Cantaloupe, Inc.

Ladies and gentlemen, thank you for Please go ahead.

Thank you, and good afternoon, everyone. Welcome to the Cantaloupe First Quarter Earnings Conference Call. With me on the call this afternoon is Sean Feeney, Chief Executive Officer, Wayne Jackson, Chief Financial Officer, and Ravi Venkatesan, Chief Technology Officer. Before we begin today's call, I would like to remind you that all statements included in this call, other than statements of historical fact, are forward-looking in nature. Actual results could differ materially from those contemplated by the forward-looking statements because of certain factors included but not limited to business, financial, markets, and economic conditions. A detailed discussion of the risks and uncertainties that could cause actual results and events to differ materially from such forward-looking statements is included with our filings with the SEC and in the press release issued earlier today. Listeners are cautioned not to place undue reliance on any such forward-looking statements which reflect management's view only as of the date they are made. Cantaloupe undertakes no obligation to update any forward-looking statements, whether because of new information, future events, or otherwise. This call will also include a discussion of certain non-GAAP financial measures that we believe are useful for, among other things, evaluating Cantaloupe's operating results. These non-GAAP financial measures are supplemental to and not a substitute for GAAP financial measures, such as net income or loss. Details of these non-GAAP financial measures, a presentation of the most directly comparable GAAP financial measures, and a reconciliation between these non-GAAP financial measures, as well as the most comparable GAAP financial measures, can be found in our press release issued this afternoon, which has also been posted on the Investor Relations section of our website at www.council.com. And with that, I would now like to turn the call over to Chief Executive Officer Sean Feeney. Sean?

Thank you, Alicia, and thank you, everyone, for joining us on our first call of the new fiscal year. Before I dive into the business update, I want to point out that starting this quarter, we are providing additional visibility into our financials by breaking out revenue streams and operating expenses differently, which you can see in our earnings press release and which Wayne will describe in more detail. This disclosure aligns more closely with the way we internally manage the business. We had a strong start to fiscal year 2022 with first quarter revenues increasing 24% year over year, driven by a 34% increase in transaction revenue and 37% increase in equipment revenue over the prior year quarter. Relating to our transaction revenues, our volumes are now exceeding pre-pandemic highs. Comparing the current quarter to prior fiscal year quarter, total dollar volumes increased by 36%, active customers increased by 17%, and active devices were up 3%. We are seeing continued demand for Cantaloupe's products and services. Over the last few weeks, I've been meeting with operators to hear more about trends they are seeing in the market and how we can help them. It is clear from these conversations that customers have an increased level of confidence in their business outlook. The return of travel, the return to schools, and the need for the digitization of payments are all positively impacting our business. Operators continue to provide feedback that our SEED Pro software is helping them keep up with these trends, as well as helping them to navigate supply chain issues and the tight labor market. Plain and simple, our software enables operators to be more efficient. A few weeks ago, we highlighted SeedPro and SeedOffice's very positive impact on Food Express, a new client and one of America's fastest-growing food service operators located in the southeast. In August, we acquired Yolk Payments. The initial customer reaction to the combination of Yolk and our SeedMarkets product has been resoundingly positive. Seed Software, combined with Yolk's point-of-sale platform, offers our customers a unique solution for micromarkets. Every operator I've spoken to recently is looking to add micromarkets to high-value locations and redeploy vending machines in other parts of their operation. Micromarkets are expected to grow somewhere between 15% and 30% this calendar year, and growth is expected to accelerate into calendar 2022 according to automatic merchandisers 2021 State of the Industry Report. Another trend influencing our industry is EMV enablement, which is going to have a significant impact on hardware spend for our customers as card issuers begin to enforce compliance over the next year. Cantaloupe has the largest footprint of EMV compliant devices in the U.S., and we are working with customers who are not yet EMV compliant to upgrade their devices over the coming months. We also continue to see a rise in M&A activity in the unattended retail space. In many cases, this is driving conversion to seed software and adoption of ePorts as larger enterprise clients add incremental routes and points of sale to their operations. We expect this trend to continue. These trends, including an improving business outlook, labor shortages, EMV enablement, and consolidation in the marketplace, are all driving forces behind our growth initiatives. Now, turning to a few updates on our product roadmap. We are currently shipping ePort Engage, our next-gen touchscreen interactive device. Engage offers best-in-class networking, security, and interactivity, is EMV compliant, and accepts all forms of contact and contactless payments. As discussed at NAMA, One of our strategic pillars is to help our customers better engage their customers, which the engaged device combined with seed enables. Over the next few months, we will be rolling out our more mobile engagement loyalty upgrade, which will provide additional functionalities, including the first acceptance of crypto, as well as further loyalty rewards and other payment methods. This initiative follows our announced partnership with back earlier this year. Lastly, we launched our Campus Card solution, which simplifies payment transactions for students so they can use their Apple mobile wallets to pay for goods and services directly on campus. We remain committed to investing in sales and service capabilities. Last week, we hosted our first SEED University since the pandemic, held over two days here in Atlanta. It was a resounding success with over 140 customers attending, including a number of whom were unable to make it to NAMA in August. We are working expeditiously on 2G and 3G upgrades within our existing customer base, while also targeting expansion opportunities, resulting in new equipment and subscription sales with both new and existing customers. During the quarter, we welcomed Refreshments Inc., a large Coke bottler with a full-line vending business. They bought a full suite of seed software services, Florida Department of Education's Division of Blind Services was another notable win. We also have customers who have converted from competing technology to seed. During the quarter, we saw seed expansion at Legend Commerce in their Maryland location, which included conversions to seed from competitors' products at two companies they acquired, which were GelCap and VendingPlus. To wrap up, we are excited to see the continued adoption and growth of unattended retail. We have spent the past year developing and executing on a robust roadmap to keep pace with the trends and expectations of consumers. While we still have work to do, we are well positioned to help our customers adapt to new trends while continuing to provide solutions to better engage customers, grow sales, and improve efficiency. With that, I would like to turn the call over to Wayne to go over the financials in greater detail.