Cantaloupe (CTLP) Q4 2024 earnings summary

Executive summary

• FY 2024 revenue reached $268.6 million, up 10.2% year-over-year, with Q4 revenue at $72.7 million, a 13.2% increase, driven by strong transaction and subscription revenue growth.

• Adjusted EBITDA for FY 2024 was $34 million, up 90.9% year-over-year, with net income applicable to common shares at $11.4 million.

• Operational improvements included remediation of all previously reported material weaknesses and accelerated growth in micro markets and Seed software adoption.

• International expansion advanced, notably in Europe and Latin America, supported by the acquisition of SB Software Limited.

• Strategic focus for FY 2025 includes further international scaling, new verticals, and leveraging partnerships for growth.

Financial highlights

• Q4 2024 transaction revenue rose 16% and subscription revenue increased 14% year-over-year; equipment sales rose 2.9%.

• Adjusted EBITDA for Q4 was $7.5 million, down 19% due to prior year one-time benefits.

• FY 2024 adjusted gross margin improved to 38.2% from 33.3% in FY 2023.

• Net income for Q4 was $2.2 million ($0.03 per diluted share), compared to $2.8 million ($0.04 per share) last year.

• Cash and cash equivalents at year-end were $58.9 million.

Outlook and guidance

• FY 2025 revenue expected between $308 million and $322 million, representing 15%-20% growth.

• Transaction and subscription revenue growth projected at 15%-20%.

• FY 2025 adjusted EBITDA guidance is $44 million to $52 million; net income expected between $22 million and $32 million.

• Operating cash flow forecasted at $24 million to $32 million.