Revenue Recognition and Financial Performance - The Company recognized $19.4 million of revenue from deferred revenue during the three months ended July 31, 2024[34]. - As of July 31, 2024, the aggregate amount of the transaction price allocated to remaining performance obligations was approximately $125.0 million, with an expectation to recognize revenue on approximately 51% over the next 12 months[35]. - The Company reported total revenues of $26.2 million for the three months ended July 31, 2024, compared to $25.9 million for the same period in 2023, reflecting a year-over-year increase[37]. - Domestic revenue for the three months ended July 31, 2024, was $20.5 million, slightly down from $20.5 million in 2023, while international revenue increased to $5.7 million from $5.4 million[37]. - Total revenue for the three months ended July 31, 2024, was $26,192,000, a 1% increase compared to $25,901,000 in the same period of 2023[109]. - Subscription fees increased by 7% to $14,791,000, representing 56% of total revenue for the three months ended July 31, 2024[109]. - Professional services and other revenue rose by 5% to $3,870,000, driven by increased bookings in recent quarters[115]. - License revenue decreased by 17% to $241,000, primarily due to a shift from on-premise licensed software to SaaS[114]. - Maintenance revenue fell by 11% to $7,290,000, constituting 28% of total revenue[109]. - The Supply Chain Management (SCM) segment generated revenue of $25,359,000 for the three months ended July 31, 2024, compared to $24,969,000 for the same period in 2023, reflecting a growth of 1.6%[79]. Earnings and Shareholder Returns - Basic earnings per share for Class A Common Shares for the three months ended July 31, 2024, was $0.06, down from $0.08 in the same period of 2023, representing a 25% decrease[45]. - Total distributed earnings for the three months ended July 31, 2024, was $3,462,000, compared to $3,558,000 for the same period in 2023, a decrease of approximately 2.7%[45]. - The diluted EPS for Class A Common Shares for the three months ended July 31, 2024, was $0.06, consistent with the previous year[47][48]. - The Company repurchased a total of 5,534,953 shares of common stock at a cost of approximately $35.8 million as of July 31, 2024[70]. - A quarterly cash dividend of $0.11 per share was declared on May 30, 2024, payable on August 30, 2024[40]. - A quarterly cash dividend of $0.11 per share was declared on August 20, 2024, payable on November 29, 2024[84]. Operational Changes and Strategic Decisions - The Company disposed of its 100% equity interest in The Proven Method for approximately $2.1 million in cash in September 2023[23]. - The company disposed of its IT staffing firm, TPM, for approximately $2.1 million in cash, allowing a focus on core supply chain planning business[58]. - The company acquired Garvis AI Limited for approximately $25.0 million, with $16.2 million allocated to goodwill, enhancing its AI capabilities in supply chain management[54][56]. - The Company expects to provide enhanced reportable segment financial disclosures starting with its Annual Report on Form 10-K for the year ending April 30, 2025, following the issuance of ASU 2023-07[24]. Cost Management and Expenses - The Company capitalizes incremental costs of obtaining contracts, with deferred commission costs amortized ratably over the economic benefit period[39]. - Research and development expenses increased by 3% to $4,364,000, representing 17% of total revenue, primarily due to higher personnel costs and contractor usage[127]. - The company recorded total compensation cost related to stock options of approximately $1.3 million for the three months ended July 31, 2024, compared to $1.4 million in 2023[62]. - Inflation has impacted the company through increased costs of employee compensation and operating expenses, prompting efforts to recover these costs through price adjustments[156]. Market and Investment Performance - As of July 31, 2024, the total fair value of marketable securities was $86,403,000, an increase from $77,782,000 as of April 30, 2024, representing an increase of approximately 10.4%[68][69]. - The fair market value of the company's investment portfolio decreased to approximately $86.4 million as of July 31, 2024, from $110.5 million a year earlier, reflecting market conditions affecting investment valuations[153]. - Unrealized losses from investments amounted to approximately $0.5 million, while realized gains were approximately $0.6 million for the three months ended July 31, 2024[135]. - The company has no debt and believes its liquidity and capital resources are sufficient for at least the next twelve months, although it may need to seek additional capital in the future[147]. Operational Efficiency and Workforce - The company recorded a net cash used in operating activities of $(1,799,000) for the three months ended July 31, 2024, compared to $7,168,000 provided in the same period last year[142]. - The total number of full-time personnel decreased to 410 from 489 year-over-year, indicating a reduction in workforce[132]. - Days Sales Outstanding in accounts receivable improved to 61 days as of July 31, 2024, down from 76 days as of July 31, 2023, indicating better cash collection efficiency[146]. Segment Performance - Operating income from the SCM segment was $6,577,000 for the three months ended July 31, 2024, up from $6,170,000 in the prior year, indicating an increase of 6.6%[79]. - Earnings before income taxes for the SCM segment were $7,105,000 for the three months ended July 31, 2024, compared to $6,416,000 in the prior year, marking an increase of 10.7%[79]. - Operating income for the SCM segment increased by 7% to $6,577,000, while the Other segment's operating loss decreased by 1% to $(4,733,000)[133]. - The SCM segment's capital expenditures were $7,000 for the three months ended July 31, 2024, significantly lower than $350,000 in the same period last year[79]. - The SCM segment accounted for 94% of total maintenance revenue, with SCM maintenance revenue also decreasing by 11% due to client attrition and migration to the SaaS cloud platform[117]. Tax and Regulatory Matters - The effective tax rate for the three months ended July 31, 2024, was 17.0%, down from 20.2% in the same period last year, influenced by research and development credits[137]. - Remediation of a previously disclosed material weakness in internal control over financial reporting was completed as of July 31, 2024, enhancing the accuracy of financial reconciliations[160]. Currency and Economic Environment - The Company anticipates that the challenging global macroeconomic environment will require clients to improve productivity and profitability, potentially enhancing the selling environment for its software solutions[90]. - Exchange rate losses increased to approximately $92,000 for the three months ended July 31, 2024, compared to $65,000 for the same period in the prior year, indicating potential currency risk exposure[152]. - The company has not engaged in any hedging activities, which may expose it to additional risks from foreign currency fluctuations[152].

Core Viewpoint - American Software (AMSWA) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][2]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on the Zacks Consensus Estimate, which reflects EPS estimates from sell-side analysts for the current and following years [1]. - Changes in earnings estimates are strongly correlated with near-term stock price movements, largely due to institutional investors who adjust their valuations based on these estimates [3]. Impact of Earnings Estimate Revisions - Rising earnings estimates for American Software suggest an improvement in the company's underlying business, which is expected to drive the stock price higher [3]. - The Zacks Rank system effectively utilizes earnings estimate revisions to classify stocks, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [4]. Current Earnings Estimates for American Software - For the fiscal year ending April 2025, American Software is expected to earn $0.38 per share, reflecting a year-over-year decline of -25.5% [5]. - Over the past three months, the Zacks Consensus Estimate for American Software has increased by 5.6% [5]. Zacks Rating System Overview - The Zacks rating system maintains a balanced distribution of 'buy' and 'sell' ratings across over 4000 stocks, with only the top 5% receiving a 'Strong Buy' rating [6]. - The upgrade of American Software to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating strong potential for market-beating returns in the near term [7].

Financial Data and Key Metrics Changes - For Q1 2025, revenues were $26.2 million, a 1% increase from $25.9 million in the same period last year, driven by higher subscription fees and professional services [11] - Subscription fees increased 7% year-over-year to $14.8 million compared to $13.8 million [11] - Adjusted EBITDA margin rose to nearly 18%, reflecting improved gross margins and disciplined expense management [5] - Gross margin improved to 67% from 65% in the prior year [12] - Net income was $2.1 million or earnings per diluted share of $0.06, down from $2.6 million or $0.08 per diluted share last year [14] Business Line Data and Key Metrics Changes - Professional services revenue increased 5% to $3.9 million compared to $3.7 million in the same period last year [12] - Maintenance revenues declined 11% year-over-year to $7.3 million, impacted by the divestiture of the transportation group [12] - Total recurring revenues, comprising subscription and maintenance fees, increased 1% and represented 84% of total revenues for the quarter [12] Market Data and Key Metrics Changes - International revenues accounted for 22% of total revenues, up from 18% last year [15] - Remaining performance obligations increased by 13% year-over-year to $125 million [15] Company Strategy and Development Direction - The company is focusing on an AI-first approach to supply chain planning, with new generative AI capabilities launched in May [6] - There is a concerted effort to transition existing self-managed clients to cloud-hosted solutions, with expectations for increased cloud migrations towards the end of the fiscal year [7] - The company is maintaining its fiscal 2025 guidance for total revenue of $104 million to $108 million and recurring revenue between $87 million to $89 million [10] Management's Comments on Operating Environment and Future Outlook - Management noted that conversion of the pipeline remained low due to seasonal softness and cautious buyer behavior in an uncertain economic environment [8] - Despite economic concerns, there is confidence in meeting or exceeding guidance due to an expanding late-stage pipeline and increased client readiness to move forward with projects [9] - Management expressed optimism about the cloud migration strategy and its reception among clients, anticipating it will become a more prominent part of the delivery model [33] Other Important Information - The company has eliminated its dual-class structure to enhance corporate governance [10] - Cash and investments stood at approximately $92 million at the end of the quarter, with $3.7 million paid in dividends during the quarter [15] Q&A Session Summary Question: Can you quantify retention rates and compare them to historicals? - Retention rates are currently in the mid-90s, consistent with recent quarters [17][20] Question: Are you taking any internal actions to address slower conversions? - The company has not diverted resources but has taken steps to stimulate dialogue and facilitate client transitions to cloud solutions [19][20] Question: How actively is the company looking for M&A opportunities? - The company has adopted a more opportunistic posture due to misaligned valuations in the market [21][22] Question: Is the professional services margin sustainable? - The company is comfortable with the current services margin, viewing it as a return to normal levels [25][26] Question: How is the network optimization opportunity emerging? - The network design optimization solution is gaining traction among clients, enhancing their ability to manage supply chain decisions [28] Question: What is the competitive landscape like with new entrants? - The competitive landscape remains stable, with SAP and Microsoft as primary competitors, while new entrants have not significantly impacted the market [40][41]

Core Insights - American Software reported earnings per share (EPS) of 12 cents, exceeding the analyst estimate of 8 cents [1] - The company achieved revenue of $26.19 million, which is 3.69% higher than the analyst estimate of $25.26 million [1] Financial Performance - Earnings per share (EPS): 12 cents, above the estimate of 8 cents [1] - Revenue: $26.19 million, surpassing the estimate of $25.26 million by 3.69% [1]

Core Viewpoint - American Software reported quarterly earnings of $0.12 per share, exceeding the Zacks Consensus Estimate of $0.07 per share, and matching the earnings from the previous year [1] - The company achieved a revenue of $26.19 million for the quarter, surpassing the Zacks Consensus Estimate by 5.23%, although this represents a decline from $29.17 million year-over-year [1] Earnings Performance - The earnings surprise for the quarter was 71.43%, with a previous quarter surprise of 50% [1] - Over the last four quarters, American Software has exceeded consensus EPS estimates three times [1] Revenue Insights - The company has also topped consensus revenue estimates three times in the last four quarters [1] - Current consensus EPS estimate for the upcoming quarter is $0.08 on revenues of $25.76 million, and for the current fiscal year, it is $0.35 on revenues of $104.01 million [4] Industry Context - The Computer - Software industry is currently ranked in the top 28% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [5] - Adobe Systems, another company in the same industry, is expected to report quarterly earnings of $4.53 per share, reflecting a year-over-year increase of 10.8% [5][6]

Financial Results - American Software, Inc. announced preliminary financial results for Q1 FY 2025, ending July 31, 2024[6] - The press release regarding the financial results was issued on August 22, 2024[6] Non-GAAP Measures - The company reported a non-GAAP adjusted EBITDA, which provides insights into financial trends, although specific figures were not disclosed in the provided content[7] - The company emphasizes the importance of non-GAAP measures like adjusted net earnings and adjusted net earnings per share for understanding its financial condition[7] - The financial information presented is not in accordance with GAAP, indicating a focus on alternative financial metrics[7]

Table of Contents _________________________ _________________________ _________________________ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K _________________________ (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended April 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 0-12456 AMERICAN S ...

Financial Data and Key Metrics Changes - Total revenues for Q4 2024 were $25.4 million, a decrease of 5% from $26.8 million in the same period last year, primarily due to lower revenues from license fees and professional services [14] - Subscription fees increased by 8% year-over-year to $14.1 million compared to $13 million in the same period last year [14] - Net income was $2.2 million or earnings per diluted share of $0.07, compared to net income of $2.9 million or $0.09 per diluted share last year [18] - Gross margin was 66% for the current period, up from 65% in the same period last year [16] Business Line Data and Key Metrics Changes - Professional services and other revenues decreased by 23% to $3.7 million from $4.8 million a year ago, primarily due to lower bookings earlier in the year [15] - Maintenance revenues declined by 9% year-over-year to $7.4 million, reflecting a normal falloff rate and the divestiture of the Transportation group [15] - Total recurring revenues, comprised of subscription and maintenance fees, represented 85% of total revenue for Q4, up from 79% in the same period last year [15] Market Data and Key Metrics Changes - International revenues accounted for approximately 20% of total revenues compared to 19% last year [19] - Remaining performance obligations (RPO), or backlog, was $128 million, an 8% sequential increase and a 3% year-over-year increase [19] Company Strategy and Development Direction - The company transformed through divestitures, focusing on its core supply chain software business and planning to rename itself Logility [6] - The acquisition of Garvis and the introduction of DemandAI+ are part of the accelerated AI roadmap to enhance capabilities and client engagement [8] - The company plans to eliminate its dual-class structure, which is expected to create significant shareholder value [9] Management's Comments on Operating Environment and Future Outlook - The management noted that clients are engaged in transformational supply chain initiatives but have delayed approvals and commitments due to macroeconomic headwinds [9] - The initial guidance for fiscal 2025 includes total revenue of $104 million to $108 million, with conservative assumptions around client spending decisions [13][20] - Management expressed optimism about pipeline growth and the potential for accelerated subscription fee growth as clients convert to cloud solutions [12][20] Other Important Information - The company paid $3.7 million in dividends during the quarter and repurchased stock in the open market for the first time in many years [8] - The financial position remains strong with cash investments of $83.8 million at the end of the quarter [19] Q&A Session Summary Question: Current buying environment and project start times - Management noted that the economic environment has led to a stall in project approvals, with clients taking a conservative approach to investments [22][24] Question: Feedback on cloud conversion activity - Feedback has been mixed, with some clients receptive to moving to the cloud while others require more dialogue to address concerns [27][29] Question: Baseline assumptions for recurring revenue guidance - The company is taking a cautious approach to bookings, expecting more activity in the second half of the year [30][31] Question: Causes of prolonged approval cycles - The management indicated that client hesitance is influenced by economic conditions and inventory backlogs, rather than interest rates directly [34][36] Question: Differences in scrutiny between cloud conversions and new logos - Cloud conversions are generally easier to initiate compared to new logos, as they often involve offsetting investments [40][41] Question: Impact of bookings being back-end loaded on future revenue - Management confirmed that back-end loaded bookings would positively impact fiscal 2026 revenue [43][44] Question: Pipeline conversion rates and historical levels - The company is experiencing double-digit growth in its overall pipeline, but conversion rates remain below historical levels [46] Question: Rebranding motivations - The rebranding to Logility is aimed at aligning the company with its well-known brand in the industry [48][49] Question: Perception of eliminating dual-class stock - Management believes that eliminating the dual-class structure will broaden the investment community's interest in the company [51]

American Software (AMSWA) came out with quarterly earnings of $0.12 per share, beating the Zacks Consensus Estimate of $0.08 per share. This compares to earnings of $0.12 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 50%. A quarter ago, it was expected that this enterprise software provider would post earnings of $0.06 per share when it actually produced earnings of $0.19, delivering a surprise of 216.67%.Over the last four ...

FOR IMMEDIATE RELEASE Financial Information Press Contact: Vincent C. Klinges Chief Financial Officer American Software, Inc. (404) 264-5477 Transformative Actions Taken in Fiscal 2024 Subscription Fee Growth of 8% and 10% in Q4 and Fiscal 2024 ATLANTA (June 6, 2024) American Software, Inc. (NASDAQ: AMSWA) today reported preliminary financial results for the fourth quarter and fiscal year 2024. During the second quarter of fiscal year 2024, we divested our non-core information technology staffing firm, The ...