Agilysys(AGYS) - 2024 Q2 - Quarterly Report

Revenue Growth - Total net revenue increased by $10.9 million, or 22.8%, during the second quarter of fiscal 2024 compared to the same period in fiscal 2023[79] - Total net revenue increased by$ 19.4 million, or 20.4%, in the first half of fiscal 2024 compared to the same period in fiscal 2023, reaching $114.7 million[95] - Products revenue rose by$ 2.1 million, or 19.8%, driven by higher sales to new and existing customers[79] - Products revenue rose by $3.8 million, or 17.7%, driven by higher sales to new and existing customers[95] - Subscription and maintenance revenue grew by$ 5.2 million, or 18.0%, with subscription-based service revenue increasing by 29.1%[79] - Subscription and maintenance revenue grew by $9.6 million, or 16.9%, with subscription-based service revenue increasing by 28.3%[95] - Professional services revenue surged by$ 3.6 million, or 43.8%, due to increased sales and service activity[79] - Professional services revenue increased by $6.0 million, or 35.5%, due to heightened sales and service activity[95] Profitability - Gross profit increased by$ 5.7 million, or 19.5%, while gross profit margin decreased from 61.5% to 59.9%[81] - Gross profit increased by $10.3 million, or 17.8%, while gross profit margin decreased from 60.7% to 59.4%[96] Operating Expenses - Operating expenses, excluding other charges, rose by$ 5.0 million, or 18.8%, compared to the second quarter of fiscal 2023[82] - Operating expenses, excluding other charges, rose by $11.0 million, or 21.4%, compared to the first half of fiscal 2023[97] - Product development expenses increased by$ 2.0 million, or 15.9%, due to higher salaries and benefits[82] - Sales and marketing expenses grew by $1.1 million, or 20.3%, attributed to increased marketing activities and commissions[83] - General and administrative expenses increased by$ 1.2 million, or 16.1%, due to higher salaries and benefits[84] Cash Flow and Financial Position - Cash flow from operating activities was $5.5 million, attributed to cash-based earnings of$ 14.5 million[110] - Cash on hand as of September 30, 2023, was $107.4 million, with 93% located in the United States[109] - Interest income increased significantly to$ 2.3 million from $0.5 million in the prior year[101] Tax Rate - The effective tax rate for the three months ended September 30, 2023, was 6.1%, compared to (4.6)% for the same period in 2022[90] - The effective tax rate for the first half of fiscal 2024 was 9.6%, up from 3.5% in the same period last year[104]