Innovation

USA Technologies Q1 2021 revenue beats expectations, losses continue

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November 6, 2020

USA Technologies Inc., a cashless payments and software services company that provides end-to-end technology solutions for the self-service retail market, reported a 13% boost in Q1 2021 revenue over last year's fourth quarter to $36.9 million, but a 15.0% decrease year over year, according to an earnings release.

While revenue beat analyst expectations by $2.39 million, the company's GAAP 11-cent loss per share missed expectations by 5 cents, according to Seeking Alpha.

Shares traded at $8.30 against a 52-week range of $3.80-$9.25.

The company posted a $3.6 million operating loss, compared to an $11 million loss year-over-year.

Net loss applicable to common shares of $6.9 million was 11 cents per basic share compared to a 20-cent per basic share loss in the prior year period, according to the earnings release.

License and transaction fee revenue fell 4.3% year-over-year to $33.1 million, and an increase of 18.9% versus fourth quarter 2020.

Equipment revenue decreased $3.8 million, a decrease of 21.5% over fourth quarter 2020 and a 56.9% decrease year over year.

Net new connections of approximately 15,000 bring total connections to approximately 1.335 million.

"While our revenue decreased year over year, mostly due to the COVID-19 pandemic, we experienced solid sequential growth trends during the quarter," CFO Wayne Jackson said in the release.

"Our overall revenue was up over the fourth quarter of 2020, mostly driven by the increase in license fees," he said. "We are also pleased to have generated a $5.0 million increase in operating cash flow in the current quarter over the prior year quarter."

For an update on how the coronavirus pandemic is affecting convenience services, click here.