Reports Record Recurring Revenue of $23.2M Inclusive of Subscription Record Revenue of $10.2M
Reports Adjusted EBITDA of $6.9M and Positive GAAP EPS of $0.06 With
Quarterly Free Cash Flow of $7.7M and Cash Balance Increase of $4.7M to $103.9M
Alpharetta, GA – July 28, 2021 – Agilysys, Inc. (Nasdaq: AGYS), a leading global provider of next-generation cloud-native SaaS and on-premise hospitality software solutions and services, today reported operating results for its fiscal 2022 first quarter ended June 30, 2021.
Summary of Fiscal 2022 First Quarter Financial Results
- Total net revenue was $38.7 million, compared to net revenue of $29.8 million and $38.4 million in the first quarters of fiscal 2021 and 2020, respectively.
- Recurring revenues (which are comprised of support, maintenance and subscription services) for the fiscal first quarter were $23.2 million or 59.9% of total net revenue compared to $20.5 million or 68.8% of total net revenue and $20.1 million or 52.3% of total net revenue for the first quarters of fiscal 2021 and 2020, respectively. Subscription revenues increased 33.2% over fiscal 2021 first quarter compared to an increase of 8.6% fiscal 2021 over fiscal 2020 first quarter. Subscription revenues comprised 43.7% of total recurring revenues compared to 37.2% and 34.9% for the first quarters of fiscal 2021 and 2020, respectively.
- Gross margin was 64.2% compared to 2% and 52.1% in the first quarters of fiscal 2021 and 2020, respectively.
- Net income attributable to common shareholders in the fiscal 2022 first quarter was $1.5 million, or $06 per diluted share compared to a net loss of $(1.7) million or $(0.07) per diluted share and a net loss of $(1.6) million or $(0.07) per diluted share for the first quarters of fiscal 2021 and 2020, respectively.
- Adjusted diluted EPS (non-GAAP) was $0.21 compared to $0.08 and $0.08 per share in the first quarters of fiscal 2021 and 2020 respectively (see reconciliation below).
- Adjusted EBITDA (non-GAAP) improved to $6.9 million, compared to $4 million and $3.2 million in the first quarters of fiscal 2021 and 2020 respectively (see reconciliation below).
- Free cash flow (non-GAAP) in the fiscal 2022 first quarter was $7.7 million compared to $(5.2) million and $(2.5) million in the fiscal first quarters of 2021 and 2020 respectively (see reconciliation below). Ending cash balance was $103.9 million, compared to ending cash balance of $99.2 million as of fiscal 2021 year-end.
Ramesh Srinivasan, President and CEO of Agilysys, commented, “While certain sectors within the domestic hospitality industry have seen good recovery since around March of this year, several other market segments, especially in international regions, remain challenged by the pandemic.”
“Despite the lack of recovery in multiple vertical and geographic market areas, this was our best Q1 April – June quarter with respect to sales success and revenue level, slightly higher than Q1 two years ago. We have seen a good pick up in hospitality customers finalizing technology decisions in a couple of domestic market segments. However, continuing implementation delays negatively affected revenue for the quarter, while driving the combined product, services and recurring revenue backlog to record levels.”
“We continue to make good progress with getting our recently modernized software products implemented at various customer properties. Our transformation from being known as a solid, trusted hospitality software solutions enterprise software company to one which is also driven by modern technology-based cloud applications is now underway in full flow, positioning us well for a promising future. Our upcoming increases in sales, marketing, services and support investments will further speed up that transformation process.”
Fiscal 2022 Outlook
Agilysys continues to monitor the impact of COVID-19 on the hospitality industry with our primary focus being the safety of our employees and customers as we manage through these unprecedented times. We are re-iterating our previously released guidance of full year fiscal 2022 revenue of $160 to $170 million and Adjusted EBITDA of slightly better than 15% of revenue.
Dave Wood, Chief Financial Officer, commented, “We continue to be excited with the solid foundation we have built for long term sustainable growth and profitability. We have positioned the company to be a dependable growing partner for customers and a provider of mission critical, modern technology solutions to the hospitality industry. Now that the industry is starting to see recovery in certain markets, we are beginning to see the sound business fundamentals come through in our financial results. We are executing on our strategic plan and remaining committed to the profitability and success of the company while serving the needs of customers and supporting the recovery of the hospitality industry.”
2022 First Quarter Conference Call and Webcast
Agilysys is hosting a conference call and webcast today, July 27, 2021, at 4:30 p.m. ET. Both the call and the webcast are open to the public. The conference call number is 224-357-2393 (domestic or international); and the conference ID number is 3984906. Please call five minutes prior to the presentation to ensure that you are connected.
Interested parties may also access the conference call live on the Internet at Agilysys Events & Presentations. Approximately two hours after the call has concluded, an archived version of the webcast will be available for replay at the same location.