Agilysys, Inc. (NASDAQ: AGYS), a leading global provider of hospitality software solutions that deliver High Return Hospitality, today reported results for its fiscal 2024 fourth quarter and full year...
Annual Revenue Includes Recurring Revenue of $138.1M and Subscription Revenue Growth of 29.6%
Annual Record Adjusted EBITDA of $37.1M and Free Cash Flow of $40.1M
Annual Revenue Expected To Grow To $275M to $280M In Fiscal 2025 With Full Year Adjusted EBITDA of 16%
ALPHARETTA, Ga.: Agilysys, Inc. (NASDAQ: AGYS), a leading global provider of hospitality software solutions that deliver High Return Hospitality, today reported results for its fiscal 2024 fourth quarter and full year ending March 31, 2024.
Summary of Fiscal 2024 Fourth Quarter Financial Results
Summary of Full Fiscal Year 2024 Financial Results
Ramesh Srinivasan, President and CEO of Agilysys, commented, “We are pleased to report our ninth consecutive record revenue quarter and another record fiscal year with respect to overall revenue and profitability. The final fiscal year results were significantly better than our expectations at the beginning of the year and at the high end of revised increased expectations during the year.
“Fiscal 2024 fourth quarter revenue was a record $62.2 million, 17.6% higher than the comparable prior year quarter and included subscription revenue growth of 31.6% and services revenue growth of 43.9% year-over-year. Full year fiscal 2024 revenue was a record $237.5 million, 19.9% higher than the previous fiscal year, and included subscription revenue growth of 29.6% and services revenue growth of 39.2%.
Srinivasan continued, “Significant growth in subscription and services revenue and improvements in services margins are good indicators of our continuing progress as a world-class cloud-native end-to-end technology provider fulfilling the growing need for such high-grade software solutions in the hospitality industry. With the completion of virtually all the product re-engineering and modernization projects across POS, PMS, and Inventory-Procurement on which we had been focused for the past several years, we now have a heightened competitive advantage that positions us well for continued sales success and revenue growth. We have made several significant sales breakthroughs during the past few months.
“We expect fiscal year 2025 to mark the beginning of a great new era with full year revenue in the $275 million to $280 million range inclusive of at least 27% subscription revenue growth and Adjusted EBITDA at 16% of revenue,” Srinivasan concluded.
Fiscal 2025 Outlook
The Company expects full year fiscal 2025 revenue to be $275 million to $280 million, including higher than 27% year-over-year subscription revenue growth. Adjusted EBITDA is expected to be 16% of revenue for the full fiscal year.
Dave Wood, Chief Financial Officer, commented, “We are pleased with the results for the 2024 fiscal year. Our disciplined approach throughout the year enabled us to execute well on our fiscal 2024 financial plan while positioning us for continued success and growth into fiscal year 2025. Strong subscription revenue growth is an indication of our expanding competitive product strength and results of the increasing investments in sales and marketing efforts. We continue to see growth opportunities in front of us and remain focused on executing disciplined profitable growth.”
2024 Fourth Quarter Conference Call and Webcast
Agilysys is hosting a conference call and webcast today, May 13, 2024, at 4:30 p.m. ET. Both the call and the webcast are open to the public. Interested parties can register for the call at https://register.vevent.com/register/BI5c740825742e4b699d9ea8b050cd4a0b. After registration, an email confirmation with a personalized PIN will be provided along with further access details. Please plan to register fifteen minutes prior to the presentation to receive confirmation and further instruction in a timely manner.
Interested parties can also access the conference call live on the Events and Presentations page of Agilysys.com. Approximately two hours after the call has concluded, an archived version of the webcast will be available for replay at the same location.
Forward-Looking Language
This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: “anticipate,” “intend,” “plan,” “goal,” “seek,” “believe,” “project,” “estimate,” “expect,” “strategy,” “future,” “likely,” “may,” “should,” “will” and similar references to future periods. Examples of forward-looking statements include, among others, our revenue, subscription revenue and Adjusted EBITDA guidance for the 2025 fiscal year.
Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the impact macroeconomic factors may have on the overall business environment, our ability to achieve our fiscal 2025 guidance, future revenue growth, the company's ability to convert the backlog into revenue, and the risks described in the Company’s filings with the Securities and Exchange Commission, including the Company’s reports on Form 10-K and Form 10-Q. Additionally, references to "record" financial and business levels in this document refer only to the time period after Agilysys made the transformation to an entirely hospitality focused software solutions company in FY2014.
Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statement that may be made from time to time, whether written or oral, whether as a result of new information, future developments or otherwise.
Use of Non-GAAP Financial Information
To supplement the unaudited consolidated financial statements presented in accordance with U.S. GAAP in this press release, certain non-GAAP financial measures as defined by the SEC rules are used. These non-GAAP financial measures include EBITDA, Adjusted EBITDA, adjusted net income, adjusted basic earnings per share, adjusted diluted earnings per share and free cash flow. Management believes that such information can enhance investors’ understanding of the Company’s ongoing operations.
The Company has included the following non-GAAP financial measures in this press release: adjusted net income, adjusted basic earnings per share and adjusted diluted earnings per share. The Company believes these non-GAAP financial measures provide valuable insight into the Company’s overall profitability from core operations before certain non-cash and non-recurring charges. The Company defines adjusted net income as net income before amortization expense (including amortization of developed technology), share-based compensation, convertible preferred stock issuance costs, and one-time charges including severance and other charges, impairments and legal settlements, less the related income tax effect of these adjustments, as applicable, and defines adjusted earnings per share as adjusted net income divided by basic and diluted weighted average shares outstanding.
See the accompanying tables below for the definitions and reconciliation of these non-GAAP measures to the most closely related GAAP measures.
About Agilysys
Agilysys exclusively delivers state-of-the-art software solutions and services that help organizations achieve High Return Hospitality™ by maximizing Return on Experience (ROE) through interactions that make ‘personal’ profitable. Customers around the world use Agilysys Property Management Systems (PMS), Point-of-Sale (POS) solutions and Food & Beverage Inventory and Procurement (I&P) systems to consistently delight guests, retain staff and grow margins. Agilysys’ 100% hospitality customer base includes branded and independent hotels; multi-amenity resorts; casinos; property, hotel and resort management companies; cruise lines; corporate dining providers; higher education campus dining providers; food service management companies; hospitals; lifestyle communities; senior living facilities; stadiums; and theme parks. Agilysys operates across the Americas, Europe, the Middle East, Africa, Asia-Pacific, and India with headquarters located in Alpharetta, GA. For more information visit Agilysys.com.
- Financial tables follow -
AGILYSYS, INC. | ||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
(UNAUDITED) | ||||||||||||||||
|
| Three months ended |
| Year Ended | ||||||||||||
|
|
|
|
|
|
| ||||||||||
(In thousands, except per share data) |
| 2024 |
| 2023 |
| 2024 |
| 2023 | ||||||||
Net revenue: |
|
|
|
|
|
|
|
|
|
|
|
| ||||
Products |
| $ | 10,983 |
|
| $ | 11,347 |
|
| $ | 49,083 |
|
| $ | 43,638 |
|
Subscription and maintenance |
|
| 36,588 |
|
|
| 31,368 |
|
|
| 138,069 |
|
|
| 118,285 |
|
Professional services |
|
| 14,650 |
|
|
| 10,182 |
|
|
| 50,312 |
|
|
| 36,142 |
|
Total net revenue |
|
| 62,221 |
|
|
| 52,897 |
|
|
| 237,464 |
|
|
| 198,065 |
|
Cost of goods sold: |
|
|
|
|
|
|
|
|
|
|
|
| ||||
Products |
|
| 6,294 |
|
|
| 6,312 |
|
|
| 26,318 |
|
|
| 22,994 |
|
Subscription and maintenance |
|
| 8,059 |
|
|
| 7,039 |
|
|
| 30,870 |
|
|
| 26,262 |
|
Professional services |
|
| 9,592 |
|
|
| 7,363 |
|
|
| 36,020 |
|
|
| 27,990 |
|
Total cost of goods sold |
|
| 23,945 |
|
|
| 20,714 |
|
|
| 93,208 |
|
|
| 77,246 |
|
Gross profit |
|
| 38,276 |
|
|
| 32,183 |
|
|
| 144,256 |
|
|
| 120,819 |
|
Gross profit margin |
|
| 61.5 | % |
|
| 60.8 | % |
|
| 60.7 | % |
|
| 61.0 | % |
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
| ||||
Product development |
|
| 14,284 |
|
|
| 13,710 |
|
|
| 56,739 |
|
|
| 50,260 |
|
Sales and marketing |
|
| 8,601 |
|
|
| 6,097 |
|
|
| 28,439 |
|
|
| 22,716 |
|
General and administrative |
|
| 9,073 |
|
|
| 7,819 |
|
|
| 36,279 |
|
|
| 30,669 |
|
Depreciation of fixed assets |
|
| 854 |
|
|
| 398 |
|
|
| 3,896 |
|
|
| 1,769 |
|
Amortization of internal-use software and intangibles |
|
| 246 |
|
|
| 417 |
|
|
| 1,366 |
|
|
| 1,743 |
|
Other charges, net |
|
| 1,711 |
|
|
| 61 |
|
|
| 1,756 |
|
|
| 435 |
|
Legal settlements |
|
| 28 |
|
|
| 248 |
|
|
| 28 |
|
|
| 352 |
|
Total operating expense |
|
| 34,797 |
|
|
| 28,750 |
|
|
| 128,503 |
|
|
| 107,944 |
|
Operating income |
|
| 3,479 |
|
|
| 3,433 |
|
|
| 15,753 |
|
|
| 12,875 |
|
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
| ||||
Interest income |
|
| 1,503 |
|
|
| 1,006 |
|
|
| 5,083 |
|
|
| 2,192 |
|
Other (expense) income, net |
|
| (136 | ) |
|
| (102 | ) |
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