Cantaloupe, Inc.

Hello and thank you for standing by. Welcome to the Cantaloupe First Quarter Fiscal Year 2025 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during this session, you will need to press star 1 1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1, 1 again. Please be advised that today's conference is being recorded. I would now like to turn the conference over to Meghna Mehra. You may begin.

Thank you. Good afternoon, everyone. Welcome to the Camp Loop First Quarter Earnings Conference Calls. With me on the call today is Ravi Venkatesan, Chief Executive Officer, and Scott Stewart, Chief Financial Officer. Before we begin today's call, we would like to remind you that all statements included in this call, other than statements of historical facts, are forward-looking in nature. Actual results could differ materially from those contemplated by the forward-looking statements because of certain factors, including but not limited to business, financial markets, and economic conditions. A detailed discussion of the risks and uncertainties that could cause the actual results to differ materially from such forward-looking statements is included in our filings with the SEC and in the press release issued earlier today. Listeners are cautioned to not place undue reliance on any such forward-looking statements which reflect management's views 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 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 those 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 been posted on the investor relations section of our website at www.cantaloupe.com. And with that, I would like to turn the call over to Ravi.

Thank you. Good afternoon, everyone, and thank you for joining us today for our FY25 Q1 call. I'll first start with a high level of our Q1 performance, and then I'll talk about our fiscal year 25 strategic priorities before turning it over to Scott to dive deeper into the numbers and our outlook. Q1 financial highlights. During the first quarter, our total revenue increased 13% year-over-year to $70.8 million, driven by 18% year-over-year transaction revenue growth and 12% year-over-year subscription revenue growth. Total adjusted gross margin for the quarter was 40.7% compared to 38.8% in the same quarter last year. Adjusted EBITDA for Q1 was $9 million, a 14% increase compared to prior year. Now onto our Q1 business highlights. Revenue growth was driven by a continued acceleration in growth in micro markets and more customers making the choice to go all in with cantaloupe. Pepe Foods expanded their footprint with us, replacing competitor kiosks with cantaloupe micro markets. We also won new customers who are going all in on seed services, including Unicorn Vending, part of our growing blind enterprise program operator community. In addition, attach rates for our analytics and remote price change add-ons are growing among customers that subscribe to the seed software platform. We successfully completed the integration of SP Software's Vend Manager with Cantaloupe's payment devices to realize our cross-sell strategy following the SP software acquisition. New SP software wins include JW Vending, a Cantaloupe micromarket customer, and now All In with our combined offerings, leveraging VendManager as their VMS solution. Other wins include VendingSense and JJ Fox Vending. We continue to grow in the UK EMEA region adding multiple new customers for cashless payment and micro market services. In addition, a notable win in Q1 was carbon neutral vending, replacing over 450 competitor devices with our cantaloupe card readers. In the LAC region, we are seeing continued momentum in both the enterprise and small business segments and are in the process of scaling our deployments across the region. Micromarkets and smart stores are becoming the go-to solution for residential complexes as they seek to bring convenience and differentiation to their resident offerings, including the Dorsey in Denver. Quote, adding a micromarket to our property allows us to offer an amenity on-site to our residents that bring convenience right at their doorstep. The nearest grocery store is an eight-minute walk from our property, so offering food and beverage as well as at-home products is essential for residents and has proven to be a great tool for us in our renewal strategy in retaining residents with this amazing perk, unquote, said Rafael Ramirez, Lifestyle Director of the Dorsey. Moving on to our sports and entertainment vertical with Cantaloupe's Check platform, Two recent notable wins include the La Crosse Center in Wisconsin, a premier entertainment, concert, and event destination, and the Detroit Opera House in Michigan. We continue to launch innovations across our product lines. In Q1, we launched Suites, a premium suite management system designed to streamline and enhance the hospitality suite experience at stadiums and venues. In September, we announced a significant update to our industry-leading seed vending management software platform. According to James Brown, Senior Director with Canteen Technology, this new look and feel of seed is fantastic. It is much easier to use on mobile devices, which translates to increased efficiency for our field teams. Kudos to Cantaloupe for this upgrade. Lastly, one of our latest innovations to come to market and prove to be an early disruptor is Cantaloupe's Smart Stores. Expanding self-service commerce to completely new locations, we've seen early success with customers like Yakima Healthy Vending, who serves breakout rooms, schools, hospitals, and gyms. With Smart Stores, theft is virtually non-existent. It's a game changer for the industry. The setup was incredibly straightforward, and we were up and running faster than anticipated. Younger customers are drawn to the tech-savvy nature of our smart stores. It's not just about snacks, it's about the experience, said co-founder Stacey Davick. They are expanding their footprint and have already ordered additional smart stores. Now turning to our fiscal year 25 strategic priorities. As covered in our last call, in FY25, We are focused on scaling our international footprint and continued improvement in operational efficiencies across the organization. I'm pleased to start the fiscal year strong with this quarter, and I'm excited for the future of Cantaloupe as we execute on our vision to be the global technology leader that powers self-service commerce. I want to thank the entire Cantaloupe team for their continued focus on execution which led to a solid quarter. With that, Scott will now review our Q1 results in more detail, as well as our outlook for FY25.