Unattended-payments specialist USA Technologies Inc. said it added more than 3,600 new customers in its fiscal year ending June 30, bringing its customer count to approximately 23,000. It ended its 2019 fiscal year with 19,400 customers. The addition comes as Malvern, Pa.-based USAT finds itself with new management, a reorganized business structure, and a sales and customer-service revamp following a tumultuous proxy fight.
USAT reported June-quarter revenue of $32.6 million, down 15.2% year-over-year. Net new connections increased by 35,000, bringing the total to 1,320,000. The company said its operating loss widened to $10.4 million for the quarter from $9.5 million a year ago.
USAT executives say they have put the pieces in place to improve the company’s financials and grow its core business, though obstacles remain.
“Despite the fact that Covid-19 is still having an impact, we have been able to control costs, and make organizational and operational changes needed to position USAT for long-term growth and profitability,” chief executive Sean Feeney said in a statement. “With a completely new executive team now in place, a reorganized business structure, a realigned sales force and redesigned customer-service team, as well as a stronger capital structure, we have an unbelievable opportunity to build something great on this strong foundation during fiscal year 2021, and beyond.” Feeney took the reins at USAT in May.
With a new executive suite at USAT, Robert Napoli, analyst at Chicago-based William Blair & Co. LLC, expects better results, especially once Covid-19 is gone. “Unattended retail has been massively impacted by Covid, and USAT’s improvement will be tied to the recovery,” Napoli said in a research note. “Once the world normalizes, we expect sustainable revenue growth of 20% and substantial expansion of EBITDA margins.”