Q4 2024 Cantaloupe Inc Earnings Call
Speaker Change: Hello, and thank you for standing by. Welcome to Camelope 4th Quarter, this 3 year 2024 earnings conference call.
Speaker Change: At this time, all participants don't listen only mode.
Speaker Change: After the speaker's presentation, there will be a question and answer session. To ask the question during this session, you would need to press star one one on your telephone. You would then hear an automated message advising your hand is raised.
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Speaker Change: I would now like to turn the conference over to McNamara, you may begin.
Mcnamara: Thank you, operator. Good afternoon everyone. Welcome to the Cancelope Fourth Quarter earnings conference call.
Speaker Change: with me on the call today is Ravi Venkatesan, Chief Executive Officer and Scott Stewart, Chief Financial Officer.
Speaker Change: Before we begin today's calls, we would like to remind you that all statements in due to this call, other than statements of historical facts are forward looking in nature.
Speaker Change: Actual results could differ materially from those concentrated by the forward-looking statements because of certain factors including but not limited to business financial markets and economic conditions.
Speaker Change: on the risks and uncertainties that could cause the actual results to the poor material from such poverty-looking statements, including in our findings with the SEC and in the
Speaker Change: Let us know the questions to not please undue reliance on any such forward-looking statements which reflect management views only as of the day to day.
Speaker Change: Cancel-loop undertakes no obligation to update any forward-looking statements, whether because of new information, future events or otherwise.
Speaker Change: This call will also include a discussion of certain non-cap financial measures that we believe are useful for, among other things, evaluating and developing results.
Speaker Change: These non-gap financial measures are supplemental to and not substitute for gap financial measures, such as net income or loss.
Speaker Change: Details of these non-gap financial measures, a presentation of the most directly comparable gap financial measures and a reconciliation between those non-gap financial measures.
Speaker Change: As well as the most comparable gap financial measures can be found in a press release issued this afternoon which has been posted on the investor relations section of our website at www.catelook.com and with that I would like to turn the call over to Ravi.
Ravi Venkatesan: Thank you, Magnus. Good afternoon, everyone. And thank you for joining us today for our fourth quarter. And specifically a 2024 call.
Ravi Venkatesan: I'll start with a high level view of our Q4 performance and cover financial and operational accomplishments from FY24.
Ravi Venkatesan: I'll also touch on FY25 strategic priorities before turning it over to Scott for a deeper dive into the numbers and our FY25 guidance.
Ravi Venkatesan: Q4 Financial Highlights, it's been a strong year for Camelope, captoff by a solid fourth quarter. Our total revenue increased 13%.
Ravi Venkatesan: compared to FY23Q4 to 72.7 million dollars. Driven by a 16% increase in transaction revenue and a 14% increase in subscription revenue compared to FY23Q4.
Justin: and Justin EBITDA of Q4 was $7.5 million.
Ravi Venkatesan: and 19% decrease compared to Q4 FI-23.
Justin: Note that Q4 FI-23 included a $1.5 million benefit through one-time items which Scott will elaborate in his section.
Speaker Change: FY24 Financial Accomplishments.
Speaker Change: From a financial perspective, FY24 revenue came in slightly below our guidance at 268.6 million dollars.
Speaker Change: A Justin EBITDA came in strong at $34 million and increased of 91% from the prior year.
Scott Stewart: During FY24, we succeeded in our strategy to expand operating leverage by driving recurring revenue growth while also optimizing cost of sales and controlling operational expenses.
Scott Stewart: We have continued to make progress on expanding our gross margins.
Scott Stewart: Total non-gap adjusted gross margin for FI-24 was 38% compared to 33% in FI-23.
Scott Stewart: More significantly, we've extended our revenue per connection by 11%.
Scott Stewart: from $174 in FY23 to $194 in FY24. Which reflects the impact of new products and features we've rolled out, that allow our customers to sell higher ticket items through our points of sale.
Scott Stewart: We are proud of the progress in accomplishments in 2024 and excited about the fiscal year 25 outlook of 16 to 20 percent top line growth and approximately 40 percent adjusted EBITDA growth at the midpoint of our guidance.
Scott Stewart: As a reminder, this is on the heels of 80% adjusted EBITDA growth in FY23 and 90% growth in FY24.
Scott Stewart: will discuss this guidance in more detail shortly.
Scott Stewart: Now on to our FY24 operational highlights.
Speaker Change: Our investments in improving internal controls have paid off, and as a result, we've remediated all the material weaknesses we reported last year.
Speaker Change: We've been successful in accelerating our growth in micro-market and the penetration of seed software with existing as well as new customers.
Speaker Change: On the domestic side in Q4, we saw continued success with competitor replacements and customers electing to go all in with canloat on payment devices and seed software services.
Speaker Change: Some examples are, we continue to seek customers upgrading vending machines in the field to cashless payments more and more as operators seek to be 100% cashless and are looking for a single provider.
Speaker Change: For example, Pepsi-Midamerica Continental Services and Peppy Foods.
Speaker Change: in combination added close to 4,000 camera devices in Q4.
Speaker Change: Acres, Vending went all in with Camelope, securing devices, the complete seat-procuit, markets and delivery platforms, along with upgrading micromarket key-offs on to Camelope Go.
Speaker Change: We continue to expand our reseller and distribute our channels, specifically noting our newest reseller, vending concepts, who secured over 1,100 channel of devices in their very first reseller order.
Speaker Change: with our focus on a micro-market and smart cooler growth, we've been able to extend the services and solutions into other verticals as well, consistent with our vertical expansion strategy.
Speaker Change: In Q4 we saw penetration into the residential space where we focused initially on the west coast and secured 17 new locations in one quarter.
Speaker Change: We continue to see nice momentum here as we build the pipeline going into FY25.
Speaker Change: We are also experiencing further penetration of the CanLog One platform, our first to market platform as the service offering that enables self-service operators to eliminate upfront capital expenditures.
Speaker Change: This offering has enabled us to penetrate the SMB segment better and we are now seeing demand for a panel of one with enterprise customers in Latin America.
Speaker Change: We are also gaining traction without international expansion efforts.
Speaker Change: Decorum vending operator in the UK completed their initial rollout in Q4 across their vending machine servicing the hydrophilic transportation and travel sector.
Declan Suwell: Declan Suwell, Managing Director with Declan Vending Noted, Partnering with Cannot Not only Streamline Our Operations, but also Significantly Enhanced a Bottom Line.
Speaker Change: This is a testament to how can look enables operators to manage their business more efficiently.
Speaker Change: We've accelerated our micro-market solution in the UK region with recent commitments from more wind, new winding to place additional market locations.
Speaker Change: We were also pleased to be recognized as the best micro-market service at the annual associated bending services conference in Croatia in June, which is voted on by customers in the industry.
Speaker Change: And in Latin America after our completion of internationalizing seed for Mexico, we've onboarded several new small business customers in Q4, leveraging the seed entrepreneur edition.
Speaker Change: Moving on to our new sports and entertainment vertical.
Speaker Change: In Q4, we've signed a new deal with the Detroit City FC at Keywords Stadium to be the exclusive point of sale platform for all soccer games and live events at the stadium.
Speaker Change: The Detroit City FC, or the first professional United States soccer team, U.S.L. team, to leverage the Czech U.S. platform.
Speaker Change: We've also finalized rollout plans for the Su City Explorers Baseball Club and the Campanelli Stadium to implement our full POS solution.
Speaker Change: In terms of products and enhancements,
Speaker Change: We continue to see adoption and customers satisfaction with our add-on list in FY24.
Speaker Change: Specifically with products like seed, pick, easy, or mobile warehouse picking solution, where we signed on multiple new customers in Q4, and seed analytics and add-on service for our seed pro customers with advanced dashboards and reporting inside of seed.
Speaker Change: For example Pepsi, Mac card, Highline, not only committed to upgrading 43 micromancer Kiosk on the candle of Go, but also signed on for CPKVC, Damuletix and remote price change, expanding onto our full product line.
Speaker Change: We are proud of the progress you've made in FY24 and will continue to build on this success and momentum in FY25.
Speaker Change: now turning to FY25 strategic priorities.
Speaker Change: We've made steady gains internationally specifically in Europe and Latin America as we're just discussed.
Speaker Change: We are expanding operations support in these markets to allow more rapid scaling and will continue to refine our board market strategy with both direct and indirect channels to expand our customer base organically as well as through strategic acquisitions.
Speaker Change: Our international strategy will now be enhanced with the acquisition of SB software which we announced earlier this week. SB software is a recognized leader in the UK and Ireland with approximately 30,000 subscriptions and it's trusted enterprise-level solutions.
Speaker Change: The acquisition of SB software positions can look as a leading provider of vending management solutions in the UK and broader Europe. Significantly expanding our market reach and service capabilities.
Speaker Change: SP Software's Ven Manager and Coffee Manager Software, complement can look existing product offerings, providing an even more comprehensive suite of solutions tailored to the unique needs of the European markets.
Cannes Love: We are thrilled to welcome the SP software team to the Cannes Love family.
Cannes Love: Beyond international expansion, our strategy to expand into new verticals has also had good initial success.
Cannes Love: As I mentioned previously, we are gaining traction with residential apartment complexes, car dealerships, amusement and gaming vendors as well.
Cannes Love: Our acquisition of check earlier this year allowed us to enter an important new vertical, the sports, entertainment and festival sectors with a comprehensive suede of self service solutions.
Cannes Love: We just launched a new stadium suite solution where we've seen early success working with one of our Miami partners to dial into the needs around suite management in stadiums.
Cannes Love: and ensure that we are providing a solution that can both be sold independently and in conjunction with a full POS and check platform solutions.
Cannes Love: We also just completed a record breaking turnout at a three-day food and music festival in Seattle where check served as the official POS solution.
Cannes Love: Processing over $6 million in transactions across 400 points of sale, which amounted to 315 transactions per minute.
Cannes Love: We plan to leverage partnerships to expand more rapidly.
Cannes Love: A great example of this is our newest partnership with AIR Automation and Retail.
Cannes Love: A company that provides complete automated retail solutions.
Speaker Change: for hospitals, morons, airports and more.
Speaker Change: Leveraging Canelo as a one-stop shop for cashless payments, point of sale technology, cabinetry and single-invoicing solutions for their clients.
Speaker Change: The place are first set of locations in Q4 within the UK market and have continued growth plans across Europe and the United States with AIR.
Speaker Change: Another example of continued partnership is with MasterCard, who are participating in our Camelog Advantage program, a digital advertising program across our digital POS screens, where we will work together to promote their priceless planet campaign using our digital advertising services.
Speaker Change: We recently released our 2024 MicroPayments Trends report where we analyzed data across 600,000 food and beverage-vending machines and amusement and gailing machines along with 13,000 micromacket kiosk.
Speaker Change: The report showcases a continued push by consumers to pay cashless, noting that at food and beverage machines, 69% of all machines sales are now cashless.
Speaker Change: More importantly, the average cashless transaction at an amusement machine is nearly seven times that of a cash transaction.
Speaker Change: We continue to see micro-market excel in driving average spend 37% greater than traditional winding machine.
Cantelope: Cantelope continues to benefit from these secular trends and that demand for self-service solutions which will fuel our growth in FY25 and beyond.
Cantelope: In addition to consumer preferences shifting towards self service.
Cantelope: as well as the efficiency of...
Cantelope: Operational efficiencies from cashless payments, we are now seeing a new trend of customers in retail, preferring our solutions to tackle the problem of retail test, which opens exciting new possibilities and expands our addressable market.
Speaker Change: Finally, as always, thanks to the entire Channel of Team for the hard work to drive these results.
Scott Stewart: I'm looking forward to continuing the momentum into FY25 and with that Scott will now review our Q4 results in more detail as well as our outlook for FY25. Scott, thanks Ravi. As Ravi mentioned, we do with it another strong quarter.
Scott Stewart: Our Q424 revenue was 72.7 million, up 13% compared to Q423. Our combined transactions subscription revenue grew 15% to 61.1 million during this quarter.
Scott Stewart: This includes $19.9 million in the subscription revenue, a year over your increase of 14% of $41.2 million in the transaction revenue and increase of 16% compared to Q4203.
Scott Stewart: The overall increase in transaction revenue was driven by growth in active devices and higher average ticket sizes. Subscription revenue growth was largely driven by the increase in active devices, strengthen our micromarkets and our Canada warm program.
Scott Stewart: As of June 30th, 2024, we had over 31,000 active customers and 1.2 million active devices. An increase of 10% and 5% respectively compared to the prior year.
Scott Stewart: The average revenue per unit for R-Boo for 4K24 was $194.
Scott Stewart: Help a 11% from prior year period. As a reminder, this is defined as our total subscription and transaction fees for the 12 month. divided by average still acted devices for the same period.
Scott Stewart: are equipped with revenue with 11.5 million and increased with 3% compared to Q4 FY23.
Scott Stewart: Total adjusted gross margin for the quarter was 37%, compared to 40% in the same quarter last year. As Ravi mentioned, T3-224-23 benefited from certain one-time items totally at 1.5 million.
Ravi Venkatesan: These benefits include a transaction processing rebate and an equipment cost of sales benefit.
Ravi Venkatesan: But without these items, adjusted gross margin would have been relatively consistent quarter of a quarter.
Ravi Venkatesan: in Transaction Adjusted Gross Margin was 43% vs 44% in the prior year. This decrease was driven by the one-time benefits previously mentioned.
Speaker Change: A Justice Gross margin on equipment revenue for Q424 declined to 7% from 21% in the prior year. We had outperform our equipment margin goals in Q4 last year and have sent seeing it normalized.
Speaker Change: Total operating expenses in Q424 increased slightly to 23.6 million compared to 22.3 million in Q4FY23.
Speaker Change: That income applicable to common shares for the fourth quarter was 2.2 million, or 3 cents to losing earnings per share compared to that income of 2.8 million, or 4 cents to losing earnings per share in the prior year period.
Speaker Change: A just at EBITDA with 7.5 million on the fourth quarter compared to 9.2 in the prior year period, a decrease of 19 percent. The year of your decrease relates to the previously mentioned one-time benefit of 1.5 million.
Speaker Change: We know the fourth quarter with cash and cash equivalent, a 58.9 million.
Speaker Change: Now turning to our fiscal year 2025 guidance.
Speaker Change: Based on what we see today, we expect the following.
Speaker Change: Total revenue to be between 308 million at 322 million, representing growth of 15 to 20%.
Speaker Change: We expect transactions subscription revenue growth to also be in the range of 15 to 20%.
Speaker Change: We expect to tell the U.S. net gap net income to be between 22 million at 32 million.
Speaker Change: Adjusted EBITDA to be between 44 million and 52 million until the operate cash flow is expected to be between 24 and 32 million.
Speaker Change: Lastly, I'm pleased to announce that we have significantly improved our internal controls on both the business process and information technology side, which resulted in the remediation of the material weaknesses we reported last year.
Speaker Change: With that, we'd like to turn the call back over to the operator for the Q&A session. Operator?
Speaker Change: Thank you. Ladies and gentlemen, as a reminder to ask the question, please press start 1-1 on your telephone and then wait to hear your name announced.
Speaker Change: To withdraw your question, please first start one one again.
Speaker Change: Please stay in by while we compare the Q&A roster.
Speaker Change: Our first question comes from the line of Christianity with Wimbler, your line is open.
Speaker Change: Good afternoon. Thanks for taking the question. Can you give a little bit more color on the sub and trans action revenue guidance of 15 to 20% relative to your prior initial. I think preliminary outlook of at least 18%.
Speaker Change: Sure Chris, thanks for the question, so our guidance is 15 to 20 percent, initially when we revise our guidance back in third quarter of last year, but we said 18 plus percent were right and then been range of where we said in the previous quarter.
Speaker Change: Okay.
Speaker Change: Okay, I mean, can you give us any additional color on the mix, the subs?
Speaker Change: The subscription growth versus transaction growth as we look in the next year. Thank you.
Speaker Change: Yes, so as we mentioned also our previous quarter call, we're expecting subscription revenue to be in the 15% range and then on the 15% loss and then on the transaction, we're expecting that to be in the 18% range.
S.B.: Okay. Great. And then just one last one. I'm S.B. the acquisition of S.B. software. Can you talk about kind of the strategy there and the opportunity to add payments in the kind of the timeline on that. Thank you.
S.B.: Yeah, I think you kind of hit the meal on the head, Chris, it's...
Speaker Change: It's primarily as software business and
Speaker Change: you know it's got a nice expanded reach and reputation in the European market and the UK and Ireland market.
Speaker Change: It allows us to now cross-sell our cashless payment acceptance devices.
Speaker Change: and another software I don't want to.
Speaker Change: is a nice kind of set of synergies. As well as our micro-market solution.
Speaker Change: You know, we've kind of acquired some additional product modules like the coffee manager that was mentioned in the release, you know, which is unique and differentiated in Europe, as well as open-double opportunities to go to several new customers and cross-set.
Speaker Change: Thank you, thanks for taking the questions.
Speaker Change: Thank you.
Speaker Change: Please stand by for our next question.
Speaker Change: Our next question comes from the line of Josh Nichols with B. Rowley, your line of open.
Josh Nichols: Yeah, thanks for taking my question. I know the 4Q revenue came in a little bit, but still a very significant step up when you look at what you guys have achieved last quarter.
Speaker Change: I'm kind of curious, like, expectations since we're largely through this September quarter now.
Speaker Change: in terms of cadence and attraction you're seeing, do you expect the type of trajectory that each analyst quarter kind of continue into the September quarter or how do you see things playing out as we think about the year and how that's starting off so far for the first two and a half months.
Speaker Change: Yeah, I think Josh is worth adding a little bit of color to fourth quarter. We did see transaction revenue coming lighter in the month of June.
Speaker Change: and you know frankly we were concerned about it but as we monitored those strengths carefully it looks like it really might have been
Speaker Change: Weaker consumers pending in that one month but not a trend because July and August.
Speaker Change: has been moved to the typical longer term trends that we've seen and strengths in instance. So, translation, you know, we have not seen any of that weakness continuing to fiscal year 25.
Speaker Change: and we've talked to a number of people including analyzing some small business.
Speaker Change: Reports from our acquiring partners and other payment acceptance players in the industry and it does look like there was some...
Speaker Change: Some weakness in consumer spending in June, but that has not persisted as a trend.
Speaker Change: Thanks, and then just curious, like in terms of the SP software acquisition, makes law sense in terms of the European.
Speaker Change: Exposure as you like into that. Is that more of a technology acquisition than like 30,000 customers, but I'm just kind of curious that like a material revenue contributor to this coming fiscal year or not.
Speaker Change: It's more a technology acquisition and something that opens up a ton of cross-cell opportunities. You know from a financial impact perspective it is not material, it's less than a percent of our, you know, revenues and EBITDA.
Scott Stewart: and Scott. That's exactly right. We're just going to be a little less than 1% of our overall total revenue for this year. But Tarovi's point, I think there's lots of synergies with our operations over in Europe that we can recognize over the next year.
Dara Dierks: and Dara.
Speaker Change: Piss off.
Speaker Change: Perfect and then last question for me, it looks like...
Speaker Change: You are a permanent, you do expect a nice acceleration and growth.
Speaker Change: specifically for subscription and transaction fee revenue for this year up around 200 bits.
Speaker Change: at the mid-point relative to the 15 and a half or so percent growth we did.
Speaker Change: Last year, I'm just curious, can you help provide a little bit more detail in the breakdown of what's driving that is at some of the existing customers, more of the international expansion micro-markets, if you kind of a pine on that per minute or so, they'll be helpful.
Speaker Change: Sure, I think you just said a lot of big topics in your job so overall, we are anticipating growth and international. We've been working at that for the past several years, we've started a game traction in Europe and in Latin America.
Speaker Change: is very popular in Latin America. We talked about deal at the close. The fast quarter where we did almost 4,000
Speaker Change: Dabises, and we expect that to continue growth in Latin America, and then micro-markets are also doing performing very well. They're growing at a pace a little bit faster than the legacy cannolope somewhere in the 30% growth range.
Speaker Change: Yeah, the couple of things I would add are, you know, we signaled, you know, I think two quarters back that we do see subscription revenue starting to re-accilrate.
Speaker Change: and you've seen now evidence of that.
Speaker Change: in the fourth quarter results, right, the re-actualations.
Speaker Change: of the subscription revenue. So that trend has you projected out, you see, you know, where that gets us into kind of the 15%.
Speaker Change: in a grow trade range.
Speaker Change: It's lower than our original aspiration of 20% road trade, but it's still healthy and it's still re-accilated, and now we have a lot more data points and a lot more confidence.
Speaker Change: I would say a lot more risk off the table around that. On the transaction you know revenue trend it's been driven by both what we've seen in terms of.
Speaker Change: to get sizes increasing, but also in terms of the micromarkets becoming a bigger and bigger portion of our business. So, and personally very excited about the growth in micromarkets and the growth in smart coolers. And now the latest product we've launched called SmartStores.
Speaker Change: which takes aim at retail theft.
Speaker Change: has been very well received in providing an alternative to locking up things in a traditional retail store, where it creates consumer friction. Versus here is a smart product where consumers can tap a card open something and take the product they need and leave.
Speaker Change: Perfect girl, I'll have back in the queue. Thanks.
Speaker Change: Thank you.
Speaker Change: for our next question.
Speaker Change: Our next question comes from the line of Gary Precipino with Berington. Your line is open.
Gary Precipino: I'm a couple of questions here. First of all, with SB.
Gary Precipino: is there anything in their software?
Gary Precipino: that you have to change for them to start going into, for you to take it into the European continental market. I mean, you basically are saying it's just Ireland and the UK and I was just wondering if there's a...
Gary Precipino: Issue there, or is it just that a manpower should that couldn't go into the onto the window?
Speaker Change: So, they have a limited presence in continental Europe, but you're exactly right. It's a small company and they intentionally focused on mastering what they do within the UK and Ireland market while.
Speaker Change: you know localizing and translating the software product to be ready for the continent of European market. Now as part of...
Speaker Change: A bigger broader company which is Camelot and with more strength in sales and marketing and distribution channels that opens up the avenue to take it across our continent of Europe as well.
Speaker Change: Okay, that's good to hear. And then Ravi in terms of, you know, throughout most of the fiscal 24 you have issues with implementation because of vampire. Has that alleviated itself and specifically talking about your new wins in Europe?
Ravi Venkatesan: Well, nothing alleviated itself, but we've done a number of things and deployed a number of strategies.
Speaker Change: to actually bring that back into normal trends and so in Q4, we did reach a point where the implementation cycle is now resumed, you know, very close earlier.
Speaker Change: Okay, and then just lastly, I don't have the numbers in front of me, but you know, over the last couple of quarters you showed some really good
Speaker Change: Margin Expansion on the gross margin for subscription and trying to adapt to our licensed transaction revenue. It doesn't appear that that occurred in this quarter, even with the, you back out the,
Speaker Change: Non-recurring item.
Speaker Change: was there something was that just a function what you said that you and you started to see some really some slow down in consumer spending and that impacted the gross margin. I'm just trying to get an idea what actually transpired in the quarter.
Speaker Change: that would have impacted that margin.
Speaker Change: The answer to Gary. So, overall our margins for the fourth quarter are pretty much in line with where they've been put for the past three quarters.
Speaker Change: and you've seen margin expansion over the past three quarters. It just to give you some numbers how we compared the last year. So last year our transaction margin was around 16%. This year for FY24 we increased it's 21%.
Speaker Change: Subscribe to our channel with 87% and 2023 up to 89% in 2024.
Speaker Change: and an equipment revenue went from less than 2% in 2023, up to 7% in 2024. So total overall adjusted gross margin from 2023, it's 20% from 33% up to 38%.
Speaker Change: So we've had, we have, throughout 2024, margin expansion and fourth quarter is right in line with where we had been for the past three quarters.
Speaker Change: Thank you very much.
Speaker Change: Thank you.
Speaker Change: As a reminder, ladies and gentlemen, that star-1-1, to ask the question.
Speaker Change: Please stand by for our next question.
Speaker Change: Our next question comes from the line of Mike Latamor with no playing capital markets, your line is open.
Mike Latamor: All right, great. Thank you. It's just to think what's a gross margin topic. So should we assume that then gross margin is relatively stable going forward as they're more room for expansion.
Speaker Change: Yeah, so I would say on the transaction side we've been working hard to increase our take rates until we've got costs. I think there's still a little bit of a ring for expansion there. I think it's relates to the subscription fee margin. Yeah, we've been in that 80-80-90% range. I would anticipate us staying within that range.
Speaker Change: On the equipment side, our aspirational goal has been between 10 and 15 percent and that's what we're going to be pushing really hard for in 2020-25.
Speaker Change: and then, probably when you said the implementation timeframes back to what it was, can you just quote quantified where it is now relative to the past patterns here?
Speaker Change: Yeah, you know, the long term trend has been that for most of what we do we are able to implement it between sold and
Speaker Change: in a installed and activated in a six week time frame.
Speaker Change: and we sort of seen it come back to those now when it was elevated in between it was
Speaker Change: sometimes has 4 months and while the exceptions still take longer now the
Speaker Change: The Broad Majority has started coming back in life. We have deployed a lot more of our own installers and services that we charge our customers for as well as made some technological improvements to how...
Speaker Change: Devices are activated, how micromancer are activated to make it more, more kind of drop and click and, you know, or plug and play as my, my operations had likes to call it. So those initiatives have paid off and accelerated not.
Speaker Change: And I just last done Latin America. Can you talk about some of the growth opportunities there? I think you've won one of the big ending operators I believe. Is that the key thing? This year is just to roll that out or do you have prospects of winning another one or two big ones there?
Speaker Change: I definitely think we have prospects of winning at least one more of the big ones and potentially two.
Dara Dierks: Dara Dierks.
Dara Dierks: Thank you.
Dara Dierks: Dara Dierks.
Dara Dierks: [inaudible]
Speaker Change: Our next question comes from the line of George Sutton with career column, the line is open.
George Sutton: Thank you. Ravi, I wonder if we could step back and talk about the international markets as they stand today. Obviously, you entered both markets.
George Sutton: Over the past several quarters, curious if you can give us an update on, are you, where you want to be, do you still think the opportunities are as significant as you thought when you started?
Speaker Change: I don't want to complete things, but you talked about leveraging partnerships in a new goal, Ontario Sift, that fits into a large part of that strategy.
Speaker Change: Yeah, I'm actually more bullish about the opportunity in both Europe and Latin America than I was, let's say a couple of quarters ago.
Speaker Change: And that's based on the following data points. One, we have now seen those markets also open up to micro markets, but more importantly, the concept of smart stores, right? So think of a smart store as...
Speaker Change: something that...
Speaker Change: Solves for fraud, sometimes the micro market can be a challenge, so you have to put micro markets in high-trust locations. The smart stores can go anywhere, just like many machines.
Speaker Change: However, they are more elegant and they are more contemporary and more modern, so I've seen the European market in particular, be very receptive to that product, as well the Latin American market, so that actually opens up.
Speaker Change: We are able to get into a newer space versus replace competitor technology, which is fine. We will continue to pick up market share in lending machines and other areas as well.
Speaker Change: I've also seen a lot of new take.
Speaker Change: in what you are up called four course, which you know, we call gas stations in the US and the community and stores, that opportunity has also been tremendous and we start getting traction in those. So multiple areas that give me more optimism and more confidence in our ability to execute in Europe as well as Latin America.
Speaker Change: and also some deeper research that we've done both through primary sources and secondary sources on where the opportunity is, who's making what kinds of decisions and what's the future of self-service in those marketplaces. So all that.
Speaker Change: Translation we're just...
Speaker Change: Vray-Better informed having had boots in the ground and having had initial successes and connected with all these customers.
Scott Stewart: Great. Thank you. It's Scott one question for you on the revenue per connection. So, you know, nice growth up to $194 as you're thinking through the 2025 and beyond, and you just talk about where you see that statistic going.
Scott Stewart: Yes, uh...
Scott Stewart: We can continue to see that increasing. We believe that the average transaction price is going to continue to increase through 2025. There's often new add-on modules that will be launching in 2025. Ravi talked about admin management a little bit in his prepared remarks. And so we see that.
Ravi Venkatesan: can change the way to increase the route to a new release.
Speaker Change: Okay, thanks, yes.
Speaker Change: Thank you.
Speaker Change: Ladies and gentlemen, I'm showing no further questions in the queue. I will now like to turn the call back over to management for closing remarks.
Speaker Change: Thank you operator, I think FY24 for us.
Speaker Change: has been a year of taking a number of risks.
Speaker Change: the business faced off the table, including related to weaknesses, material weaknesses around our controls, including the tail and of upgrade cycles with the 3G to 4G, non-NMV to EMB, etc. and several.
Speaker Change: Challenges around infrastructure and scale, etc. I'm very proud to share that on the operational front all those challenges, including the implementation timelines which in many ways were tailwinds have been addressed resolved.
Speaker Change: and so I'm really excited and confident in the FY254 cast as we head into this new phase of growth and profitable growth for the company.
Speaker Change: I'm also delighted that we've done a lot of diligent work as part of this turnaround to build a balance sheet that gives us the fortress that we need to now be able to expand to new product lines, new verticals.
Speaker Change: Do new acquisitions and do it in a manner which is low risk and high reward. So with that I'll conclude the call here and thank you for your attention, your engagement and your interest.
Speaker Change: Ladies and gentlemen, this concludes today's conference. Thank you for your participation, you may now disconnect.