USA Technologies (USAT), the king of unattended self-serve small-ticket payments (vending), has reached an inflection point. For the first quarter (1Q/16) revenues soared 32% year-on-year (YOY) and transaction volume spiked nearly 55% YOY.
USAT posted $20.4 million in first quarter gross revenue, up a stunning 32.5% YOY, compared to $18.5 million for the prior quarter, and $15.4 million for the year ago quarter.
USAT says it is experiencing an inflection point in the unattended retail payments market with our cashless-payment solutions while achieving record revenue and integrating an acquisition.
The net loss for 1Q/16 was $5.4 million, compared to $874,000 for 4Q/15, and $566,000 for 1Q/15.
Transaction volume for 1Q/16 soared 54.6% YOY to $151.0 million, compared to $138.0 million for the prior quarter, and $97.7 million for the year ago quarter.
The number of connections in 1Q/16 rose 32.8% YOY to 401,000, compared to 369,000 for 4Q/15 and 302,000 for 1Q/15.
USAT notes the $5.4 million 1Q/16 loss included the impact of a $4.8 million non-cash expense for the fair value warrant liability adjustment, $461,000 of non-recurring expenses relating to the acquisition and integration of the VendScreen business, and $105,000 of professional fees incurred in connection with the class action litigation which was dismissed by the court in April 2016.
Other first quarter notes: 32,000 net connections for the quarter compared to 14,000 in the same quarter last year, a YOY increase of 129%; of total connections to ePort service, there were 6,000 new connections attributable to the VendScreen acquisition which closed on January 15, 2016, representing a YOY increase of 33%; and a record 10,825 customers compared to 8,925 as of a year ago, a YOY increase of 21%.
USAT expects to add between 93,000 and 95,000 net new connections for the year, bringing total connections to its service to a range of 426,000 to 428,000 and expects total revenue to be between $76 million and $78 million.
1Q/15: $15.4 million
2Q/15: $17.6 million
3Q/15: $16.6 million
4Q/15: $18.5 million
1Q/16: $20.4 million
1Q/15: $ 97.7 million
2Q/15: $112.8 million
3Q/15: $126.4 million
4Q/15: $138.0 million
1Q/16: $151.0 million
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