1 00:00:08,100 --> 00:00:11,600 One. And welcome everybody to another 2 00:00:11,600 --> 00:00:14,200 episode of smart money Circle. I'm your host, Adam, sorry. 3 00:00:14,200 --> 00:00:17,800 Han with me today is Ravi, who's this CEO of cantaloupe ticker? 4 00:00:17,800 --> 00:00:20,600 Symbol is see T LP. And it's the second time on the 5 00:00:20,600 --> 00:00:22,000 show. Robbie, thank you so much for 6 00:00:22,000 --> 00:00:23,800 coming on the show. We greatly, appreciate it. 7 00:00:24,400 --> 00:00:26,900 Adam, it's great to be back here and look forward to the 8 00:00:26,900 --> 00:00:29,500 conversation. Oh, can you just start wrapping 9 00:00:29,500 --> 00:00:32,600 by giving us an overview about cantaloupe and explain some of 10 00:00:32,600 --> 00:00:35,700 your competitive advantages? Please Yad cantaloupe. 11 00:00:35,700 --> 00:00:39,600 We are the largest technology provider. 12 00:00:39,900 --> 00:00:43,600 Enabling self-service Commerce in North America and are on a 13 00:00:43,600 --> 00:00:45,800 journey to be the largest technology. 14 00:00:45,800 --> 00:00:49,500 Provider powering self-service Commerce for the whole globe. 15 00:00:49,900 --> 00:00:53,800 And in plain English, what we do is we build the technology that 16 00:00:53,800 --> 00:00:58,800 accepts payments at unattended locations. 17 00:00:58,800 --> 00:01:01,500 So they thus payment by definition has to be self 18 00:01:01,500 --> 00:01:04,200 service because there's nobody no store clerk there. 19 00:01:04,700 --> 00:01:08,200 And then we use the acceptance of payment combined with 20 00:01:08,200 --> 00:01:13,000 telematics. Make an autonomous location 21 00:01:13,000 --> 00:01:17,000 dispenser product or a service. The product could be a bag of 22 00:01:17,000 --> 00:01:21,600 chips, from a vending machine. The service could be a car wash 23 00:01:21,700 --> 00:01:24,500 or a parking gate opening and closing. 24 00:01:24,700 --> 00:01:27,600 So in all those scenarios, we build the telematics to 25 00:01:27,600 --> 00:01:30,500 interface with all those machines and make them dispense, 26 00:01:30,500 --> 00:01:35,500 the service or product. And we also build Self Service 27 00:01:35,500 --> 00:01:40,400 optimized payment acceptance device that takes Red card 28 00:01:40,400 --> 00:01:44,300 payments, Apple pay, Loyalty cards and you know, various 29 00:01:44,300 --> 00:01:47,500 kinds of payments and we also process the payments behind the 30 00:01:47,500 --> 00:01:53,000 scenes and offer software as a service that lets companies that 31 00:01:53,000 --> 00:01:55,700 have these self-service kind of businesses. 32 00:01:55,700 --> 00:01:59,400 You know, I mentioned parking I mentioned car washes pending 33 00:01:59,600 --> 00:02:04,200 cafeterias where you can grab scan pay at a kiosk and go all 34 00:02:04,200 --> 00:02:08,100 those types of businesses? We provide software as a service 35 00:02:08,100 --> 00:02:10,699 that's kind of like the Erp. For them to manage their 36 00:02:10,699 --> 00:02:14,300 business sitting in their office at a computer and they get 37 00:02:14,300 --> 00:02:18,000 visibility to inventory levels and warehouses different 38 00:02:18,000 --> 00:02:20,600 locations. You know, drivers needing to be 39 00:02:20,600 --> 00:02:23,600 scheduled to go out and restock all of those things. 40 00:02:23,600 --> 00:02:25,300 So, that's kind of the business in a nutshell. 41 00:02:25,900 --> 00:02:27,700 I love it. So, your publicly traded 42 00:02:27,700 --> 00:02:30,400 company, we can see the numbers. You're expected to be profitable 43 00:02:30,400 --> 00:02:34,100 this year and again next year. So I was going to ask you, how's 44 00:02:34,100 --> 00:02:36,600 business, but I'm assuming business is pretty well, but I'd 45 00:02:36,600 --> 00:02:38,100 like to hear from you, how's business? 46 00:02:38,300 --> 00:02:41,300 Yeah, it's very exciting. Ting time for us at cantaloupe 47 00:02:41,300 --> 00:02:46,600 because we've had a real Renaissance in the industry as a 48 00:02:46,600 --> 00:02:49,300 whole with more people moving towards self service. 49 00:02:49,300 --> 00:02:53,300 And I think that trend is just you know at the very beginning 50 00:02:53,300 --> 00:02:55,300 of kind of a secure long-term Trend. 51 00:02:55,800 --> 00:02:59,500 As far as the company itself is concerned, we went through a bit 52 00:02:59,500 --> 00:03:04,600 of a turn around face between 2020 and 2022 and that was 53 00:03:04,600 --> 00:03:08,700 driven by, you know, covid caused a lot of people to not 54 00:03:08,700 --> 00:03:11,400 show up at offices. And a good portion of our 55 00:03:11,400 --> 00:03:14,500 business is driven by office, break room experiences. 56 00:03:14,500 --> 00:03:17,200 You know, whether they are, they are vending or whether they are. 57 00:03:17,300 --> 00:03:21,400 As I mentioned, grabs can pay and go experiences, so that took 58 00:03:21,400 --> 00:03:25,500 a hit. And then we also had some issues 59 00:03:25,500 --> 00:03:29,700 with a prior management where the company was delisted went 60 00:03:29,700 --> 00:03:32,300 through some trouble. And so there was an activist 61 00:03:32,300 --> 00:03:34,800 shareholder, Hudson executive Capital that came in 62 00:03:35,100 --> 00:03:38,300 reconstituted, the entire board and the management team 63 00:03:38,300 --> 00:03:42,100 including bringing me on On and we sort of set up a turn around 64 00:03:42,100 --> 00:03:45,100 face for a couple of years. And then a growth phase beyond 65 00:03:45,100 --> 00:03:46,100 that. I'm happy to say. 66 00:03:46,100 --> 00:03:50,600 We've executed on all metrics that we laid out for ourselves 67 00:03:50,600 --> 00:03:53,800 through the turn around, and are now well into the growth phase 68 00:03:54,400 --> 00:03:57,200 and at an analyst day at the NASDAQ last year. 69 00:03:57,200 --> 00:04:00,900 In December, we outlined a 3-year vision for the company, 70 00:04:01,200 --> 00:04:04,700 along, with operating metrics and financial metrics and that's 71 00:04:04,700 --> 00:04:07,000 created quite a bit of excitement. 72 00:04:07,000 --> 00:04:11,500 And as we have now, had a few Orders of executing against that 73 00:04:11,500 --> 00:04:16,800 plan and building credibility. You know, in this bad Market 74 00:04:16,800 --> 00:04:19,399 where most companies are pushing their 52, we close. 75 00:04:19,399 --> 00:04:25,300 We are pushing our 52-week highs and, you know, the Russell's had 76 00:04:25,600 --> 00:04:29,500 near - returns and our, our stock is since I've been in the 77 00:04:29,500 --> 00:04:34,200 seat, our stock is 120% which, you know, not that I want to set 78 00:04:34,200 --> 00:04:38,100 myself up to sustain that every six months, but very excited 79 00:04:38,100 --> 00:04:39,500 about the market response so far. 80 00:04:39,700 --> 00:04:43,100 Our and we're just beginning this journey. 81 00:04:43,100 --> 00:04:47,700 So it's really early days and lots of upside, you know, I love 82 00:04:47,700 --> 00:04:49,100 it. I mean, your stock is up 70 83 00:04:49,100 --> 00:04:52,300 percent this year or thereabouts if I'm correct. 84 00:04:52,300 --> 00:04:55,500 And yep. And it's more than doubled from 85 00:04:55,500 --> 00:04:59,000 the October lows of last year and hats off to you that the 86 00:04:59,000 --> 00:05:01,500 vision is the execution phenomenal job. 87 00:05:01,800 --> 00:05:04,900 The turnaround is obviously working from the stocks that you 88 00:05:04,900 --> 00:05:07,600 guys are expected to earn around seven cents this year and then 89 00:05:07,600 --> 00:05:11,000 23 cents next year. Which is an increase of almost 90 00:05:11,000 --> 00:05:13,600 230 percent. That's fantastic growth. 91 00:05:14,000 --> 00:05:17,800 So let's talk about that vision of future and the compelling 92 00:05:17,800 --> 00:05:20,200 future. The growth possibilities, were 93 00:05:20,200 --> 00:05:23,900 you located now, as far as geography or only North America, 94 00:05:23,900 --> 00:05:26,700 are you International, then your plans to expand going forward. 95 00:05:27,500 --> 00:05:31,700 So we have historically been very strong North America. 96 00:05:31,700 --> 00:05:33,900 So that's US and Canada presents more. 97 00:05:34,500 --> 00:05:38,000 And now Mexico is included in that. 98 00:05:38,100 --> 00:05:43,000 So, Continue to consolidate our presence there but we are now 99 00:05:43,000 --> 00:05:46,300 also going into Latin America, more broadly and Europe. 100 00:05:46,600 --> 00:05:51,100 So add those as kind of a phase one, international expansion, I 101 00:05:51,100 --> 00:05:54,000 describe it as a three-year journey of setting up 102 00:05:54,000 --> 00:05:57,200 operations, setting up partnership sales teams and 103 00:05:57,200 --> 00:05:59,200 starting to actually derive Revenue. 104 00:05:59,500 --> 00:06:02,700 We are around the midpoint of that three-year Journey for 105 00:06:02,800 --> 00:06:06,200 those geographies. So we now have some revenues 106 00:06:06,200 --> 00:06:07,700 that are already coming from those. 107 00:06:09,100 --> 00:06:11,500 Those geographies though, it's not meaningful for this fiscal 108 00:06:11,500 --> 00:06:13,300 year and our fiscal year ends in June. 109 00:06:13,300 --> 00:06:17,100 So we are at the last last few weeks of our fiscal year but in 110 00:06:17,100 --> 00:06:21,600 fiscal 24, which begins next month for us, we expect to get 111 00:06:21,600 --> 00:06:23,700 too much more meaningful and material revenues. 112 00:06:23,700 --> 00:06:27,000 And by the time we get to fiscal 26 which is a couple of years 113 00:06:27,000 --> 00:06:31,100 out, we expect International to be 15, maybe even twenty percent 114 00:06:31,100 --> 00:06:34,900 of our total revenues, our love that and I know your company has 115 00:06:34,900 --> 00:06:37,800 very little debt. What are your plans there with 116 00:06:37,800 --> 00:06:40,200 debt and how do you use? Heard you get rid of it or what 117 00:06:40,200 --> 00:06:43,500 are the plans with that? Yeah, so we are in a net 118 00:06:43,900 --> 00:06:47,500 positive position in terms of cash on hand versus debt. 119 00:06:48,200 --> 00:06:52,400 It's always a choice to take down some of that debt and we 120 00:06:52,400 --> 00:06:54,800 continue to evaluate that kind of on a quarter to quarter 121 00:06:54,800 --> 00:06:58,500 basis, if interest rates stabilized, maybe even head 122 00:06:58,500 --> 00:07:01,600 down, there may be less incentive to do that versus 123 00:07:01,600 --> 00:07:05,100 other opportunities for Capital. Allocation, if interest rates 124 00:07:05,100 --> 00:07:08,300 continue to stay this High, then there is incentive to kind of 125 00:07:08,300 --> 00:07:11,900 take it down a little little bit and and use some of our capital 126 00:07:11,900 --> 00:07:14,500 for that. So it's a, it's an ongoing 127 00:07:14,500 --> 00:07:18,000 conversation with the board and with the leadership team to look 128 00:07:18,000 --> 00:07:21,500 at the best use of the dollars that we're generating out of the 129 00:07:21,500 --> 00:07:24,100 business as well as what we have from debt. 130 00:07:24,100 --> 00:07:26,000 So yeah, I'm the company had a lot. 131 00:07:26,200 --> 00:07:30,500 You have to keep free cash flow so it's a position to be in and 132 00:07:30,600 --> 00:07:32,200 I know management owns a bunch of stock. 133 00:07:32,200 --> 00:07:34,000 You've got Fun Zone, bunch of the stock. 134 00:07:34,300 --> 00:07:36,600 The next question I have for you rabbie's. 135 00:07:36,600 --> 00:07:41,100 Respect to go, I guess. Valued areas or under cap. 136 00:07:41,100 --> 00:07:44,600 But I guess undervalued areas that you can grow and where some 137 00:07:44,900 --> 00:07:47,900 areas that are you looking to grow, would it be possibly a i 138 00:07:48,100 --> 00:07:51,000 yes or no. And or other areas that you can 139 00:07:51,000 --> 00:07:55,700 speak to one is going to play a major role in many Industries, 140 00:07:55,700 --> 00:07:58,700 including ours. And in ours, there are a few 141 00:07:58,700 --> 00:08:01,400 specific areas where we've invested heavily and are now 142 00:08:01,400 --> 00:08:04,000 starting to see some returns and and will continue to invest 143 00:08:04,000 --> 00:08:07,300 heavily in those areas. So, number one is a high-powered 144 00:08:07,300 --> 00:08:11,800 merchandising so when You think about these unattended 145 00:08:11,800 --> 00:08:14,600 locations? You know, whether whether they 146 00:08:14,600 --> 00:08:18,100 are little Bistro at an airport which is selling salads and 147 00:08:18,100 --> 00:08:22,500 sandwiches to, you know, two lockers to catering dining 148 00:08:22,500 --> 00:08:25,000 ahead. There's a convergence happening 149 00:08:25,300 --> 00:08:29,800 of all ways in which somebody wants to shop for their food and 150 00:08:29,800 --> 00:08:35,400 beverage right online, experience the delivery 151 00:08:35,400 --> 00:08:37,900 experience, whether it's an Uber Eats or, you know, things like 152 00:08:37,900 --> 00:08:40,200 that. The The break room experience, 153 00:08:40,200 --> 00:08:43,700 they're all converging and the hot food cafeteria, which used 154 00:08:43,700 --> 00:08:45,600 to be in corporate break rooms is going away. 155 00:08:45,900 --> 00:08:49,800 It's going out, and it's too expensive, not economically 156 00:08:49,800 --> 00:08:51,500 feasible, labor, shortages in all. 157 00:08:51,500 --> 00:08:53,600 Those are driving it out, so which is great for us. 158 00:08:54,400 --> 00:08:57,600 What that leads to is. I want to be smart about 159 00:08:57,600 --> 00:09:01,700 freshness and variety, right? So if, if I'm at a office 160 00:09:01,700 --> 00:09:04,500 location, I don't want to eat the same turkey sandwich every 161 00:09:04,500 --> 00:09:08,700 day for lunch, I want to have sushi one day. 162 00:09:08,700 --> 00:09:11,800 And I I'll have a tuna sandwich the other day, so it's just 163 00:09:12,100 --> 00:09:16,700 creating that experience requires a lot of intelligence 164 00:09:16,700 --> 00:09:19,700 and AI is great at, you know, that kind of merchandising and 165 00:09:19,700 --> 00:09:22,600 it could be. Even as simple as you know, blue 166 00:09:22,600 --> 00:09:27,500 Gatorade in a vending machine versus Coke on a particular time 167 00:09:27,500 --> 00:09:30,800 of the year, you know, or whatever. 168 00:09:30,800 --> 00:09:33,100 Those type of decisions, right, right. 169 00:09:33,100 --> 00:09:35,400 That's finding a lot of value from that. 170 00:09:35,400 --> 00:09:38,900 That's one the other place where we use AI, pretty heavily is 171 00:09:39,400 --> 00:09:44,000 What we call Dynamic scheduling. So before we built this 172 00:09:44,000 --> 00:09:48,800 Innovation, you used to have people show up every Tuesday to 173 00:09:48,800 --> 00:09:53,200 restock, you know, whether it's office coffee supplies or you 174 00:09:53,200 --> 00:09:55,800 know, or these marketplaces or whatever. 175 00:09:56,400 --> 00:09:59,500 And the problem with that is half the time somebody would 176 00:09:59,500 --> 00:10:03,400 show up with, you know, a lot of stuff and they would find that 177 00:10:03,400 --> 00:10:07,200 sales hadn't happened and they wasted a trip and the other 178 00:10:07,200 --> 00:10:08,300 half. They would find out that they 179 00:10:08,300 --> 00:10:10,700 showed up in the Shelves were empty for two days and they lost 180 00:10:10,700 --> 00:10:13,900 sales, right? So so on both sides, it was - 181 00:10:14,000 --> 00:10:17,600 and with our Dynamic scheduling. Now it's real-time inventory 182 00:10:17,600 --> 00:10:22,700 across warehouse and locations optimized for forecast sales, 183 00:10:23,100 --> 00:10:25,200 you know, using artificial intelligence. 184 00:10:25,500 --> 00:10:28,800 So and and then doing something called pre-treating. 185 00:10:28,900 --> 00:10:31,300 So what happens is in the warehouse itself, they build 186 00:10:31,300 --> 00:10:35,100 kids for each location, there are exactly tailored to what is 187 00:10:35,100 --> 00:10:37,200 needed to be restocked at that location. 188 00:10:37,500 --> 00:10:38,900 Okay? The god of them. 189 00:10:39,100 --> 00:10:41,100 And artificial intelligence optimized. 190 00:10:41,100 --> 00:10:44,600 When a driver is going to go to a location, it's not every 191 00:10:44,600 --> 00:10:48,000 Tuesday or every Thursday anymore, it can vary and it's 192 00:10:48,000 --> 00:10:51,500 dynamically scheduled and it gives them their, you know, pick 193 00:10:51,500 --> 00:10:53,900 list and it gives them their products and it gives them their 194 00:10:54,300 --> 00:10:58,100 go here on Monday and don't go to this other place and it's 195 00:10:58,100 --> 00:11:01,700 very intelligent in terms of taking into account factors 196 00:11:01,700 --> 00:11:03,500 like, hey, you're anyway going to this place. 197 00:11:03,800 --> 00:11:06,400 So, even though this other place is not fully empty, it makes 198 00:11:06,400 --> 00:11:09,100 sense to go there, right? Stuff like that, but those Those 199 00:11:09,100 --> 00:11:14,000 are two big areas where we are doing a lot with AI, and then we 200 00:11:14,000 --> 00:11:17,300 are doing a lot with aii around trouble management. 201 00:11:17,300 --> 00:11:20,600 So, especially when you have unattended locations, you know, 202 00:11:20,600 --> 00:11:24,700 if if that parking gate has a problem and it's not opening, 203 00:11:24,900 --> 00:11:27,000 you're going to have some very pissed-off customers, right? 204 00:11:27,000 --> 00:11:28,500 Especially if they're stuck inside. 205 00:11:28,800 --> 00:11:32,200 So, go ahead proactively detects something, right? 206 00:11:32,200 --> 00:11:37,600 And then dispatch for trouble is a is another big portion of kind 207 00:11:37,600 --> 00:11:39,800 of what we do, right? So that's Hopefully, that gives 208 00:11:39,800 --> 00:11:42,400 you some color on the AI side. Now, I love that. 209 00:11:42,400 --> 00:11:45,900 And then is that proprietary AI? Or is that just chat EBT, or is 210 00:11:45,900 --> 00:11:46,800 it? How does that work? 211 00:11:47,700 --> 00:11:51,700 So it's the dynamic scheduling piece and the merchandising 212 00:11:51,700 --> 00:11:55,000 pieces so far have been proprietary AI, but they use 213 00:11:55,300 --> 00:11:59,600 fairly standard algorithms that are used by the the broader 214 00:11:59,600 --> 00:12:02,900 retail World in terms of doing basket analysis and several, 215 00:12:02,900 --> 00:12:07,000 things like that. Some of it is protected very 216 00:12:07,000 --> 00:12:09,700 proprietary and protected by our patterns we have More than 70 217 00:12:09,700 --> 00:12:14,500 patterns and that creates a nice mode for our business against 218 00:12:14,500 --> 00:12:15,600 competition. Right? 219 00:12:15,600 --> 00:12:20,700 And so, some of this is in that category, chat GP is exciting 220 00:12:20,700 --> 00:12:24,400 for us, in accelerating, our customer support experience. 221 00:12:24,800 --> 00:12:28,400 And in accelerating, our internal kind of data 222 00:12:28,400 --> 00:12:30,400 intelligence platforms and things like that. 223 00:12:30,400 --> 00:12:35,000 So, we're doing a lot with chat G, PT more in R&D at this stage 224 00:12:35,300 --> 00:12:38,300 in those areas, right? And I think it's early, but I'm 225 00:12:38,300 --> 00:12:40,700 very excited. What could come out of it and 226 00:12:40,700 --> 00:12:44,000 not to mention the organic, you know, at our company I have 227 00:12:44,000 --> 00:12:48,200 encouraged people to, you know, in a compliant way experiment. 228 00:12:48,200 --> 00:12:51,500 And so, we've got marketing, people writing content, using 229 00:12:51,500 --> 00:12:54,100 chat GPT. And I even have somebody who 230 00:12:54,100 --> 00:12:57,200 wrote a contract using chargeability, and our chief 231 00:12:57,200 --> 00:13:00,800 legal officer was actually, this is actually not bad, it was so, 232 00:13:01,100 --> 00:13:03,400 so it can be a Time Saver in many different areas. 233 00:13:04,300 --> 00:13:08,900 Engineers are obviously using it to write and refine code in some 234 00:13:09,000 --> 00:13:11,300 Cases. So, in a lot of places, we've 235 00:13:11,300 --> 00:13:13,000 got it. We're also putting a lot of 236 00:13:13,000 --> 00:13:16,000 controls in place to make sure we don't shoot ourselves in the 237 00:13:16,000 --> 00:13:20,200 foot from either compliance perspective or, you know, chat 238 00:13:20,200 --> 00:13:24,500 GPT is stealing someone else's code or copying content from 239 00:13:24,500 --> 00:13:27,300 somebody else's website. So you put controls in place to 240 00:13:27,300 --> 00:13:28,500 ensure. All that doesn't happen. 241 00:13:28,900 --> 00:13:29,600 Now. That's wonderful. 242 00:13:29,600 --> 00:13:32,400 I heard of crazy story. A lawyer had used it for some 243 00:13:32,400 --> 00:13:35,100 kind of historical precedent, and it was just all bogus was 244 00:13:35,100 --> 00:13:37,400 all wrong. You got that, you got nailed for 245 00:13:37,400 --> 00:13:38,400 it. Okay, wonderful. 246 00:13:38,400 --> 00:13:41,800 So Cube to follow up, question to all of that. 247 00:13:41,800 --> 00:13:46,300 First off, you mentioned to make sure the risks don't happen. 248 00:13:46,300 --> 00:13:48,800 So like in other words, a machine doesn't know, not open, 249 00:13:48,800 --> 00:13:51,100 right? So how do you handle risk and 250 00:13:51,100 --> 00:13:55,100 then what steps do you take to mitigate risk and or help with 251 00:13:55,100 --> 00:13:56,500 risk management? Yeah. 252 00:13:56,500 --> 00:14:00,100 It's what we call Telemetry, which is, you know, we try to 253 00:14:00,100 --> 00:14:03,700 get a lot of data points in the operating environments that we 254 00:14:03,708 --> 00:14:06,200 are present in. So that way, we can detect 255 00:14:06,200 --> 00:14:09,900 trouble way before it manifests in an Actual problem that 256 00:14:09,900 --> 00:14:12,200 impacts a consumers experience. Okay. 257 00:14:12,200 --> 00:14:16,100 So in a nutshell how we handle that and and it has a lot of 258 00:14:16,100 --> 00:14:20,600 value and we charge our customers per month, you know, 259 00:14:20,600 --> 00:14:25,400 per location price for it and and it's a good profitable 260 00:14:25,400 --> 00:14:26,800 business and adds a lot of value. 261 00:14:27,400 --> 00:14:29,200 Excellent. And then the next question with 262 00:14:29,200 --> 00:14:32,900 respect to growth going forward, I know you guys by definition 263 00:14:32,900 --> 00:14:36,100 your Innovative company. You see things, what areas are 264 00:14:36,100 --> 00:14:38,800 you looking to grow into where either you haven't been there? 265 00:14:38,900 --> 00:14:41,600 You're just starting to scratch the surface therefore for more 266 00:14:41,600 --> 00:14:45,000 growth with your Five-Year Plan. You know, the EV charging 267 00:14:45,000 --> 00:14:48,900 spaces, one of those. Not the only one and amusement 268 00:14:48,900 --> 00:14:50,500 is another. Now, these are all areas where 269 00:14:50,500 --> 00:14:54,500 or a variety of different reasons, the opportunity is 270 00:14:54,500 --> 00:14:57,300 starting to mature. So, what happened in EV charging 271 00:14:57,300 --> 00:14:59,200 was? Everybody came up with, hey, I'm 272 00:14:59,200 --> 00:15:03,000 going to search for a location on my app when find it, and I'm 273 00:15:03,000 --> 00:15:05,400 going to make the payment and do everything on my app. 274 00:15:05,400 --> 00:15:10,400 Well, now the states in Ian particular are starting to take 275 00:15:10,400 --> 00:15:14,200 the lead and saying that's not an inclusive solution and you 276 00:15:14,200 --> 00:15:17,000 need an open-loop payment solution where I can use my 277 00:15:17,000 --> 00:15:20,000 credit card. I can use other normal payment 278 00:15:20,000 --> 00:15:24,300 mechanisms you know just as I can at a gas station, right? 279 00:15:24,300 --> 00:15:28,700 So now the charging station manufacturers who didn't build 280 00:15:28,700 --> 00:15:32,100 that into their solution out of the gate are looking for 281 00:15:32,100 --> 00:15:34,800 retrofit opportunities where they can collaborate with 282 00:15:34,800 --> 00:15:38,900 somebody like us and say put a card reader on there and and in 283 00:15:39,000 --> 00:15:42,700 Will the telematics to tell the charging station to dispense 284 00:15:42,700 --> 00:15:45,400 charge? And and also by the way, now 285 00:15:45,400 --> 00:15:48,700 that you have that a company like us can monitor the 286 00:15:48,700 --> 00:15:50,600 efficiency of the charging station. 287 00:15:50,600 --> 00:15:54,100 We can monitor its connectivity to the grid, we can monitor, we 288 00:15:54,100 --> 00:15:56,900 can report on all the transactions in a very clever 289 00:15:56,900 --> 00:15:59,100 manner. So there is a value chain that 290 00:15:59,100 --> 00:16:02,100 we are ascending. If you will, in that space, 291 00:16:02,700 --> 00:16:05,900 Amusement is another, you know, we have a pretty good presence 292 00:16:05,900 --> 00:16:11,300 already but there are various types of gaming machines in bars 293 00:16:11,300 --> 00:16:15,400 in, you know, in various other locations that are also suitable 294 00:16:15,400 --> 00:16:18,900 for Self Service payment in telematics and and we are 295 00:16:18,900 --> 00:16:21,000 expanding that pretty aggressively as well. 296 00:16:21,600 --> 00:16:23,200 I love it. No, the EV stuff. 297 00:16:23,200 --> 00:16:25,200 And even the amusement stuff is fantastic. 298 00:16:25,200 --> 00:16:28,800 Especially as people want those experiences, the TV cars. 299 00:16:28,800 --> 00:16:31,500 I just had the CEO of wall box on which they specialize in 300 00:16:31,500 --> 00:16:36,400 making EV boxes, and they have it where the generator for your 301 00:16:36,400 --> 00:16:37,800 house. It could be your battery for the 302 00:16:37,800 --> 00:16:39,900 car. So the car You know, and you 303 00:16:39,900 --> 00:16:42,900 know better, it's fantastic. So okay that's beautiful. 304 00:16:43,100 --> 00:16:45,000 I guess. My next question from a 305 00:16:45,000 --> 00:16:48,600 shareholder standpoint is the growth looks very clear that in 306 00:16:48,608 --> 00:16:51,300 my mind's eye at least I see that the risk. 307 00:16:51,300 --> 00:16:53,600 You met, you doing your best to mitigate the risk. 308 00:16:53,600 --> 00:16:55,300 The what? Let's talk Macro for a little 309 00:16:55,300 --> 00:16:59,000 bit, the overall economy and pure fear of a recession, the 310 00:16:59,000 --> 00:17:01,500 FED raising rates. How does all of that factor into 311 00:17:01,500 --> 00:17:04,000 your plan going forward? Yeah. 312 00:17:04,000 --> 00:17:07,599 There are some, some things that can be Tailwind for us in. 313 00:17:07,599 --> 00:17:12,200 Some, that can be had when Zell Outline them, if we have a 314 00:17:12,200 --> 00:17:17,200 recession that prompts a lot more companies to lay off a lot 315 00:17:17,200 --> 00:17:22,400 more workers that's had been for our business because we do drive 316 00:17:22,400 --> 00:17:25,800 a lot of business, through break room experiences at companies. 317 00:17:26,400 --> 00:17:28,700 Now, what we've seen so far is that the layoffs have been 318 00:17:28,700 --> 00:17:32,300 restricted more to Tech and very high and white collar jobs. 319 00:17:32,800 --> 00:17:38,700 They in when you get to, you know, lower-income workers the 320 00:17:38,700 --> 00:17:39,500 opportunity. Is it is true. 321 00:17:39,500 --> 00:17:42,100 There is a severe shortage, and that hasn't changed. 322 00:17:42,100 --> 00:17:44,500 And there are three jobs for every person, right? 323 00:17:44,500 --> 00:17:47,800 Almost. So we have a long way to go 324 00:17:47,800 --> 00:17:52,400 before I think that problem can become a reality but in past 325 00:17:52,400 --> 00:17:55,300 recessions we've seen unemployment climb. 326 00:17:55,300 --> 00:17:58,700 Very steeply very quickly. So that's a risk, right? 327 00:17:59,300 --> 00:18:04,900 The Tailwind side is if the bargaining power, which is, you 328 00:18:04,900 --> 00:18:07,400 know, been heavily with employees, especially in White 329 00:18:07,400 --> 00:18:10,700 Collar jobs. Start shifting because of 330 00:18:10,700 --> 00:18:14,100 recessionary conditions, more towards employers, then you 331 00:18:14,100 --> 00:18:17,300 might have more employers, you know, like Google did like some 332 00:18:17,300 --> 00:18:20,400 of the other companies have done start asking workers to come 333 00:18:20,400 --> 00:18:22,700 back to the office, which is Tailwind for us, you know. 334 00:18:22,700 --> 00:18:26,800 So if workers come back instead of two days a week, three days a 335 00:18:26,800 --> 00:18:28,700 week. And if more remote workers, 336 00:18:29,100 --> 00:18:32,700 start thinking that, hey, you know, I better be in the office 337 00:18:32,700 --> 00:18:35,800 and interacting with people or my job is going to be at risk. 338 00:18:35,800 --> 00:18:38,800 That's actually a positive for us and love that. 339 00:18:39,100 --> 00:18:41,900 Anything else that I didn't ask that you'd like to share with 340 00:18:41,900 --> 00:18:46,500 you before we wrap up for today. I think just in, you know, you 341 00:18:46,500 --> 00:18:51,400 you've covered a broad swath of everything, the one area, which 342 00:18:51,400 --> 00:18:54,000 maybe we didn't touch on is, hey, how are you? 343 00:18:54,100 --> 00:18:57,300 How are you getting operating leverage in the business and how 344 00:18:57,300 --> 00:19:00,500 is the comfortability growing, you know, this sharply because 345 00:19:00,800 --> 00:19:05,500 our our forecast for the long-term or Outlook call for an 346 00:19:05,500 --> 00:19:08,700 ebitda growth rate a kegger of 70%, right? 347 00:19:09,200 --> 00:19:12,300 However, the top line revenue is growing at 15%, so that throws 348 00:19:12,300 --> 00:19:16,100 some people off in terms of how you growing Revenue to 15%, and 349 00:19:16,100 --> 00:19:19,600 yet you grow your ebitda at at 70%. 350 00:19:19,600 --> 00:19:23,800 So the answer is this, when at least when I got here, the 351 00:19:23,800 --> 00:19:28,300 business was more heavily tilted towards equipment and payments 352 00:19:28,800 --> 00:19:31,900 and software was kind of a third leg of the stool, right? 353 00:19:32,100 --> 00:19:34,800 Not necessarily the big portion. What? 354 00:19:34,800 --> 00:19:37,800 We've now done is we've outlined a strategy where software is 355 00:19:37,800 --> 00:19:41,900 going to become the biggest, Part of the business and and 356 00:19:41,900 --> 00:19:45,200 software has just to break that down. 357 00:19:45,200 --> 00:19:49,800 Historically equipment, margins have been - - climbing is 10%, 358 00:19:50,300 --> 00:19:53,600 and it's the razors that you sell to sell the razor blades 359 00:19:53,600 --> 00:19:57,600 late winter and the payment processing margins. 360 00:19:57,600 --> 00:20:00,300 Historically were at 8 to 10% and they were stuck there for 361 00:20:00,300 --> 00:20:03,000 many, many years and the software margins were good. 362 00:20:03,000 --> 00:20:05,400 They were at 80% but the software business was growing 363 00:20:05,400 --> 00:20:09,200 very slow 46%. So what we've done is We've done 364 00:20:09,200 --> 00:20:13,500 a number of pivots and invested heavily in R&D on the software 365 00:20:13,500 --> 00:20:17,600 side, to build a lot of new modules and a lot of additional 366 00:20:17,600 --> 00:20:19,500 things. The AI powered merchandising is 367 00:20:19,500 --> 00:20:22,600 a good example, ability to change prices remotely is 368 00:20:22,600 --> 00:20:25,500 another example. So as a result, now we have 369 00:20:25,500 --> 00:20:30,000 shifted to where this fiscal year, our software growth of the 370 00:20:30,000 --> 00:20:32,600 subscription. Revenue growth has been in the 371 00:20:32,600 --> 00:20:37,600 teens instead of being 46%. And next year and onwards we see 372 00:20:37,600 --> 00:20:40,700 it in the low 20s. So we know the soft Revenue at a 373 00:20:40,708 --> 00:20:43,900 much faster Pace in the 20-plus percent rate, right? 374 00:20:43,900 --> 00:20:46,500 And that's 80, plus percent margin. 375 00:20:46,500 --> 00:20:49,600 So as this becomes a bigger portion of the pie, the overall 376 00:20:49,600 --> 00:20:53,000 profitability of the business improves drastically, that's 377 00:20:53,000 --> 00:20:54,800 one. The second thing we've done is, 378 00:20:54,800 --> 00:20:57,400 we've looked at the payment processing Revenue, very 379 00:20:57,400 --> 00:21:01,000 carefully and how we route payments and made some 380 00:21:01,800 --> 00:21:04,900 significant improvements there that have now brought it from 381 00:21:04,900 --> 00:21:07,900 the eight to ten percent, where it was for many, many years to 382 00:21:07,900 --> 00:21:11,200 the 14 to 16, Eighteen percent in the last several quarters and 383 00:21:11,200 --> 00:21:15,200 we've Consolidated that expertise and proven that we can 384 00:21:15,200 --> 00:21:17,500 do it. Not just, you know, flash in the 385 00:21:17,500 --> 00:21:21,000 pan 1/4 but repeatedly and consistently and we have a 386 00:21:21,000 --> 00:21:24,400 pathway to get it more closer to the 20% Mark. 387 00:21:24,500 --> 00:21:27,600 So there is, you know, when we looked at it carefully and we 388 00:21:27,600 --> 00:21:30,400 said here are all the levers is all the work we have to do. 389 00:21:30,900 --> 00:21:36,700 We kind of outlined a 24-month roadmap and where the midpoint 390 00:21:36,700 --> 00:21:40,400 of it and we realized, you know, It's a half the gain so that 391 00:21:40,500 --> 00:21:43,400 that is another driver that makes it profitable. 392 00:21:43,400 --> 00:21:46,700 And in combination, you know these things are what is going 393 00:21:46,700 --> 00:21:51,200 to drive our business there? Plus, we also stopped the 394 00:21:51,200 --> 00:21:54,400 heavier discounting on the equipment side, which have made 395 00:21:54,700 --> 00:21:56,500 that be profitable as well though. 396 00:21:56,500 --> 00:22:00,300 Marginally, it's not, you know, going to get to the the double 397 00:22:00,300 --> 00:22:04,100 digit of significant margin numbers, but at least we're not 398 00:22:04,100 --> 00:22:07,400 burning as much cash there. So that in combination all these 399 00:22:07,400 --> 00:22:10,600 three things, I've led to the better profitability and the 400 00:22:10,608 --> 00:22:13,600 better trajectory for profitability now, I love that. 401 00:22:13,600 --> 00:22:16,100 So when you go, you said you're going to sell more software and 402 00:22:16,200 --> 00:22:19,200 make that piece of the pie bigger, is that selling to 403 00:22:19,200 --> 00:22:21,600 existing clients or is that going after new business or 404 00:22:21,600 --> 00:22:25,100 both. Both both more of it is, you 405 00:22:25,100 --> 00:22:29,400 know, to 70% is still continuing to upsell current customers. 406 00:22:30,300 --> 00:22:33,300 But there is a 30% factor which is more selling to newer 407 00:22:33,300 --> 00:22:36,500 customers and your logo. So it's a combination number. 408 00:22:36,500 --> 00:22:39,100 I got it. And then your R&D that Creating 409 00:22:39,100 --> 00:22:40,700 the new proprietary, all your patents. 410 00:22:40,700 --> 00:22:43,100 Number one, number two, your proprietary AI. 411 00:22:43,100 --> 00:22:46,900 So on and so forth, one of those things do they have the ability 412 00:22:46,900 --> 00:22:49,900 to have a J curve where it could be exponential type growth or 413 00:22:49,900 --> 00:22:52,900 those things more moderate growth as far as the leading to 414 00:22:52,900 --> 00:22:57,600 the bottom line growing. So in terms of the revenue 415 00:22:57,600 --> 00:23:03,200 growth as of now, it's all aimed more at continuing to expand 416 00:23:03,200 --> 00:23:06,100 that software side and making it more profitable. 417 00:23:06,600 --> 00:23:09,900 However, you know, like, any company we have, I call them our 418 00:23:09,900 --> 00:23:15,100 list of 325 Moon shots that, you know, if they take off, then 419 00:23:15,100 --> 00:23:16,600 they can dry the exponential growth. 420 00:23:16,600 --> 00:23:19,800 So we make a few of those bets but we're very disciplined 421 00:23:19,800 --> 00:23:22,600 about, let's not, you know, from a capital allocation 422 00:23:22,600 --> 00:23:26,400 perspective, that's that tends to be in there. 10 to 15 percent 423 00:23:26,400 --> 00:23:29,600 of our capex. Overall, Rd capex and the rest 424 00:23:29,600 --> 00:23:33,600 tends to be very focused on, you know, driving better 425 00:23:33,600 --> 00:23:36,400 profitability and driving incremental growth in the core 426 00:23:36,400 --> 00:23:39,300 business, understood. Yeah, you just said, You meant 427 00:23:39,300 --> 00:23:41,000 as far as earnings are concerned, right? 428 00:23:42,900 --> 00:23:44,300 They tried the revenue and earnings got it. 429 00:23:44,300 --> 00:23:46,200 Okay wonderful. Well beautiful wrapping this has 430 00:23:46,200 --> 00:23:49,200 been fed super-fantastic. The company's cantaloupe ticker 431 00:23:49,200 --> 00:23:51,600 symbol to see TLP everybody. Go check it out. 432 00:23:51,700 --> 00:23:53,800 If people want to get in touch with you, Robbie what's the best 433 00:23:53,800 --> 00:23:55,100 way? They go on the website or, how 434 00:23:55,100 --> 00:23:56,500 should they connects going forward? 435 00:23:56,500 --> 00:24:02,700 Yeah, my the website is great. My email is our venkatesa, which 436 00:24:02,700 --> 00:24:05,500 is my first initial, and last name at cantaloupe.com. 437 00:24:05,500 --> 00:24:07,100 That's a great way to get in touch as well. 438 00:24:07,600 --> 00:24:09,500 Beautiful, thank you so much. Hopefully, we'll have you on 439 00:24:09,500 --> 00:24:11,800 again soon. Alright, thanks Adam. 440 00:24:08,800 --> 00:24:10,100 Hopefully, we'll have you on again soon. 441 00:24:10,500 --> 00:24:11,800 Alright, thanks Adam.