Agilysys(US:AGYS)2024-07-26 20:05Financial Performance - Total net revenue for the three months ended June 30, 2024, was $63,512,000, 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, 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 $1,548,000 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 $0.04 for the same period in 2023[11] - Operating income for the three months ended June 30, 2024, was $5,747,000, compared to $958,000 in the same period last year[11] - For the three months ended June 30, 2024, net income was $14.106 million, compared to $1.548 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 $2,071,000 in 2023, indicating a year-over-year increase of 573%[13] - Basic income per share rose to $0.52 for Q2 2024, compared to $0.04 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 $12,781,000 year-over-year, while subscription and maintenance revenue increased to $38,043,000 from $32,125,000[11] - Revenue from product sales for the three months ended June 30, 2024, was $9.9 million, a decrease of 22.5% from $12.8 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 $43.3 million in 2023[42] - Revenue recognized from contract liabilities at the beginning of the period was $26.8 million for Q2 2024, compared to $22.1 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 $43.3 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 $144,891,000 at the end of the previous quarter[9] - Total assets increased to $355,698,000 as of June 30, 2024, compared to $350,430,000 as of March 31, 2024[9] - Total shareholders' equity rose to $254,171,000, up from $236,477,000 in the previous quarter[9] - The total shareholders' equity as of June 30, 2024, was $254.171 million, up from $111.686 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 $32,099,000 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 $3.2 million in 2023[66] - Share-based compensation for the three months ended June 30, 2024, amounted to $4,850,000, compared to $3,377,000 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 $893,000 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 $22,000 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) in the same period of 2023[16] - Total current liabilities decreased to $77.4 million from $89.4 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 $81.60 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 $47.169 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 $4.0 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]