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Cantaloupe boosts Q1 2023 revenue, extends loss

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November 8, 2022

Cantaloupe Inc. lifted its Q1 2024 revenue boosted by record transaction revenue but extended its bottom line loss, according to a press release. The revenue exceeded analyst expectations while the earnings loss fell short. Highlights include:

Revenue rose 26%, from $45.78 million in Q1 2022 to $57.8 million in the quarter ending Sept. 30, 2022, led by a sixth consecutive quarter of record transaction revenue.
Net loss extended from $1.29 million to $8.57 million in the comparative quarters.
Basic and diluted loss rose from 2 cents to 13 cents.
Transaction fees rose 18% to $31.3 million.
Subscription fees rose 11% to $15.8 million.
Equipment sales rose 108% to $10.7 million.
Total dollar volumes of transactions rose 16% to $639.5 million.
Active customers rose 21% from 20,738 to 25,019.
Active devices rose 3% from 1.11 million to 1.15 million.
For full fiscal year 2023, the company reiterated revenue to be between $225 million and $235 million, representing year-over-year growth of 10% to 15%.
Transaction fees revenue growth is expected to be in the high teens.
Subscription fees revenue growth is expected to be in the low teens.
Equipment sales revenue growth is expected to be relatively flat.
U.S. GAAP net income is expected to be between $1 million and $5 million.

Shares traded at $3.33 Monday against a 52-week range of $3.02 to $11.90.

The $57.8 million in quarterly revenue beat analyst expectations by $3.63 million while the 13-cent EPS loss missed expectations by 12 cents, according to Seeking Alpha.

"Our revenue grew 26% year-over-year, including double digit growth in both transaction and subscription fees," Ravi Venkatesan, chief executive officer, said in the press release. "Gross margin and adjusted EBITDA were negatively impacted primarily due to one-time migration costs related to our transition to the AWS cloud environment and procurement of higher-priced components to fulfill customer demand. However, this positions us well for growth and profitability for the remainder of the fiscal year."