Agilysys(US:AGYS)2024-07-22 20:06Revenue Performance - Agilysys reported record revenue of $63.5 million for Q1 fiscal 2025, a 13.3% increase year-over-year from $56.1 million[4]. - Subscription revenue grew by 32.0% year-over-year, contributing $22.1 million, which is 58.1% of total recurring revenue[8]. - Recurring revenue, which includes subscription and maintenance charges, reached a record $38.0 million, or 59.9% of total net revenue[8]. - The company expects full-year fiscal 2025 revenue to be between $275 million and $280 million, with subscription revenue growth projected to exceed 27% year-over-year[7]. Profitability Metrics - Adjusted EBITDA for the quarter was $12.1 million, representing 19% of total revenue, slightly above expectations[4]. - Net income attributable to common shareholders was $14.1 million, or $0.50 per diluted share, compared to $1.1 million, or $0.04 per diluted share in the prior year[8]. - Adjusted EBITDA for the same period was $12,118,000, up from $6,276,000 in 2023, indicating a year-over-year increase of 93%[27]. - Net income for the three months ended June 30, 2024, was $14,106,000, a significant increase from $1,548,000 in the same period last year, representing a growth of 810%[26]. Cash Flow and Capital Expenditures - Free cash flow for Q1 fiscal 2025 was $0.2 million, a significant improvement from $(3.0) million in Q1 fiscal 2024[8]. - Free cash flow for the three months ended June 30, 2024, was $229,000, compared to a negative free cash flow of $(3,043,000) in 2023, showing a turnaround in cash generation[29]. - Capital expenditures for the quarter were $869,000, down from $3,065,000 in the prior year, indicating a reduction of 71.6%[29]. Balance Sheet Highlights - Total assets increased to $355,698,000 as of June 30, 2024, compared to $350,430,000 at the end of March 2024, reflecting a growth of 1%[24]. - Total shareholders' equity rose to $254,171,000, up from $236,477,000 in the previous quarter, marking an increase of 7.5%[24]. - Cash and cash equivalents at the end of the period were $144,111,000, slightly down from $144,891,000 at the end of March 2024, a decrease of 0.5%[26]. - The company reported a net cash provided by operating activities of $1,098,000 for the quarter, a substantial increase from $22,000 in the same quarter last year[29]. - The company’s retained earnings increased to $151,861,000 as of June 30, 2024, compared to $137,755,000 at the end of March 2024, an increase of 10.2%[24]. Shareholder Information - The diluted weighted average shares outstanding increased to 28,127,000 from 26,177,000 in the previous year, reflecting a growth of 7.5%[28]. Business Outlook and Challenges - The company continues to face challenges with product revenue due to a shift in customer preference towards subscription licenses[5]. - Agilysys aims to maintain and improve its business momentum throughout the fiscal year, supported by strong subscription and services revenue growth[6].