Cantaloupe Inc (CTLP) Q4 2024 Earnings Call Highlights: Strong Revenue Growth Amidst EBITDA ...

GuruFocus News
4 min read

In This Article:

  • Total Revenue: $72.7 million in Q4, up 13% compared to Q4 FY23.

  • Transaction Revenue: $41.2 million, an increase of 16% compared to Q4 FY23.

  • Subscription Revenue: $19.9 million, a year-over-year increase of 14%.

  • Adjusted EBITDA: $7.5 million in Q4, a 19% decrease compared to Q4 FY23.

  • FY24 Revenue: $268.6 million, slightly below guidance.

  • FY24 Adjusted EBITDA: $34 million, an increase of 91% from the prior year.

  • Non-GAAP Adjusted Gross Margin: 38% for FY24, up from 33% in FY23.

  • Revenue per Connection: Increased by 11% from $174 in FY23 to $194 in FY24.

  • Net Income: $2.2 million or $0.03 diluted earnings per share in Q4.

  • Cash and Cash Equivalents: $58.9 million at the end of Q4.

  • FY25 Revenue Guidance: $308 million to $322 million, representing growth of 15% to 20%.

  • FY25 Adjusted EBITDA Guidance: $44 million to $52 million.

Release Date: September 10, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Cantaloupe Inc (NASDAQ:CTLP) reported a 13% increase in total revenue for Q4 FY24, reaching $72.7 million, driven by a 16% increase in transaction revenue and a 14% increase in subscription revenue.

  • The company achieved a 91% increase in adjusted EBITDA for FY24, reaching $34 million, demonstrating strong financial performance.

  • Cantaloupe Inc (NASDAQ:CTLP) successfully expanded its gross margins, with total non-GAAP adjusted gross margin increasing from 33% in FY23 to 38% in FY24.

  • The company has made significant progress in international expansion, particularly in Europe and Latin America, with new partnerships and acquisitions enhancing its market reach.

  • Cantaloupe Inc (NASDAQ:CTLP) has remediated all previously reported material weaknesses in internal controls, indicating improved operational efficiency and governance.

Negative Points

  • Adjusted EBITDA for Q4 FY24 decreased by 19% compared to Q4 FY23, partly due to a $1.5 million benefit from one-time items in the previous year.

  • FY24 revenue came in slightly below guidance at $268.6 million, indicating a shortfall in expected performance.

  • The company's equipment revenue growth was modest, with only a 3% increase compared to Q4 FY23.

  • Adjusted gross margin on equipment revenue for Q4 FY24 declined to 7% from 21% in the prior year, reflecting challenges in maintaining equipment profitability.

  • Cantaloupe Inc (NASDAQ:CTLP) experienced a temporary weakness in transaction revenue in June, attributed to weaker consumer spending, although this did not persist into FY25.

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