Agilysys(AGYS) - 2024 Q4 - Annual Results

Revenue Growth - Total net revenue for fiscal 2024 increased 19.9% to a record $237.5 million compared to $198.1 million in fiscal 2023[4] - Recurring revenue reached a record $138.1 million, accounting for 58.1% of total net revenue, with subscription revenue growing 29.6% year over year[4] - The company expects fiscal 2025 revenue to be between $275 million and $280 million, with subscription revenue growth exceeding 27%[8] - Total net revenue for the three months ended March 31, 2024, was $62,221,000, a 17.5% increase from $52,897,000 in the same period of 2023[22] Profitability Metrics - Adjusted EBITDA for fiscal 2024 was a record $37.1 million, compared to $30.3 million in the prior year[4] - Net income attributable to common shareholders for fiscal 2024 was $85.0 million, or $3.17 per diluted share, compared to $12.7 million, or $0.49 per diluted share, in fiscal 2023[4] - Operating income for the year ended March 31, 2024, was $15,753,000, representing a 22.5% increase from $12,875,000 in 2023[22] - Adjusted EBITDA for the year ended March 31, 2024, was $37,069,000, an increase from $30,291,000 in 2023[28] Cash Flow and Liquidity - Free cash flow for fiscal 2024 was $40.1 million, up from $27.2 million in fiscal 2023[4] - The company reported a net cash provided by operating activities of $48,186,000 for the year ended March 31, 2024, compared to $34,463,000 in 2023[26] - Net cash provided by operating activities for the three months ended March 31, 2024, was $29,807,000, compared to $16,783,000 in 2023, indicating a 77.7% increase[30] - Free cash flow for the twelve months ended March 31, 2024, was $40,059,000, up from $27,225,000 in 2023, marking a 47.0% increase[30] Margins - Gross margin for fiscal 2024 was 60.7%, slightly down from 61.0% in the prior year[4] - The company reported a gross margin of 61.5% in Q4 2024, compared to 60.8% in the same quarter of the previous year[4] - Gross profit margin improved to 61.5% for the three months ended March 31, 2024, compared to 60.8% in the same period of 2023[22] Shareholder Metrics - Adjusted diluted earnings per share for the twelve months ended March 31, 2024, was $1.10, up from $0.97 in 2023, reflecting a 13.4% growth[29] - The basic weighted average shares outstanding increased to 26,913,000 for the three months ended March 31, 2024, from 24,825,000 in 2023, a growth of 8.4%[29] - The company reported a net income attributable to common shareholders of $2,961,000 for the three months ended March 31, 2024, down from $3,616,000 in 2023, a decrease of 18.1%[29] Expenses and Investments - Total operating expenses for the year ended March 31, 2024, were $128,503,000, up from $107,944,000 in 2023[22] - Capital expenditures for the twelve months ended March 31, 2024, totaled $8,127,000, compared to $7,238,000 in 2023, reflecting an increase of 12.3%[30] - Share-based compensation increased to $4,622,000 for the three months ended March 31, 2024, compared to $3,548,000 in 2023, a rise of 30.3%[29] Asset Growth - Cash and cash equivalents increased to $144,891,000 as of March 31, 2024, compared to $112,842,000 in 2023[24] - Total assets grew to $350,430,000 as of March 31, 2024, up from $243,036,000 in 2023[24] Tax and Amortization - The company experienced a significant tax event adjustment of $(69,067,000) for the twelve months ended March 31, 2024[29] - Amortization of internal-use software and intangibles decreased to $1,366,000 for the twelve months ended March 31, 2024, from $1,743,000 in 2023, a decline of 21.6%[29] Subscription Revenue - Subscription revenue comprised 57.0% of total recurring revenue in Q4 2024, up from 50.6% in Q4 2023[4] - Subscription and maintenance revenue increased to $36,588,000 for the three months ended March 31, 2024, up 16.5% from $31,368,000 in 2023[22] - Significant growth in subscription and services revenue indicates a strong competitive position in the hospitality software market[7]