Cantaloupe, Inc. (NASDAQ:CTLP) Q3 2024 Earnings Call Transcript

Ravi Venkatesan: Yes. So, when you look at the transaction processing rates, it’s generally lower over in Europe because you don’t have the interchange fees that go along with it. But the margins tend to be a little bit higher. So, the cost is significantly less. Overall margins are slightly higher than what we see in the U.S. As we mentioned a little bit before, as we are breaking into the market and building up our volume, we are probably a little bit lower margins than we have in the U.S. But as that ramps, it gets better.

Vijay Devar: Okay. Great. And finally, in terms of the deployment timeframe, do you see the timeframe shrinking, or I am going to have that as you are making this progress in terms of expansion, do you see the deployment time shrinking or just flat?

Ravi Venkatesan: Yes. As I mentioned earlier, we think we will sustain the deployment timeline kind of at the same level that they are. That doesn’t mean we aren’t putting efforts in innovations that can help shrink them further, but our confidence level is high in sustaining the current timelines.

Vijay Devar: Got it. Thank you.

Operator: Thank you. I would now like to turn the conference back to management for closing remarks.

Ravi Venkatesan: Thank you, operator. Thanks to all our investors and everybody listening in for your engagement. I think in summary, what I would like to share is this has been an exciting quarter to be able to come back and report concrete progress and numbers on both the Europe and Latin America front and share the progress we have made with gross margins across all of our revenue streams. While the subscription revenue growth has underperformed our original anticipation, it’s been good to kind of put a floor on it and look ahead at fiscal year ‘25, so our investors know what’s coming there. And it’s also been nice for our management team to be able to express confidence in the longer term CAGR for EBITDA growth that we had outlined in our Investor Day, 1.5 years back. And as we are at the midpoint of that kind of 3 years journey to know that we are on track to achieve those goals. With that, I will turn the call back over to you operator.

Operator: Thank you. This concludes today’s conference call. Thank you for participating. You may now disconnect.