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Agilysys(AGYS) - 2025 Q1 - Quarterly Report
AGYSAgilysys(AGYS)2024-07-26 20:05
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Financial Performance - Total net revenue for the three months ended June 30, 2024, was 63,512,000,representinganincreaseof13.063,512,000, representing an increase of 13.0% compared to 56,059,000 for the same period in 2023[11] - Gross profit for the same period was 39,868,000,withagrossprofitmarginof62.839,868,000, with a gross profit margin of 62.8%, up from 59.0% in the prior year[11] - Net income for the three months ended June 30, 2024, was 14,106,000, significantly higher than 1,548,000inthesameperiodlastyear[13]−Thecompanyreportedabasicnetincomepershareof1,548,000 in the same period last year[13] - The company reported a basic net income per share of 0.52 for the three months ended June 30, 2024, compared to 0.04forthesameperiodin2023[11]−OperatingincomeforthethreemonthsendedJune30,2024,was0.04 for the same period in 2023[11] - Operating income for the three months ended June 30, 2024, was 5,747,000, compared to 958,000inthesameperiodlastyear[11]−ForthethreemonthsendedJune30,2024,netincomewas958,000 in the same period last year[11] - For the three months ended June 30, 2024, net income was 14.106 million, compared to 1.548millionforthesameperiodin2023,representinganincreaseof8101.548 million for the same period in 2023, representing an increase of 810%[18] - Total comprehensive income for the same period in 2024 was 13,948,000, compared to 2,071,000in2023,indicatingayear−over−yearincreaseof5732,071,000 in 2023, indicating a year-over-year increase of 573%[13] - Basic income per share rose to 0.52 for Q2 2024, compared to 0.04inQ22023,indicatingasubstantialincreaseof1,2000.04 in Q2 2023, indicating a substantial increase of 1,200%[57] Revenue Breakdown - The company experienced a decrease in product revenue to 9,874,000 from 12,781,000year−over−year,whilesubscriptionandmaintenancerevenueincreasedto12,781,000 year-over-year, while subscription and maintenance revenue increased to 38,043,000 from 32,125,000[11]−RevenuefromproductsalesforthethreemonthsendedJune30,2024,was32,125,000[11] - Revenue from product sales for the three months ended June 30, 2024, was 9.9 million, a decrease of 22.5% from 12.8millioninthesameperiodof2023[42]−Subscriptionandmaintenancerevenueincreasedto12.8 million in the same period of 2023[42] - Subscription and maintenance revenue increased to 53.6 million for the three months ended June 30, 2024, up 23.5% from 43.3millionin2023[42]−Revenuerecognizedfromcontractliabilitiesatthebeginningoftheperiodwas43.3 million in 2023[42] - Revenue recognized from contract liabilities at the beginning of the period was 26.8 million for Q2 2024, compared to 22.1millioninQ22023,reflectingagrowthof21.222.1 million in Q2 2023, reflecting a growth of 21.2%[44] - Subscription, maintenance, and professional services revenue recognized over time amounted to 53.6 million for the three months ended June 30, 2024, up from 43.3millionin2023,representingagrowthofapproximately24.543.3 million in 2023, representing a growth of approximately 24.5%[42] Assets and Equity - Cash and cash equivalents at the end of the period were 144,111,000, slightly down from 144,891,000attheendofthepreviousquarter[9]−Totalassetsincreasedto144,891,000 at the end of the previous quarter[9] - Total assets increased to 355,698,000 as of June 30, 2024, compared to 350,430,000asofMarch31,2024[9]−Totalshareholders′equityroseto350,430,000 as of March 31, 2024[9] - Total shareholders' equity rose to 254,171,000, up from 236,477,000inthepreviousquarter[9]−Thetotalshareholders′equityasofJune30,2024,was236,477,000 in the previous quarter[9] - The total shareholders' equity as of June 30, 2024, was 254.171 million, up from 111.686millionasofJune30,2023,indicatingayear−over−yearincreaseof127.6111.686 million as of June 30, 2023, indicating a year-over-year increase of 127.6%[18] Operating Expenses - Operating expenses totaled 34,121,000 for the three months ended June 30, 2024, compared to 32,099,000forthesameperiodin2023[11]−Totalshare−basedcompensationexpenseforthethreemonthsendedJune30,2024,was32,099,000 for the same period in 2023[11] - Total share-based compensation expense for the three months ended June 30, 2024, was 4.4 million, an increase of 39.9% from 3.2millionin2023[66]−Share−basedcompensationforthethreemonthsendedJune30,2024,amountedto3.2 million in 2023[66] - Share-based compensation for the three months ended June 30, 2024, amounted to 4,850,000, compared to 3,377,000inthesameperiodof2023,representinga43.73,377,000 in the same period of 2023, representing a 43.7% increase[18] Cash Flow and Liquidity - Cash receipts for interest, net, were 1.4 million for Q2 2024, compared to 893,000inQ22023,reflectingagrowthof59.4893,000 in Q2 2023, reflecting a growth of 59.4%[49] - Net cash provided by operating activities for the three months ended June 30, 2024, was 1,098,000, compared to 22,000inthesameperiodof2023[16]−Thecompanyreportedanetdecreaseincashandcashequivalentsof22,000 in the same period of 2023[16] - The company reported a net decrease in cash and cash equivalents of (780,000) for the three months ended June 30, 2024, compared to (5,749,000)inthesameperiodof2023[16]−Totalcurrentliabilitiesdecreasedto(5,749,000) in the same period of 2023[16] - Total current liabilities decreased to 77.4 million from 89.4million,indicatingimprovedliquidity[9]CompanyOverview−Agilysysoperatesintheglobalhospitalityindustry,providingsoftwaresolutionsforhotels,resorts,casinos,andothersectors,withafocusonenhancingguestexperiencesandoperationalefficiencies[21]−Thecompanyhasbeenaleaderinhospitalitysoftwareforover45years,emphasizingcloud−nativeSaaSandon−premisesolutions[21]−Agilysyshasasinglereportablesegmentservingtheglobalhospitalityindustry,consolidatingaccountswithwholly−ownedsubsidiaries[22]−ThefiscalyearforAgilysysendsonMarch31,withreferencestospecificyearsindicatingthefiscalyearendinginMarchofthatyear[23]StockandCompensation−Thecompanyissued498sharesuponexerciseofstock−settledstockappreciationrights(SSARs)duringthethreemonthsendedJune30,2024[18]−Thebalanceofcommonsharesissuedincreasedfrom31,607thousandsharesatMarch31,2023,to33,342thousandsharesatJune30,2024[18]−Thecompanygranted6,098performancesharestotheCEOinMay2024,whichvestedimmediatelyforatotalvalueof89.4 million, indicating improved liquidity[9] Company Overview - Agilysys operates in the global hospitality industry, providing software solutions for hotels, resorts, casinos, and other sectors, with a focus on enhancing guest experiences and operational efficiencies[21] - The company has been a leader in hospitality software for over 45 years, emphasizing cloud-native SaaS and on-premise solutions[21] - Agilysys has a single reportable segment serving the global hospitality industry, consolidating accounts with wholly-owned subsidiaries[22] - The fiscal year for Agilysys ends on March 31, with references to specific years indicating the fiscal year ending in March of that year[23] Stock and Compensation - The company issued 498 shares upon exercise of stock-settled stock appreciation rights (SSARs) during the three months ended June 30, 2024[18] - The balance of common shares issued increased from 31,607 thousand shares at March 31, 2023, to 33,342 thousand shares at June 30, 2024[18] - The company granted 6,098 performance shares to the CEO in May 2024, which vested immediately for a total value of 0.6 million[72] - The Employee Stock Purchase Plan (ESPP) allows participants to purchase stock at a discount of up to 15%, with a fair value of 81.60pershareasofJune30,2024[74]−TheoutstandingStock−SettledAppreciationRights(SSARs)asofJune30,2024,were560,203withanaverageexercisepriceof81.60 per share as of June 30, 2024[74] - The outstanding Stock-Settled Appreciation Rights (SSARs) as of June 30, 2024, were 560,203 with an average exercise price of 19.94 and an intrinsic value of 47.169million[68]OtherFinancialMetrics−TheeffectivetaxrateforthethreemonthsendedJune30,2024,wasnotmeaningfulduetotheimpactofdiscreteexcesstaxbenefitsassociatedwithShare−BasedCompensation[50]−CapitalizedsalesincentivecostsasofJune30,2024,were47.169 million[68] Other Financial Metrics - The effective tax rate for the three months ended June 30, 2024, was not meaningful due to the impact of discrete excess tax benefits associated with Share-Based Compensation[50] - Capitalized sales incentive costs as of June 30, 2024, were 4.8 million, up from 4.0millionin2023,representinga204.0 million in 2023, representing a 20% increase[47] - Total accrued liabilities decreased from 19.5 million as of March 31, 2024, to $13.1 million as of June 30, 2024, a reduction of approximately 32.8%[48]