During the third quarter fiscal year results, USAT revealed that the revenue had increased by 14.3% year-over-year to $43.1 million. Under the revenue, license, and transaction fee revenue increased to $35.0 million, a growth of 10.9% year-over-year. On the other hand equipment revenue stood at $8.1 million an increase of 31.5% year-over-year. The company recorded a net loss of $9.6 million compared to a net loss of $4.6 million compared to a similar quarter in 2019. In May, the company management suspended the fourth-quarter results announcement citing the uncertainties around the coronavirus pandemic. The management stated that there was a need of understanding the full impact of Covid-19 before giving further guidance. The fourth quarter’s results will of interest as it will give a full picture of how the health crisis impacted the company. The pandemic hit at a period USAT was in the process of re-establishing a foundation for growth. The company had just enacted a new board to spearhead stability and have a competitive edge in the market. Additionally, it will be vital to see if the recent company reorganization has paid office. The firm was re-organized into three different groups: Finance and Administration, Revenue and Customer Success; and Product, Technology, and Operations.
USAT’s plan to mitigate Covid-19 impact
To mitigate the impact of the health crisis on the company, USAT resorted to slashing the salaries of top executives by at least 20% from May to December 31, 2020. USAT had acknowledged that the uncertainties around Covid-19 might impact the company’s operations, financial condition, and the demand for its products and services. USAT highlighted that with employees, customers, consumers, and suppliers in quarantine, its revenue might be impacted. The company also cited travel restrictions, reduced consumer spending, and closures of customer locations, manufacturing facilities, warehouses, and logistics supply chains linked to the crisis as a major set back to revenue targets. Notably, in the wake of the health crisis technology companies have remained resilient. Demand for cashless payment was high since authorities discouraged physical cash transaction to curb the spread of the virus. Apart from cashless payment solutions, USAT provides software services for end-to-end technology solutions for the self-service retail market. Featured image via USA Technologies YouTube
