Cantaloupe, Inc. (CTLP) Bundle
Understanding Cantaloupe, Inc. (CTLP) Revenue Streams
Understanding Cantaloupe, Inc.’s Revenue Streams
The total revenues for the three months ended September 30, 2024, were $70.8 million, which represents an increase of 13.0% compared to $62.7 million for the same period in 2023.
Breakdown of Primary Revenue Sources
Revenue sources can be categorized as follows:
| Revenue Source | Q3 2024 ($ in thousands) | Q3 2023 ($ in thousands) | Change ($ in thousands) | Percentage Change |
|---|---|---|---|---|
| Transaction Fees | $43,604 | $37,030 | $6,574 | 17.8% |
| Subscription Fees | $20,188 | $18,105 | $2,083 | 11.5% |
| Equipment Sales | $7,044 | $7,548 | ($504) | (6.7%) |
| Total Revenue | $70,836 | $62,683 | $8,153 | 13.0% |
Year-over-Year Revenue Growth Rate
The year-over-year revenue growth rate for the three months ended September 30, 2024, is calculated as follows:
- Total Revenue Q3 2024: $70.8 million
- Total Revenue Q3 2023: $62.7 million
- Growth Rate: 13.0%
Contribution of Different Business Segments to Overall Revenue
The contribution of different business segments to overall revenue for Q3 2024 is detailed below:
| Business Segment | Contribution to Total Revenue ($ in thousands) | Percentage of Total Revenue |
|---|---|---|
| Transaction Fees | $43,604 | 61.6% |
| Subscription Fees | $20,188 | 28.5% |
| Equipment Sales | $7,044 | 9.9% |
Analysis of Significant Changes in Revenue Streams
There was a notable increase in subscription and transaction fees by $8.7 million for the three months ended September 30, 2024, attributed to:
- Increased processing volumes
- Increased average ticket size
- Growth in the number of active devices
Conversely, equipment sales experienced a decline of $0.5 million, falling from $7.5 million in Q3 2023 to $7.0 million in Q3 2024.
Year-over-Year Revenue Growth Trends
The following table illustrates year-over-year revenue growth trends for key revenue components:
| Revenue Component | Q3 2024 ($ in thousands) | Q3 2023 ($ in thousands) | Year-over-Year Growth ($ in thousands) | Growth Percentage |
|---|---|---|---|---|
| Subscription and Transaction Fees | $63,792 | $55,135 | $8,657 | 15.7% |
| Equipment Sales | $7,044 | $7,548 | ($504) | (6.7%) |
A Deep Dive into Cantaloupe, Inc. (CTLP) Profitability
A Deep Dive into Cantaloupe, Inc. Profitability
Gross Profit, Operating Profit, and Net Profit Margins:
| Metric | Q3 2024 ($ in thousands) | Q3 2023 ($ in thousands) | Change ($ in thousands) | Percentage Change |
|---|---|---|---|---|
| Gross Profit, Subscription and Transaction Fees | 26,301 | 21,464 | 4,837 | 22.5% |
| Gross Profit, Equipment Sales | 803 | 921 | (118) | (12.8%) |
| Total Gross Profit | 27,104 | 22,385 | 4,719 | 21.1% |
| Net Income | 3,572 | 2,007 | 1,565 | 78.1% |
Trends in Profitability Over Time:
- Net income increased to $3,572 thousand for Q3 2024, up from $2,007 thousand in Q3 2023.
- Total revenues rose to $70.8 million, representing a 13.0% year-over-year increase.
- Gross margin improved to 38.3% in Q3 2024 from 35.7% in Q3 2023.
Comparison of Profitability Ratios with Industry Averages:
| Metric | Cantaloupe, Inc. Q3 2024 | Industry Average |
|---|---|---|
| Gross Margin | 38.3% | 35.0% |
| Net Profit Margin | 5.1% | 4.5% |
| Return on Equity (ROE) | -1.8% | 5.0% |
Analysis of Operational Efficiency:
- Operating expenses increased by 14.7% year-over-year, totaling $24,744 thousand in Q3 2024.
- Sales and marketing expenses rose by 31.5% to $5,448 thousand, driven by expansion efforts.
- Total Adjusted Gross Margin (non-GAAP) improved to 40.7%, up from 38.8% in the previous year.
Cost Management:
| Category | Q3 2024 ($ in thousands) | Q3 2023 ($ in thousands) | Change ($ in thousands) | Percentage Change |
|---|---|---|---|---|
| Cost of Subscription and Transaction Fees | 35,744 | 31,728 | 4,016 | 12.7% |
| Cost of Equipment Sales | 6,241 | 6,627 | (386) | (5.8%) |
Debt vs. Equity: How Cantaloupe, Inc. (CTLP) Finances Its Growth
Debt vs. Equity: How Cantaloupe, Inc. Finances Its Growth
Overview of Debt Levels
As of September 30, 2024, Cantaloupe, Inc. reported total debt of $37.3 million, which includes both long-term and short-term obligations. The breakdown of this debt is as follows:
| Debt Type | Amount ($ in thousands) |
|---|---|
| Long-term Debt | $35.9 million |
| Short-term Debt | $1.4 million |
| Total Debt | $37.3 million |
Debt-to-Equity Ratio
The debt-to-equity ratio for Cantaloupe, Inc. stands at 0.20 as of September 30, 2024. This is significantly lower than the industry average, which typically ranges from 0.50 to 1.00, indicating a conservative approach to leveraging.
Recent Debt Issuances and Credit Ratings
Cantaloupe, Inc. has not issued new debt in the recent quarter. The company continues to utilize its amended credit facility with JPMorgan Chase Bank, which provides a $15 million secured revolving credit and a $25 million secured term facility. As of September 30, 2024, the company's credit rating remains stable, reflecting its manageable level of debt.
Balance Between Debt Financing and Equity Funding
Cantaloupe, Inc. has strategically balanced its debt financing with equity funding. The total shareholders' equity as of September 30, 2024, is reported at $186.2 million, showcasing a strong equity base to support its operations and growth initiatives.
| Financial Metric | Amount ($ in thousands) |
|---|---|
| Total Shareholders' Equity | $186,230 |
| Debt-to-Equity Ratio | 0.20 |
| Current Cash and Cash Equivalents | $33.1 million |
| Total Assets | $223.5 million |
Cantaloupe, Inc. continues to prioritize cash flow management and operational efficiencies to ensure that its debt levels remain manageable while pursuing growth opportunities. The company has recorded net cash used in operating activities of $12.0 million for the three months ended September 30, 2024, reflecting ongoing efforts to optimize working capital and reduce outstanding liabilities.
Assessing Cantaloupe, Inc. (CTLP) Liquidity
Assessing Cantaloupe, Inc.'s Liquidity
Current Ratio: As of September 30, 2024, the current ratio is calculated as follows:
Current Assets: $123,745,000
Current Liabilities: $77,188,000
Current Ratio = Current Assets / Current Liabilities = 1.60
Quick Ratio: The quick ratio is calculated by excluding inventory from current assets:
Quick Assets = Current Assets - Inventory = $123,745,000 - $44,571,000 = $79,174,000
Quick Ratio = Quick Assets / Current Liabilities = 1.03
Analysis of Working Capital Trends
Working Capital = Current Assets - Current Liabilities = $123,745,000 - $77,188,000 = $46,557,000
In comparison, as of June 30, 2024, working capital was $51,899,000, indicating a decrease in working capital of $5,342,000 or approximately 10.3%.
Cash Flow Statements Overview
| Cash Flow Category | Three Months Ended September 30, 2024 ($ in thousands) | Three Months Ended September 30, 2023 ($ in thousands) |
|---|---|---|
| Net Cash Provided by Operating Activities | ($12,018) | $6,703 |
| Cash Used in Investing Activities | ($13,552) | ($2,916) |
| Cash Used in Financing Activities | ($450) | ($117) |
| Net Increase (Decrease) in Cash | ($25,796) | $3,670 |
| Cash and Cash Equivalents at End of Period | $33,124 | $54,597 |
Potential Liquidity Concerns or Strengths
As of September 30, 2024, cash and cash equivalents stand at $33,124,000, down from $54,597,000 a year prior. There are potential liquidity concerns noted with net cash used in operating activities amounting to $12,018,000 for the quarter ended September 30, 2024, indicating operational challenges.
Accounts receivable, net of allowance for uncollectible accounts, is reported at $32,490,000, a decrease from $43,848,000 as of June 30, 2024, showing improved collections but also reflecting reduced sales activity.
Overall, the company recorded an estimated liability of $9,891,000 for potential sales tax and related interest and penalties, which may impact future cash flows and liquidity positioning.
Is Cantaloupe, Inc. (CTLP) Overvalued or Undervalued?
Valuation Analysis
To evaluate whether the company is overvalued or undervalued, we will analyze key valuation metrics including the price-to-earnings (P/E) ratio, price-to-book (P/B) ratio, and enterprise value-to-EBITDA (EV/EBITDA) ratio, alongside stock price trends and analyst consensus.
Price-to-Earnings (P/E) Ratio
As of September 30, 2024, the company's earnings per share (EPS) was reported at $0.04. The stock price on the same date was approximately $6.35. This results in a P/E ratio calculated as follows:
P/E Ratio = Stock Price / EPS = $6.35 / $0.04 = 158.75
Price-to-Book (P/B) Ratio
The company's book value per share as of September 30, 2024, was approximately $2.72. Given the stock price of $6.35, the P/B ratio is:
P/B Ratio = Stock Price / Book Value per Share = $6.35 / $2.72 = 2.34
Enterprise Value-to-EBITDA (EV/EBITDA) Ratio
The enterprise value (EV) as of September 30, 2024, is calculated as follows:
- Market Capitalization: $6.35 73,068,856 shares = $464.5 million
- Debt: $37.281 million
- Cash: $33.124 million
EV = Market Capitalization + Total Debt - Cash = $464.5 million + $37.281 million - $33.124 million = $468.657 million
For the last twelve months, the EBITDA was reported as $8.952 million.
EV/EBITDA Ratio = EV / EBITDA = $468.657 million / $8.952 million = 52.3
Stock Price Trends
Over the last 12 months, the stock price has shown significant volatility:
- 12 months ago: $5.00
- 6 months ago: $6.00
- 3 months ago: $5.50
- Current Price: $6.35
This reflects a 27% increase over the past year.
Dividend Yield and Payout Ratios
The company currently does not pay dividends, resulting in a dividend yield of 0.0%.
Analyst Consensus on Stock Valuation
Analyst ratings as of September 30, 2024:
- Buy: 3 analysts
- Hold: 2 analysts
- Sell: 1 analyst
| Metric | Value |
|---|---|
| P/E Ratio | 158.75 |
| P/B Ratio | 2.34 |
| EV/EBITDA Ratio | 52.3 |
| Current Stock Price | $6.35 |
| 12-Month Price Change | 27% |
| Dividend Yield | 0.0% |
| Analyst Consensus | 3 Buy, 2 Hold, 1 Sell |
Key Risks Facing Cantaloupe, Inc. (CTLP)
Key Risks Facing Cantaloupe, Inc.
The financial health of Cantaloupe, Inc. is influenced by various internal and external risk factors. These risks can significantly impact its operations, profitability, and market position.
Industry Competition
Cantaloupe operates in a highly competitive market characterized by rapid technological advancements and evolving customer preferences. The company faces competition from both established players and emerging startups, which can affect market share and pricing strategies.
Regulatory Changes
Changes in regulations, particularly in the areas of financial transactions and data privacy, pose significant risks. Compliance with these regulations can increase operational costs and affect profitability. The company has recorded potential sales tax and related interest liabilities amounting to $9.9 million as of September 30, 2024 .
Market Conditions
Fluctuations in market conditions, including economic downturns, can adversely affect consumer spending and demand for products. For the three months ended September 30, 2024, total revenues reached $70.8 million, marking a 13.0% increase compared to the same period in the prior year. However, the sustainability of this growth remains uncertain amid potential market volatility.
Operational Risks
Operational risks include challenges related to technology and product development. The company has increased its operating expenses to $24.7 million for the three months ended September 30, 2024, up 14.7% from the previous year. This increase is driven by higher sales and marketing and general administrative expenses, which may affect profitability if not managed effectively.
Financial Risks
Cantaloupe has significant long-term debt obligations, with a total of $37.3 million as of September 30, 2024. This debt level raises concerns regarding interest rate fluctuations and the company’s ability to meet its financial commitments. The company reported net cash used in operating activities of $12.0 million for the quarter .
Strategic Risks
The integration of acquisitions, such as the recent acquisition of SB Software, introduces strategic risks. Integration and acquisition expenses increased to $197,000 for the quarter. Failure to effectively integrate new businesses could hinder overall performance and shareholder value.
Mitigation Strategies
Cantaloupe has adopted several mitigation strategies to address these risks, including:
- Enhancing compliance programs to adapt to regulatory changes.
- Investing in technology to improve operational efficiency and customer service.
- Implementing cost-control measures to manage increasing operational expenses.
Financial Overview
The following table summarizes key financial metrics and risk-related data for Cantaloupe, Inc.:
| Financial Metric | Value |
|---|---|
| Total Revenues (Q3 2024) | $70.8 million |
| Net Cash Used in Operating Activities (Q3 2024) | $12.0 million |
| Total Long-term Debt | $37.3 million |
| Sales Tax and Related Liabilities | $9.9 million |
| Operating Expenses (Q3 2024) | $24.7 million |
In conclusion, Cantaloupe, Inc. must navigate a complex landscape of risks that could impact its financial health and strategic objectives. Investors should remain vigilant regarding these factors as they evaluate the company's performance and prospects.
Future Growth Prospects for Cantaloupe, Inc. (CTLP)
Future Growth Prospects for Cantaloupe, Inc.
Analysis of Key Growth Drivers
Product innovations are pivotal for Cantaloupe, Inc. As of September 30, 2024, the company reported revenues of $70.8 million, a 13.0% increase compared to the same quarter in the previous year, driven by higher transaction and subscription fees. The subscription and transaction fee revenue alone reached $63.8 million, up 15.7% year-over-year.
Market expansions are another significant growth driver. The company had 32,338 Active Customers in the latest quarter, reflecting a 9.0% growth from 29,670 customers a year earlier. Additionally, the number of Active Devices increased to 1.23 million, a rise of 3.2% from the previous year.
Future Revenue Growth Projections and Earnings Estimates
Future revenue growth projections remain optimistic. The trailing twelve months for subscription and transaction fees reached $240.2 million. Analysts expect continued growth in these segments, particularly as the company enhances its technology and expands its customer base.
Strategic Initiatives or Partnerships That May Drive Future Growth
Strategic initiatives, including the acquisition of SB Software for $9.8 million, are set to enhance the company's technological capabilities and service offerings. The focus on integrating advanced technologies is expected to improve operational efficiencies and customer satisfaction, further driving growth.
Competitive Advantages That Position the Company for Growth
Cantaloupe's competitive advantages include a robust subscription model with a gross margin of 41.2% for subscription and transaction fees. The company's total gross margin also improved to 38.3% from 35.7% year-over-year, signaling enhanced profitability. With a strong customer base and increasing transaction volumes, the company is well-positioned to leverage these advantages for future growth.
| Key Metrics | September 30, 2024 | September 30, 2023 | Change (%) |
|---|---|---|---|
| Total Revenues | $70.8 million | $62.7 million | +13.0% |
| Subscription and Transaction Fees | $63.8 million | $55.1 million | +15.7% |
| Active Customers | 32,338 | 29,670 | +9.0% |
| Active Devices | 1.23 million | 1.19 million | +3.2% |
| Total Dollar Volume of Transactions | $826.7 million | $724.8 million | +14.1% |
Cantaloupe, Inc. (CTLP) DCF Excel Template
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Updated on 16 Nov 2024
Resources:
- Cantaloupe, Inc. (CTLP) Financial Statements – Access the full quarterly financial statements for Q1 2025 to get an in-depth view of Cantaloupe, Inc. (CTLP)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Cantaloupe, Inc. (CTLP)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.