DETROIT - Detroit City FC has become the first United States Soccer (USL) team to adopt Cantaloupe, Inc.'s CHEQ platform as its exclusive point-of-sale (POS) system at Keyworth Stadium for all soccer games and live events. This collaboration will introduce a new mobile-first payment experience for fans beginning in June 2024, as part of a multi-year exclusive agreement.
The CHEQ platform, developed by Cheq Lifestyle Technology, Inc., a brand of Cantaloupe, Inc. (NASDAQ: CTLP), offers a range of features designed to enhance the fan experience at sporting events. This includes mobile ordering from seats, mobile pick-up points, and express kiosks to reduce wait times for food, beverages, and merchandise.
Additionally, CHEQ is set to roll out a social gifting marketplace that allows attendees to receive concessions sent by friends or family in real-time from anywhere.
Jake Stone, the chief revenue officer of CHEQ by Cantaloupe, emphasized the platform's focus on fan enjoyment and operational efficiency for concession providers. Todd Kropp, co-owner and chief operating officer at Detroit City FC, highlighted the partnership's potential to deliver a new level of innovation and engagement to their fanbase.
CHEQ's technology is already in use by several professional sports teams and venues, including the Washington Commanders (NFL), Florida Panthers (NHL), and Miami Marlins (MLB), demonstrating its capacity to increase sales and improve transaction speeds.
The partnership was facilitated by Sports Revenue Advisors (SRA), which specializes in commercial strategy and partnership sales for sports organizations. SRA's Clark Beacom and Chris Quinn worked with Detroit City FC management to secure the deal with CHEQ.
Cantaloupe, Inc., the parent company of CHEQ, is known for providing self-service commerce solutions across various consumer services, processing over a billion transactions annually. Their vertically integrated platform is designed to improve consumer engagement and sales revenue while driving operational efficiencies.
The information in this article is based on a press release.
In other recent news, Cantaloupe Inc., a notable player in the cashless and touchless payment solutions sector, delivered a strong financial performance in its third quarter of fiscal year 2024. The company reported a 13% increase in total revenue, reaching $67.9 million, driven by a 20% growth in transaction revenue and a 7% rise in subscription revenue. Adjusted EBITDA for the quarter stood at $10.2 million.
Furthermore, Cantaloupe is making strides in global markets, with a growing customer base in Europe and Latin America. The company projects subscription revenue growth over 15% and combined revenue growth over 18% for fiscal year 2025. Despite a 5% decrease in equipment revenue, the company's transaction side exceeded expectations, driven by the micro market business and higher ticket prices.
The company's representative, Ravi Venkatesan, expressed optimism about maintaining the current growth trajectory and exploring new growth vectors independent of selling new equipment.
InvestingPro Insights
As Detroit City FC embraces Cantaloupe, Inc.'s CHEQ platform for a seamless point-of-sale experience, the financial metrics of Cantaloupe (NASDAQ: CTLP) indicate a company poised for growth. With a market capitalization of $513.31 million, Cantaloupe is trading at a forward-looking P/E ratio of 42.23, suggesting investor confidence in the company's earnings potential. Notably, the company's P/E ratio is expected to adjust to a slightly more attractive 39.16 in the last twelve months as of Q3 2024.
An impressive InvestingPro Tip for Cantaloupe is the anticipated net income growth this year, which aligns with the company's strategic partnership initiatives, such as the one with Detroit City FC. Additionally, the company's stock has seen a strong return over the last month, with an 18.89% increase, reflecting positive market sentiment that could be associated with its innovative product offerings and strategic partnerships.
InvestingPro Data also reveals a robust revenue growth of 9.52% in the last twelve months as of Q3 2024, signaling a healthy expansion in the company's operations. Furthermore, the company's gross profit margin stands at 38.94%, indicating solid profitability from its core business activities.
For investors and fans alike, the partnership between Detroit City FC and Cantaloupe, Inc. is more than just a technological advancement—it's a glimpse into the company's promising financial trajectory. For those looking for deeper insights, there are additional InvestingPro Tips available on Cantaloupe, Inc., which can be accessed with the coupon code PRONEWS24 for an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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