Hardware

COVID-19 clips USA Technologies' Q2 2021 revenue, earnings

Logo provided.

February 5, 2021

USA Technologies Inc.'s revenue decreased 13.1% from $44.05 million in the second quarter of 2020 to $38.3 million in the second quarter ended Dec. 31, 2021, according to an earnings report.

Operating loss improved from $7.8 million in the second quarter of 2020 to $2.6 million in the second quarter of 2021.

Net loss improved from $8.37 million in the second quarter of 2020 to $2.9 million in the 2021 second quarter. This translated to an improved net loss of 13 cents per common share in the 2020 second quarter to a 4 cent loss per common share in 2021, for both basic and diluted bases.

Second quarter revenue missed analyst's projections by $2.1 million but the 4% GAAP loss per share beat projections by 1 cent, according to Seeking Alpha.

Shares traded at $10.01 Thursday against a 52-week range of $8.03-$11.31.

"While the rebound in our industry from the impact of the pandemic, and in turn our business, has been slower than we expected when we laid out our FY 21 financial goals, we are incredibly proud of all the company has accomplished in this short amount of time," Sean Feeney, USA Technologies CEO, said in the release.

License and transaction fee revenue of $33.2 million increased 0.3% compared to the first quarter 2021, but decreased 7.1% compared to the second quarter 2020.

Equipment revenue increased 34.5% from the first quarter 2021 to $5.1 million for the second quarter, but decreased 38.9% from the second quarter 2020.

Active devices, defined as devices that have communicated or transacted with the company in the last 12 months, totaled 1.15 billion connections at the end of the second quarter of 2021 compared to 1.13 billion at the end of the first quarter of 2021 and 1.089 billion at the end of the second quarter of 2020.

Active customers, defined as customers that have at least one device that has communicated with the company in the last 12 months, totaled 18,304 at the end of the second quarter of 2021 compared to 16,489 at the end of the second quarter of 2020.

Total connections, the performance metric for devices the company has previously reported, totaled 1.35 billion at the end of the second quarter of 2021, compared to 1.33 billion at the end of the first quarter of 2021 and 1.25 billion at the end of the second quarter of 2020.

"As a result of COVID-19's persistence and our updated assumptions around timing of a successful vaccine rollout, we have pushed out our expectations on when the virus will have less of an impact on our market and business," Wayne Jackson, USA Technologies CFO, said in the release. "Therefore, we have revised our FY2021 revenue guidance to be between $163 million and $171 million, down from a range of $170 million to $180 million, net loss applicable to common shares to be between $21 million and $17 million, down from $14.1 million and $11.1 million, and now expect our adjusted EBITDA to be between $1 million and $4 million."

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