall revenue miss indicate challenges in the hardware segment. The company's focus on expanding its international footprint and leveraging the trend towards cashless payments is expected to drive future growth.
Key Financial Metrics
| Metric | Q4 FY 2024 | Q4 FY 2023 | FY 2024 | FY 2023 |
|---|---|---|---|---|
| Revenue | $72.7M | $64.2M | $268.6M | $243.6M |
| Net Income | $2.2M | $2.8M | $11.4M | $0.01M |
| Adjusted EBITDA | $7.5M | $9.2M | $34.0M | $17.8M |
Commentary
"It’s been a strong year for Cantaloupe capped off by a solid fourth quarter," said Ravi Venkatesan, chief executive officer, Cantaloupe. "During Fiscal Year 2024, we executed on our strategy to expand operating leverage by driving recurring revenue growth while also optimizing cost of sales and controlling operational expenses."
Conclusion
While Cantaloupe Inc (CTLP, Financial) demonstrated robust growth in subscription and transaction fees, the decline in equipment sales margins and the overall revenue miss highlight areas for improvement. The company's strategic focus on cashless payments and international expansion positions it well for future growth. Investors will be keen to see how Cantaloupe navigates these challenges and capitalizes on growth opportunities in FY 2025.
Explore the complete 8-K earnings release (here) from Cantaloupe Inc for further details.
